The advanced Jan 2015 version of the secret Transpacific Partnership treaty released by Wikileaks reveals that the investor protection chapter was even worse than we predicted.
It would empower foreign investors to sue governments and demand cash compensation for any laws or regulations that undermine their “expectations” of how they should be treated.
This includes a right to claim damages for government actions (such as new environmental, health or financial policies) that reduce the value of a foreign firm’s investment (what the leaked text calls “indirect expropriation”) or that change the level of regulation a foreign investor experienced under a previous government (a violation of what the text calls a “minimum standard of treatment” for foreign investors).
According to the leaked text, it would also allow pharmaceutical companies to use TPP tribunals to demand cash compensation for generic medications that allegedly violate their so-called intellectual property rights.
Here it is, for the world to see.
This is an advanced January 2015 version of the confidential draft treaty chapter from the Investment group of the Trans Pacific Partnership (TPP) talks between the United States, Mexico, Canada, Australia, Malaysia, Chile, Singapore, Peru, Vietnam, New Zealand and Brunei Darussalam. The treaty is being negotiated in secret by delegations from each of these 12 countries, who together account for 40% of global GDP. The chapter covers agreements on investments from one TPP nation to another, including empowering foreign firms to “sue” other states’ governments, as well as regulations around investor-state dispute settlements and tribunals. This document was prepared by TPP investment chapter negotiators in advance of the informal round of negotiations held in New York City 26th January to 1st February, 2015
Global Trade Watch has just provided an analysis of the leaked text via email…
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