by LORI WALLACH
Imagine what would happen if foreign companies could sue governments directly for cash compensation over earnings lost because of strict labour or environmental legislation. This may sound far-fetched, but it was a provision of the Multilateral Agreement on Investment (MAI), a projected treaty negotiated in secret between 1995 and 1997 by the then 29 member states of the OECD (Organisation for Economic Cooperation and Development) (1). News about it got out just in time, causing an unprecedented wave of protests and derailing negotiations.
Now the agenda is back. Since July the European Union and the United States have been negotiating the Transatlantic Trade and Investment Partnership (TTIP) or Transatlantic Free Trade Agreement (TAFTA), a modified version of the MAI under which existing legislation on both sides of the Atlantic will have to conform to the free trade norms established by and for large US and EU corporations, with failure to do so punishable by trade sanctions or the payment of millions of dollars in compensation to corporations.
Negotiations are expected to last another two years. The TTIP/TAFTA incorporates the most damaging elements of past agreements and expands on them. If it came into force, privileges enjoyed by foreign companies would become law and governments would have their hands tied for good. The agreement would be binding and permanent: even if public opinion or governments were to change, it could only be altered by consensus of all signatory nations. In Europe it would mirror the Trans-Pacific Partnership (TPP) due to be adopted by 12 Pacific Rim countries, which has been fiercely promoted by US business interests. Together, the TTIP/TAFTA and the TPP would form an economic empire capable of dictating conditions outside its own frontiers: any country seeking trade relations with the US or EU would be required to adopt the rules prevailing within the agreements as they stood.
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It’s easy to see why the US negotiators are keen to keep the TTIP/TAFTA negotiations secret. They are in no hurry to explain the impact the agreement would have at every level of government: federal, state and local authorities would be obliged to revise their policies from top to bottom so as to satisfy the appetite of the private sector in those sectors over which it does not yet have complete control. Food safety, chemical and toxics standards, healthcare and drug prices, Internet freedom and consumer privacy, energy and cultural “services”, patents and copyrights, natural resources, professional licensing, public utilities, immigration, government procurement: there is not one sphere of public interest that would not be subject to institutionalised free trade. The involvement of political representatives would be limited to negotiating with the private sector for the few crumbs of sovereignty it was willing to leave them.
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