The TPP will Undermine our Democracy

The leaked Investment Chapter of the TPP would enable foreign corporations to challenge any U.S. law, rule or regulation that could adversely impact their “expected future profits” or represents a change from their “expectation of a stable regulatory environment.”  (Article 12.6 and Article 12.2)

Multi-National corporations could challenge democratically passed laws, rules and regulations including:

• Tobacco. Proposed language would allow tobacco companies to challenge product labeling and other public health policies that save millions of lives.
• Dairy. Dairy standards that protect consumers could be challenged. New Zealand based Fonterra, the world’s largest dairy exporter, has been banned from a number of countries due to products tainted by botulism.
• Seafood. Seafood standards could also be challenged. The FDA has detained hundreds of seafood exports from TPP countries due to salmonella, e-coli, methyl mercury, and drug residues.
• Prescription Drugs. Doctors without Borders stated that “Unless damaging provisions are removed before negotiations are finalized; the TPP agreement is on track to become the most harmful trade pact ever for access to medicines in developing countries.” 
• Government Procurement Preferences for U.S. Based Products or Services.  Foreign corporations could challenge any programs with preferences for American based products or services - such as Buy American, Buy Local or preferences for U.S. Call Centers - under the TPP’s procurement chapter. 
• Environment.  Corporations are already seeking billions of dollars by utilizing TPP style investment provisions to challenge the environmental policies and protections in a number of countries.
• Regulating Speculative and Destabilizing Financial Services. The TPP allows corporations to challenge governmental policies to protect consumers, regulate financial services and institute or maintain financial speculation taxes. 

Corporate challenges will take place before UN and World Bank panels, rather than in US Courts

• The leaked TPP text requires participating countries to submit to the jurisdiction of both World Bank and United Nations panels.  (Section B). These panels lack public accountability and operate totally outside our domestic court system.
• These international panels are empowered to order governments to pay unlimited cash compensation from national treasuries to corporations (Article 12.28).
• Foreign corporations will obtain preferential treatment over U.S. businesses because they can bypass and challenge domestic laws in these international tribunals.

Corporate lawsuits against sovereign nations under similar provisions in previous Free Trade Agreements have exposed taxpayers to settlements worth billions of dollars

• Pending claims worth over $14 billion have been filed by corporations challenging laws and regulations in a number of countries relating to environmental protection, energy, public health, land use and transportation – none of which are traditional trade issues

 Recommendation to Protect Our Democracy: The U.S. should not support provisions that allow corporations to sue sovereign nations before international tribunals.