Some TPP nations seek exemption from investor-state lawsuit rule

WASHINGTON – Some of the 12 countries negotiating the Trans-Pacific Partnership free trade pact demanded they be exempted from the proposed litigation rule involving corporation and state, according to a purported negotiation text released by anti-secrecy website WikiLeaks.

It’s not known whether such demands remain on the table as the text was dated Jan. 20 and chief negotiators have met twice since then. WikiLeaks published the text on Wednesday.

The rule in question concerns investor-state dispute settlement (ISDS) clauses, which give a multinational company the right to sue a state for compensation if it believes its investment has been harmed by a government decision based on laws and rules.

People familiar with recent developments in the trade talks said TPP negotiators are considering making exceptions to the rule, by having laws and rules not subject to lawsuits if they are judged to have been established for public interest.

According to the document made public by WikiLeaks, countries such as Australia, Canada and Malaysia said the ISDS clauses should not apply to them in legal disputes with foreign companies in some business fields under the U.S.-led TPP.

Some TPP negotiating countries including Australia are wary about introducing the clauses in the envisioned initiative, saying they could undermine state sovereignty. Influential U.S. Sen. Elizabeth Warren also takes a critical stance on the clauses.

The other TPP negotiating countries are Brunei, Chile, Japan, Mexico, New Zealand, Peru, Singapore and Vietnam.

Meanwhile, U.S. Trade Representative Michael Froman expressed confidence Thursday that a TPP deal would be agreed soon despite disputes among the negotiators as well as U.S. lawmakers who are struggling to introduce a bill that would grant President Barack Obama fast-track authority to sign trade deals.

“We do feel that we can close this out in a very small number of months,” Froman said at an event in Washington.

Source: JapanTimes