Screenshot from https://wikileaks.org
Asia, Politics, South America, Trade, USA
The recently leaked chapter from the US-led Trans-Pacific Partnership Free Trade Agreement (TPP) allows firms to sue the countries they are operating in via private courts, steering clear of national jurisdictions, WikiLeaks reported.
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The chapter, which was completed on January 20, was verified by the Public Citizen organization that was present during secret negotiations in March, teleSUR reported.
The 55-page document discusses various mechanisms that enable companies involved in transnational corporation investment to sue the states they operate in without the involvement of national courts.
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Companies can file a lawsuit if they believe to be losing profit or even have a lower expectation of profit due to changes in the “environmental, health or other regulatory objectives,” according to the leaked document.
Moreover, if a foreign firm feels that a new law passed by a state impacts its rights under the TPP agreement, it could challenge the country’s decision in the private arbitration system, the investor-state dispute settlement (ISDS).