How companies have abused investor-state dispute settlement clauses in the past
As you should be aware now, the threat of the Transatlantic Trade and Investment Partnership still lingers over Europe and thus over the UK (the equally dangerous Trans-Pacific Partnership looms over the USA and several other nations also, despite opposition from many US politicians particularly with regard to the 'Fast Track' clause), especially with its proposed investor-state dispute settlement clause which allows corporations (especially multinational corporations) to sue governments for lost profits or lost future profits, in international tribunals which are clearly stacked in favour of corporations.
Here are some key examples of just how dangerous investor-state dispute settlement mechanisms are to nations:
Vattenfall, a Swedish nuclear energy company, is suing Germany for lost future profits over its correct and safe decision to phase out nuclear power and decommission existing nuclear power plants on safety grounds; the Fukushima disaster and its aftereffects has highlighted the high potential dangers of nuclear energy to us and our environment.
Tobacco giant Phillip Morris is suing the Australian government over its decision to only allow plain packaging on cigarettes (passed in the interests of public health) using the terms of the Australia-Hong Kong bilateral investment treaty.
Oil giant Chevron, under the terms of the US- Central America Free Trade Agreement (CAFTA) is suing Ecuador over future lost profits even though Chevron's actions caused huge amounts of damage to Ecuador's sensitive environment, particularly in Amerindian areas.
Also, this mechanism, designed to suit the interests of large,multinational businesses over small ones, can cause the unwanted expansion of monopolies or oligopolies, which even pro-free market governments generally want to prevent to at least some extent. A Canadian funeral home proprietor, Loewen, was initially successfully sued in the US state of Mississippi over its competititon-stifling practices. It then sued under the terms of the North American Free Trade Agreement (NAFTA) over expropriation of its profits. This not so well-known case highlights the dangers of how ISDS can be used by multinational businesses to bypass national court systems for their own benefit.
In light of these examples, remember, please, ladies and gentlemen, keep fighting against the threat of TTIP, and vote Green in the upcoming Euro elections to bring more Green MEPs into the European Parliament who will promise to block TTIP and also shift Europe towards a diverse, brighter future.
Alan.
Here are some key examples of just how dangerous investor-state dispute settlement mechanisms are to nations:
Vattenfall, a Swedish nuclear energy company, is suing Germany for lost future profits over its correct and safe decision to phase out nuclear power and decommission existing nuclear power plants on safety grounds; the Fukushima disaster and its aftereffects has highlighted the high potential dangers of nuclear energy to us and our environment.
Tobacco giant Phillip Morris is suing the Australian government over its decision to only allow plain packaging on cigarettes (passed in the interests of public health) using the terms of the Australia-Hong Kong bilateral investment treaty.
Oil giant Chevron, under the terms of the US- Central America Free Trade Agreement (CAFTA) is suing Ecuador over future lost profits even though Chevron's actions caused huge amounts of damage to Ecuador's sensitive environment, particularly in Amerindian areas.
Also, this mechanism, designed to suit the interests of large,multinational businesses over small ones, can cause the unwanted expansion of monopolies or oligopolies, which even pro-free market governments generally want to prevent to at least some extent. A Canadian funeral home proprietor, Loewen, was initially successfully sued in the US state of Mississippi over its competititon-stifling practices. It then sued under the terms of the North American Free Trade Agreement (NAFTA) over expropriation of its profits. This not so well-known case highlights the dangers of how ISDS can be used by multinational businesses to bypass national court systems for their own benefit.
In light of these examples, remember, please, ladies and gentlemen, keep fighting against the threat of TTIP, and vote Green in the upcoming Euro elections to bring more Green MEPs into the European Parliament who will promise to block TTIP and also shift Europe towards a diverse, brighter future.
Alan.
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