Korten: A Trade Rule That Makes it Illegal to Buy Local? [View all]

[The Blue Flower]

From Yes Magazine:
http://www.yesmagazine.org/new-economy/trade-rule-illegal-favor-local-business-tpp-leak-wikileaks?utm_source=YTW&utm_medium=Email&utm_campaign=20150417

1. Favoring local ownership is prohibited

Let’s start with the Investment Chapter’s section on how the TPP’s member countries should treat foreign investors:

(snip)

Put in plain English, the above paragraph means that signatory countries renounce their right to favor the domestic ownership and control of the lands, waters, and other productive assets and services essential to the lives and well-being of their people. The 12 countries further renounce their right to favor locally owned businesses, corporations, cooperatives, or public enterprises devoted to serving their people with good local jobs, products, and services. They must instead give equal or better treatment to global corporations that come only to extract profits.

2. Corporations must be paid to stop polluting

Another provision limits what member countries can do in regard to corporate investments:

(snip)

This provision may sound reasonable, until you look at the chapter’s definition of “investment,” which includes “the expectation of gain or profit.” This odd definition means that a corporation can sue a signatory nation if the country deprives the corporation of expected profits by enacting laws that prohibit the company from selling harmful products, damaging the environment, or exploiting workers. Other language in the chapter makes it clear that this applies to actions at all levels of government. In other words, a country in the TPP has every right to stop a foreign corporation from harming its people and the environment—but only if the country compensates the corporation for the expense of not harming them.


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