Insider view on the "secret" TPP

[leveymg]

21. Different states have different constituencies. The cost/benefits of this treaty vary. The threat

of erosion of sovereignty in investor-state disputes is different for Vietnam than it is for the United States, in the same way that the costs and benefits of various aspects of trade vary both internationally and within each country. For instance, the industrial base of US heavy industry -- steel, chemicals, automotive -- has been devastated by liberalization of trade in goods regimes during the past several decades. This is offset to a lesser degree by continued (but much reduced) dominance in Trade in Services by US-based multinationals in finance, technology and aerospace, some of which will undoubtedly greatly benefit from further services trade liberalization as will those states, such as India and China, that successfully compete in sectors such as IT. The TPP will likely have the effect of continuing these overall trends in trade.

The costs and benefits of trade in various sectors is a separate issue, however, from the threat of loss of sovereignty in the area of national legislation and the ability of US courts to uphold protections for the environment, labor and human rights. The expansion and institutionalization of ISDS investor protections in the draft treaty is simply unacceptable, and the TPP needs to be redrafted to address that threat.