What's there not to hate about this corporate power grab.
If there's one thing Democrats and Republicans should be able to agree on is the need to stamp out these illegal ISDS tribunals.
These Roman-style tribunals would be corporate lobbyists who are not subject to conflict of interest or most other ethics rules that judges would be (bribery city). Foreign goons using them would still, in many cases, have full access to the courts as well (“double dipping”).
The risk is that foreigners can use these kangaroo courts to challenge any regulation or other government decision that the foreign investor just does not like. All they'd have to do is think of an argument for why the decision somehow violated its right to “fair and equitable treatment” or why it might reduce its expected profits and it’s got a case.
Often, just threatening an ISDS case is enough for laws or regulations to be withdrawn.
Some well-known examples:
The Metalclad case: a U.S. corporation sued Mexico over a local government’s decision to deny a permit to operate a toxic waste dump. Local citizens felt the dump would pollute their water supply and petitioned their government to deny the permit. Metalclad won more than $15 million.
The Methanex case: a Canadian company sued the U.S. Government over California’s decision to prohibit the use of MTBE as an additive in gasoline. Although Methanex lost the case, the state and federal government spent millions defending the case. Millions they would not have had to spend without ISDS: Methanex could not have brought the same complaint under U.S. domestic law.
Ecuador was recently ordered to pay more than $2 billion to Occidental Petroleum because it rescinded a concession (as is their right to do as a sovereign nation).
Phillip Morris famously sued Uruguay because it's smoking cessation programs were successful (Uruguay had the highest cancer death rate in Latin America). The ISDS, to their credit, ruled in Uruguay's favor - but after 3 years and tens of millions in legal fees for the small nation. Phillip Morris, nevertheless, has appealed - meaning the it's still in limbo.
Argentina had to pay hundreds of millions to Azurix, Suez, and Vivendi (privatized water outfits) because their concessions were terminated after failing to make most of the infrastructure investments they themselves had agreed to when the public water systems were privatized at fire sale prices. Argentina, of course, could not use the ISDS to sue them - just as the U.S. or state/local governments couldn't.
Even in Europe, a Swedish corporation is using ISDS to sue Germany over its decision to phase out nuclear power; and a French company is suing Egypt over a number of labor market measures, including an increase in the minimum wage.
How long does anyone thin it would take our Congresscritters to expand the HB-1 visa program and similar giveaways into every single sector of the economy - especially high-wage specializations (as you pointed out, turbinetree).
Can you imagine Colombian, Philippine or Vietnamese kleptocrats (including narcos) suing the U.S. Government - or your state or local government - to have common-sense regulation (even laws passed by Congress or your state legislature) overturned because, on a lark, they "felt" it might someday, maybe, impact their profits.
Trust me, China wants us to sign this.
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