In 2013, discussions were announced on a trade deal, the Transatlantic Trade and Investment Partnership (TTIP). It was one of several trade deals being discussed between the US and countries around the world. There was concern that negotiations were private, with MEPs prohibited from recording or sharing information on details of the discussions. Why the secrecy?
"The raft of 'free trade' agreements under negotiation represents a massive seizure of power by corporations... effectively stripping democratic governments of their power to legislate for health, environment, labour or anything else that could reduce corporate profit. But the mainstream media are mysteriously silent."
Wikileaks leaked details of this supposed trade deal. It showed that TTIP was about removing regulatory barriers and undermining democracy to import the US economic and regulatory framework. In practise this would mean that supposed trade barriers would be removed: environmental protections, workers’ rights, consumer protections, public welfare standards, animal welfare standards... Corporate domination would be enshrined in law and protected by corporate courts using a mechanism called Investor State Dispute Settlements (ISDS).
Corporate courts have been instituted through trade deals around the world. For example, the government of Argentina have paid corporations over $80 billion in settlements since 2001. Leaks of info on TTIP led to huge campaigns across Europe supported by organisations such as The People’s Assembly Against Austerity, 38 Degrees and Global Justice Now. This eventually led to its demise. However, the corporate power grabs continue.
In October 2024 we contacted local MPs with concerns about the UK’s accession to the Pacific Trade Deal (CPTPP). It still included corporate courts which the Labour Party opposed whilst in opposition. We asked why the change of heart. The convoluted response we received merely obscured the truth that the government have potentially made legislating to protect our environment extremely costly (potentially costing taxpayers billions of pounds) or that legislation may be hindered to avoid such costs. Essentially the government have sold the UK public out to corporations.
31st October 2024
Dear Heidi Alexander,
I am writing to you about the UK’s upcoming entry in December 2024 to the CPTPP. As it stands, the ISDS mechanism is still in place between the UK and all member states except for New Zealand and Australia. This could impact the UK’s ability to effectively deal with the ecological crisis (which includes plastic pollution) or risk being fined in private courts by corporations for deemed loss of future profits. In opposition, Labour trade ministers highlighted the dangers of corporate courts and ISDS for the CPTPP and for the Energy Charter Treaty. So why are corporate courts included in this trade deal?
Free trade deals generally serve the interests of large corporations to the detriment of our collective well-being. Canadian companies, for example, have brought 64 cases to corporate courts using ISDS over the last few years. NTBs removed or diminished include environmental safeguards, human rights, labour pay and conditions, animal welfare, and food standards. Gross inequality is the result, and the myriad of maladies that come with that. For further information on the devastation caused by inequality, see the work of The Equality Trust and Danny Dorling.
Will the Labour Party exclude ISDS from being implemented for the UK in the CPTPP and other trade deals?
Yours sincerely,
Ben Bell
Plastic Free Swindon co-ordinator
7th February 2025
Dear Ben,
Further to our previous correspondence I have now received a reply from the Department for Business and Trade. I hope this is of interest to you.
Regards,
Heidi Alexander
MP for South Swindon.
6th February 2025
Dear Ben,
Thank you for your correspondence of 31% of October, regarding Investor State Dispute Settlement (ISDS) commitments within the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
CPTPP is one of the world's largest free trade areas, with its membership representing almost 15% of global GDP. The UK was the first country to join this trade bloc since its establishment in 2018, and as you may already be aware, CPTPP recently entered into force for the UK on 15 December 2024.
The ISDS commitments within CPTPP provide an independent means for investors to a loss resulting from the resolve disputes, where they believe they have experienced failure of a CPTPP state to fulfil its investment chapter commitments. Currently, UK firms have over £100bn invested across the CPTPP countries.
CPTPP sets out that nothing in the Investment Chapter should be construed as preventing a partner from adopting, maintaining, or enforcing any measure that it considers appropriate to ensure that investment activity is undertaken in a manner sensitive to the environment. CPTPP’s ISDS mechanism does not remove governments’ right to regulate in the public interest, including with respect to the environment.
I welcome you sharing your organisation's views. I recognise this is an important policy area and have noted your position.
Yours sincerely,
Douglas Alexander MP
Minister of State for Trade Policy and Economic Security
Department for Business and Trade