TPP Investor Language Will Leave Taxpayers on the Hook

03/26/2015 01:49 pm ET | Updated May 26, 2015

The 12-nation Trans-Pacific Partnership (TPP) has for years been shrouded in mystery. But last night, WikiLeaks gave U.S. workers a real gift when it pulled back the curtain on a portion of the proposed trade deal that shows what a boondoggle the agreement would be for big business.

Language included in the Investor State Dispute Settlement (ISDS) chapter of the TPP would grant new rights to companies to challenge limitations and exceptions to copyrights, patents and other intellectual property. That means corporations could sue the U.S. or other countries included in the deal if they didn't like their laws. Such challenges would be handled by an unaccountable international arbitration forum. And taxpayers would end up paying the tab if the private sector wins.

Companies are already challenging governments around the globe when they feel elected officials are holding down their profit margins. Tobacco giant Philip Morris, for instance, is currently appealing Uruguay's regulation of advertising on cigarette packages because it believes the nation's rules are tamping down on sales in that South American country. But the TPP language would make it worse.

Trade experts agree the ISDS provisions would be very bad news for the public. "With the veil of secrecy ripped back, finally everyone can see for themselves that the TPP would give multinational corporations extraordinary new powers that would undermine our sovereignty, expose U.S. taxpayers to billions in new liability and privilege foreign firms operating here with special rights not available to U.S. firms under U.S. law," said Lori Wallach, the director of Public Citizen's Global Trade Watch.

An analysis of the ISDS text by Public Citizen shows, among other things:

  • Foreign investors would be allowed to challenge new policies that apply to both domestic and international corporations on the grounds that they undermine foreign investors' "expectations" of how they should be treated.
  • The amount that an ISDS tribunal would order a government to pay to a foreign investor as compensation would be based on the "expected future profits."
  • There are no new safeguards that limit ISDS tribunals' discretion to create even broader interpretations of governments' obligations to foreign investors and order compensation on that basis.

In short, the ISDS language shows that based on this TPP chapter alone, the average worker is going to get screwed. The provisions will give corporations the ability to do an end-around on U.S. laws they don't like. How is that fair? What about the rights of the American people? What about democracy?

Mind you, this doesn't even address how Americans will be hammered by the other 28 chapters included in this Pacific Rim trade deal. But we already know they will. We've seen what NAFTA has done; we've seen what the recent U.S.-Korea Trade Agreement has done. Those two deals together have led to more than a million lost U.S. jobs.

Previous leaks have also let us know that lower wages, unsafe food and products, lessened environmental standards and reduced access to affordable medicines will result if the TPP becomes a reality. It's why the Teamsters and our numerous allies have taken a stand against this terrible trade agreement. And it's why we can't let up now.

Want to stop this from happening? Let your members of Congress know you oppose fast-track trade authority. Forcing Capitol Hill to debate this agreement in the open on its merits is the only way hard-working Americans will be able to get a full picture of what the TPP will do. And it's the best opportunity we have to halt TPP in its tracks.