I warned yesterday how the Federal Government was contemplating selling Australia out to the Americans by accepting a US-style regional regulatory framework under the Trans Pacific Partnership (TPP) – the proposed regional trade deal between Pacific Rim countries – in exchange for improved access to US markets for Australian agriculture.
Under the TPP, the US is seeking a range of provisions that would greatly empower its powerful pharmaceutical, digital, and tobacco industries, whilst leaving the Australian Government with less ability to regulate its own economy and ensuring that Australians pay more for pharmaceuticals, as well as digital goods and services.
One key concern under the TPP is the US’ demand to insert so-called an Investor-State Dispute Settlement (ISDS) clause into the agreement, which would give authority to major corporations to challenge laws made by governments in the national interest in international courts of arbitration. So in effect, if Australia signs the TPP, US companies would be allowed to sue the Australian Government under international law.
Already ISDS agreements signed under other trade agreements are harming Australia. According to Peter Martin today, US tobacco giant, Philip Morris, is using an ISDS clause in an obscure Australia-Hong Kong agreement against Australia on plain packaging and graphic warnings for cigarettes. Attempts by companies including Philip Morris to overturn the law were previously defeated in the High Court of Australia.
It’s a scary omen of what Australia can expect if it signs the TPP – effectively trading its sovereign right to regulate in the national interest for improved access to US markets for Australian agriculture. It also raises questions over the benefits of the US-Australia Free Trade Agreement, signed by the Howard Government, which didn’t liberalise agriculture.
According to Martin:
An Australia Institute survey released on Friday finds only 11 per cent of Australians “definitely know” about the Trans-Pacific Partnership negotiations. Almost 90 per cent think the details of such deals should be made public before they are signed.
Told that the US wants the right for its corporations to sue governments, 75 per cent are opposed. Asked if they trust the Australian government when it says it will not sign an agreement that will push up the price of prescription drugs, 67 per cent say no.
Clearly, there are huge issues at stake in the TPP. But few people know about it, and those that do are overwhelmingly opposed.
As a bare minimum, the text of the TPP (and other trade agreements) should be released for public and parliamentary scrutiny before they are signed. Otherwise, Australia risks being sold-out for short-term politically gain rather than sound long-term decisions.
