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Bill to ban investor-state dispute settlements garners support Bill to ban investor-state dispute settlements garners support
(35 minutes later)
Pensioner and religious groups have supported a bill to ban investor-state dispute settlement (ISDS) clauses in international trade and investment agreements, raising concerns including higher medicine prices and loss of Australian sovereignty.Pensioner and religious groups have supported a bill to ban investor-state dispute settlement (ISDS) clauses in international trade and investment agreements, raising concerns including higher medicine prices and loss of Australian sovereignty.
The Combined Pensioners and Superannuants Association of New South Wales (CPSA) has joined the Catholic organisation the Conference of Leaders of Religious Institutes NSW (CLRI), which represents 3,500 nuns, priest and brother members, to condemn the use of ISDS clauses in its submissions to a Senate committee.The Combined Pensioners and Superannuants Association of New South Wales (CPSA) has joined the Catholic organisation the Conference of Leaders of Religious Institutes NSW (CLRI), which represents 3,500 nuns, priest and brother members, to condemn the use of ISDS clauses in its submissions to a Senate committee.
An ISDS clause gives foreign investors the right to sue governments if the company’s business interests are adversely affected by national policy. The Asian arm of the tobacco multinational Philip Morris is challenging the Australian government over the plain packaging laws, even though Philip Morris lost a case in the Australian courts.An ISDS clause gives foreign investors the right to sue governments if the company’s business interests are adversely affected by national policy. The Asian arm of the tobacco multinational Philip Morris is challenging the Australian government over the plain packaging laws, even though Philip Morris lost a case in the Australian courts.
A total of 78 submissions have been received by the Senate foreign affairs defence and trade committee, which is reviewing a bill introduced by Senator Peter Whish-Wilson which would ban trade agreements with ISDS clauses.A total of 78 submissions have been received by the Senate foreign affairs defence and trade committee, which is reviewing a bill introduced by Senator Peter Whish-Wilson which would ban trade agreements with ISDS clauses.
Although John Howard refused to include an ISDS in the US-Australia free trade agreement, the Coalition agreed to an ISDS in the newly signed Korean free trade agreement, with carve-outs for public health and the environment, but refused one in the Japanese agreement.Although John Howard refused to include an ISDS in the US-Australia free trade agreement, the Coalition agreed to an ISDS in the newly signed Korean free trade agreement, with carve-outs for public health and the environment, but refused one in the Japanese agreement.
The CPSA submission said it was “troubled by the heavy influence of US corporations” and the reduced capacity of the government to make laws for the Australian people, as well as the lack of transparency around the Trans-Pacific Partnership agreement negotiations.The CPSA submission said it was “troubled by the heavy influence of US corporations” and the reduced capacity of the government to make laws for the Australian people, as well as the lack of transparency around the Trans-Pacific Partnership agreement negotiations.
“As pressure mounts to conclude the [TPPA] negotiations, CPSA continues to call on the Australian government to reject clauses that give investors rights to sue governments which would result in a number of negative effects to Australians, including higher medicine prices,” the submission says.“As pressure mounts to conclude the [TPPA] negotiations, CPSA continues to call on the Australian government to reject clauses that give investors rights to sue governments which would result in a number of negative effects to Australians, including higher medicine prices,” the submission says.
“We are concerned that there is considerable and undue pressure being placed by pharmaceutical companies that want changes which could result in Australians having to pay higher medicine prices.“We are concerned that there is considerable and undue pressure being placed by pharmaceutical companies that want changes which could result in Australians having to pay higher medicine prices.
“Investor state dispute settlement clauses would result in Australians paying more for essential medicines and put the Australian government at risk of legal action if generic alternatives and medicine subsidies are provided.”“Investor state dispute settlement clauses would result in Australians paying more for essential medicines and put the Australian government at risk of legal action if generic alternatives and medicine subsidies are provided.”
The CLRI NSW supported the ban on ISDS clauses, citing evidence that many other countries have refused to include them in free trade agreements, including Germany which has refused to include ISDS in the European-US trade agreement.The CLRI NSW supported the ban on ISDS clauses, citing evidence that many other countries have refused to include them in free trade agreements, including Germany which has refused to include ISDS in the European-US trade agreement.
“It is unacceptable for foreign corporations to be able to mount legal challenges against governments over policies or laws which they perceive to affect the value of their investments,” the CLRI submission says.“It is unacceptable for foreign corporations to be able to mount legal challenges against governments over policies or laws which they perceive to affect the value of their investments,” the CLRI submission says.
“In particular, we believe the investor state dispute settlement provisions are likely to have a negative effect on central Australian values.”“In particular, we believe the investor state dispute settlement provisions are likely to have a negative effect on central Australian values.”
The Senate committee will report on 16 June, after which Whish-Wilson is hopeful his bill will attract the support of Labor, the independent senator Nick Xenophon and the DLP’s John Madigan.The Senate committee will report on 16 June, after which Whish-Wilson is hopeful his bill will attract the support of Labor, the independent senator Nick Xenophon and the DLP’s John Madigan.
“Labor has had strong view on ISDS, as the Liberal party used to have and there are submissions from the trade unions and many progressive groups,” Whish-Wilson said.“Labor has had strong view on ISDS, as the Liberal party used to have and there are submissions from the trade unions and many progressive groups,” Whish-Wilson said.
“More and more countries are realising that this sort of thing is not on and it is causing great financial worry.”“More and more countries are realising that this sort of thing is not on and it is causing great financial worry.”
A spokesperson for Penny Wong said Labor would closely consider the outcome of the inquiry into Whish-Wilson’s bill. A spokeswoman for Penny Wong said Labor would closely consider the outcome of the inquiry into Whish-Wilson’s bill.
In 2011 the then trade minister, Craig Emerson, said the government did not support provisions that would give greater legal rights to foreign businesses than those available to domestic businesses.In 2011 the then trade minister, Craig Emerson, said the government did not support provisions that would give greater legal rights to foreign businesses than those available to domestic businesses.
“In the past, Australian governments have sought the inclusion of investor state dispute resolution procedures in trade and agreements with developing countries at the behest of Australian businesses.“In the past, Australian governments have sought the inclusion of investor state dispute resolution procedures in trade and agreements with developing countries at the behest of Australian businesses.
“The Gillard government will discontinue this practice ... The government has not and will not accept provisions that limit its capacity to put health warnings or plain packaging requirements on tobacco products or its ability to continue the Pharmaceutical Benefits Scheme”.“The Gillard government will discontinue this practice ... The government has not and will not accept provisions that limit its capacity to put health warnings or plain packaging requirements on tobacco products or its ability to continue the Pharmaceutical Benefits Scheme”.
Guardian Australia is seeking comment from the trade minister, Andrew Robb.Guardian Australia is seeking comment from the trade minister, Andrew Robb.