Tag Archives: transnational

TTIP on the rocks as UK faces up to threat of industrial litigation

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“If Britain joined up to the Investor-State Dispute Settlement [system] in the current secret Transatlantic Trade and Investment Partnership (TTIP) negotiations, the UK would be exposed to an even greater number of disputes and costs than Canada suffered under the NAFTA [North American Free Trade Agreement], while being “highly unlikely” to bring in any additional investment.” – Michael Meacher MP.

Mr Meacher’s article on TTIP provides many examples of such litigation, that have taken place under already-agreed free trade deals. Why, he asks, would the UK want to sign an agreement that will immediately place it under threat of legal action, while gaining nothing in return?

You’d have to be crazy to put the economy in the hands of the lunatic who suggested it, wouldn’t you?

The lunatic, in this case, would be David Cameron, leader of the political party most people in Britain seem to think is best at running the economy! Do you want to rethink that, Britain?

“The Cameron government as usual is the stooge that follows the US lead,” writes Mr Meacher, after pointing out that TTIP is an agreement designed to benefit US and EU transnationals seeking to expand their market access and to engineer the removal of regulations that restrict their profits. It is also “widely seen as an attempt to sideline emerging economies such as China, Brazil and India that are now challenging the hegemony of the core capitalist powers”.

But public resistance is growing (where people know what is going on, that is), and Mr Meacher writes: “The increasingly strident call from civil society is to stop TTIP altogether and replace it with an alternative trade mandate that puts people and the planet before corporate profit.”

Hear, hear.

Will there be a motion in Parliament any time soon?

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My letter to MEPs over the transatlantic trade stitch-up

Corporate trade a-greed-ment: Notice that this image of the Transatlantic Trade and Investment Partnership has mighty corporations straddling the Atlantic while the 'little' people - the populations they are treading on - are nowhere to be seen. [Picture: FT]

Corporate trade a-greed-ment: Notice that this image of the Transatlantic Trade and Investment Partnership has mighty corporations straddling the Atlantic while the ‘little’ people – the populations they are treading on – are nowhere to be seen. [Picture: FT]

Your rights and freedoms have been under attack from all sides.

Not only has the government been able to pass the ‘gagging’ bill, preventing you from organising large-scale campaigns against repressive right-wing Conservative and Liberal Democrat legislation; not only are the police lobbying a sympathetic Home Secretary (there’s no restriction on their campaigning powers) for permission to use water cannons to suppress public on-street political protests; not only is the government hiding legislation to shackle news reporters and ignore the democratic process within a Bill that is supposed to be about cutting ‘red tape’; but negotiations to barter away your rights in the Transatlantic Trade and Investment Partnership are still taking place.

Now, dear reader, you have probably written to your elected representatives at the European Parliament already. You haven’t? In that case, please look them up here – MEPs are elected on a regional basis so you should write to everyone representing your constituency – and get writing.

For information, here’s the letter I wrote to my own MEPs. Do not copy this, paste it into your email program and send it as your own! You will be ignored. The best way to grab their attention is to put in your own words your concerns about this issue. Use what follows as reference, but say it your own way.

Readers of Vox Political have been accused of improper behaviour before, because they copied and pasted rather than using their own words. Let’s not allow that again.

Here’s my letter; see if you can improve on it:

May I draw your attention to the detrimental effects of the Transatlantic Trade and Investment Partnership. This agreement, currently in negotiation between the USA and the European Union, has as its stated aim opening up markets for services, investment and public procurement.

Much of the groundwork has been carried out in secret, hidden from public scrutiny, but the information that has been made available has aroused serious concern that this agreement will weaken existing standards and regulations that protect workers and consumers in the EU.

In particular, the Investor State Dispute Settlement (ISDS) would allow any foreign company operating in the UK to make a claim against the government for loss of future profits resulting from any regulatory action by the government, such as new legislation. Such claims would be considered by an unelected, unaccountable tribunal composed of three corporate lawyers whose decisions are likely to favour the corporations and would override national laws.

ISDS was set up to protect companies operating in countries with a history of political instability where the rule of law could not be guaranteed. This does not apply to either the US or the EU and you should interpret this mechanism only as a device for subverting our national and supranational legislation.

It is widely believed that the TTIP will be used by our Conservative-led government as a means of locking-in its detrimental changes to the National Health Service. I am sure I do not have to rehearse the arguments that introducing private companies to the health service in England is leading to a patchwork system in which care is provided entirely on the basis of profitability. There is now no obligation on the Secretary of State for Health to provide a high-quality service across the whole of the UK, and the new system encourages Clinical Commissioning Groups and medical practices to exclude from their lists patients with conditions that are expensive to treat. The TTIP will forbid the UK government from improving this system with legitimate public health regulation, health protection and health promotion policies as private health companies will be able to sue the state for loss of future profits. ISDS would make it impossible for CCGs to cancel contracts with private providers, even when those firms were providing inadequate standards of patient care, because they would then face a legal challenge for loss of earnings that they could not fund. It will also limit the government’s ability to regulate professional standards and qualifications regarded for healthcare workers and lower the quality of patient care. In short, it would be impossible to reverse the disastrous Health and Social Care Act 2012, and its marketisation of the NHS. Do you want the health of your constituents to depend on a foreign company’s balance sheet?

You may wish to take heart from comments by the British Medical Association that it believes the NHS will be exempt from the TTIP. There is no evidence to support this statement. In fact, David Cameron stated in reply to a Parliamentary question in June 2013: “I am not aware of a specific exemption for any particular area, but I think that the health service would be treated in the same way in relation to EU-US negotiations as it is in relation to EU rules.”

In fact, as comments from the chairman of the Liberalisation of Trade in Services Committee (LOTIS) and financial services pressure group TheCityUK make clear, no issue had been identified that would allow exclusion of any sector from the second round of TTIP negotiations in November last year. You should also note that the Lisbon Treaty provides no protection for the NHS, despite the arguments of some people.

Furthermore, evidence to the House of Lords European Sub-Committee on External Affairs has shown that public health measures such as warnings on food labels, pesticides and chemicals, and other potentially toxic or unhealthy products may be restricted to bring the EU in line with the narrow approach to risk assessment taken in America (that promotes sales) and away from the EU’s broader precautionary principle (that promotes safety). Are you in favour of sales or the safety of your constituents?

You will know that the USA has not implemented fundamental labour rights such as the rights to freedom of association and collective bargaining. Regulatory harmonisation brought about by the TTIP will lower European labour rights to American standards – the agreement will always bring standards down to the lowest common denominator. This means that workers in all sectors, including (again) health, will lose vital rights in their struggle for fair pay and conditions of work. Do you support attacks on workers’ rights?

To sum up: The TTIP is ill-judged in its entirety and neither the UK nor the European Union should have anything to do with it. It would give huge power to transnational corporations while stripping away member states’ rights to regulate them and, in that sense alone, represents an enormous threat to democracy. British people fought long, arduous battles to gain the few rights they have, and neither you nor anybody else in the European Union have a mandate to sign those rights away.

This agreement may safeguard the profits of large multinational companies, ensuring that huge amounts of money go into their shareholders’ bank accounts (wherever they may be), but it will undermine the wages of everybody who works for them – again, according to the principle of the lowest common denominator. Yet it is workers’ wages that support national economies – by necessity they spend most (if not all) of their income as soon as they get it, on rent, utility bills, groceries and other vital supplies. The TTIP will harm national economies.

There is an argument that the TTIP will create growth and jobs – but there is little evidence for this, and even that is poor. The European Commission’s own impact assessment admits that a 0.5 per cent increase in growth would be “optimistic”, and independent research suggests that a meagre 0.01 per cent increase in the growth rate over 10 years is more likely. The North American Free Trade Agreement between the US, Canada and Mexico led to a net loss of almost a million jobs in the US.

Negotiations on the TTIP represent a test on where your loyalties lie. Do you support the people who elected you – or are you a puppet of the corporations?

As my representative, I am asking you to take all steps necessary to publicise this attack on democracy and on our sovereignty, and to take any action – individually or collectively – to put an end to it.

Please let me know what you intend to do.

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Public consultation on anti-democratic trade deal – a sham?

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The European Union’s trade commissioner, Karel De Gucht, reckons he’s going to consult the public over the controversional Transatlantic Trade and Investment Partnership – the EU/US free trade agreement.

He says he is determined to strike the right balance between protecting EU firms’ investment interests and upholding governments’ right to regulate in the public interest.

Bear in mind, this is for the investment part of the deal, which includes investment protection and the red-hot disputed subject of investor-to-state dispute settlement, where firms would be allowed to sue governments if regulations got in the way of their profits, as the deal currently stands.

A proposed text for the investment part of the talks will be published in early March.

“Governments must always be free to regulate so they can protect people and the environment. But they must also find the right balance and treat investors fairly, so they can attract investment,” said Mr De Gucht.

“Some existing arrangements have caused problems in practice, allowing companies to exploit loopholes where the legal text has been vague.

“I know some people in Europe have genuine concerns about this part of the EU-US deal. Now I want them to have their say… TTIP will firmly uphold EU member states’ right to regulate in the public interest.”

Do you believe him?

The European Commission wants to use TTIP to improve provisions already in place that protect investments by EU-based companies in the US, and vice versa.

In practice, we are told, there would be a require for this protection to defer to states’ right to regulate in the public’s interest.

There would also be new and improved rules, including a code of conduct, to ensure arbitrators are chosen fairly and act impartially, and to open up their proceedings to the public. This comes after significant unrest about arbitrators being chosen exclusively from big business, with a natural bias towards the interests of their employers.

It seems “no other part of the negotiations is affected by this public consultation and the TTIP negotiations will continue as planned”.

Is this the only part of the deal that affects the public interest, then?

I don’t know. The TTIP negotiations have been shrouded in mystery since they began last June. Can anyone outside the talks – and those taking part are sworn to secrecy – say they are an expert?

Since the talks began, the Commission has held three rounds of consultations with stakeholders – big businesses operating in both Europe and the USA “to gather the views and wishes of the public and interested parties across Europe”, it says here.

“The Commission has also done public consultations before the start of the TTIP negotiations.” Have you taken part in any such negotiations?

The rationale behind the talks is that the EU is the world’s largest foreign direct investor and the biggest recipient of foreign direct investment (FDI) in the world, so it must ensure that EU companies are well-protected when they invest in countries outside the EU. This involves reciprocal agreements to protect foreign companies.

“Investment is essential for growth, for jobs and for creating the wealth that pays for our public services, our schools, our hospitals and our pensions,” the argument goes. But who gets the wealth? The people who work to make it – whose living and working conditions are likely to be reduced dramatically to lowest-common-denominator terms? Or the company bosses who are ironing out the terms of this agreement while most of us are being told to look the other way?

Let’s look at an example of this in action. According to OpenDemocracy.net, the TTIP talks “could see England’s NHS tied into a privatised model semi-permanently.

“A US/EU Free Trade Agreement… will ‘dismantle hurdles to trade in goods, services and investment’ and ‘make regulations and standards compatible on both sides’.

“The EU has already stated that ‘certain “sensitive” sectors will require more negotiation’ but that ‘no sectors would be excluded from the deal completely’. David Cameron has stated such an agreement is one of his key aims during the UK’s leadership of the G8 group this year.

“The Health and Social Care Act’s Section 75 is an example of legislation guided by the principles of this overarching trade agreement. It breaks the NHS up into little parcels (the CCGs) that must offer their contracts to any willing provider. If a private provider feels they have been unfairly excluded from a contract, they can use Section 75 to take legal action… This legislation may have been written specifically to pave the way for international free trade involving the NHS.

“The idea [is] that the Health and Social Care Act was developed to allow foreign transnational corporations to profit from NHS privatisation.

“Even worse is the idea that, once passed, an international trade agreement will leave us irreversibly committed to privatising the NHS. Even with a change of government and the repeal of the Act, we’d be facing the insurmountable obstacle of international competition laws.”

The article demands that the government must be clear with the public – will our health service be opened to multinational business as part of this trade agreement?

Leftie politics sheet the New Statesman agrees: “This will open the floodgates for private healthcare providers that have made dizzying levels of profits from healthcare in the United States, while lobbying furiously against any attempts by President Obama to provide free care for people living in poverty. With the help of the Conservative government and soon the EU, these companies will soon be let loose, freed to do the same in Britain.

“The agreement will provide a legal heavy hand to the corporations seeking to grind down the health service. It will act as a Transatlantic bridge between the Health and Social Care Act in the UK, which forces the NHS to compete for contracts, and the private companies in the US eager to take it on for their own gain.

“It gives the act international legal backing and sets the whole shift to privatisation in stone because once it is made law, it will be irreversible.

“Once these ISDS tools are in place, lucrative contracts will be underwritten, even where a private provider is failing patients and the CCG wants a contract cancelled. In this case, the provider will be able to sue a CCG for future loss of earnings, causing the loss of vast sums of taxpayer money on legal and administrative costs.

“Even more worrying is that, once the TTIP is enacted, repealing the Health and Social Care Act in the UK will become almost impossible.”

The public has the democratic right to contest the agreement, and fight for a health service that protects them, the Statesman says, “but how can they when MEPs do nothing to inform opinion or gather support back home? The NHS is in a very precarious position. It seems that soon, with the help of Brussels, its fate will be sealed.”

Would you like your MEP to speak up for you – in other words, to do what he or she was elected to do and actually represent your interests? Then why not get in touch and ask why they’ve been so quiet about this for so long? It’s easy – you can find their contact details here.

The EU has released a ‘factsheet’ summarising how it would like you to understand changes to existing investment protection rules and the ISDS system.

The previous Vox Political article about TTIP is here.

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Osborne’s bid to end democracy by the back door

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The Coalition government has finally put its cards on the table, calling for the completion of a ‘free trade’ agreement with the United States of America that will end democracy as we know it today.

Do you think this statement is needlessly hyperbolic? In fact, it probably does not make the point strongly enough!

You will lose the ability to affect government policy – particularly on the National Health Service; after the Health and Social Care Act, the trade agreement would put every decision relating to its work on a commercial footing. The rights of transnational corporations would become the priority, health would become primarily a trade issue and your personal well-being would be of no consequence whatsoever.

Profit will rule.

Also threatened would be any other public service that has been privatised by this and previous governments, along with any that are privatised in the future; all would fall under the proposed agreement. So the debate over energy bills would be lost because gas and electricity provision would come under the agreement, along with water and the Royal Mail, among others.

Speaking today (Wednesday), Osborne announced: “We should set ourselves the urgent task of completing the transatlantic trade and investment partnership – the EU-US Free Trade agreement.

“This would be the world’s biggest ever trade deal – together our economies would account for half of global output.

“The Commission estimate it would boost the European economy by 120 billion euros a year – that’s over 500 euros for every family in the EU. It would bring £10 billion pounds a year to the UK alone.

“Some in the European Parliament talk about stalling this Trans-Atlantic Partnership to pursue other agendas.

“But when a quarter of young people looking for work in Europe are unemployed, this would be a complete betrayal.

“We need to create jobs, increase trade, support business growth – we’ve got the European tools to help with the job, let’s get on and use them.”

Did you notice that, for him, it’s all about the money? Yes – he mentions job creation. But these jobs would be provided under terms dictated by the hugely powerful global corporations. Their bosses would take the profits and ground-level employees would be treated like – well, like Orwell’s metaphor for the future: a giant boot, stamping on your face, forever.

You may have heard very little about this – and for a good reason. The architects of the planned agreement want the deal done before anybody realises what is going on and organises robust protest against it.

So let’s give you some of the facts:

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The US/EU Trade and Investment partnership (TTIP), called Transatlantic Free Trade Agreement (TAFTA) in the US, is a bilateral trade agreement between the US and the EU. It goes much further than any previous EU trade agreement in deregulating, in establishing the rights of transnational corporations and in undermining the ability of governments to control corporations.

It is set to completely change our society, and is already in process, as with the NHS.

‘Trade’ and ‘international trade agreements’ are different. While most people would consider trade to be good thing, international trade agreements give rights to transnational corporations while reducing states’ rights to regulate them, thus reducing democracy.

All free trade agreements include goods, services and intellectual property rights – but the additional elements of the TTIP that are the main part of the agreement are much more far-reaching. These are regulatory harmonisation, investor state dispute settlement and the intention to establish global rules via these trade agreements.

‘Regulatory harmonisation’ means ‘harmonising’ regulation between the EU and US, downwards to the most lax form, across all areas, to suit transnational corporations. This will mean the degrading of regulation on health and safety, food, environment, labour standards, privacy and much more, including financial services regulation. The NHS is now already ‘harmonised’ with the US corporate-access public health model – and this was always the Conservative Party’s plan.

TTIP will also include ‘Investor State Dispute Settlement’ (ISDS), allowing transnational corporations to sue governments directly for the loss of any future profits resulting from any government action, at any level, such as new legislation. Where ISDS is already included in ‘trade’ deals, it is shown to lead either to big payouts from governments to transnational corporations or to deter governments from legislating – the ‘chill’ effect.

In theory, this means that if a national government had banned a product – a toy, perhaps – on the grounds that it was harmful to health because it contained lead – for example – the manufacturer could then sue that government for infringement of the TTIP. The national government would lose, and our children would come down with lead poisoning.

In practice, we can see a classic example in the current lawsuit taken out by Philip Morris, the antipodean tobacco giant, against the Australian government over the law that enforces plain packaging on all tobacco products there. The law was enacted to discourage people from smoking – an act with proven health risks – but it seems likely that Philip Morris will win because Australia’s government has restricted its ability to make massive profits.

TTIP and the TPP are intended to set global ‘trade’ rules which will eventually become the norms for the multilateral World Trade Organisation, but formulated outside of a structure that allows other countries to jointly resist the corporate-dominated agenda.

As with all bilateral ‘trade’ agreements, TTIP negotiations and agreement texts are secret until the negotiations are completed – ensuring that the public cannot protest against them until it is too late.

Trade agreements are effectively permanent.

Although international ‘trade’ agreements are negotiated government-to-government (by the Trade Commission for EU member states), they are promoted and driven by transnational corporations, which benefit from states being bound by international trade law – these are the the same transnational financial service corporations that caused the global financial crisis.

As part of the TTIP, a framework for the ongoing ‘harmonisation’ of all future regulation is being put in place with the setting up of a Regulatory Co-operation Council. This non-elected Council will be able to override national and EU legislation.

‘Public procurement’ – government spending – is a major target in the international trade agenda.

The TTIP is being rushed through, with the aim of completion by the end of this year (2014).

TTIP will include provision for the movement of temporary workers across borders. This will inevitably mean cheap labour, and the undermining of working conditions and labour rights, especially in a context of degraded regulation. These are the jobs George Osborne wants for you!

The Trade Commission has set up a communications ‘spin’ unit to manage public opinion on the TTIP.

Once TTIP negotiations are completed, the European Parliament will only have the right to say yes or no, to the deal, with no amendment allowed. It will then, as with all EU ‘trade’ agreements, be provisionally implemented before it comes to member state parliaments for ratification.

In the US, the government is seeking ‘Fast Track’ provision or Trade Promotion Authority (TPA) from the Congress. If granted, US representatives will similarly only be allowed to pass the agreement or not, without amendment.

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You may wish to examine the following documents for further evidence:

EU Commission’s (leaked) mandate from EU Council to negotiate TTIP
http://www.s2bnetwork.org/fileadmin/dateien/downloads/EU-TTIP-Mandate-from-bfmtv-June17-2013.pdf

EU Commission’s (leaked) PR strategy “Communicating on TTIP” http://corporateeurope.org/trade/2013/11/leaked-european-commission-pr-strategy-communicating-ttip

EU Commission’s (leaked) concept paper on regulatory coherence
http://corporateeurope.org/sites/default/files/ttip-regulatory-coherence-2-12-2013.pdf

Corporate Europe Observatory’s analysis of the regulatory coherence document http://corporateeurope.org/publications/regulation-none-our-business 

George Monbiot’s articles on TTIP:
http://www.theguardian.com/commentisfree/2013/nov/04/us-trade-deal-full-frontal-assault-on-democracy

http://www.theguardian.com/commentisfree/2013/nov/04/us-trade-deal-full-frontal-assault-on-democracy

Big business control of UK policy-making,including the UK government White Paper on Trade:
http://www.theguardian.com/commentisfree/2013/nov/04/us-trade-deal-full-frontal-assault-on-democracy

These blog articles on TTIP:
http://davidaslindsay.blogspot.co.uk/2013/12/seeing-red.html

http://davidaslindsay.blogspot.co.uk/2013/12/seeing-red.html

http://kittysjones.wordpress.com/2013/12/06/the-coming-corporatocracy-and-the-death-of-democracy/

This Facebook page:
https://www.facebook.com/waatt.org

Action against TTIP is already taking place. Petitions are available to be signed:

https://secure.avaaz.org/en/petition/Stop_the_EUUS_free_trade_agreement/?aTAVNbb

http://www.avaaz.org/en/no_champagne_for_monsanto_loc/?bJcgccb&v=32207

http://action.sumofus.org/a/tpp-lawsuits/?akid=3025.1529716.rGZEQN&rd=1&sub=fwd&t=1

But more must be done.

You – that’s right, YOU – need to contact your MP and your MEP and make sure they oppose this evil plan to stamp on your rights.

Then you – that’s right, STILL YOU – need to get involved in setting up and building local and national groups to fight it, while you still can.

DON’T expect someone else to do it for you or you’ll end up a corporate slave.

… which is exactly what George Osborne wants.

Follow me on Twitter: @MidWalesMike

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