Source: The SunDaily

BY GURDIAL SINGH NIJAR
(Deputy President, HAKAM)

“NEGOTIATE for better terms” (Letters, Nov 19) raises several points in reference to my article, “TPPA, the rakyat and democracy” (Law Speak, Nov 2). Particularly targeted is my concern of the ISDS – the investor state dispute settlement provision in the TPPA. Let me deal with the main points raised.

ISDS as a form of dispute resolution has been around for some time, particularly in international trade agreements

Yes, this is true. Indeed it appears in several international investment treaties, perhaps more than 3,000. But it has been heavily criticised. Why? Because experience with the way these clauses have been interpreted shows its deleterious effects on the country sued and its citizenry. As recently as June this year a UN experts group concluded that “the experience of decades related arbitrations conducted before ISDS tribunals … demonstrates that the regulatory function of many states and their ability to legislate in the public interest have been put at risk”.

Look at the examples – to pick a few: Germany had to dilute its environmental standards in the face of a US$2 billion action against it by a Swedish energy giant restricting the use and discharge of cooling water for a coal-fired plant on the banks of River Elbe, with disastrous impacts on the river and its wildlife. The same company also launched a US$4.6 billion action when Germany phased out nuclear power plants following the Fukushima disaster. Argentina had to pay over a billion US dollars in compensation to international utility companies – for freezing the high energy and water bills to protect its people.

You see, the point is that the reach of the TPPA for which a government can be sued is extraordinarily far reaching. Read more →