Showing posts with label trade agreement. Show all posts

3 million Europeans say no to TTIP

The People vs Empire

On  the 6th of October, the self-organized European Citizens' Initiative against TTIP (Transatlantic trade and investement partnership) and CETA managed to pass the goal of getting more than 3 million people to sign the citizen petition against the secretly negotiated and highly controversial trade deals between Europe, the US and Canada.

Mehr Demokratie. Credit: Kurt Wilhelm (CC-BY-SA 2.0)

With reference to major risks of the ISDS clause (corporations suing states), lowering environmental standards and worker rights, deregulation of public institutions and infringement on internet freedom, the initiative wants the negotiations to be stopped.

Yesterday, citizens all over Europe went out to demonstrate the undemocratic so called trade deals, attracting hundreds of thousands of people in Berlin. The biggest protest in Germany for many years. Demonstrations also took place in eight Swedish cities.

One of the most common arguments for TTIP is that "there will be more growth and jobs" through, for example, removing safety procedures (crash testing) in the automobile industry which according to a recent study could lead to a drastic increase in traffic-related deaths in Europe (since a European car is 33% more safe than the American counterpart). In other words,  it would generate more financial capital for the big multinationals at the expense of ordinary Europeans' health and safety.

According to a leaked document, published on Corporate Europe Observatory (20th of April, 2015), murky negotiations of "regulatory exchange" that would force laws drafted in any of the 78 states to go through a screening processes by a technocratic elite has taken place without public knowledge. This screening process would be done by a bunch of lawyers and lobbyists, in form of a permanent, undemocratic, and unaccountable group of technocrats. Most people think this type of group only will serve to uphold the interests of multinational corporations. 

According to attorney David Azoulay, at the Centre for International Environmental Laz, "Not only will it extend an outrageously burdensome process on future legislation, but any current legislation in the public interest that doesn't sit well with trade interests on either side of the Atlantic could be subjected to the same process to make it conform to corporate interests"

In summary, this is the response of a predatory Empire, and it's elite, to a world without growth. It starts cannabilizing on the very foundation that underpins it, ordinary people and nature. Now is the time to change the entire system, or crumble under it.

TTIP trade deal and it's impact on democracy

Trade agreement being negotiated behind the scenes

In my last post I had a critical look at the trans-pacific partnership (TTP). And so to be fair and also bring this issue closer to home I will in this post have a look at the Transatlantic Trade and Investment Partnership (TTIP). TTIP is very similar to TTP, a proposed regional free-trade agreement, but between the European Union and the United States. Proponents of TTIP argue that it would result in multilateral economic growth, while critics argue that it would increase corporate power and make markets more difficult to regulate for public benefit. Like TPP this trade agreement has been delayed by leaked draft documents, due to it's secretive nature, but could be finalized by the end of 2014.

Corporate Control

Similar to the case of TTP a very controversial clause in the TTIP is the Investor-state dispute settlements (ISDS). The ISDS would allow corporations to sue governments, for any government action (at any level, including local government level) that limits a corporation's future profits. One example of how the ISDS clause in TTIP would impact countries can be found in the case of the Swedish, part state owned, energy company Vattenfall suing the German government over the issue of terminating nuclear power plants. Vattenfall demands payouts of 4,7 billion euros (Der Spiegel), and has caused outrage in Germany. Other examples includes tobacco companies suing the Australian government over health labeling of cigarettes, and fracking companies suing the Canadian government over environmental protection. The original justification for introducing ISDS in trade agreements was for trade deals with countries where the judicial system was weak in protecting foreign investors. But this is not the case with either the EU or the US. According to the latest UN report on the topic, ISDS cases has increased from 0 in 1992 to 514 in 2012.

Responses by civil society

There is now a growing civil society resistance to TTIP and ISDS inclusion in the TTIP negotiations. Last month there were 450 protest actions across 24 member states (The Greens Europe). The European NGO Finance Watch writes about ISDS that "the very principle of such a mechanism is anti-democratic, because it allows investors to challenge legitimate regulations and other rules that have been created and voted by democratic institutions with a view to protecting their citizens". Corporate Europe Observatory (CEO) has reported that of 560 lobby encounters that the European Commission trade department held to prepare the negotiations, 520 (92%) were with business lobbyists, while only 26 (4%) were with public interest groups (CEO). That must be considered corporate capture. A large number of European scientists have also voiced concern over ISDS legal nature, quote "there is little evidence linking the conclusion of the Treaties to increased flows of foreign direct investment, and there is little evidence that they contribute to other development goals, such as encouraging good governance" (University of Kent). And a recent study from Tufts University has concluded through modelling that TTIP could lead to: net loss in exports for the EU, a net loss in GDP, and a loss in employment of some 600 000 jobs, and the author conclude by stating that "In the current context of austerity, high unemployment and low growth, increasing the pressure on labor incomes would further harm economic activity" (Capaldo, 2014).

Impact on environment, health and food standards

Many environmental organisations fear that the TTIP will ignite a "race to the bottom" regarding environmental regulations in the EU, so that they come to resemble the US far weaker regulatory system. Most likely the TTIP will accelerate the privatization of public goods and services such as National Health systems. This could have tremendous effects on public health. And many analysts agree that TTIP would allow big food corporations to avoid food safety regulations and undermine sustainable agricultural practices in the rush for profits and trade. For example, the US has much weaker standards on animal welfare, ecosystem protection and GMO labeling. These are serious citizen concerns that has not been sufficiently addressed by governments wishing to take part of the TTIP.


Conclusion

Trade unions, consumer groups, environmentalists and digital rights activists are opposed to increasing corporate rights over sovereign nations. Almost all (centre-)left groups in the European Parliament have voted against ISDS. So have the French Assemble and the Dutch Parliament. In Sweden, however, both the moderates (M) and social democrats (S) are positive to the TTIP (ETC, 2013). The current prime minister, Stefan Löfven, has stated that he welcomes the TTIP but that "social justice issues should be included" (ibid). This is a paradox since the (S) representative Mikael Damberg in a leaked document to Cecilia Malmström, the EU commissioner for trade, has signed a letter pushing for ISDS inclusion in TTIP (TTippen.se). The most troubling issue is perhaps how much of the negotiations have been kept secret from public and governmental scrutiny, similar to the TPP. Moreover it seems that countries have become so desperate for economic growth that they are willing to throw everything they worked for, in terms of environmental and health regulation, out the window. I am also surprised that conservatives don't seem to react to this issue as much as the left, one might think that they should be even more concerned with national sovereignty.   

A critical view of the TPP

Trade agreement that upsets

The Trans-Pacific Partnership (TPP) is a regional free-trade agreement between the United States and some pacific countries. It threatens local economies self-determination over big corporations and any hope of a green trade deal that could ultimately do more to reduce carbon emissions. Critics have described the TPP as NAFTA on steriods (stoptpp.org) because of its focus on giving legal power to multinational corporations over nation states and their citizens. The proposed TPP is now, however, running into difficulties as the public learns more about it.

What is TPP?
TPP is a proposed regional free-trade agreement that as of 2014 includes twelve countries throughout the Asia-Pacific region (see map below). These countries combined represents an economic power of more than 40% of the worlds GDP, making the TPP the largest economic trade agreement to date. The agreement started with discussions in 2005 and should have finished by 2012 but was delayed because of major controversies and outrage due to leakages of secret documents around Intellectual Property and Environment Chapters in the proposed agreement by WikiLeaksThe push for this kind of an trade agreement probably started as a alternative way to WTO negotiations after 12 years of stagnation, partly due to well-organized public resistance in many countries. At the moment U.S. corporate interests are driving the agenda of the TPP (The Guardian).  It is according to many commentators no coincidence that leftist Latin American governments and China has been left out of the agreement.




Controversy
There has been extremely little transparency regarding the TPP negotiations. Few people have had access to the draft agreement and outermost secrecy has been in place. Large corporations and lobbyists, however, have been able to see chapters of the document. Thus when WikiLeaks first revealed parts of the TPP draft in November of 2013 many people and citizens rights groups got very upset. One part of the TPP which consist of giving corporations the right to directly sue governments for regulations that infringe upon profits or potential profits may explain why the TPP negotiators tried to hide the details from public awareness (Guardian, 2013). Because they knew it would evoke strong opposition, given the value people place in national sovereignty. Other parts of the draft, which have been leaked, includes:

Intellectual Property (IP) Chapter
The IP Chapter covers topics from pharmaceuticals, patent registrations and copyright issues to digital rights. Experts say it will affect freedom of information, civil liberties and access to medicines globally. The latest 77-page document is a working draft from the negotiations in Vietnam, dated 16 May 2014. The IP chapter of TPP would, if signed, effectively let corporations monitor citizens online activities, cut off peoples Internet access, delete content, impose fines and pursue stronger criminal regulations related to online copyright (ComputerWorld). It would end up instituting very controversial laws such as SOPA and PIPA that would restrict internet freedoms and free speech to the benefit of corporations. Overly protective patent laws on medicines and biological seeds etc. would also increase health care costs and farming practices and thus have a major impact on public health and food security, especially in poorer nations. 

Environment Chapter 
The environmental chapter in the TPP does not require nations to follow legally binding environmental provisions or other global environmental treaties. Pollution controls could vary depending on a country's domestic circumstances and capabilities. The chapter shows how trade above all is promoted, beyond environmental goals and values, basically stating that local environmental laws are not to obstruct trade or investment between member countries. Furthermore there is an emphasis on ...flexible, voluntary mechanisms, such as voluntary auditing and reporting, market-based incentives, voluntary sharing of information and expertise and public-private partnership”, but that even such measures should be designed in a manner that “...avoids the creation of unnecessary barriers to trade” (WikiLeaks). At a time of worldwide environmental challenges (including species die-offs, dangerous pollution of the oceans and climate change) people would expect that trade could be a tool to protect the planet, not hasten ecological collapse. 

Conclusion
According to Noam Chomsky, the MIT professor, the TPP is not about "free trade" at all. He says “These are extreme, highly protectionist measures designed to undermine freedom of trade. In fact, much of what’s leaked about the TPP indicates that it’s not about trade at all, it’s about investor rights” (Huffington Post). Simply put, this proposed agreement protects corporations over citizens and profits over the environment. If signed, this agreement could further exacerbate economic inequalities and environmental degradation in many nations.