Trans Pacific Pillaging: the investments chapter

The former community organiser understands very well what's at stake at the intersection of foreign policy and foreign trade. He is doing what he can through the TPP to "contain" China. He freely said so in his recent State of the Union address to Congress:

China wants to write the rules for the world's fastest growing region. That would put our workers and businesses at a disadvantage. Why would we let that happen? We should write those rules. That's why I am asking both parties to give me trade promotion authority to protect American workers with strong trade deals….

Pretty clear you must admit.

Only a few days ago, Wikileaks made available the hitherto secret Chapter II – Investments. The chapter's focus is the rights of investors from say Country "X" when they engage in commercial activities in another country, say Country "Y".

So what's in this chapter for us, the mug punters?

For one thing, utilising a provision called the Investor-State Dispute Settlement, a brand spanking new supranational court for multinationals to seek financial redress from states when they allege their rights have been trampled upon will come into existence. This legal innovation is a direct challenge to parliamentary and judicial sovereignty of the respective member states.

Julian Assange explains that the purpose of the supranational court is to bulk up the power of global corporations vis à vis independent states by creating a court or tribunal, where foreign firms can "sue" states and obtain taxpayer compensation for "expected future profits" if the court agrees that changes in a nation's laws or policies are financially detrimental to the corporation in question. Even if those changes are in the public interest.

Emphysema International has already got its solicitors into gear. Using an earlier but similar legal instrument, US tobacco giant Phillip Morris is suing the Commonwealth of Australia. This action began in June 2011 and is still under foot.

It is challenging former Attorney General Nicola Roxon's mandating of plain packaging of tobacco products on public health grounds. It managed to do this by reorganising its corporate structure and hauling its operations to the Chinese port city of Hong Kong.

Philip Morris Asia is drawing a long bow by relying on the 1993 Agreement between the Government of Australia and the Government of Hong Kong for the Promotion and Protection of Investments (Hong Kong Agreement).

Separately, Wikileaks notes that oil giant Chevron has taken action against Ecuador in an attempt to escape a multi-billion-dollar compensation ruling for polluting the environment. The implication from the chapter's release is that TPP members will find it even more difficult over time to apply their laws as their electorates expect them to be applied. And making lawbreakers liable for their wickedness will be like pushing porridge uphill with a stick.

So what's in the Investments Chapter? Let's look at a handful of issues.