A Scary Thing Explained In 2 Minutes 45 Seconds
A lot of people ( including ACT ‘s David Seymour ) are confused about the Investor State Dispute Settlement provisions agreements like the upcoming Trans Pacific Partnership Agreement (TPPA) . So Jeremy Jones has made this terrific little animation that reveals the history of them and how they work.
It’s common for Trade Agreement to include dispute settlement provisions because when things go wrong there has to be an agreed way of coming to a fair resolution.
When countries disagree it will be a State- to- State dispute settlement and there will usually be no financial penalty.
But when foreign investors get into an argument with a country (because,say, the country changed their laws and reduced their profits) the shareholders of that corporation will want financial compensation of Millions if not Billions of dollars.
New Zealand has a robust legal system so those shareholders could seek compensation through our courts.
But that is not what the corporates will want to happen. Instead disputes will be settled by an overseas tribunal made up of very well paid lawyers who might represent a country one day, a corporate the next, or be the independent arbitrator on another day.
If that sounds like an unnecessary and Mickey Mouse arrangement to you – you’re not alone.
Investor State Dispute Settlement provision are one way that corporates can bully countries into changing their laws.
And if We are not free to make your own laws… then we not a sovereign country.