Does The Fast Track Authority Bill Guarantee That Corporate Sovereignty Will Be One-Sided And Unfair?

Yesterday, Mike reported on the introduction of the "fast track authority" bill in the Senate, and pointed out some of its most troubling aspects. But it's a long document -- over 100 pages -- and hidden away within it are some other areas that raise important questions. Take, for example, Section 8, which concerns sovereignty: 

On Techdirt.

US Free Trade Agreements Are Bad Not Just For The Economy, But For The Environment, Too

A couple of months ago, we reported on some interesting research into the reality of US trade agreements, in contrast to the rosy pictures always painted when they are being sold to the public by politicians. In particular, it turned out that far from boosting US exports and creating more jobs, both the North American Free Trade Agreement (NAFTA) and KORUS, the free trade agreement with South Korea, actually did the opposite -- increasing the US trade deficit with those countries, and destroying hundreds of thousands of American jobs. 

On Techdirt.

TTIP Update II

As I noted in my first TTIP Update about the current negotiations between the EU and US over a massive trade agreement that is far from being only about trade, it is probably true that it will not include many of the more outrageous ideas found in ACTA last year. But that is not to say that TTIP does not threaten many key aspects of the Internet - just that the attack is much more subtle.

On Open Enterprise blog.

EU Commission Sued For Refusing To Reveal Trade Agreement Documents They Shared With Lobbyists

A recurrent theme here on Techdirt is the lack of transparency when international agreements and treaties are being drawn up. That's increasingly recognized not just as problematic, but simply unacceptable in an age when the Internet makes it easy to provide both access to draft documents and a way for the public to offer comments on them. 

On Techdirt.

How Investor-State Dispute Resolution Threatens Access To Medicines, And Much Else

A couple of weeks ago, we wrote about the growing importance of investor-state dispute resolution in so-called free trade agreements (FTAs). One of the most troubling aspects is how potentially it can be used to undo the hard-won gains for important areas like access to medicines. The US law professor Brook K. Baker, whose work we discussed last year, has written an excellent exploration of this under-appreciated risk. After an introduction running through the recent wins in the field of access to medicines -- a topic that we've covered extensively here on Techdirt -- he explains how big pharma could employ investor-state dispute resolution to thwart these and similar moves to protect health: 

On Techdirt.

Why has Monsanto "Quit" Europe? The Answer is ISDS in TAFTA/TTIP

The battle to bring GM food to Europe has been fiercely fought for years.  Most assumed it would be continue to rage for many more. Which makes this recent announcement extremely surprising:

The world's largest producer of seeds, Monsanto, has apparently given up on attempts to spread its genetically modified plant varieties in Europe. A German media report said the firm would end all lobbying for approval.

The German newspaper "taz" reported Friday that US agriculture behemoth Monsanto had dropped any plans to have farmers grow its genetically modified (GM) plant varieties in Europe.

Monsanto Europe spokesman Brandon Mitchener was quoted as saying the company would no longer engage in any lobbying fur such plants on the continent, adding that at the moment the firm was unwilling to apply for approval of any GM plants.

This is very curious.  Monsanto may be many things, but it is not a company that  gives up.  However, there is a clue in the last sentence of the above quotation: "at the moment the firm was unwilling to apply for approval of any GM plants". That suggests this is only a temporary halt, and that it will be back.

So why might it do that? Is there anything happening that might have triggered this move?

Why, yes: TAFTA/TTIP.  In fact, the issue of GM crops is likely to be one of the biggest sticking points.  The US side is insisting that "Sanitary and Phytosanitary" (SPS) measures must address GM foodstuffs, with the European side adamant that it won't drop its precautionary principle.

So how might that apparent contradiction be resolved?  A recent meeting on SPS gives a clue:

WTO members celebrated the 50th anniversary of 186-member Codex Alimentarius, which sets international standards for food safety, by calling, on 27–28 June 2013, for continued support for the body, and for trade measures to be based on science.

The calls came in a two-day meeting of the WTO’s Sanitary and Phytosanitary Measures (SPS) Committee, which consists of all 159 WTO members and deals with food safety and animal and plant health — measures having an increasing impact on trade. 

 Specifically:

“The increase in the number of SPS measures that are not based on international standards, guidelines and recommendations, or that lack scientific justification, is a point of concern that has often been raised by many members in the SPS Committee and other contexts,” Brazil observed.

The discussion of the six new specific trade concerns and the 10 previously raised and discussed in this meeting reflected that theme.

They covered; processed meat, genetically modified organisms (GMOs), restrictions related to the Japanese nuclear plant accident, orchid tissue culture plantlets in flasks, citrus fruits (a complaint by South Africa against the EU about black spot, which is the first dispute settlement case in the International Plant Protection Convention), offal, salmon, pesticide residues, sheepmeat, phthalates (materials added to plastics in food and drink containers) in wines and spirits, shrimp, mad cow disease (BSE), GMO pollen in honey, Indonesia’s port closures, and pine trees and other products.

As can be seen there, GMOs are mentioned twice.

Well, "trade measures to be based on science" sounds reasonable enough, doesn't it?  Except, as I've discussed at some length recently, the "science" actually means "scientists employed by companies"; that is, it is far from being independent or disinterested.  By redefining such company testing as "scientific", it can then be used to push through products that have never been tested by national food safety bodies.

This approach seems certain to crop up during the TAFTA/TTIP negotiations, and would offer Monsanto a fresh opportunity to push its GM products in the EU.  What it will be aiming for is that US "testing" must be accepted in the EU too - that's precisely what TAFTA/TTIP is all about - which would mean automatic approval for its products there.  Hence the recent pull-out - it won't even need to make applications in the future.

But it gets even better for Monsanto.  Another key area for TAFTA/TTIP is investor-state dispute settlement (ISDS).  Again, I've written extensively about this elsewhere. Here I just want to explore how Monsanto might use it to blackmail European governments into accepting GM crops.

Essentially, ISDS allows companies to sue entire countries or even regions like the EU for alleged loss of future profits (see this terrifying example from Canada.)  So once TAFTA/TTIP is signed with ISDS provisions, Monsanto will be able to threaten to sue the EU and its member states if they don't allow its GM products to be sold there.  

The logic would be that it invested money in Europe in the "reasonable" expectation - based on "science", of course - that it could sell its products as a result.  Since the EU authorities and national governments have proved so hostile to GM, it was unable to do that.  It would therefore claim that it could sue the EU for hundreds of millions - possibly billions - of  Euros for its "lost" profits.

This is not some mad fantasy: it is already playing out around the world, as governments find that they cannot apply laws designed to protect public health and safety, since they would have the knock-on effect of reducing some multinational's profits, and therefore makes them subject to ISDS claims.

I believe this is the main reason for Monsanto's temporary pull-out from the European approvals process: it feels confident that ISDS provisions will be included in TAFTA/TTIP - indeed, both the EU and US sides have said they want them - and equally confident that it will be able to sue the socks off the EU and national states if they don't simply wave through GM products in their markets, no further approval required....

What New-Style Trade Agreements Are Really About (Hint: It's Not Trade)

Given the massive impact that new-style trade agreements like TPP and TAFTA/TTIP are likely to have on the lives of hundreds of millions of people, it's surprising how few members of the public know about what's being negotiated in their name. Fortunately, publications are starting to run more articles on the subject, like this great piece by David Brodwin in US News. 

On Techdirt.

EU Free Trade Agreements With India And Canada Grind To A Halt

Techdirt has been covering the free trade agreement being negotiated between India and the EU for a while now -- that is, as well as anyone can report on something that is being conducted behind closed doors. Despite or maybe even because of that secrecy, one issue in particular has raised concerns: that India's crucial role as supplier of low-cost generics to the world's poor might be under threat. Against that background, this report on the Live Mint site comes as something of a surprise: 

On Techdirt.

South Korea Considers Dumping Draconian Copyright Law Forced On It By The US

As Mike noted a couple of days ago, international trade agreements often have the effect of constraining the power of national legislatures. Indeed, that's doubtless one of the reasons why they have become so popular in recent years: they allow backroom deals between politicians and lobbyists to set the agenda for law-making around the world, without the need for any of that pesky democratic oversight nonsense. In particular, the trade agreement between South Korea and the US is turning out to be a key limiting factor for both TPP and what US politicians might try to do about phone unlocking. This makes two recent moves to loosen South Korea's harsh copyright laws potentially important far beyond that country's borders. 

On Techdirt.

Now US Wants Transatlantic Free Trade Agreement With European Union To Include Turkey: Who's Next?

Last week we wrote about the important news that Mexico is asking to join what began as a bilateral trade agreement between the US and Europe, with the suggestion that Canada might follow suit. Now, via @FFII, we learn that even before Mexico's announcement, the US has been encouraging other countries to join: 

On Techdirt.

Why TAFTA Matters, and What We Should Do About It

Back in January, I wrote about what I called the "Trans-Atlantic Partnership Agreement", by analogy with the Trans-Pacific Partnership agreement, TPP, whose negotiations have already dragged on for several years. The formal announcement of what is now variously called the Trans-Atlantic Free Trade Agreement (TAFTA) or Transatlantic Trade and Investment Partnership (TTIP), took place just over a month ago, but already Mexico has stated that it wishes to join, and there are rumours Canada might tag along too.

On Open Enterprise blog.

Mexico Will Ask To Join US-EU Transatlantic Trade Agreement

Things are moving fast with the proposed US-EU transatlantic free trade agreement (TAFTA). It was only a few weeks ago that the formal announcement was made, and already another country wants to join, as pointed out by @PostActa (original in Spanish): 

On Techdirt.

Public Well-Being Must Be 'Primary Measurement' Of US-EU Trade Agreement

Now that the US and EU have officially announced the start of talks on a new bilateral free trade agreement -- sorry, a "trade and investment partnership" -- groups in both regions are trying to work out what this will mean for them and their constituents. Arguably the most important constituency of all is the public, and yet it is also the one that until now has been systematically shut out of previous negotiations for things like ACTA or TPP. One representative of that huge group -- though not, obviously, the only one -- is the Transatlantic Consumer Dialogue (TACD), which describes itself as follows: 

On Techdirt.

Treaty Shopping: How Companies Tilt The Legal Playing Field For Investor-State Arbitration

Alongside globe-spanning treaties like ACTA and TPP, there are more subtle efforts to limit the power of national governments, through the use of free trade agreements (FTAs) and bilateral investment treaties (BITs). There are now so many of these that it's hard to keep up, although the dedicated site bilaterals.org is a great help here. The confusing multiplicity only adds to their attractiveness for those negotiating them behind close doors, keen as they are to avoid transparency as much as possible. 

On Techdirt.

The Intellectual Monopoly Ratchet

One of the most frightening aspects of the intellectual monopoly game is the ratchet effect. A country typically increases intellectual monopoly protection to attain "parity" with another group, but overshoots in some areas. Other countries then ratchet up their intellectual monopolies to achieve "parity" - and overshoot.

Here's the ratchet in action:

If this Korea US FTA is passed, then the US will request other countries to include these things in the following FTA. So it needs to have international solidarity activities to stop this kind of US FTA.