Public Comment

The recent public disclosure of the provisions of the Trans-Pacific Partnership has galvanized some of the most highly respected economists in the country. More than 200 of these economists and legal scholars have written a letter urging Congress to reject the 12-nation trade pact, citing its controversial investor-state dispute settlement. Critics say the so-called ISDS regime creates a parallel legal system granting multinational corporations undue power.The letter states, "Foreign corporations can succeed in lawsuits before ISDS tribunals even when domestic law would have clearly led to the rejection of those companies’ claims." Among the letter’s signatories is Obama’s Harvard Law School mentor, professor Laurence Tribe. Senator Elizabeth Warren, an early opponent of the deal, said of ISDS, "This provision empowers companies to challenge laws and regulations they don’t like, with friendly corporate lawyers instead of judges deciding their disputes. Congress should not approve a TPP agreement that includes ISDS." Lori Wallach, director of Public Citizen’s Global Trade Watch, stated “this is an agreement so repugnant that members of Congress do not want to vote for it.” 

If the TPP were to be enacted, thousands of multinational corporations would be newly empowered to sue the U.S. government, in front of panels of three corporate attorneys, who could order the government to pay unlimited sums, including future profits There is no appeal process from these panels and there’s no limit on how much they can order taxpayers to pay. 

President Obama’s aggressive promotion of TPP is ill-advised. TPP should be rejected.