Public Citizen

TPP Financial Stability Threats Unveiled: It’s Worse than We Thought

Public Citizen’s Global Trade Watch has carefully analyzed the Financial Services Chapter of the recently released Trans-Pacific Partnership. One story that has not been told about the TPP is how this first U.S. trade agreement negotiated since the global financial crisis  would impose the same model of financial deregulation that is widely understood to have fueled the crisis.

For the first time in any U.S. trade agreement, the TPP empowers some of the world’s largest financial firms to challenge U.S. financial regulatory policies in extrajudicial investor-state dispute settlement (ISDS) tribunals using the broadest “minimum standard of treatment” claim.

And, the TPP would be the first U.S. pact to empower some of the world’s largest financial firms to launch ISDS claims against U.S. financial policies. Now none of the world’s 30 largest banks may bypass domestic courts, go before extrajudicial investor-state tribunals of three private lawyers, and demand taxpayer compensation for U.S. financial policies. Among the top banks in TPP countries that could newly do so: Mitsubishi UFJ, Mizuho, ANZ, Commonwealth Australia, West Pac, National Australia Bank, Bank of Tokyo, Sumutomo, Royal Bank of Canada.

(Read the rest here.)