In one part, the TPP makes it harder for investors to bring lawsuits based on their expectations of profits they would have made under an investment. That word might have let companies sue over legitimate measures a country takes to protect public health or the environment on the grounds unexpected changes reduced the value of investments.
Drake of the AFL-CIO said the tightening of the legal language isnt enough because arbitrators are free to ignore the subtle caveats U.S. negotiators add to the text. Without access to an appeals process, their mistakes cant be fixed, Drake said.
The agreement would also bar the use of shell companies to bring cases, an issue that arose when Philip Morris used a Hong Kong-based subsidiary to sue Australia. More directly, it all but carves the tobacco industry from being able to use arbitration.
Ilana Solomon, director of the Sierra Clubs Responsible Trade Program, said the exemption for tobacco shouldnt be the end of the matter. If it applies to tobacco, why shouldnt it apply to environmental policies? Solomon said. Its not sufficient to carve out one sector."