Democrats urge officials to leave out investor-state dispute provisions in major trade deals

Several House and Senate Democrats are urging the Obama administration to leave out provisions in a two major trade deals they say could lead to changes in U.S. finanical regulations. 

Five Democrats, led by Rep. Bill PascrellWilliam (Bill) James PascrellHillicon Valley: Critics press feds to block Google, Fitbit deal | Twitter takes down Hamas, Hezbollah-linked accounts | TikTok looks to join online anti-terrorism effort | Apple pledges .5B to affordable housing Dem lawmakers ask Twitter how it will guard against census disinformation Trade deal talks manage to weather Trump impeachment storm MORE, Jr. (D-N.J.), a member of the House Ways and Means Committee, wrote President Obama urging him to exclude investor-to-state dispute settlement (ISDS) provisions from the proposed Transatlantic Trade and Investment Partnership (TTIP) agreement.

ADVERTISEMENT

In a separate letter, Sens. Elizabeth WarrenElizabeth Ann WarrenJuan Williams: Honesty, homophobia and Mayor Pete Trump DACA fight hits Supreme Court Democrats on edge as Iowa points to chaotic race MORE (D-Mass.), Tammy BaldwinTammy Suzanne BaldwinIt's time for Congress to establish a national mental health crisis number The Hill's Morning Report - Presented by Better Medicare Alliance - Dems unveil impeachment measure; Vindman splits GOP The Hill's Morning Report - Presented by Better Medicare Alliance - Dems shift strategy on impeachment vote MORE (D-Wis.), and Edward MarkeyEdward (Ed) John MarkeyDemocrats unifying against Joe Kennedy Senate bid States, green groups challenge rollback of Obama-era lightbulb rules Overnight Energy: Dems ask Trump UN ambassador to recuse from Paris climate dealings | Green group sues agencies for records on climate science | Dem wants answers on Keystone oil spill MORE (D-Mass.) raised concerns about those provisions being added to the Trans-Pacific Partnership (TPP), which they argue would make it harder for Congress and regulatory agencies to prevent future financial crises.

“We share your goals of ensuring that U.S. interests that invest abroad are not treated in a discriminatory fashion or denied fair opportunity to seek and achieve redress of grievances and believe they can be attained in TTIP without the inclusion of ISDS provisions,” the House lawmakers wrote.

“Should investor-to-state provisions be included in the TTIP, we believe that reforms to the current model are critical to avoiding the problems that have arisen under the provisions in existing FTAs and BITs."

The senators said that investor-state dispute settlement provisions in past trade deals have allowed foreign firms to use the process to challenge government financial policy decisions, and that the provisions in the TPP could be even broader. 

The are specifically concerned about market access rules and capital controls.

"Including such provisions in the TPP could expose American taxpayers to billions of dollars in losses and dissuade the government from establishing or enforcing financial rules that impact foreign banks,” the senators wrote.

“The consequence would be to strip our regulators of the tools they need to prevent the next crisis."

The senators argue that Congress must be able maintain the flexibility to impose restrictions on harmful financial products and on the conduct or structure of financial firms.

The letter asks the USTR to respond with its positions on the inclusion of these three provisions in the TPP, and requests that the USTR provide the senators with all U.S. proposals and bracketed negotiating texts relating to the provisions.

Reps. Lloyd DoggettLloyd Alton DoggettWhite House talking new tax cuts with GOP On The Money: Lawmakers hammer Zuckerberg over Facebook controversies | GOP chair expects another funding stopgap | Senate rejects Dem measure on SALT deduction cap workarounds House committee advances measure taxing nicotine in vaping products MORE (Texas), Linda SanchezLinda Teresa SánchezFirst major 'Medicare for All' hearing sharpens attacks on both sides WHIP LIST: The 228 House Democrats backing an impeachment inquiry We can accelerate a cure for Alzheimer's MORE (Calif.), John LewisJohn LewisDemocrats ramp up oversight efforts over 'opportunity zone' incentive The 13 House Democrats who back Kavanaugh's impeachment Detroit police chief calls Tlaib facial recognization idea 'racist' MORE (Ga.) and Jim McDermottJames (Jim) Adelbert McDermottPortland hotel chain founded by Trump ambassador says boycott is attack on employees Bottom Line Promoting the voice of Korean Americans MORE (Wash.), also Ways and Means Committee members, signed onto the letter that also went to Secretary of State John KerryJohn Forbes KerryDemocrats debate how to defeat Trump: fight or heal GOP senators press State Department for Hunter Biden, Burisma records Krystal Ball hits media over questions on Sanders's electability MORE and U.S. Trade Representative Michael FromanMichael B.G. FromanOn The Money: Sanders unveils plan to wipe .6T in student debt | How Sanders plan plays in rivalry with Warren | Treasury watchdog to probe delay of Harriet Tubman bills | Trump says Fed 'blew it' on rate decision Democrats give Trump trade chief high marks US trade rep spent nearly M to furnish offices: report MORE.  

AFL-CIO President Richard Trumka backed the lawmakers’ objections.

“The TTIP can help our economy grow, but only if it excludes the ISDS,” Trumka said.

“ISDS gives foreign investors extraordinary legal rights to challenge generally applicable public policies, including decisions about where to place toxic waste dumps, whether to increase minimum wages, and how to protect children from smoking and water pollution in privatized ‘corporate courts’."