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 PascrellJimmy and Rosalynn Carter celebrate 75th anniversary, longest-married presidential couple Jan. 6 probe poised to spill into 2022, with no complaints from Democrats Zombie Tax punishes farmers to fill DC coffers 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.

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In a separate letter, Sens. Elizabeth WarrenElizabeth WarrenOn The Money: Schumer, Warren call on Biden to extend student loan pause | IMF estimates 6 percent global growth this year Schumer, Warren call on Biden to extend student loan pause and wipe out K per borrower Senate confirms Biden's Air Force secretary MORE (D-Mass.), Tammy BaldwinTammy Suzanne BaldwinManaging the US dollar to pay for congressional infrastructure plans Duckworth, Pressley introduce bill to provide paid family leave for those who experience miscarriage Senate Democrats call for Medicaid-like plan to cover non-expansion states MORE (D-Wis.), and Edward MarkeyEd MarkeyNearly 140 Democrats urge EPA to 'promptly' allow California to set its own vehicle pollution standards Senate Democrats press administration on human rights abuses in Philippines Equilibrium/ Sustainability — Presented by NextEra Energy — Olympics medals made of mashed up smartphones 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 DoggettGOP leans into racial issues ahead of midterms Democrats under new pressure to break voting rights stalemate Biden rips Trump's 'big lie' in voting rights address MORE (Texas), Linda SanchezLinda Teresa SánchezRep. Sanchez: Not appropriate for reporters to see inside border facilities for children Democrats move smaller immigration bills while eyeing broad overhaul Biden should emphasize immigration enforcement MORE (Calif.), John LewisJohn LewisNative Americans are targets of voter suppression too Ethics panel taking no action after Joyce Beatty's arrest at protest Rep. Hank Johnson among demonstrators arrested at voting rights protest MORE (Ga.) and Jim McDermottJames (Jim) Adelbert McDermottSondland has 'no intention of resigning,' associate says Three women accuse Gordon Sondland of sexual misconduct Portland hotel chain founded by Trump ambassador says boycott is attack on employees MORE (Wash.), also Ways and Means Committee members, signed onto the letter that also went to Secretary of State John KerryJohn KerryEquilibrium/ Sustainability — Presented by NextEra Energy — Clean power repurposes dirty power No. 2 State Department official to travel to China amid tensions US and Germany launch climate partnership 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’."