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 PascrellLawmakers urge administration to remove tariffs on European wine and spirits amid coronavirus pandemic The Hill's Campaign Report: Florida's coronavirus surge raises questions about GOP convention New Jersey Rep. Bill Pascrell wins Democratic primary 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 WarrenCuba spells trouble for Bass's VP hopes Democrats want Biden to debate Trump despite risks Overnight Defense: Embattled Pentagon policy nominee withdraws, gets appointment to deputy policy job | Marines, sailor killed in California training accident identified | Governors call for extension of funding for Guard's coronavirus response MORE (D-Mass.), Tammy BaldwinTammy Suzanne BaldwinBiden: I'll have a running mate picked next week The Hill's Morning Report - Presented by Facebook - Divided GOP to unveil COVID-19 bill Biden strikes populist tone in blistering rebuke of Trump, Wall Street MORE (D-Wis.), and Edward MarkeyEdward (Ed) John MarkeyThe Hill's Campaign Report: Biden's latest plan on racial inequality The Boston Globe endorses Markey in primary against Kennedy OVERNIGHT ENERGY: EPA effort to boost uranium mining leaves green groups worried about water | DNC climate platform draft calls for net-zero emissions by 2050 | Duckworth introduces safety net bill for coal country 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 plan would boost deduction for business meals Gilead sets price for five-day coronavirus treatment at ,120 The Hill's Coronavirus Report: Rep. Mark Takano says Congress must extend worker benefits expiring in July; WHO reports record spike in global cases MORE (Texas), Linda SanchezLinda Teresa SánchezDozens of Democrats plan to vote remotely in a first for the House Five things to watch for at this year's Oscars Klobuchar wins endorsement of prominent Hispanic lawmaker Linda Sanchez MORE (Calif.), John LewisJohn LewisIn Black communities, changing how we treat diabetes is imperative Juan Williams: The Trump Show grows tired Don't let Trump distract us from the real threat of his presidency 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 Forbes KerryBudowsky: Trump October surprise could devastate GOP Hillicon Valley: Democrats request counterintelligence briefing | New pressure for election funding | Republicans urge retaliation against Chinese hackers National security leaders, advocacy groups urge Congress to send election funds to states 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’."