Lib/Lab divide on Trans-Pacific trade issues deplored

July 12, 2013

Lib/Lab divide on Trans-Pacific trade issues deplored as Japan joins negotiations in Malaysia

“As the Trans-Pacific Partnership (TPPA) trade negotiations between the US, Australia and ten Asia Pacific countries are about to resume in Malaysia on Monday July 15, we urge the Rudd government to maintain its policy to refuse key demands by US industry which would reduce its ability to keep medicines affordable and to regulate tobacco advertising,” Dr Patricia Ranald, Convener of the Australian Fair Trade and Investment Network, said today.

“The Australian Government is resisting US demands for stronger patents on medicines which would increase the price of medicines by delaying the availability of cheaper generic medicines,” said Dr Ranald.

“The government is also resisting US demands for special foreign investor rights to sue governments if a law or policy harms their investment. This would mean more law suits like the Philip Morris tobacco company’s current attempt to use an obscure Hong Kong-Australia investment agreement to sue the government for damages over its plain packaging legislation,” explained Dr Ranald.

“In the context of a looming Federal election, we are disappointed that the Opposition Trade Spokesperson, Julie Bishop, has criticised Government policy and said that a Coalition government would be prepared to negotiate on investor rights to sue governments, despite the fact that the Howard Coalition government rejected these rights in the Australia-US free trade agreement because of strong public opposition,” said Dr Ranald.

(Ms Bishop’s statement is attached).

“There has been enormous pressure to speed up the TPPA negotiations with the aim of finishing them at the APEC leaders’ meeting in Bali in October. This has increased the pressure on Australia and other countries to agree to unreasonable demands without public debate or accountability,” added Dr Ranald.

“As Japan is joining in Malaysia, the negotiations are expected to slow down. This will create more opportunities for public debate, which is sorely needed. We call on all governments involved in the negotiations to refuse unreasonable demands and agree to release the text so that decisions which will affect public health and other social policies can be debated in public and by Parliament before any agreement is signed,” said Dr Ranald.

The Australian Financial Review April 2, 2013

Opposition Liberal –National Coalition would act on Japan, South Korea, TPPA trade obstacle

The Coalition would consider removing a major obstacle to Australia finalising trade deals with South Korea and Japan, in a bid to resolve an impasse that exporters argue is costing them dearly.

The Labor government has resisted the inclusion in trade deals of so-called investor state dispute settlement (ISDS) provisions, which would allow foreign companies to claim compensation for policy or legal decisions that hurt their investments.

But opposition foreign affairs and trade spokeswoman Julie Bishop said a Coalition government would be prepared to consider including these provisions in a range of bilateral and multi-lateral trade talks.

“By not even including it in the first round, we have no bargaining position on the issue. The beef exporters are furious the government has backed itself into a corner and proven to be so inept at negotiating a deal with South Korea when the United States has achieved one,” Ms Bishop said.

“The Coalition would, as a matter of course, put ISDS clauses on the negotiating table and then negotiate ISDS provisions on a case-by-case basis.”

ALP policy opposes a system that would allow foreign companies to challenge domestic policy decisions that adversely affect them would involve an unacceptable infringement of Australian sovereignty.

The Labor Party believes that attempts by big tobacco companies to challenge the government’s decision on plain packaging for cigarettes show ISDS provisions in trade agreements could open Australia to the risk of having important policy decisions overturned by an outside panel.

But Ms Bishop said this argument was “unacceptable” and that a willingness to discuss inclusion of ISDS provisions could prove a breakthrough in deadlocked trade talks. “The government is putting its political fortunes ahead of the interests of exporters and their employees,” she said.

The United States is also keen to include ISDS provisions in the Trans-Pacific Partnership on trade that it hopes to finalise this year.

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