Corporate interest-driven trade agreements, including the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP) are undermining the very principles of government by the people, and if approved, would continue to reverse hard-won progress for environmental integrity, social justice and economic development. It doesn’t have to be that way.
Tweaking current negotiated texts won’t fix the problem. But hitting the reset button on trade agreement objectives, trade negotiation processes, and actual trade rules themselves could bring about trade that stands a chance of enhancing the lives and livelihoods among trading partners. For all their public pronouncements against free trade agreements, both U.S. presidential candidates need to be part of the effort to reimagine trade with a vastly different set of objectives than those limited to corporate welfare.
The real and potential value of trade itself—to all trading parties, not just Americans—can be lost in the debate about the rules that govern it. The exchange of goods and services, over small and large distances, is thousands of years old, and the benefits innumerable. Opponents to the TPP or TTIP do not dismiss trade itself; instead, we seek to establish trade rules that are beneficial to the public interest rather than rules that reflect and perpetuate the prevailing imbalance of political and corporate interests. And because trade agreements have become political hot potatoes, not just in the U.S. but worldwide, we are in a moment when resetting trade objectives is possible.
Notwithstanding President Barack Obama’s best efforts to sell the Trans-Pacific Partnership (TPP) Agreement to Congress and the public on economic grounds, presidential and congressional candidates are shunning the TPP as a winning campaign issue. Even Senator Rob Portman, a former U.S. trade representative, doesn’t mention the TPP in his electoral “Jobs and Growth” agenda. The economic forecasting arguments for TPP are very weak—even according to the “heroic assumptions” of proponents, such as no change in the U.S. trade balance or net employment as a result of the TPP. So, what arguments do the TPP proponents have left?
When Congress returns to Washington after the November 8 elections, its members, particularly the defeated or retiring legislators, will be pressured to vote for the TPP in large part on national security grounds. What these grounds are, just like the draft TPP texts themselves, will remain a closely guarded secret.
Earlier this week, the European Parliament approved the Paris climate agreement, joining more than 60 other countries in signing the deal and paving the way for this historic global effort to enter into force. While the Paris deal is truly a major step forward, countries will have to overcome a series of hurdles created by trade agreements to reach their climate goals. An escalating fight at the World Trade Organization (WTO)—attacking renewable energy initiatives in two of the world’s biggest polluting countries (the U.S. and India)—shows why untangling trade agreements from climate goals should be the next big step.
As part of the Paris agreement, countries submitted voluntary climate plans, known as Intended Nationally Determined Contributions (INDCs). But the ability of countries to reach those climate goals will depend on rewriting trade rules at the WTO—and a series of regional and bi-lateral trade agreements—that consistently favor corporate rights over the climate.
On 21 September 2016 the United Nations (U.N.) newly convened High-level Panel on Water (HLPW), called for a fundamental shift in the way the world looks at water. Supported by the World Economic Forum and its water initiative, the HLPW was formed to help “build the political momentum” to deliver on the U.N. mandated Sustainable Development Goal (SDG) on “water and related targets” that the U.N. member governments agreed to in 2015.
The HLPW is co-convened by the United Nations Secretary-General Ban Ki-moon and the President of the World Bank Group Dr. Jim Yong Kim. Co-chaired by the presidents of Mexico and Mauritius, the Panel is comprised of 11 sitting Heads of State and Government and one Special Adviser “to provide the leadership required to champion a comprehensive, inclusive and collaborative way of developing and managing water resources, and improving water and sanitation related services”.
But will the HLPW provide this leadership? How do we ensure that the leadership is inclusive, transparent and accountable?
The 2016 election is bizarre, to say the least. While the vast majority of reporting has focused on the horserace and he said she said aspects of the campaigns, the policy proposals put forward by the candidates will have profound and lasting impacts on the citizens they seek to govern. As a recent article in The Atlantic notes, “Once in office, presidents almost always try to carry out their pre-election agendas. When they’re unable to keep those promises, it’s usually because of congressional opposition—not because they’ve discarded campaign rhetoric to pursue other goals.”
With an increasingly globalized food system, trade and agricultural policies have become integral to combating climate change, providing economic security, and ensuring public health. These policies affect our jobs, the food we eat, and the land we live on. The trade and agricultural agenda set by the United States will affect billions of people around the globe. As the presidential debate season begins on Monday, the Institute for Agriculture and Trade Policy will be watching closely to see if and how the candidates address the following questions:
Regardless of their operation, do all farmers benefit when they sell their production to traders and processors who export crop- and livestock-derived products? According to a recent interview with Ambassador Darci Vetter, the chief U.S. agricultural trade negotiator, the answer is unequivocally yes. Even now, when prices paid to farmers and ranchers by those traders and processors are well below the cost of producing those crops and livestock, according to the U.S. Department of Agriculture (USDA)? Consider the case of dairy farmers.
IATP contends that the dairy import provisions of the Trans-Pacific Partnership Agreement (TPP) will do nothing to stem the global raw milk price collapse that is driving U.S. dairy farmers out of business. Those low prices provide very cheap raw materials to such mega-dairy processors as Kraft Foods, Dean Foods and Land O’Lakes, which is owned by the mega-cooperative, the Dairy Farmers of America, but the benefits to farmers are vanishingly small.
Free trade deals, and in particular the proposed Trans-Pacific Partnership (TPP), have taken a beating this election season. Most of the noise on trade from Presidential candidates Donald Trump and Hillary Clinton has focused on the loss of jobs linked to the offshoring. Much less attention has been paid to the serious impact the TPP and past trade agreements will have on our ability to respond to climate change.
In a new report on the TPP and climate commitments made by countries as part of the Paris climate agreement, we found that trade rules consistently benefit multinational corporations in high greenhouse gas emitting sectors like agriculture and energy, while creating barriers for governments in setting climate-related policies.
Our analysis found that the Trans Pacific Partnership expands the scope of past trade agreements to harm the climate in three important ways:
While food and agriculture were not on the official agenda for the latest round of Transatlantic Trade and Investment Partnership (TTIP) negotiations, July 11-15 in Brussels, the intense debate generated by Greenpeace Netherland’s leaks of 14 chapters of the draft agreement continue to reverberate through the trade policy world. Consumer and other civil society groups, having scrutinized the official texts, are pressing for major changes in the agreement’s alarming “innovations” in setting standards on agricultural animal health and welfare, plant health and food safety (in trade policy terminology, Sanitary and Phytosanitary Standards or SPS).
The Transatlantic Consumer Dialogue (TACD), an alliance of about 25 U.S. and 50 European NGOs, for which IATP serves as the U.S. co-chair of the Food Policy Committee, published a resolution on the TTIP SPS chapter in January. Because the Obama administration refuses to make public its negotiating proposals, TACD developed its resolution by using the SPS chapter of the Trans-Pacific Partnership (TPP) as a proxy for the U.S. SPS positions in TTIP. In July, TACD published an update to its January resolution that made recommendations to the European Commission (EC) Directorate General of Trade (DG Trade) and to the U.S. Trade Representative (USTR) on the basis of their negotiating proposals, as published by Greenpeace.
Last week, there was a bit of good news on the trade front: on July 8, tobacco giant Philip Morris lost its ridiculous case against Uruguay’s cigarette labeling laws. In 2010, the multinational company’s Swiss subsidiary—which owns its operations in Uruguay—sued the country over rules designed to discourage cigarette consumption, especially by young people. As in a similar case against Australia, the company alleged that requiring labels that emphasize the dangers of smoking lowered the value of its intellectual property rights (i.e., its trademarked labels) and therefore, its investments. The case was brought under the Investor State Dispute Settlement (ISDS) mechanism in a bilateral investment treaty between Switzerland and Uruguay. ISDS empowers companies to sue governments in private tribunals over measures that undermine their expected profits. It has become a lightning rod for controversy in the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP).
The Institute for Agriculture and Trade Policy’s European Office, along with international group Compassion in World Farming (CIWF), German member of Via Campesina—Arbeitsgemeinschaft bäuerliche Landwirtschaft e.V. (AbL) and PowerShift launched their new report Selling Off the Farm: Corporate Meat’s Takeover through TTIP today with a panel discussion and a press briefing at the European Parliament.
Some key findings from the report: