/ world today news/ The “investor-state” dispute resolution mechanism subordinates national authorities to foreign corporations and leads to the blocking of policies in the public interest and the creeping erosion of environmental, sanitary, etc. standards. TTIP is discussed at the European level in a non-transparent manner under the total dominance of corporate interests, and in Bulgaria the government participates in discussions mainly with the largest corporate lobbyists for TTIP.
The Bulgarian position on TTIP is reduced to an uncritical reproduction of the “fulcrums” of the European Commission and the American administration, and is not based on an independent analysis of the consequences for Bulgaria. These are the main assessments in a special analytical report by the Institute for Modern Politics (IMP) – „TTIP – the road to corporate slavery”, sent today to the government, parliament and European institutions.
This is the first comprehensive report in which a Bulgarian analytical center emphasizes the legal-political effects from TTIP. They are in the report analyzed the implementation of agreements of a similar type in other regionsis given assessment of the state of the negotiation process and the position of the Bulgarian government. They are formulated and specific recommendations for building the Bulgarian position on TTIP in line with national interests.
Regarding investor-state disputes
The report argues that the privileged regime, which allows foreign investors to sue the state in private supranational tribunals (ISDS), is an unchecked tool for subordinating nation states to corporate interests and blocking policies and decisions that protect the public interest. This is the main risk for the Bulgarian regulatory and socio-economic environment from the adoption of the Transatlantic Trade and Investment Partnership between the EU and the USA (TTIP) in its current form, states the IMP.
Sporred Institute for Modern Politics TTIP goes far beyond narrow economic issues and expertise. It affects the very functioning of the modern constitutional state, the ability of governments to implement policies in the public interest and the rights of citizens.
Regarding the risks for Bulgaria
The report does review of the practice of implementing the investor-state dispute settlement mechanism in private tribunals. They are indicated a number of examples with arbitration cases in which corporations are suing countries for huge damages for raising the minimum wage (Egypt), imposing a moratorium on fracking (Canada), banning environmentally dangerous gold mining (El Salvador), refusing to develop nuclear power (Germany), freezing of electricity and water prices, as a social measure against the acute economic crisis (Argentina), etc. (see the full text of the report).
UTI does a detailed comparison of legal advantages and disadvantages of the procedures for solving “investor-state” disputes by the national judicial system and before private tribunals. The bottom line is that even in the face of an ineffective judicial system at the national level, guarantees of publicity and a fair trial are far more widespread than before the supranational private tribunals, before which cases are conducted “in the dark” and without publicity, there are no efficient possibilities to appeal the decisions, there are no solid guarantees against conflicts of interest and corrupt practices by the arbitrators. The report emphasizes that this mechanism gives foreign corporations a unilateral privilege because the state cannot bring claims before private tribunals for violations by them, and it is a discriminatory measure for domestic businesses because domestic companies do not have similar rights.
Substantial risk of unfair and even voluntarist justice within the mechanism ISDS is created by over-extending and inconsistent interpretation, which is applied by the tribunals to basic concepts from international treaties such as: “investments”, “legitimate expectations”, “measures”, “investor”, “fair and just treatment”, “direct and indirect expropriation”, etc. This can lead to creeping erosion by way of private tribunals of otherwise guaranteed TTIP standards in agriculture, GMOs, health care, etc. In this way, corporations receive a powerful weapon against the national authorities, with which they can attack and defame any law, administrative measure or local ordinance that implements certain policies in the public interest, as long as they in any way limit the planned profits and economic activity of the corporation. The lack of an efficient mechanism to standardize the practice of tribunalsas it exists in national justice systems, further exacerbates this problem, the IMP report said.
The assessment is that yes open wide possibilities for circumventing and replacing the sovereign will of citizens and their democratic representatives (parliament, government, local authorities). Mlegitimate public policies related to the quality of life and social development may be disgraced. On this one way private corporate interests are placed in a superior position compared to the democratic system in violation of fundamental principles of modern constitutional democracy. Corporations become an external to the democratic political system participant in the political processwhich unilaterally has a mechanism for influencing the regulatory environment, citizens’ rights and socio-economic development that is unavailable to other participants, including the state. The very presence of this mechanism plays a restraining role – the threat of multimillion-dollar compensation is a “sword of Damocles” capable of shaking any idea of conducting policy in the public interest. In its deviant forms, ISDS leads to the de facto replacement of the democratic order with corporatocracy and the erosion of the nation-state. Until placing the state in vassal subordination to the corporate interest, and the citizens – in the position of modern slaves of an uncontrolled and powerful master who, with the threat of extracting gigantic financial resources from the respective state in the form of compensations awarded under the ISDS procedure, can exercise in a behind-the-scenes and undemocratic way influencing the policies and rules by which societies live.
Regarding the negotiations at the European level
The IMP shares the assessment that the negotiations between the European Commission and the US administration are opaque, but points to another serious deficiency – the distinct dominance of corporations and corporate lobbyists compared to the organizations and experts protecting the public interest in the TTIP consultations. Data are given on Corporate Europe Observatoryaccording to which in the period 2012–2013 the total number of “stakeholders” who lobbied in connection with TTIP amounted to 298. Of these, 269 were representatives of the business sector.
Regarding the discussion in our country and the position of the Bulgarian authorities on TTIP
The report emphasizes that the public discussion on TTIP in our country is too limited and overloaded with ideological clichés trying to frame the discussion along different political axes “globalists-anti-globalists”, “pro-American-anti-American”, “Europhiles-Eurosceptics” or “right -left’.
The government mainly participates in dialogue with business and in conferences sponsored by the big corporations that are lobbying for the adoption of TTIP. The report cites specific figures from US and European Commission lobbyist registries on the millions spent by these corporations on TTIP lobbying (see the full text of the report).
The position of the Bulgarian government on TTIP is assessed as uncritical reproduction of the “fulcrums” of the European Commission and the US administration. The IMP emphasizes that the Bulgarian position is not based on in-depth and independent analysis of the expected impact of TTIP on the Bulgarian economic and legislative environment. There is no clearly defined Bulgarian national interestto be defended by Bulgaria.
Recommendations to the Bulgarian authorities
The IMP makes a series of specific orders:
-
To formulate a clear mandate of the Bulgarian government until the end of the negotiations on the TTIP, which should become public domain and be subject to a wide public discussion.
-
The Bulgarian side should vigorously oppose the inclusion of a mechanism for resolving disputes between foreign investors and the state by supranational tribunals (ISDS).
-
The government and the Bulgarian MEPs to take vigorous action towards the European Commission with a view to overcoming the severe imbalance in the public consultations on TTIP, which are mainly conducted with corporations and their lobbyists, while the participation of human rights, environmental, consumer and other organizations working in the public interest is ignored .
-
To ensure unequivocally that in the area of non-tariff barriers, the TTIP will maintain the highest environmental, sanitary, health and other standards existing in the states parties to the agreement.
-
After the presentation of a completed draft of the TTIP, a broad public discussion should be organized to assess the effects that the agreement would have on the Bulgarian economy and legislation.
-
On the basis of the results of this public discussion, and not on party loyalties, the Bulgarian MEPs should determine their position on the possible ratification of TTIP. The IMP expresses its readiness to organize a public discussion with the participation of all Bulgarian MEPs to present their arguments “for” or “against” TTIP and to say how they will vote in order to protect the national interest and the rights of consumers.
The report specifically emphasizes that is prepared on a public basis, a NOT to order or with financing by the European Commission, the US government, corporations and donors that lobby in favor of TTIP, nor by countries and organizations that lobby against the agreement.
The full text of the Institute for Modern Policy Special Report “TTIP – The Road to Corporate Slavery” is attached to this press release. The report is also published on the official website of the IMP at –
#risks #Bulgaria #uncritical #acceptance #TTIP
