Lori Wallach in Le Monde Diplomatique:
Imagine what would happen if foreign companies could sue governments directly for cash compensation over earnings lost because of strict labour or environmental legislation. This may sound far-fetched, but it was a provision of the Multilateral Agreement on Investment (MAI), a projected treaty negotiated in secret between 1995 and 1997 by the then 29 member states of the OECD (Organisation for Economic Cooperation and Development). News about it got out just in time, causing an unprecedented wave of protests and derailing negotiations.
Now the agenda is back. Since July the European Union and the United States have been negotiating the Transatlantic Trade and Investment Partnership (TTIP) or Transatlantic Free Trade Agreement (TAFTA), a modified version of the MAI under which existing legislation on both sides of the Atlantic will have to conform to the free trade norms established by and for large US and EU corporations, with failure to do so punishable by trade sanctions or the payment of millions of dollars in compensation to corporations.
Negotiations are expected to last another two years. The TTIP/TAFTA incorporates the most damaging elements of past agreements and expands on them. If it came into force, privileges enjoyed by foreign companies would become law and governments would have their hands tied for good. The agreement would be binding and permanent: even if public opinion or governments were to change, it could only be altered by consensus of all signatory nations. In Europe it would mirror the Trans-Pacific Partnership (TPP) due to be adopted by 12 Pacific Rim countries, which has been fiercely promoted by US business interests. Together, the TTIP/TAFTA and the TPP would form an economic empire capable of dictating conditions outside its own frontiers: any country seeking trade relations with the US or EU would be required to adopt the rules prevailing within the agreements as they stood.
The TTIP/TAFTA negotiations are taking place behind closed doors. The US delegations have more than 600 corporate trade advisers, who have unlimited access to the preparatory documents and to representatives of the US administration. Draft texts will not be released, and instructions have been given to keep the public and press in the dark until a final deal is signed. By then, it will be too late to change.