The Trans-Pacific Free-Trade Charade
The Trans-Pacific Partnership is more about “managed trade” than “free trade,” argue economists Joseph Stiglitz and Adam Hersh. The agreement requires approval from legislators of 12 nations. Stiglitz and Hersh argue that industry protections in the agreement may curtail innovation in many areas: “Under these investor-state dispute settlement (ISDS) systems, foreign investors gain new rights to sue national governments in binding private arbitration for regulations they see as diminishing the expected profitability of their investments.” Compensating investors for the loss of profits could be harmful, and the economists point to examples of US tobacco firms suing countries for placing health warnings on cigarette packaging. The TPP’s final wording has not yet been released but Stiglitz and Hersh oppose stipulations that “make it hard for governments to conduct their basic functions – protecting their citizens’ health and safety, ensuring economic stability, and safeguarding the environment.” – YaleGlobal
The Trans-Pacific Free-Trade Charade
Stiglitz and Hersh: The TPP ensures managed rather than free trade – and governments could lose the ability to protect the environment and citizens’ health
Thursday, October 8, 2015
Joseph E. Stiglitz, a Nobel laureate in economics and University Professor at Columbia University, was Chairman of President Bill Clinton’s Council of Economic Advisers and served as Senior Vice President and Chief Economist of the World Bank. His most recent book, co-authored with Bruce Greenwald, is Creating a Learning Society: A New Approach to Growth, Development, and Social Progress.
Adam S. Hersh is Senior Economist at the Roosevelt Institute and Visiting Scholar at Columbia University’s Initiative for Policy Dialogue.
Read more at http://www.project-syndicate.org/columnist/joseph-e–stiglitz#T9KBLWpGMwEOqLip.99
http://www.project-syndicate.org/commentary/trans-pacific-partnership-charade-by...
© 1995 – 2015 Project Syndicate