logo


Obama Trade Document Leaked, Revealing New Corporate Powers And Broken Campaign Promises

First Posted: 06/14/12 08:45 AM ET Updated: 06/14/12 06:42 PM ET

WASHINGTON -- A critical document from President Barack Obama's free trade negotiations with eight Pacific nations was leaked online early Wednesday morning, revealing that the administration intends to bestow radical new political powers upon multinational corporations, contradicting prior promises.

The leaked document has been posted on the website of Citizens Trade Campaign, a long-time critic of the administration's trade objectives. The new leak follows substantial controversy surrounding the secrecy of the talks, in which some members of Congress have complained they are not being given the same access to trade documents that corporate officials receive.

"The outrageous stuff in this leaked text may well be why U.S. trade officials have been so extremely secretive about these past two years of [trade] negotiations," said Lori Wallach, director of Public Citizen's Global Trade Watch in a written statement. Public Citizen is a nonprofit consumer advocacy group.

Sen. Ron Wyden (D-Ore.) has been so incensed by the lack of access as to introduce legislation requiring further disclosure. House Oversight Committee Chairman Darrell Issa (R-Calif.) has gone so far as to leak a separate document from the talks on his website. Other Senators are considering writing a letter to Ron Kirk, the top trade negotiator under Obama, demanding more disclosure.

The newly leaked document is one of the most controversial of the Trans-Pacific Partnership trade pact. It addresses a broad sweep of regulations governing international investment and reveals the Obama administration's advocacy for policies that environmental activists, financial reform advocates and labor unions have long rejected for eroding key protections currently in domestic laws.

Under the agreement currently being advocated by the Obama administration, American corporations would continue to be subject to domestic laws and regulations on the environment, banking and other issues. But foreign corporations operating within the U.S. would be permitted to appeal key American legal or regulatory rulings to an international tribunal. That international tribunal would be granted the power to overrule American law and impose trade sanctions on the United States for failing to abide by its rulings.

The terms run contrary to campaign promises issued by Obama and the Democratic Party during the 2008 campaign.

"We will not negotiate bilateral trade agreements that stop the government from protecting the environment, food safety, or the health of its citizens; give greater rights to foreign investors than to U.S. investors; require the privatization of our vital public services; or prevent developing country governments from adopting humanitarian licensing policies to improve access to life-saving medications," reads the campaign document.

Yet nearly all of those vows are violated by the leaked Trans-Pacific document. The one that is not contravened in the present document -- regarding access to life-saving medication -- is in conflict with a previously leaked document on intellectual property (IP) standards.

"Bush was better than Obama on this," said Judit Rius, U.S. manager of Doctors Without Borders Access to Medicines Campaign, referring to the medication rules.

The Office of the U.S. Trade Representative insists that while broad standards require many medical patents and IP rules that would increase the price of medications, the U.S. intends to work with countries involved in the Trans-Pacific talks to ensure that the agreement does not restrict access to life-saving drugs.

USTR was not immediately available to comment on the newly leaked investment chapter of the Trans-Pacific deal, and has previously stated that it cannot comment on the terms of an allegedly leaked document.

That statement is belied somewhat by recent American efforts in other international negotiations to establish controversial medical patents that grant companies long-term monopolies on life-saving medications. Those monopolies increase drug prices, which impede access to medications, particularly in developing nations. The World Health Organization and dozens of nonprofit public health groups have objected to the standards sought by the Obama administration. Two United Nations groups recently urged global governments not to agree to trade terms currently being advocated by the Obama administration, on the grounds that such rules would hurt public health.

Such foreign investment standards have also come under fire at home, from both conservative sovereignty purists and progressive activists for the potential to hamper domestic priorities implemented by democratically elected leaders. The North American Free Trade Agreement, passed by Congress in 1993, and a host of subsequent trade pacts granted corporations new powers that had previously been reserved for sovereign nations and that have allowed companies to sue nations directly over issues.

But while the current trade deal could pose a challenge to American sovereignty, large corporations headquartered in the U.S. could potentially benefit from it by using the same terms to oppose the laws of foreign governments. If one of the eight Pacific nations involved in the talks passes a new rule to which an American firm objects, that U.S. company could take the country to court directly in international tribunals.

Public Citizen challenged the independence of these international tribunals, noting that "The tribunals would be staffed by private sector lawyers that rotate between acting as 'judges' and as advocates for the investors suing the governments," according to the text of the agreement.

In early June, a tribunal at the World Bank agreed to hear a case involving similar foreign investment standards, in which El Salvador banned cyanide-based gold mining on the basis of objections from the Catholic Church and environmental activists. If the World Bank rules against El Salvador, it could overturn the nation's domestic laws at the behest of a foreign corporation.

Basic public health and land-use rules would be subject to challenge before an international tribunal, as would bank regulations at capital levels that might be used to stymie bank runs or financial crises. The IMF has advocated the use of such capital controls, which would be prohibited under the current version of the leaked trade pact. Although several countries have proposed exceptions that would allow them to regulate speculative financial bets, the U.S. has resisted those proposals, according to Public Citizen.

Trans-Pacific negotiations have been taking place throughout the Obama presidency. The deal is strongly supported by the U.S. Chamber of Commerce, the top lobbying group for American corporations. Obama's Republican opponent in the 2012 presidential elections, Mitt Romney, has urged the U.S. to finalize the deal as soon as possible.

CORRECTION: A previous version of this article said the leaked document was posted to the Public Citizen website. It was posted to the Citizens Trade Campaign website.

 
  • Comments
  • 9
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
05:18 PM on 06/13/2012
Jokes on them, I'm still voting for Ron Paul.
photo
HUFFPOST SUPER USER
Carmichael
I try always to see the best in people.
02:16 PM on 06/13/2012
Nothing happened - this only a speculation and assumption. And frankly no campaign promises concerning this matter has been broken...
This user has chosen to opt out of the Badges program
02:09 PM on 06/13/2012
I find it all too interesting that this news was NOT anywhere on the Yahoo website this morning, yet it was all over AOL. I guess it's pretty obvious why Yahoo and CNBC have decided to join their forces. The more slanted you can get, the more you can hide political weakness, and the better chances they think it gives Obama. People like to complain about Fox News, but I honestly have found them to be the best source for the actual truth. Not just what they want people to hear.
photo
HUFFPOST SUPER USER
badman400
Legalize the Constitution!
01:31 PM on 06/13/2012
How long? How much damage? How much more will it take for us to impeach this traitorous, fraud? Will America survive him and his dark masters?
This user has chosen to opt out of the Badges program
02:23 PM on 06/13/2012
The most sad thing about Obama's term will be about five to ten years from now, when everyone will be complaining, (blaming...) whoever is in the White House at the time. They won't understand, or they won't admit, that it all stemmed from this administration.
HUFFPOST SUPER USER
cliftongop
01:08 PM on 06/13/2012
When I was in the military I took an oath to "preserve, protect and defend THE CONSTITUTION OF THE UNITED STATES." President Obama took the same oath! I wonder what the framers, who approved the wording of that oath, would think of other nations overriding our laws, and of the President being complicit in allowing it.

Also, the Constitution says that all treaties have to be approved by the Senate, so how can all this be done in secret?

Does anyone even care any more that we have a constitution?
01:51 PM on 06/13/2012
The doors are now opened to medical espionage, in other words, if Israel has a medical product don't bank on the US exercising integrity of the product if a US pharm firm cuts the market first. Any opening within Constitutional boundary leaves the US highly vulnerable for a future rife with international corporate interlopers. The Senate needs to keep a firm handle on this potential threat to US internal security, it could get that bad.
06:27 PM on 06/14/2012
In other words, if Israel...huh? Then there is poor China, surrounded by giants, po thangs.
This user has chosen to opt out of the Badges program
02:28 PM on 06/13/2012
We the People.... care. But 'he' the current President, does not. Mr. Obama had neither the design nor the experience to be the leader of this nation, yet the politically unaware voted him in. For what? To prove a point about the direction the liberals felt our country needed to go. They knew Obama wasn't qualified. They knew he could depend on educated advisers. What they didn't count on, was his arrogance and unwillingness to take advise of those around him who knew what they were talking about. (He's done the same thing with the military advisers... ignored them.)