Corporate Trade Lawsuits: Investor-State Dispute Resolution Threatens Democracy

The Trans-Pacific Partnership (TPP) trade deal includes little-known provisions that allow companies to challenge any government policies that purportedly infringe on the companies’ profits. The contentious “investor-state dispute resolution” allows a corporation to sue the U.S. government if it believes that a federal, state or local law or regulation will negatively affect its bottom line. Foreign companies or investors could challenge regulatory safeguards that protect our families, our communities and our air and water at a global trade tribunal that could award the investor monetary damages. The taxpayers would have to pay to defend against these corporate trade lawsuits and pay any damages if the United States lost a case — creating a powerful chilling effect that could deter federal, state and local governments from implementing policies to protect the public.