How to fix the most controversial element of trade deals
Under the Equitable Investment Act, in contrast, a U.S. court would be empowered to set aside the arbitrators’ award if Argentine consumer groups showed it would harm their interests in a stable financial system back home.
.. Moreover, in a separate scuffle, a bipartisan coalition is poised to override President Obama’s veto of a bill shredding the sovereign immunity in U.S. courts of foreign states linked to terrorism. With this standoff, legislators have shown themselves willing to strain diplomatic ties and risk loss of foreign sovereigns’ investment in the U.S.
.. Most important, the Convention would fix ISDS’ double standard. Instead of foreign investors enjoying rights that domestic investors, unions and environmental groups don’t, the pact would level the playing field. Just as an investor can now ask a tribunal to determine whether capital controls violate a state’s obligations, a union would be able to request a second opinion on collective bargaining rights. An environmental NGO could shine a spotlight on weak carbon emissions plans. And domestic investors could complain about preferential treatment received by wealthy foreign companies. These rulings will allow citizens to name and shame bad governments without compromising sovereignty.