Plaid Cymru MEP Jill Evans has warned that a crucial clause in the proposed new free trade deal between the US and EU could lead to the Welsh Government being sued by multi-national companies.
The Transatlantic Trade and Investment Partnership, known as TTIP, will be the biggest ever free trade agreement, if agreed, but includes a number of highly controversial proposals that will undermine workers’ rights, food hygiene and quality standards and digital privacy laws.
However, Plaid Cymru MEP Jill Evans has said that most concerning are plans for the so-called ‘Investor state dispute settlement’ that would allow foreign companies to take governments to court if they act in a way that could reduce investors’ profits.
International groups such as Friends of the Earth Europe warn that this clause could be invoked if governments introduce legislation to improve workers’ rights, including pay, or to improve health or environmental legislation.
The next round of discussions begins on Monday, but will again be carried out behind closed doors, while this weekend an international Day of Action is planned against TTIP.
Plaid Cymru MEP Jill Evans said:
“Plaid Cymru supports international trade that puts people before corporate profits.
“We want to see a strong Welsh economy exporting quality Welsh products around the world.
“However the proposed Transatlantic Trade and Investment Partnership, as it currently stands, is nothing but a charter for international corporates to make more money.
“The plans are for a free trade zone between the European Union and the United States based on cutting costs, achieved through lowering quality standards and rolling back workers’ employment rights.
“However, the most concerning proposal is for the so-called ‘investor state dispute settlement’ where multi-national companies will be able to sue governments for reducing the value of their investment.
“This could mean that if a future Welsh Government improved workers’ rights by securing a living wage or ending zero hours contracts, then they could be liable to be sued – or if we enacted strong environmental legislation to combat climate change.
“We have already seen the free-trade agreement in North America, NAFTA, lead to legal threats to Canada because of a moratorium on fracking in Quebec.
“It is clearly unacceptable that democratic governments could be in the position of being taken to court by multi-national companies just because those governments act in the best interests of their people, rather than corporate profits.
“However, that is just one part of the TTIP proposals worrying myself and Plaid Cymru.
“Other parts of TTIP that cause me concern include calls from American senators for an end to European specialist product definitions that act a mark of quality, which in Wales include Welsh beef and lamb, as well as Pembrokeshire Earlys potatoes and Halen Mon.
“By discussing these issues in secret, negotiators from both sides are doing deals behind closed doors that do not have public support.
“There needs to be an honest and open debate about what TTIP should include, based on what is best for people, not multi-national companies and American trade – and the Welsh government should be standing up for our national interest.”
