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One of the reasons why MB has so staunchly opposed so-called “free trade agreements” (FTAs) like the Trans-Pacific Partnership (TPP) is because they generally include clauses called Investor-State Dispute Settlement (ISDS), which gives major corporations the ability to challenge laws made by governments in the national interest in international courts of arbitration.
Australia witnessed the threat of ISDS first hand when Philip Morris launched an action against Australia on plain packaging and graphic warnings for cigarettes. By way of background, here’s the Productivity Commission’s explanation of this action via its Trade and Assistance Review:
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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