Labor has indicated it might seek to excise investor-state dispute settlement (ISDS) clauses in free-trade agreements (FTAs) with Indonesia and Peru if it wins the upcoming federal election. Such clauses can be used by foreign companies to sue the federal government; tobacco company Philip Morris used them to sue the government over its plain-packaging laws. Peruvian Trade Minister Edgar Vasquez has ruled out renegotiating its FTA with Australia over the ISDS clauses if Labor wins government, while DFAT states there would be further delays to the FTA with Indonesia if Labor tried to delete clauses from it. From The Australian:
The recently signed deals include ISDS clauses that Labor does not support under the party’s new trade policy, introduced last year under pressure from unions. If elected, the party is likely to seek renewed negotiations or side letters with Indonesia and Peru to excise the ISDS clauses…
