Marles vows not to cave to US pressure
Japan will join the Trans-Pacific Partnership negotiations for the first time, meaning that with Australia, Brunei, Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam, the agreement would cover nations accounting for 40 per cent of the world's gross domestic product.
New Trade Minister Richard Marles has confirmed Australia will not sign the agreement if it includes a so-called Investor State Disputes Settlement clause that would allow companies who believed an Australian law had harmed their ability to invest to take their dispute to an supra-national body with the power to overrule Australian laws.
But the opposition has indicated it would be prepared to consider such a clause.
"The Coalition would, as a matter of course, put ISDS clauses on the negotiating table and then negotiate ... on a case-by-case basis," Coalition foreign affairs and trade spokeswoman Julie Bishop said earlier this year.
The US is keen to finalise the negotiations before the Asia-Pacific Economic Cooperation forum leaders meeting in Bali in October.
President Barack Obama mentioned reaching an agreement in a phone call to Prime Minister Kevin Rudd in June.
An observer at the talks, Patricia Ranald of the Australian Fair Trade and Investment Network, said Australia was under "enormous pressure" to speed up negotiations and "to agree to unreasonable demands without public debate".
Frequently Asked Questions about this Article…
The Trans‑Pacific Partnership (TPP) is a proposed free trade agreement that, with Japan joining for the first time, would include Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam — covering about 40% of global GDP.
An ISDS clause would allow foreign companies to sue sovereign governments if they believe a law harmed their ability to invest, taking disputes to a supra‑national body that can potentially overrule domestic laws — a mechanism that directly affects legal and regulatory risk for investors.
Australia's new Trade Minister Richard Marles has said Australia will not sign the TPP if it includes an ISDS clause that lets companies take disputes to a supra‑national body with the power to overrule Australian laws.
According to the article, an ISDS clause could change how investment disputes are handled by allowing companies to challenge Australian laws abroad, creating potential regulatory uncertainty that could influence investor confidence and the broader investment climate.
No — the government has ruled out signing if the TPP contains an ISDS clause, while the opposition has indicated it would be prepared to consider such a clause; Coalition spokeswoman Julie Bishop said the Coalition would put ISDS on the negotiating table and negotiate case‑by‑case.
The US is keen to finalise TPP negotiations before the Asia‑Pacific Economic Cooperation (APEC) leaders meeting in Bali in October, and President Barack Obama discussed reaching an agreement with Prime Minister Kevin Rudd in June.
The negotiations were reported to resume in Malaysia on Monday, with talks continuing among the participating countries.
Yes — an observer at the talks, Patricia Ranald of the Australian Fair Trade and Investment Network, said Australia was under "enormous pressure" to speed up negotiations and to agree to unreasonable demands without public debate, highlighting transparency concerns.
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