Robb stands firm on foreign lawsuits
The previous government declared point-blank Australia would never again sign an agreement with an ISDS provision. One of the few trade agreements Australia has signed with such a clause has allowed a Hong Kong-based subsidiary of tobacco firm Philip Morris to take Australia to an international tribunal over its plain packaging laws, despite having lost its case in the High Court.
It is believed the US is close to accommodating Australia's insistence by carving out an exemption while requiring each of the other 10 signatories to be bound by the provisions.
The Trans-Pacific Partnership trade agreement will be the world's biggest, incorporating Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam, as well as Japan, which joined this year.
Opening Australian governments to lawsuits over resource extraction, foreign land purchases, pharmaceutical benefits and health measures is a potential minefield for the government.
Mr Robb will attend trade minister talks on the partnership on the sidelines of the APEC meeting in Bali on October 3. Prime Minister Tony Abbott will discuss the partnership at a meeting of leaders including US President Barack Obama in Bali on October 7.
Frequently Asked Questions about this Article…
Incoming trade minister Andrew Robb says Australia’s negotiating position on the Trans‑Pacific Partnership remains in place. That means Australia is holding firm on how ISDS provisions are handled in the TPP despite a prior election commitment to overturn a blanket prohibition on investor‑state dispute settlement.
ISDS is a provision in some trade deals that can allow foreign companies to sue national governments in international tribunals. It matters to everyday investors because disputes over regulation — for example in resource extraction, foreign land purchases, pharmaceutical benefits or health measures — can create legal and regulatory risks that affect company values and investment returns.
A Hong Kong‑based subsidiary of Philip Morris used an ISDS clause in a previous trade agreement to take Australia to an international tribunal over its plain packaging laws, even though the company had lost its case in the High Court.
The article lists the TPP as incorporating Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam, with Japan having joined this year.
The article reports it is believed the United States is close to accommodating Australia by carving out an exemption for Australia while requiring other signatories to be bound by ISDS provisions, though those details were still being negotiated.
According to the article, Andrew Robb will attend trade minister talks on the sidelines of the APEC meeting in Bali on October 3, and Prime Minister Tony Abbott will discuss the partnership at a leaders’ meeting including US President Barack Obama in Bali on October 7.
The article highlights that opening governments to lawsuits could affect policies on resource extraction, foreign land purchases, pharmaceutical benefits and public health measures — areas that could become a potential minefield for governments and investors.
Robb’s position — keeping Australia’s negotiating stance in place — suggests ISDS remains a live issue in the TPP talks. For investors, that means continued uncertainty about how dispute rules will apply and potential exposure to legal and regulatory risks in sectors mentioned in the article, such as resources, land and pharmaceuticals.
Call 1300 880 160
Start a chat
Schedule a call
