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Carve-out in TPP signals risk for environmental protections

8th October 2015

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Kyla Tienhaara

Dr. Kyla Tienhaara is a research fellow in the School of Regulation and Global Governance (RegNet) and co-director of the Climate and Environmental Governance Network (CEGNet), Australian National University.

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In this article published in The Canberra Times yesterday, RegNet scholar Kyla Tienhaara argues that the tobacco control measures carve-out in the TPP agreement highlights the real risks of the ISDS clause.

The investor-state dispute settlement (ISDS) clause allows allows multinationals to challenge public policy outside of the domestic court system.

A ‘carve-out’ for tobacco control measures means they are exempt from the investor-state dispute settlement (ISDS) mechanism in the TPP.

‘Allowing governments to retain the right to regulate the tobacco industry is obviously incredibly important from a public health perspective. But tobacco control measures are not the only policies worth protecting’.

‘For the government to be placated by this exemption based on its limited experience with investor-state disputes is shortsighted. We have been relatively insulated from these cases for one reason: American investors in Australia do not have direct access to the system. They will, under the TPP, and once those floodgates are open, they will be very difficult to close’, Tienhaara writes.

Read the entire article on The Canberra Times website.


Updated:  10 August 2017/Responsible Officer:  Director, RegNet/Page Contact:  Director, RegNet