National Unions, Environmentalists & Church Groups Warn Corporate Rights To Sue Govts Threatens Green Economy Transition

A diverse range of 33 national organisations has sent a letter to Australian Trade Minister Don Farrell. The letter calls for urgent action to review and remove corporate rights to sue governments from trade agreements, known as Investor-State Dispute Settlement (ISDS).

The organisations include the Australian Fair Trade and Investment Network, the Australian Council of Trade Unions and four national unions, the Australian Conservation Foundation, Climate Action Network Australia, the Wilderness Society, Friends of the Earth, the Public Health Association, ActionAid Australia, the Uniting Church and the Sisters of Charity.

The group commends the Australian government for its policy of excluding ISDS from future trade agreements and removing it from existing agreements and urges it to act more quickly to implement it.

ISDS rules allow international investors to claim compensation in international tribunals for policy changes that reduce their profits, even if those policies are designed to protect public health or the environment. There is a growing global list of ISDS cases from fossil fuel companies against government decisions to reduce carbon emissions. A recent United Nations Report concluded that ISDS is a “major obstacle” to the urgent action needed to address climate change.

For example, Australian billionaire Clive Palmer has registered his mining company in Singapore and claimed to be a Singapore investor. He is using ISDS in two trade agreements with ASEAN and Singapore to sue the Australian government for $A110 billion after a court refused his company coal mining permits in Queensland for environmental reasons, including the mine’s contribution to increased carbon emissions.

"The Palmer cases show ISDS pose a serious threat to Australia’s capacity to regulate to reduce carbon emissions, and the danger of further cases, ” said Dr Patricia Ranald, Convener of the Australian Fair Trade and Investment Network. “This is why such a wide range of environment, union and other community groups are concerned.”

“The fact that an Australian billionaire can claim to be a Singaporean investor and claim $110 billion from the Australian government exposes the absurdity of the ISDS system.”

“We are asking the government to speed up the review of ISDS in its own agreements and to take a leading role in supporting international coordinated efforts to remove ISDS from all agreements.”

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