Abe Goes to Russia for Access to Energy Sources Despite Obama’s Request
Sputnik – 24.02.2016
Japan is continuing preparations for an unofficial visit of Japanese Prime Minister Shinzo Abe to Russia, secretary general of the Japanese government Yoshihide Suga said. In an exclusive interview with Sputnik, former Russian Ambassador to Japan Alexander Panov clarified Japan’s intentions and explained its “disobedience” to Washington.
Earlier, during a telephone conversation with Abe, US President Barack Obama asked him to refrain from visiting Russia in May, but the Japanese politician has refused his advice. In some media, this move has almost been regarded as a sign of a Japanese rebellion against the dictatorship of the United States.
However, according to Panov, Japanese authorities on the contrary stick to a very “balanced” position. On the one hand, they are planning Abe’s trip to Russia, and on the other they are coordinating their efforts with the US and other Western countries.
“On the one hand, Abe is preparing for his visit to Moscow, on the other he is trying to sooth his partners saying that it [the visit] won’t cause serious damage to a common position of G7, especially regarding Ukraine,” the expert said.
Panov argued that Abe’s visit to Russia is most likely to take place as planned. According to him, both parties may be interested in discussing bilateral economic cooperation.
“Maybe it is not a coincidence that the restrictions on the acquisition of controlling stakes in a number of Russian hydrocarbon deposits by Japanese companies are announced to be removed,” the expert said.
“Japan asked for this for a long time, but Russia did not go for it and made exceptions only for China. Now it will be possible to find a formula of Japanese participation in such projects, in spite of the sanctions,” Panov explained.
Regarding the resolution of a long-standing dispute between Russia and Japan over four Pacific Ocean islands, the expert, however, remained skeptical.
“The parties stick to the same positions. The Russian side proceeds from the fact that the ball is on the Japanese side, and Japan should offer some sort of compromise,” the expert concluded.
Henoko Takes on U.S. Imperialism
By Maya Evans | Dissident Voice | November 7, 2015
OKINAWA, JAPAN — Around one hundred and fifty Japanese protesters gathered to stop construction trucks from entering the U.S. base Camp Schwab, after the Ministry of Land over-ruled the local Governors’ decision to revoke permission for construction plans, criticizing the “mainland-centric” Japanese Government of compromising the environmental, health and safety interests of the Islanders.
Riot police poured out of buses at six a.m., out-numbering protesters four to one, with road sitters systematically picked off in less than an hour to make way for construction vehicles.
All the mayors and government representatives of Okinawa have objected to the construction of the new coastal base, which will landfill one hundred and sixty acres of Oura Bay, for a two hundred and five hectare construction plan which will be part of a military runway.
Marine biologists describe Oura Bay as a critical habitat for the endangered dugong (a species of manatee), which feeds in the area, as well as sea turtles and unique large coral communities.
The bay is particularly special for its extreme rich ecosystem which has developed due to six inland rivers converging into the bay, making the sea levels deep, and ideal from various types of porites coral and dependent creatures.
Camp Schwab is just one of 32 U.S. bases which occupy 17% of the Island, using various areas for military exercises from jungle training to Osprey helicopter training exercises. There are on average 50 Osprey take off and landings every day, many next to housing and built up residential areas, causing disruption to everyday life with extreme noise levels, heat and diesel smell from the engines.
Two days ago there were six arrests outside the base, as well as ‘Kayactivists’ in the sea trying to disrupt the construction. A formidable line of tethered red buoys mark out the area consigned for construction, running from the land to a group of offshore rocks, Nagashima and Hirashima, described by local shamans as the place where dragons (the source of wisdom) originated.
Protesters also have a number of speed boats which take to the waters around the cordoned area; the response of the coast guard is to use the tactic of trying to board these boats after ramming them off course.
The overwhelming feeling of the local people is that the Government on the mainland is willing to sacrifice the wishes of Okinawans in order to pursue its military defense measures against China. Bound by Article 9, Japan has not had an army since world war two, though moves by the Government suggest a desire to scrap the Article and embark on a ‘special relationship’ with the U.S., who is already securing control of the area with over 200 bases, and thus tightening the Asia pivot with control over land and sea trade routes, particularly those routes used by China.
Meanwhile, Japan is footing 75% of the bill for accommodating the U.S., with each soldier costing the Japanese Government 200 million yen per year, that’s $4.4 billion a year for the 53,082 U.S. soldiers currently in Japan, with around half (26,460) based in Okinawa. The new base at Henoko is also expected to cost the Japanese Government a tidy sum with the current price tag calculated to be at least 5 trillion yen.
Okinawa suffered devastating losses during the Second World War, with a quarter of the population killed within the 3-month-long Battle of Okinawa which claimed 200,000 lives in total. Hilltops are said to have changed shape due to the sheer bombardment of ammunition.
Local activist Hiroshi Ashitomi has been protesting at Camp Schwab since the expansion was announced 11 years ago, he said: “We want an island of peace and the ability to make our own decisions, if this doesn’t happen then maybe we might need to start talking about independence.”
Maya Evans coordinates Voices for Creative Nonviolence UK.
Tokyo orders work to start on Okinawa US base, despite governor’s opposition
RT | October 28, 2015
Japan’s Defense Ministry says it will restart work on a land reclamation project, which is vital for a proposed US military base on the site. This is likely to infuriate the local Okinawa prefectural government, who are deeply against the move.
Work is planned to start on Thursday and will create storage space needed to start the landfill work. The Okinawa Defense Bureau will also continue a seabed drilling survey off the coast of Henoko, where an alternative US base could be built.
“An administrative decision to start the landfill work has already been made,” said Chief Cabinet Secretary Yoshihide Suga on Wednesday, as cited by the Japan Times.
The Okinawa government says it refuses to accept the notice and has asked the bureau to consult with them before starting the landfill work. Tokyo says these talks have already finished.
On October 13, Okinawa Governor Takeshi Onaga revoked permission granted for the construction of a new US military base to host the US Marine Corps, following their relocation from the Futenma Air Station from the heavily populated city of Ginowan.
“I will continue to do everything in my power to fulfill my campaign pledge of not allowing the construction of a new base at Henoko,” Onaga said, according to the Asahi Shimbun.
However Onaga appears to have been outflanked. Land Minister Keiichi Ishii suspended the landfill approval cancelation on Tuesday, while Tokyo said it would now be giving itself permission to carry out the work and sideline the governor.
The Land Ministry asked Onaga to withdraw his cancelation of the landfill approval by November 6, the Japan Times reports.
“This is like an ultimatum from the government,” Onaga told a news conference on Tuesday. “It’s not just unfair but also insulting to many people in the prefecture. It’s absolutely unacceptable.”
The previous Okinawa governor, Hirokazu Nakaima, gave the green light for the relocation of the base in 2013. However, after Onaga won the elections in 2014, he promised to oppose the plan – to the delight of the majority of locals.
There has been tension for years between the local population and US servicemen. This dates back to a notorious crime committed in 1995 when three US marines kidnapped and raped a 12-year-old schoolgirl.
There have also been less-publicized sex crime cases involving underage victims reported in 2001 and 2005, the fatal running over of a female high school student by a drunken US marine in 1998, and other incidents.
Okinawa, home to about one percent of Japan’s population, hosts nearly half of the 47,000 US troops based in Japan.
Japan seeks independence through subservience to evil US ends
By Finian Cunningham | Global Times | September 22, 2015
Japanese Prime Minister Shinzo Abe may enjoy a sense of triumph in having succeeded to push through the country’s new military law. Both chambers of Tokyo’s parliament have now cleared the legislation expanding Japan’s military power, despite widespread public opposition and even scuffles among lawmakers.
For Abe and his ruling Liberal Democratic Party (LDP), the historic amendment to the constitution allowing for overseas military deployment, thus overturning the country’s 70-year-old pacifist commitments, no doubt, in their view, marks the emergence of a “strong” Japan, asserting its “independence” in the modern world.
Ardent nationalists among Abe’s party have been earnestly seeking to rewrite the country’s constitution, going back several years in their efforts. They argue that Japan must have greater freedom to use its military forces if the country is to claim equal standing among modern powers. The postwar constitution forbidding any overseas’ deployment of Japanese troops was seen by the nationalists as a demeaning constraint on Japan’s modern-day esteem.
The nationalistic LDP perceives the pacifist constitution as an insult to the country’s independence, and a humiliating fetter imposed by the victors of WWII. The constitution was largely written by the US occupying-army administration following the defeat of Imperial Japan in August 1945.
The bitter irony is, however, that the expansion of military power sought by Abe and his government is not a mark of independence, as they claim. Rather, in truth, it is a sign of Japan’s deepening subservience to the US. The new legislation is heavily conditioned by US strategic interests, albeit in a modern context where Japanese military is perceived now by Washington as bestowing an advantage.
The Abe administration claims that the new military options afforded by the amended constitution will allow Japan to better protect its people and its national interests.
The paradox is that the new military laws and posture pushed through the Japanese parliament by Abe will lead to more insecurity for Japan, and will increase the danger of future conflict.
This is because Japan’s adapted military legislation is framed by the geopolitical perspective of Washington. The deployment of Japanese troops and other military assets is said to be mandated “in defense of foreign allies.” That means Washington.
In effect, Japan is placing its military forces as hostage to Washington’s capricious geopolitics. That is hardly a hallmark of “independence” as Abe and his supporters so fervently claim.
The Japanese government supposes that the new military power is to be strictly enforced with three criteria.
First, it will only be used if Japan or an ally (most probably the US) is attacked or threatened. Second, the military option can only be used if diplomacy has been exhausted. And third, any military force used will be only at a minimum level.
Japan’s expanded military power has to be interpreted in the context of gross historical revisionism under Abe’s LDP. The Japanese leader and his ruling circle have repeatedly sought to absolve Japan from its horrendous war legacy.
The denial of Japanese aggression against China, costing up to 30 million Chinese lives, or the denial of “sex slavery” of Chinese and Korean women under Japanese colonial rule, are disturbing indicators that the present leaders in Tokyo have rekindled a militaristic mind-set.
Therefore, in the context of malleable criteria for deployment of military force and under the sway of an increasing US belligerence in the Asia-Pacific region, the Japanese security laws are cause for deep concern.
Abe’s repeated regurgitation of provocative US allegations against China, from cyber theft to territorial expansionism, only further emphasizes the cause for concern.
China’s often-stated policy is one of friendly regional dialogues to resolve disputes. Disputes should primarily be resolved by Asian neighbors, acting autonomously, independently and free from outside interference.
Japan’s newfound militarism is regrettable and does not bode well for regionally resolved peaceful relations, because Tokyo’s agenda is beset by atavistic nationalist sentiments, and more worryingly, because it is subordinate to Washington’s hegemonic geopolitics.
The people of Japan are right, and they deserve much credit, to be indignant over Abe’s pursuit of expanded military power. His claims of patriotism and to be serving to defend Japan’s interests are in fact the inverse.
Abe is actually serving the US interests and in so doing he is militating against the real interests of the Japanese people.
The author is a freelance journalist writing on international affairs based in Addis Ababa, Ethiopia. opinion@globaltimes.com.cn
Protests or not, work on US base in Japan resumes
RT | September 12, 2015
The relocation process of a US military base in Japan’s Okinawa has been resumed, even though month-long talks between Tokyo and local authorities angered by the “troublesome neighbour” still haven’t broken the impasse.
The “concentrated discussions” on the project that faced fierce opposition of the locals ended in vain on Saturday and the construction works in Henoko, Okinawa, have now resumed, Japan’s Kyodo news agency reports.
The decision has sparked a wave of indignation among residents who demand the base to be shut down and rebuilt elsewhere in Japan or overseas. They took to the streets of Henoko, a small coastal area in Okinawa.
Their claim was backed by Takeshi Onaga, the outspoken governor of Okinawa, and other local officials.
“It was extremely regrettable. I will not let [the central government] build a new base in Henoko by any means,” the governor said.
The plan to move the US Marine Corps Air Station Futenma from Ginowan to Henoko, which is the southern island of Okinawa, was first announced in 1996 and has since disturbed the local population.
During a meeting with Onaga in April Japanese Prime Minister Shinzo Abe noted that “the relocation to Henoko is the only solution,” though it had been voiced more than once that the base posed a hazard to nearby residents’ lives and needed to be moved.
Japan has already been shaken by a number of protests against the relocation plan earlier this year. Thousands of protesters from as far as Hokkaido to Nagasaki condemned the Japanese government’s policy on the matter and demanded their voices to be heard.
Washington doesn’t plan on closing the facility in Ginowan, which is currently located in a crowded urban area, until it is replaced by a new one.
Meanwhile, Shinzo Abe’s ratings keep on going down as the situation with the US airbase is intensifying and parliament is discussing a bill aimed at promoting Japanese military’s role in the world’s geopolitics.
READ MORE:
Japan halts construction of US base in Okinawa for ‘concentrated discussions’ with local authorities
US insists military bases will stay in Okinawa, despite opposition from locals, governor
Japan Bank: US Sanctions Could Lead to Direct Ruble-Yen Swaps
Sputnik – 03.09.2015
VLADIVOSTOK – The Japan Bank for International Cooperation (JBIC) is turning to currency swaps as using the US dollar in transactions is difficult because of the Western anti-Russia sanctions, the bank’s senior managing director said answering a question from Sputnik.
“We’re now studying that [the effects of ruble devaluation]. We need some of the swap arrangements with the local banks. We are elaborating opportunities with Russian banks such as Gazprombank, VTB, VEB… Because of the US sanctions, we cannot use the US dollar anymore, we have to switch to other currencies,” Tadashi Maeda said on Thursday, speaking after a conference at the Eastern Economic Forum (EEF) in the Russian city of Vladivostok.
Commenting on the usage of the ruble in swaps, he noted that its interest rate is very high at the moment and this could “hinder” the swaps.
China launched swaps and forwards between the yuan and the Russian ruble in December 2014, making the ruble the 11th currency in the yuan swaps trading.
In October of last year, the Bank of Russia and the People’s Bank of China reached a three-year agreement on currency swaps worth more than $2.4 billion.
In April, Chinese Foreign Minister Wang Yi said that he expected the overall trade turnover between China and Russia to reach $100 billion in 2015.
Russia is currently holding the Eastern Economic Forum (EEF) in the city of Vladivostok.
This is the first time that Russia has decided to hold a forum in the Far East since the introduction of Western sanctions over Moscow’s alleged involvement in Ukraine’s internal conflict, something that Russia has repeatedly denied.
China is sending an official government delegation and members of its business community to the EEF.
Japan to temporarily halt preparation work on new US base
Press TV – August 4, 2015
Japan is set to suspend preparation work for the construction of a new US military base on the southern island of Okinawa, a government official says, amid widespread local protests against the facility’s relocation.
Chief Cabinet Secretary Yoshihide Suga told a news conference that Tokyo had decided to halt the work for a month starting August 10, Japanese Kyodo News reported on Tuesday.
Suga further said that during the month-long period, Tokyo plans to hold “intensive consultations” with the regional government in Okinawa Prefecture in an attempt to settle the standoff over the controversial plans to relocate the military base.
The official made the announcement ahead of a meeting between Japanese Prime Minister Shinzo Abe and Okinawa Governor Takeshi Onaga in the capital, Tokyo, on Friday.
The prospective outpost, which is planned to be constructed in the Henoko district of the city of Nago in the north of the island, would take over the functions of US Marine Corps Air Station Futenma, also known as MCAS Futenma.
MCAS Futenma, which is based in the city of Ginowan in Okinawa Prefecture, houses several thousand US military personnel.
Okinawans have been calling for the base to be closed and American troops to be moved completely off the island.
Unpopular presence
The plan for the construction of a new military base for the United States is a key part of a bilateral agreement to realign the US military presence in Japan.
US presence in Japan has been embroiled in controversy, with American military personnel having reportedly been involved in more than 1,000 sex crimes between 2005 and 2013 in the country.
Onaga, the Okinawa governor, has said he will rescind his predecessor’s approval of land reclamation work off Nago, which is required to get the construction work off the ground. By so doing, Onaga would eliminate the legal basis for the central government’s project to build the outpost.
A third-party committee, set up by Onaga, compiled a report on July 16, pointing to “legal defects” in the processing of the central government’s application for reclaiming the area.
Okinawa Governor to Overturn US Military Base Approval
Sputnik – 10.07.2015
TOKYO — Japan’s Okinawa Prefecture Governor Takeshi Onaga is expected to revoke his predecessor’s approval for a US military base, local media reported Friday, citing sources.
Construction plans for the relocation of Marine Corps Air Station (MCAS) Futenma to a less populated area in the prefecture are part of a 2006 intergovernmental agreement. In recent months, there have been renewed clashes between the local population and police over environmental concerns and opposition to the US military presence.
An advisory panel is due to submit a report to Onaga by the end of July, outlining the flawed nature of the previous governor’s approval, providing grounds for its cancellation, sources told Kyodo news agency.
Onaga, governor since December 2014 and former mayor of a coastal area near MCAS Futenma’s new location, has previously voiced opposition to the project.
In December 2013, his predecessor, Hirokazu Nakaima, approved a Japanese government application to reclaim land in the Henoko coastal area to enable construction at the site of the new base, 30 miles northeast of its current location in Ginowan.
Japanese Defense Minister Gen Nakatani and his US counterpart Ashton Carter reaffirmed the relocation plan this April.
Over half of the 47,000 US troops deployed in Japan are based in Okinawa. Military sites are estimated to account for nearly 18 percent of the prefecture’s entire land mass.
Fire near Chernobyl site alarming, ‘radiation respects no boundaries’
RT | April 29, 2015
A forest fire near Ukraine’s Chernobyl nuclear site may cause problems for communities a long way from the area as the dispersal plumes can transport radiation further to the north, nuclear safety expert John Large told RT.
RT: How dangerous is the situation in your opinion? Do you agree with ecologists who say the smoke will spread the radiation?
John Large: I spent some time in Ukraine in 2006 and I assessed the Chernobyl situation interviewing about 30 scientists and engineers who were working on the aftercare of Chernobyl. Brush fires and forest fires were the greatest concern in terms of the means by which you can disperse a secondary radiological impact from the original dissipation that occurred in 1986… What you have in Chernobyl in the exclusion zone and the further way you have an area that has been abandoned for farming, abandoned for management. That means you’ve got lots of brush and young wood growing out of control. Let me assess that – a big fuel load to have a fire. That means that the biological load is very high, so the radiation particles can be dispersed. Take down the chemistry as well. The chemistry is the way in which the strontium and cesium from the radioactive strontium and cesium from the reactor are bound here, and of course the elevated temperature of the fire and plus all the plume and aerial dispersion – means that could transport it hundreds of kilometers, particularly to the north, to Belarus. So there are more problems here for communities that are long way away from the site. What I had hoped was that the Ukrainian officials would have had in place firefighting capacity greater than they normally would have at any other area of Ukraine, because it certainly needs to be protected not just now but in the longer term as well.
We know that Ukraine is cash-strapped. There was a responsibility for its neighbors, Russia, the EU, not Belarus as much because it’s in an even worse financial situation, but there was a general responsibility to protect this area from another bout of radioactive dispersion.
RT: What lessons can be learned from this particular incident then to make sure that the brush and the forest doesn’t catch light again, or if it does, to make sure that site is secured?
JL: It is not the reactor, it is not the location of the reactor that is the problem – it is the dispersal plumes from the original accident – that is the problem. If there are radioactive materials on the ground now and then it’s engulfed by forest fire maybe 40-50 km away from the reactor. But that deposited radioactivity is re-suspended into gas, blown high into the atmosphere by the heat of the flames, and then of course it settles somewhere else. And it may be those communities to the north that are not prepared to have this new radiation plume and deposition and fallout come down on their communities.
RT: Do you think there should be a common international strategy and response for situations like this?
JL: We’ve seen recently with Chernobyl, with Windscale in the 1950’s in the UK, and particularly now with Fukushima that the radiation doesn’t respect any international boundaries. So an international effort is required for this type of catastrophe, all potential catastrophes. I would have thought that the EU or Russia would have healed their scars over this and got together and put some efforts and resources into controlling this and make sure it doesn’t happen again.
The Trans-Pacific Sellout
Guaranteed profits—at any price
By Jason Hirthler | Dissident Voice | April 26, 2015
Last Tuesday, President Barack Obama told beltway bullhorn Chris Matthews that Senator Elizabeth Warren was “wrong” about the Trans-Pacific Partnership (TPP), the largest trade deal in American history, linking United States and Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam in a pervasive and binding treaty. The president was referring to Warren’s claim that the trade treaty will license corporations to sue governments, and her contention that this was, to put it mildly, a bad idea.
Warren isn’t wrong, Obama is. And he knows it. The entire TPP, as understood, is based on a single overarching idea: that regulation must not hinder profiteering. This is a fundamentally anti-democratic concept that—if implemented—would effectively eliminate the power of a demos to make its own law. The final authority on any law’s validity would rest elsewhere, beyond the reach of popular sovereignty. From the TPP point-of-view, democracy is just another barrier to trade, and the corporate forces behind the draft treaty are intent on removing that barrier. Simple as that.
That’s why the entire deal has been negotiated in conclave, deliberately beyond the public purview, since the president and his trade representatives know that exposing the deal to the unforgiving light of popular scrutiny would doom it to failure. That’s why the president, like his mentor President Clinton, has lobbied hard for Trade Promotion Authority, or Fast Track, which reduces the Congressional role in the passage of the bill to a ‘yea’ or ‘nay.’
Cracks have begun to show in the formidable cloak behind which the deal has been structured. A coalition of advocacy groups advanced on the U.S. Trade Representatives office this week. Wikileaks has obtained and released chapters from the draft document. Senator Harry Reid declared his position on Fast Track as “… not only no, but hell no.” Warren has proved to be a persistent thorn in the side of White House efforts to smooth over troubling issues with the deal. But the monied interests that rule the beltway have all pressed for passage. And as a Fast Track draft makes its way through Congress, stakes are high. The TPP is, in the apt estimation of political activist Jim Hightower, a “corporate coup d’état.”
Not for the first time, the president and his Republican enemies are yoked by the bipartisan appeal of privilege against this faltering fence of protest. The marriage of convenience was described in last Friday’s sub-head to a New York Times article on TPP: “G.O.P. Is Allied With President Against His Own Party.”
All The Usual Suspects
Who else supports the TPP? Aside from this odd confection of neoliberals, the corporations that rule the beltway feverishly back the TPP. From the leak of Sony digital data we learn that it and its media peers have enthusiastically pressed for the passage of the deal. Sony is joined by major agricultural beneficiaries (Monsanto), mining companies like Infinito Gold, currently suing Costa Rica to keep an ecology-harming mine pit active, as well as pharmaceutical coalitions negotiating stiff intellectual property rights unpopular even in Congress, and various other technology and consumer goods groups. And don’t forget nicotine kingpins like Philip Morris.
Obama reinforces the corporate line: “We have the opportunity to open even more new markets to goods and services backed by three proud words: Made in America.” Perhaps he isn’t aware that our leading export is the workforce that once took pride in that moniker. We’ve exported five million manufacturing jobs since 1994, largely thanks to NAFTA, the model on which the TPP is built. The TPP will only continue that sad trend. The only jobs not being offshored are the ones that can’t be: bartenders and waitresses and health care assistants. That’s the Obama economy: a surfeit of low-wage service jobs filled by debt-saddled degree holders. As Paul Craig Roberts argued in The Failure of Laissez Faire Capitalism, between 2007 and 2014, some eight million students would graduate from American universities and likely seek jobs in the United States. A mere one million degree-requiring jobs would await them. The irony of Obama’s statement is that the TPP would actually move to strip the use of labels like, “Buy American,” since they unduly advocate for local goods.
In truth, the authors of the treaty already know all this. The bill concedes as much, with Democrats building in some throwaway provisions of unspecified aid to workers whose jobs have been offshored, and a tax credit to ostensibly help those ex-workers purchase health insurance. Cold comfort for the jobless, as they are exhorted by the gutless paladins of globalization to ‘toughen up’ and deal with the harsh realities of a globalized economy. As neoliberal stooge Thomas Friedman has said, companies in the glorious global marketplace never hire before they ask, “Can this person add value every hour, every day — more than a worker in India, a robot or a computer?” Of course, the answer is invariably no, so the job goes to Bangladesh or a robot. No moral equation ever enters the picture. Just market discipline for the vulnerable and ingenious efforts by a captive state to shelter capital from the market dynamics it would force on others.
The Investment Chapter
Despite Obama’s disingenuous clichés about “… fully enforceable protections for workers’ rights, the environment and a free and open Internet,” the trade deal makes it clear that labor law and environmental law are both barriers to profitability. We know this thanks to Wikileaks, which once again proved its inestimable value by acquiring and releasing another chapter from the cloak-and-dagger negotiations. This time it was the investment chapter, in which so much of the treaty’s raison d’etre is expressed.
As Public Citizen points out in its lengthy analysis of the chapter, any domestic policy that infringes on an investor’s “right” to a regulatory framework that conforms to their “expectations,” is grounds for a suit. Namely, the suit may be pressed to “the extent to which the government action interferes with distinct, reasonable investment-backed expectations.”
Here’s what the TPP says about such legislation as it relates to investor expectations:
For greater certainty, whether an investor’s investment-backed expectations are reasonable depends, to the extent relevant, on factors such as whether the government provided the investor with binding written assurances and the nature and extent of governmental regulation or the potential for government regulation in the relevant sector.
Try putting that tax on financial transactions. Forget it. Barrier to a reasonable return. Don’t believe it? Just read the TPP investment protocols that would ban capital controls, which is what a financial tax is considered to be by TPP proponents. Try passing that environmental legislation. Not a chance. Hindrance to maximum shareholder value. Just ask Germany how it felt when a Swiss company sued it for shutting down its nuclear industry after Fukushima. Try enacting that youth safety law banning tobacco advertising. Sorry. Needless barrier to profits. Just ask Australia, which is being sued by Philip Morris for trying to protect kids from tar and nicotine.
Public Citizen has tabulated that, “The TPP would newly empower about 9,000 foreign-owned firms in the United States to launch ISDS cases against the U.S. government, while empowering more than 18,000 additional U.S.-owned firms to launch ISDS cases against other signatory governments.” It found that “foreign investors launched at least 50 ISDS claims each year from 2011 through 2013, and another 42 claims in 2014.” If these numbers seem small, recall that for a crucial piece of labor legislation to be struck down, only one firm need win in arbitration in order to financially hamstring a government and set a precedent that would likely ice the reformist urge of future legislatures.
As noted earlier, the text also appears to suggest to ban the practice of promoting domestic goods over foreign—another hurdle to shareholder value. This would effectively prohibit a country from implementing an import-substitution economy without threat of being sued. Governments would be relieved of tools, like tariffs, historically used to protect fledgling native industries. This is exactly what IMF prescriptions often produce—agricultural reforms, for instance, that wipe out native crop production and substitute for it the production of, say, cheap Arabica coffee beans, for export to the global north. Meanwhile, that producer nation must then accept costly IMF lending regimes to pay to import food it might have grown itself.
Of course, it is rarely mentioned that protectionism is how the United States and Britain both built their industrial economies. Or that removing competitor market protections is how they’ve exploited developing economies ever since. The TPP would effectively lock in globalization. It’s a wedge that forces markets open to foreign trade—the textual equivalent of Commodore Perry sailing his gunships into Tokyo Harbor.
ISDS Tribunals
The bill’s backers point to language in which natural resources, human and animal life, and public welfare are all dutifully addressed in the document. The leaked chapter explicitly says that it is not intended to prevent laws relating to these core concerns from being implemented. So then, what’s the problem? The problem is that these tepid inclusions lack the teeth of sanctions or punitive fines. They are mere rhetorical asides designed to help corporate Democrats rationalize their support of the TPP. If lawmakers really cared about the public welfare, they’d move to strip the treaty of its various qualifiers that privilege trade over domestic law. By all means, implement your labor protection, but just ensure “… that such measures are not applied in an arbitrary or unjustifiable manner, or do not constitute a disguised restriction on international trade or investment.”
If lawmakers cared about national sovereignty, they wouldn’t outsource dispute settlement to unelected arbitration panels, more fittingly referred to as, “tribunals.” (Think of scrofulous democracy hunched in the dock, peppered with unanswerable legalese by a corporate lawyer, a surreal twist on the Nuremberg Trials.) Just have a glance at Section B of the investment chapter. Suits will be handled using the Investor-State Dispute Settlement (ISDS) model, itself predicated on the tribunal precedent. And in the event a government lost a suit or settled one, legal costs would be picked up by taxpayers, having been fleeced by an unelected committee whose laws it has no recourse to challenge.
Perhaps investor protections like ISDS were once intended to encourage cross-border investment by affording companies a modicum of reassurance that their investments would be safeguarded by international trade law. But the ISDS has been used for far more than that. The ISDS tribunals have a lovely track record of success (first implemented in a treaty between Germany and Pakistan in 1959). Here’s Public Citizen:
Under U.S. “free trade” agreements (FTAs) alone, foreign firms have already pocketed more than $440 million in taxpayer money via investor-state cases. This includes cases against natural resource policies, environmental protections, health and safety measures and more. ISDS tribunals have ordered more than $3.6 billion in compensation to investors under all U.S. FTAs and Bilateral Investment Treaties (BITs). More than $38 billion remains in pending ISDS claims under these pacts, nearly all of which relate to environmental, energy, financial regulation, public health, land use and transportation policies.
New Era, New Priorities
Now the ISDS is a chisel being used to destroy the regulatory function of governments. All of this is being negotiated by corporate trade representatives and their government lackeys, which appear to have no qualms about the deleterious effects the TPP will have on the general population. But then the corporations these suits represent have long since discarded any sense of patriotic duty to their native nation-states, and with it any obligation to regulate their activities to protect vulnerable citizenries. That loyalty has been replaced by a pitiless commitment to profits. In America, there may have been a time when “what was good for Ford was good for America,” as memorably put by Henry Ford. But not anymore. Now what’s good for shareholders is good for Ford. This was best articulated a couple of years ago by former Exxon CEO Lee Raymond, who bluntly reminded an interviewer, “I’m not a U.S. company, and I don’t make decisions based on what’s good for the U.S.” Those decisions usually include offshoring, liberalizing the labor market, practicing labor arbitrage, relocating production to “business friendly climates” with lax regulatory structures, the most vulpine forms of tax evasion, and so on—all practices that ultimately harm the American worker.
Apple says it feels no obligation to solve America’s problems nor, one would assume, any gratitude to the U.S. taxpayer for funding essential research that Apple brilliantly combined in the iPod and iPhone. Former Labor Secretary Robert Reich finally admits corporations don’t want Americans to make higher wages. The U.S. Chamber of Commerce encourages shipping American jobs abroad. World Bank chiefs point to the economic logic of sending toxic waste to developing nations. Wherever you look, there seems to be little if any concern for citizenry.
The Financial Times refers to ISDS as, “investor protection.” But what it really is, is a profitability guarantee, a legal bulwark against democracy expressed as regulation. Forgive me for thinking that navigating a fluid legislative environment was a standard investment risk. Evidently the champions of free trade can’t be bothered to practice it. Still the White House croons that it has our best interests at heart. If that were true, it would release the full text, launch public charettes to debate its finer points, or perhaps just stage a referendum asking the American people to forfeit their hard-won sovereignty. No such thing will ever happen, of course. As it turns out, democracy is the price of corporate plunder. After all, the greatest risk of all is that the mob might vote the wrong way. And, as the language of the TPP makes explicitly obvious, there are some risks that should be avoided at all costs.
Jason Hirthler can be reached at: jasonhirthler@gmail.com.







