The Trade Promotion Authority Act (TPA), aka Fast Track, that the president and the corporatist congress are pushing, covers more than just the TPP. It will also apply to the equally terrible European TTIP & the Trade In Service Agreement that has just been uncovered by Wikileaks. If you thought TPP was bad, you haven’t read the Trade In Service Agreement. This “trade” agreement is a corporate friendly document that would reshape how everyone in the world does business.
Secret Trade in Services Agreement (TISA) – Financial Services Annex 2014-06-19
Today, WikiLeaks released the secret draft text for the Trade in Services Agreement (TISA) Financial Services Annex, which covers 50 countries and 68.2%1 of world trade in services. The US and the EU are the main proponents of the agreement, and the authors of most joint changes, which also covers cross-border data flow. In a significant anti-transparency manoeuvre by the parties, the draft has been classified to keep it secret not just during the negotiations but for five years after the TISA enters into force.
Despite the failures in financial regulation evident during the 2007-2008 Global Financial Crisis and calls for improvement of relevant regulatory structures2, proponents of TISA aim to further deregulate global financial services markets. The draft Financial Services Annex sets rules which would assist the expansion of financial multi-nationals – mainly headquartered in New York, London, Paris and Frankfurt – into other nations by preventing regulatory barriers. The leaked draft also shows that the US is particularly keen on boosting cross-border data flow, which would allow uninhibited exchange of personal and financial data.
TISA negotiations are currently taking place outside of the General Agreement on Trade in Services (GATS) and the World Trade Organization (WTO) framework. However, the Agreement is being crafted to be compatible with GATS so that a critical mass of participants will be able to pressure remaining WTO members to sign on in the future. Conspicuously absent from the 50 countries covered by the negotiations are the BRICS countries of Brazil, Russia, India and China. The exclusive nature of TISA will weaken their position in future services negotiations.
The draft text comes from the April 2014 negotiation round – the sixth round since the first held in April 2013. The next round of negotiations will take place on 23-27 June in Geneva, Switzerland.
Current WTO parties negotiating TISA are: Australia, Canada, Chile, Chinese Taipei (Taiwan), Colombia, Costa Rica, Hong Kong, Iceland, Israel, Japan, Liechtenstein, Mexico, New Zealand, Norway, Pakistan, Panama, Paraguay, Peru, South Korea, Switzerland, Turkey, the United States, and the European Union, which includes its 28 member states Austria, Belgium, Bulgaria, Cyprus, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom.
China and Uruguay have expressed interest in joining the negotiations but so far are not included.
1] Swiss National Center for Competence in Research: [A Plurilateral Agenda for Services?: Assessing the Case for a Trade in Services Agreement (pdf), Working Paper No. 2013/29, May 2013, p. 10.
2] For example, in June 2012 Ecuador [tabled a discussion (pdf) on re-thinking regulation and GATS rules; in September 2009 the Commission of Experts on Reforms of the International Monetary and Financial System, convened by the President of the United Nations and chaired by Joseph Stiglitz, released its final report (pdf), stating that “All trade agreements need to be reviewed to ensure that they are consistent with the need for an inclusive and comprehensive international regulatory framework which is conducive to crisis prevention and management, counter-cyclical and prudential safeguards, development, and inclusive finance.”
Read the Secret Trade in Services Agreement (TISA) – Financial Services Annex
Read the Analysis Article – Secret Trade in Services Agreement (TISA) – Financial Services Annex
Experts are still pouring over the documents but here is some of the preliminary analysis of what TISA will effect:
Wednesday’s leak provides the largest window yet into TISA and comes on the heels of two other leaks about the accord last year, the first from WikiLeaks and the other from the Associated Whistleblowing Press, a non-profit organization with local platforms in Iceland and Spain.
While analysts are still poring over the contents of the new revelations, civil society organizations released some preliminary analysis of the accord’s potential implications for transportation, communication, democratic controls, and non-participating nations
Telecommunications: “The leaked telecommunications annex, among others, demonstrate potentially grave impacts for deregulation of state owned enterprises like their national telephone company,” wrote the global network Our World Is Not for Sale (OWINFS) in a statement issued Wednesday.
Transportation: The International Transport Workers’ Federation (ITF), comprised of roughly 700 unions from more than 150 countries, warned on Wednesday that the just-published documents “foresee consolidated power for big transport industry players and threaten the public interest, jobs and a voice for workers.” ITF president Paddy Crumlin said: “This text would supercharge the most powerful companies in the transport industry, giving them preferential treatment. What’s missing from this equation is any value at all for workers and citizens.”
Bypassing democratic regulations: “Preliminary analysis notes that the goal of domestic regulation texts is to remove domestic policies, laws and regulations that make it harder for transnational corporations to sell their services in other countries (actually or virtually), to dominate their local suppliers, and to maximize their profits and withdraw their investment, services and profits at will,” writes OWINFS. “Since this requires restricting the right of governments to regulate in the public interest, the corporate lobby is using TISA to bypass elected officials in order to apply a set of across-the-board rules that would never be approved on their own by democratic governments.”
Broad impact: “The documents show that the TISA will impact even non-participating countries,” wrote OWINFS. “The TISA is exposed as a developed countries’ corporate wish lists for services which seeks to bypass resistance from the global South to this agenda inside the WTO, and to secure and agreement on servcies without confronting the continued inequities on agriculture, intellectual property, cotton subsidies, and many other issues.”
Despite assurances that Fast Track would force the president to reveal the contents of these agreements, it also removes congresses ability to amend, debate or filibuster. Right now, only congress members can view these complex documents. They are not allowed to take notes, ask questions or even discuss the contents amongst themselves, while big corporations are free to read and discuss it. This is not how transparency works, Barrack.
Meanwhile, to promote transparency, Wikileaks is offers $100,000 to anyone who will reveal the missing chapters from the TPP. Only three of the of the 26 chapters have been uncovered so far. It is imperative that Americans and the world know what our governments are doing in our names.
The Fast Track vote is coming up this week. Help Stop Fast Track