New information shows increased threat to Scotland from controversial trade deal TTIP
Date: 24 March 2016
- Scotland would carry cost of legal battles fought between Westminster and big business under proposed trade regime
- Campaigners call on First Minister Nicola Sturgeon to oppose TTIP
New information from the UK government exposes a serious threat to Scotland’s sovereignty under the controversial trade deal between the EU and US known as TTIP (the Transatlantic Trade & Investment Partnership).
A written answer published today from the UK government’s minister for business, innovation and skills reveals that, under TTIP, the Scottish government would have to rely on the UK government to defend legal challenges from US trans-national companies over its policy decisions, but would have to pay the fine if the UK government lost the case. This could threaten the willingness of the Scottish government to go beyond UK legislation in devolved areas such as public health and environmental protection, and turning the current moratorium on fracking to a ban or to tighten tobacco and alcohol control legislation.
TTIP, the transatlantic trade and investment partnership currently under negotiation between the US and EU, contains provisions to set up special courts, outside of national legal jurisdictions, that trans-national companies can use to sue governments for public policy decisions that they believe will affect their profits.
Campaigners are calling on First Minister Nicola Sturgeon to write to David Cameron urging him to oppose the trade deal. They have also written to leaders of the other Scottish political parties ahead of the Scottish parliament elections asking them to do the same thing.
Head of Scottish campaigns for Global Justice Now, Liz Murray, said:
This response from Westminster provides more evidence of how TTIP would threaten the Scottish government’s ability to exercise its powers in the interests of the people of Scotland. We’ve known for a long time that TTIP will hand more power than ever to big business. Now we also know that when business uses that power to challenge Scottish government policy, then Scotland will have to rely on Westminster to fight its battles while bearing the financial burden if it loses.
The SNP wants an independent Scotland with the sovereignty to take its own decisions, but it’s risking ceding power to both Westminster and multinational corporations by not opposing TTIP. We urge Nicola Sturgeon to take note of this new evidence and to listen to her party members and public opinion on this issue and to oppose TTIP outright.
Opposition to TTIP across Scotland continues to grow. The Scotland Against TTIP coalition, set up a year ago, now has 26 member organisations, including the STUC, trade unions Unison and Unite, and tobacco control organisation ASH Scotland. 50,000 people in Scotland have signed a petition opposing TTIP and CETA (a similar trade deal between the EU and Canada).
Notes
Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire):
Question:
To ask the Secretary of State for Business, Innovation and Skills, whether (a) legal costs and (b) compensatory payments resulting from investor state dispute settlement claims relating to acts by the Scottish Government would be paid by the Scottish Government; and if he will make a statement.
Tabled on: 15 March 2016
Answer:
Anna Soubry:
If the UK were to lose a claim brought under the investor-state dispute settlement (ISDS) mechanism of a trade and investment treaty which relates to an act of a devolved administration, the memorandum of understanding between the UK and the devolved administrations would apply. This provides that the devolved administration would be responsible for the payment of legal costs and awards made by the tribunal to the extent that they arise from the failure of the devolved administration to implement or enforce an obligation or fail to meet their share of an international quota. However, the UK has a good record of creating the right environment for investors and treating them fairly – we have over 90 such agreements in place with other countries and there has never been a successful ISDS claim brought against the UK.
The answer was submitted on 23 Mar 2016 at 15:31.
