FREE trade trumpeters have failed to convince an influential group of MPs that investors’ rights should trump democracy in secretive EU-US treaty TTIP.

In a business, innovation and skills select committee report published today, the MPs take issue with the so-called investor state dispute settlement (ISDS) mechanisms allowing transnational corporations to take national governments to court included in the behind-closed-doors deal.

“We have yet to be convinced of the need for ISDS provisions in TTIP,” the MPs said starkly, arguing that existing courts are already capable of protecting investors on both sides of the Atlantic.

Campaign group Global Justice Now welcomed the report, pointing out that 97 per cent of consultation respondents had opposed ISDS being included in the treaty.

Head of campaigns and policy Polly Jones said: “The report shares the concerns of the general public on TTIP — the secrecy, ISDS, the lack of evidence to substantiate the benefits and the threat to public services. It demonstrates once more that the government is out of step in aggressively pushing this controversial trade deal.

“The report confirms that the government has been wildly and wilfully optimistic about the potential economic benefits of TTIP.

“Numerous studies have shown either much less benefit, or even harm to growth and jobs in Europe if the treaty were to come into force.”

MPs also called on ministers to include an “unequivocal statement protecting public services” in the finished treaty — including the right of a future government to reverse privatisation.

TUC general secretary Frances O’Grady welcomed the call.

“MPs are right to demand that the protection of the NHS and public services should be put beyond doubt by writing it in to the deal rather than just relying on the assurances of ministers and EU commissioners,” she said.

“The TUC also agrees with the MPs’ call for a sector-by-sector assessment of the potential risks and benefits of TTIP.”

She added: “The government should respond to the MPs’ view that the case for including ISDS has not been made by scrapping this undemocratic and unfair preferential treatment for foreign investors.”

by Our News Desk