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Why the TTIP Will Worsen Income Inequality

Posted by on January 21, 2016 in Government, Policies with 8 Comments
Corporate-friendly agreements like TTIP are nothing less than Robin Hood in reverse in which the wealth and power of the many is transferred to the elite few. (Image: flickr/cc/Lance Page/t r u t h o u t; Adapted: Steve Wampler, epicharmus)

Corporate-friendly agreements like TTIP are nothing less than Robin Hood in reverse in which the wealth and power of the many is transferred to the elite few. (Image: flickr/cc/Lance Page/t r u t h o u t; Adapted: Steve Wampler, epicharmus)

By Nick Dearden | Common Dreams

Huge corporations and the seriously wealthy will be the big winners from the controversial US-EU trade deal known as TTIP. That’s the implication of a new study which shows that billions of pounds have been won by giant companies like Mobil, EDF, Enron, Suez and Cargill, which have sued governments under similar treaties for taking action they believe to be ‘unfair’.

Related Article: The TPP is the Most Brazen Corporate Power Grab in American History – Chris Hedges

The most controversial element of TTIP is the ‘corporate court’ system, formally called ISDS. This system allows multinational corporations and other foreign ‘investors’ to sue governments for enacting regulation which damage their profits. Proponents argue that this offers investors, like small business, protection against ‘arbitrary’ government action.

But such corporate courts already exist in numerous other agreements and have allowed corporations to take action against many developing countries for freezing water and electricity prices, raising the minimum wage, introducing a sugar tax and putting health warnings on cigarette packages.

Gus van Harten’s new report shows that the really big winners of these cases are, unsurprisingly, really big corporations (over $1 billion in annual revenue) and super rich individuals (over $100 million wealth). Almost 95% of all compensation awarded in the corporate court cases studied went to these groups.

The report also shows that the success rate of cases brought by such corporate giants is around 71% – far greater than the success rate of smaller companies and investors.

This means, as has often big argued, corporate courts act to redistribute income from the public purse to the richest people in the world. $6.7 billion has been won in 48 cases, with another $1 billion being won by super rich individuals. While smaller companies and investors do sometimes take action, the report suggests that any winnings on their part  is normally wiped out by the legal costs.

Related Article: Full Text of TPP Released to Public… And It’s Horrible

In fact, the biggest sums have been won by well-known extractive and energy companies – with Occidental, Mobil, EDF, BG Group, Enron and Chevron winning cases, especially against countries like Ecuador, Venezuela and Argentina.

Interestingly the biggest such case in history – $50 billion awarded against Russia – has been dealt with separately because of its size. Van Harten suggests that this case was essentially won by Russian oligarchs using a series of European tax havens, including the Isle of Man.

Another big winner is what van Harten terms the ‘ISDS legal industry’ – including a selection of corporate law firms – which has made an incredible $1.7 billion in over 214 cases. Perhaps this shouldn’t be surprising, given a Friends of the Earth report from last year which showed that legal costs for such ISDS cases average over $8 million, exceeding $30 million in some cases, while 80% of the legal costs end up in the pockets of the parties’ lawyers. Elite law firms can charge  $1,000 per hour, per lawyer.

The biggest losers of all, of course, is  public. In the cases studies by van Harten, $10 billion has haemorrhaged from the pockets of developing world governments. But this will only be the tip of the iceberg if TTIP and its sister agreements like CETA (the EU-Canada agreement) are agreed. After all, most cases to date have been won outside Europe and the USA. TTIP and CETA will open up far most lucrative cases up to far more business.

Related Article: Project Censored #9: The Poor Get Less Media Coverage Than Billionaires Do

The idea that TTIP is about hard-done-by small business is clearly untrue. TTIP is a vehicle for channeling wealth from the public to the 1%.

Read more great articles at Common Dreams.

Nick Dearden is the director of Global Justice Now (formerly World Development Movement) and former director of Jubilee Debt Campaign.

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  1. 1549624428690401@facebook.com' Raphael Snelten says:

    Yes

  2. 1536357713341481@facebook.com' Owen Heath says:

    It’s like when you see in movies arranged marriages to reinforce alliances and consolidate forces to further benefit the wealth and power of the involved parties. The greedy inbreds are making contracts with each other to try to expand their empires with less inbreeding. Filthy greedy cunts.

  3. 150125078697855@facebook.com' Jaybird Rothschild says:

    I think Obama should wipe his ass with it on live TV, then have the people who wrote it arrested…

  4. 1063615010355568@facebook.com' Robert Peter says:

    Greed is a serious mental disease.

  5. 913416585380327@facebook.com' Ramos Spacko Johnson says:

    a dirty scam

  6. 10208662835593555@facebook.com' L Giulio Masini says:

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    Follow us: @AmericanThinker on Twitter | AmericanThinker on Facebook

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    Teach a man to fish and he can feed his family for life!! Steal the fish from the fisherman and give it to another and he will vote Dem for life!!
    With free money, why would anyone work in America?
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    (From WSJ.com)

    “…it should be possible to revive a national consensus affirming that capitalism embraces the best and most essential things about American life; that freeing capitalism to do what it does best won’t just create national wealth and reduce poverty, but expand the ability of Americans to achieve earned success—to pursue happiness.”

    Here’s a 5 minute video that illustrates what Trump wants to do to the US economy with his tax plan:
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    https://m.youtube.com/watch?v=8Ti8RQPh7IE

    What do you think about this 5 min video? (562,892 views)MI
    “America’s Debt Crisis Explained”
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    The US Government spends $87,000 per family per year to fight poverty. So, why is there poverty in the US?
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    PragerUniversity (318,938 views)
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    What party do corporations own?
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    Minimum wage is not to meant to be a living wage, but a starting point to (experience) a better job!!

    Maybe you have not seen the new “automated McDonalds”, No counter people, you select from a posted menu, slide you CC and then they bring the food to you. Half the employees got a raise to $15.00 per hour the other half lost there jobs.

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    https://www.youtube.com/watch?v=aZqn2s9hzv0

    From j sadowsky’s ‘The Blog That Isn’t’ – NEW RULE: For as long as Corporate Welfare Tax Loopholes Stand, There will be no Local, State or Federal Income Taxes on Individuals who’s Income is Less Than $ 70,000 a year! This is the Minimum Wage that enables a person to live moderately securely and to withstand ‘minor’ increases in Essential Costs of Food, Clothing, Household Items, Housing, Insurance, Medical, Transportation… without at least one of them being threatened! This will help the vast majority of Americans while quickly circulating more money into ‘our’ economy as opposed to Unpatriotic Corporate Monoliths pouring unseemly Profits and USA Money overseas to Avoid Their Fair Share!

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  7. 1063565703696291@facebook.com' Jeff Andrews says:

    cool

  8. 677161089082794@facebook.com' Dlav Gaucher says:

    Squash the tpp…

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