Based on an article by Pat Ranald, Research Associate, University of Sydney:
The TPP11 retains all provisions on Investor-State Dispute Settlement (ISDS) from the previous TPP
Despite claimed “safeguards”, ISDS enables all other foreign investors to bypass national courts and sue governments for compensation in international tribunals if they can argue that changes in domestic laws or policies harm their investment.
Many of the 817 known cases involve public interest laws.
Even if a government wins a case, defending it can take years and cost millions. The US tobacco firm Philip Morris shifted some assets to Hong Kong and used ISDS in an Australia-Hong Kong investment agreement to claim billions in compensation for Australia’s plain packaging law.
ISDS gives additional legal rights to global corporations to sue governments in unfair international tribunals, undermining democratic regulation in the public interest. Trade agreements should not increase corporate power at the expense of communities.