JEFTA: THE LATEST MASSIVE 'TRADE' DEAL YOU'VE NEVER HEARD OF, NEGOTIATED BEHIND CLOSED DOORS, WITH ZERO PUBLIC SCRUTINY | WHAT REALLY HAPPENED

JEFTA: THE LATEST MASSIVE 'TRADE' DEAL YOU'VE NEVER HEARD OF, NEGOTIATED BEHIND CLOSED DOORS, WITH ZERO PUBLIC SCRUTINY

As Techdirt has reported, the election of Donald Trump has turned the world of US trade deals upside-down. The US officially pulled out of TPP, although some still hope it might come back in some form. TAFTA/TTIP seems to be on ice, but Trump's choice for US trade representative has just said he is open to resuming negotiations, so it's not clear what might happen there (or with TISA). Against that confusing backdrop, the European Union has been quick to emphasize that it is in favor of trade deals, and is keen to sign as many as possible, presumably hoping to fill the economic and political vacuum left by the US.

One of the negotiations that has been going on in the background is for a major trade agreement between the EU and Japan. It began back in March 2013, but has garnered little attention, as people focused on the more imminent threats of TPP, TTIP, CETA and TISA. That's just changed, thanks in part to a joint statement signed by dozens of civil societies in both the EU and Japan, who write:

Whether or not the final outcome is based on the Commission's new Investment Court System (ICS), Japanese business tend to comply with the regulations of the host countries rather engage in investor-state disputes. There is only one known case of Japanese (indirect) involvement in an ISDS case, via a Dutch subsidiary operating in Czech Republic.

That is, Japanese companies prefer to use the national court systems of the countries they have invested in when there is some kind of legal dispute. This is precisely how things should work. And yet the EU is pushing for the inclusion of a completely parallel legal system, only available to investors, that would allow domestic courts to be by-passed and overruled. Here's why it's so keen on the idea:

exclusion of ISDS from the EU-Japan negotiations would be contrary to the emerging norm in comprehensive trade and investment agreements. Japan does not see the inclusion of ISDS as a difficulty.

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