In the past two days, WikiLeaks has released drafts from a lesser-known trade agreement being negotiated between 52 nations called the Trade in Services Agreement (TISA). The publication comes just before the next round of negotiations, which will begin on July 6.
The “Core Text” of TISA, as well as chapters from negotiations on “Electronic Commerce,” “Telecommunications Services,” “Financial Services,” and “Maritime Transport Services,” were published.
WikiLeaks describes the “Core Text” of the agreement that they released from the “largest ‘trade deal’ in history” a “modern journalistic holy grail.” The media organization is not exaggerating.
Edward Alden, who used to be a reporter for the newsletter Inside US Trade, wrote in a post for the Council on Foreign Relations that WikiLeaks’ sources are “impressive.” Alden recalled how he worked in the “pre-digital age” to “encourage leaks of trade negotiating positions. “But, with the exception of the Clinton administration’s proposal for the NAFTA labor and environmental side agreements in 1993, we rarely got our hands on the texts themselves.”
In a time when corporations are being aided by governments, which are negotiating sweeping trade deals like TISA and the Trans-Pacific Partnership (TPP) with complete secrecy, WikiLeaks has ensured that governments do not finish negotiations without the public having some idea about this conspiracy unfolded behind closed doors.
Deputy US Trade Representative Michael Punke previously described TISA as an agreement that “would encompass all service sectors and modes of supply and impose a high standard for liberalization.” By liberalization, Punke means deregulation.
Quite aggressively TISA seeks to establishes rules that would tie the hands of TISA governments, preventing them from being able to craft their own regulations to protect people from exploitation by businesses or corporations. And, the very rules, which have been adopted since the 2008 economic crisis, to protect against future financial meltdowns would likely come under attack as a result of this trade deal.
Ben Beachy of Public Citizen’s Global Trade Watch put together an analysis [PDF] of the “Financial Services” chapter and found sweeping rules for “market access,” which “would expose governments to legal challenges before extrajudicial tribunals for banning risky financial services or products, such as the complex derivatives that fueled the financial crisis. The same rule threatens proposals to limit the size of banks so that they do not become ‘too big to fail.'”
Yet another rule opening up the world to financial risk would challenge policies, which prevent banks from being able to “hold consumers’ deposits from engaging in hedge-fund-style trading of high-risk securities.” It would be prohibited to restrict “financial inflows—used to prevent rapid currency appreciation, asset bubbles and other macroeconomic problems—and financial outflows, used to prevent suddent capital flight in times of crisis.”
“Despite increasing concerns about data privacy, sparked by revelations of the US National Security Agency’s dragnet spying, TISA would require that financial firms be permitted to transfer consumers’ personal financial data overseas, where it could be exposed to unwanted surveillance,” Beachy warns.
In some instances, TISA countries may have to roll back regulations if they were inhibiting the business of a foreign firm. (more…)