Trade Minister Andrew Robbs claims that Investor-State Dispute Settlement (ISDS) provisions in trade agreements are in the national interest have been dismissed in a scathing assessment by the Productivity Commission.
The Productivity Commissions annual Trade and Assistance Review says ISDS provisions which allow foreign investors to pursue international arbitration claims against the Australian Government expose the Australian Government to large potential liabilities, risk impeding domestic regulatory reform, include safeguards of uncertain effect, lack transparency and have inadequate parliamentary scrutiny.
The former Labor Governments policy was not to include ISDS provisions in trade agreements.
Labor remains opposed to ISDS provisions but the Abbott Government has included these provisions in trade deals with Korea and China and is considering including them in the proposed Trans-Pacific Partnership.
This is despite objections from economic and legal experts including the Chief Justice of the High Court of Australia Justice Robert French.
There are legitimate public concerns over the impact of ISDS provisions on Australias public policies in areas such as healthcare, public services and environmental protection.
It is time for the Abbott Government to address these concerns rather than arrogantly dismissing them.