The Enigma of TPP Arbitration: Selection and Implications

The Trans-Pacific Partnership (TPP) arbitration system is built on a convoluted and often opaque process. Understanding how arbitrators are selected can provide insights into the potential biases and outcomes of such decisions.

Selection of Arbitrators in the TPP

As per Article 9.22 of the TPP text, the tribunal must consist of three arbitrators. Specifically:

One arbitrator is to be appointed by each disputing party (Article 9.22n1) The third arbitrator, known as the presiding arbitrator, is to be selected by agreement between the disputing parties. If they cannot agree, the third arbitrator will be chosen from a list provided by the Secretariat (Article 9.22n3).

The lack of detailed guidelines for arbitration selection in the TPP treaty text is notable, especially when compared to more established frameworks such as the International Centre for Settlement of Investment Disputes (ICSID). This ambiguity might influence the arbitration process in several ways.

Implications for the TPP Arbitration System

The selection process for arbitrators is critical to the impartiality and fairness of arbitration. In the case of the TPP, several factors may influence the arbitrators' composition and decisions:

Corporate Patronage: The arbitration process allows for the selection of arbitrators by private parties, which can introduce a bias towards corporate interests. This is especially concerning given that the primary disputants in many cases are corporate entities. Limited Review: Decisions made by such arbitrators are largely non-appealable, which can lead to an overreliance on outcomes that may not be in line with democratic or judicial standards. Transnational Justice: The future judgments will be conducted in transnational courts, where corporate entities will be judged by their peers, rather than traditional judicial systems. This raises questions about the legitimacy and impartiality of the process. No Right to Sue: The TPP only allows international corporations to sue national governments, but not the other way around. This imbalance in the arbitration process further supports the notion of corporate dominance over national sovereignty.

The Legitimacy of the Arbitration Process

The selection and composition of arbitration panels in the TPP raise significant questions about their legitimacy and fairness. The process is marred by:

Non-Democratic: The secretive and undemocratic nature of the selection process undermines the trust in the outcome of these arbitrations. Potential Bias: The third arbitrator, chosen based on the agreement of the other two, introduces an unpredictable element that could bias the outcome in favor of corporate interests. Limited Judicial Review: The non-appealable nature of decisions hampers the ability for external scrutiny and accountability.

The combination of these factors suggests that the arbitration process in the TPP might not adhere to the principles of democratic and fair justice. Each case is akin to a coin toss, but with a bias heavily weighted against nations that have to abide by the arbitration's terms.

Conclusion and Further Reading

The TPP arbitration system is a contentious topic with numerous concerning aspects. For more information, consider watching videos from trusted sources such as Infowars, RT Channel, Keiser Report, Corbett Report, and Brave New Films. These resources provide in-depth analysis and insights into the potential implications of the TPP and its arbitration framework.

Keywords: TPP Arbitration, Trans-Pacific Partnership, International Corporate Tyranny