Category: TTIP

Brexit, dirty campaigning, the TTIP and a case for Remain

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“We cannot be content with the state of the EU as it stands. But that does not mean walking away, but staying to fight together for a better Europe.”  Jeremy Corbyn, Statement to The Guardian, 28 July 2015.

Despite his reservations, and a desire to see progressive reform within the European Union, Mr Corbyn strongly supports the Remain campaign. He has been very clear about his views, and he has presented powerful arguments to support his position. He says:

“I have seen first-hand jobs, investment, workers’ rights and environmental protection that being part of the EU helps secure for working people. That’s why, despite its faults, I believe it’s best we vote to stay and work with our friends to make the changes Europe needs.”

It was therefore something of a surprise to see the Leave campaign use a quote with such malicious intent from Mr Corbyn, that was so outdated and out of context, to deliberately mislead people into thinking that the Labour leader supports Brexit.

This post was sponsored on Facebook, and came up more than once in my feed: Stand with Jeremy Corbyn.  

The site is promoted by Matthew Elliot, the founder and former Chief Executive of the TaxPayers’ Alliance and Big Brother Watch. He also acted as Campaign Director for the successful NOtoAV campaign in the 2011 Alternative Vote referendum. He is the Founder and was the Chief Executive of Business for Britain, and is now the Chief Executive of the Vote Leave Campaign Committee, having founded and been the chief executive of the main Vote Leave.

Elliott also founded the Politics and Economics Research Trust (PERT) in 2004. Labour MP and former Shadow Minister for Europe, Emma Reynolds, raised significant questions about the affairs of the TPA and PERT, she wrote to the Charity Commission and said that “PERT may be in breach of charities legally binding commitments to preserve their independence, specifically regarding political activity and the delivery of charitable objectives.”

Of £532,000 PERT paid out in grants in 2014, £300,000 went to the TPA and £205,000 to Business for Britain, both of which are Eurosceptic. £10,000 went to Global Britain, which has campaigned for Brexit. Charitable trusts are not allowed to be used for political purposes under British charity law.

There were some pretty grubby tricks employed during November 2015, when the group established a fake company in order to gain entry to a speech being given by the Prime Minister at the Confederation of British Industry where they heckled him and held banners stating “CBI = voice of Brussels.” Dominic Cummings, campaign director of Leave, subsequently stated:

“You think it is nasty? You ain’t seen nothing yet. These guys have failed the country, they are going to be under the magnifying glass. Tough shit … It is going to be tough”.

The campaign group also stated their intention to target and disrupt meetings of pro-EU organisations and companies. In a letter to the Electoral Commission, Eric Pickles, the former Conservative cabinet minister, said he believed Vote Leave had disqualified itself from lead status in the referendum (which entitles the campaign to public funding) after it pledged to run a “nasty” campaign against opponents.

The European referendum, some have argued, is more important than any general election, because it will potentially change Britain’s relationship with Europe and the rest of the world. There’s a lot of grand and quaint imperialist talk from the Leave camp about power, sovereignty and Britain’s “place in the world.” But it’s a clever sales pitch, nonetheless, as it harnesses the public restiveness, which reflects a broader disquiet with social democracy in the UK. 

I have to agree with Michael Sandel’s comment, in his excellent interview in today’s New Stateman with Jason Crowley: “A big part of the debate has been about economics – jobs and trade and prosperity – but my hunch is that voters will decide less on economics than on culture and ­questions of identity and belonging.”

The Right have always been strongly inclined towards socioeconomic outgrouping, creating categories of others, using stigma and scapegoating techniques to formulate justification narratives for policy that is purposefully designed to impose gross social inequalities. This alienates already marginalised groups, fragments social identities, and of course, breaks social solidarity. It’s therefore no surprise that immigration and othering have been the focus of a substantial part of the Brexit campaign.

He goes on to say: “Social democracy is in desperate need of reinvigoration, because it has over the past several decades lost its moral and civic energy and purpose. It’s become a largely managerial and technocratic orientation to politics. It’s lost its ability to inspire working people, and its vision, its moral and civic vision, has faltered. So for two generations after the Second World War, social democracy did have an animating vision, which was to create and to deepen and to articulate welfare states, and to moderate and provide a counterbalance to the power of unfettered market capitalism.

“This was the raison d’être of social democracy, and it was connected to a larger purpose, which was to empower those who were not at the top of the class system, to empower working people and ordinary men and women, and also to nurture a sense of solidarity and an understanding of citizenship that enabled the entire society to say we are all in this together. But over the past, well, three or four decades, this sense of purpose has been lost, and I think it begins with the Ronald Reagan/Margaret Thatcher era.”   

Yes, the transatlantic neoliberal turn. The commentary throughout the article is coherent and compelling, and well worth the read.

Leaving the EU would mean the UK giving up its place and influence in Europe, turning back the clock and retreating from the established global power networks of the 21st century. It would also legitimize the Conservatives’ crusade against what remains of a political settlement based on an inclusive, multicultural democracy. Without a level of international scrutiny and legal safeguards, I believe that this Conservative governments’ already evident authoritarian inclinations would be held under rather less constraint. 

The Labour Party, except for a small handful of eurosceptics, is now firmly pro-Europe  – we are, after all, internationalists – despite the fact that leader Jeremy Corbyn has in the past questioned whether the EU structure delivers more for business than it does workers. The Scottish National Party, most of the Liberal Democrats, Green Party and Welsh nationalists Plaid Cmyru are firmly placed with the ‘In’ camp. 

Jeremy Corbyn has said that David Cameron must not have a carte blanche to negotiate away workers’ rights as part of his desired EU reform package, ahead of the in-out referendum. However, Corbyn knows for sure that workers’ rights will not be stronger if the UK ends up outside the EU. 

It was the New Labour Government who ended the Tories’ opt-out on EU social policy (the “social chapter” as it was then called) back in 1998. The Trades Union Congress (TUC) have also staunchly defended workers’ rights in the EU over the last two decades. Now Cameron is aiming to undermine such positive EU employment laws in the UK, as the Tories successfully did back in the 1990s with an across-the-board opt-out. This said, Cameron’s “re-negotiation” has been pretty quickly sidelined. 

A Labour government could easily opt back into any areas that the Tories did succeed in opting-out of, as long as the UK is still an EU member state. The real attack on workers’ rights would inevitably happen if the UK left the EU. Then it would be straightforward for the Tory government to repeal other directives protecting workers’ rights. And they would – obligations to implement EU laws would cease, and so leaving the EU would reduce rather than help workers’ rights. And joining the EU again in the future would be very difficult – it would require a new referendum and fresh negotiations with Brussels, at the very least.

One final point. Some on the Left have said that the Transatlantic Trade and Investment Partnership (TTIP) is a reason for them to vote to leave the EU.  I can understand this, because the TTIP will lead to a large-scale transfer of democratic power to multinationals. It is a blueprint for deregulation and privatisation. 

The Left Leave group argue that the deal promotes the privatisation of the NHS, and that leaving the EU would mean avoiding TTIP and hence save Britain’s free healthcare system. However, TTIP would still have a strong influence on the UK economy. Once outside the EU, the UK would be unable to stop the TTIP, or shape it. TTIP would create a transatlantic marketspace that would influence British firms and the UK economy by aligning regulation in the US and EU.  

Britain would need to stop trading with both the EU and the US to escape the TTIP’s regulations. The EU, like the US, would most likely remain an important trading partner for the UK in the event of a success for the Brexit campaign. Brexit is premised on extreme free trade agreements coupled with looser regulation to make us more “competitive.” 

The TTIP deal was supposed to be signed by now – but together, the Progressive Alliance of Socialists and Democrats (S&D) group and Europe’s people have seriously stalled things. Would it really be possible to stop such a move if we couldn’t link up with campaigners across Europe? If being in the EU has brought us TTIP, it has also brought us the means to stop it. Labour MEPs fought hard to secure support within the EU to get the toxic Investor State Dispute Settlement (ISDS) clause removed from the TTIP at the negotiating table last year. 

This was an excellent achievement by our own Labour MEPs within the broader S&D group. The ISDS contradicts principles of democratic accountability and would potentially allow one government to bind another for decades to come. Unlike the great majority of other treaties, investment treaties have very long minimum lifespans ranging up to 30 years. 

Much debate has arisen concerning the impact of controversial ISDS on the capacity of governments to implement reforms and legislative and policy programs related to public health, environmental protection, labour and human rights. 

In the UK, we already have a highly corporatised Government. We have witnessed scandalous price-rigging, and massive job losses, decreased standards in service delivery and a disempowerment of our Unions. This is because the Tories will always swing policy towards profiting private companies and not towards meeting public needs, as we know. 

In Britain, privatisation was primarily driven by Tory neoliberal ideological motives, to “roll back the frontiers of the State.” 

This Conservative government has done everything possible to push the most extreme version of TTIP, just as they’ve fought against pretty much every financial regulation, from bankers bonuses to a financial transaction tax. Cameron has his own programme of stripping away laws that direct big business towards reasonable behaviours and standards, no matter how important those laws are for safeguarding people and our environment.

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Related

Three excellent articles: –

EU debate: what are the real choices? – Red Pepper

The energy of the Brexiteers and Trump is born of the failure of elites Michael Sandel / Jason Cowley

#BREXIT ANTI-IMMIGRATION ARGUMENT CONTINUES WAR AGAINST POOR – Rupert Dreyfus/Consented

 


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The coming Corporatocracy and the death of democracy

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“Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power.”
Benito Mussolini.

“The real corruption that has eaten into the heart of British public life is the tightening corporate grip on government and public institutions – not just by lobbyists, but by the politicians, civil servants, bankers and corporate advisers who increasingly swap jobs, favours and insider information, and inevitably come to see their interests as mutual and interchangeable… Corporate and financial power have merged into the state.”Seumus Milne.

The Conservative privatisation programme has been an unmitigated failure. We have witnessed scandalous price rigging, and massive job losses, decreased standards in service delivery and a disempowerment of our Unions. But then the Tories will always swing policy towards benefiting private companies and not the public, as we know. In Britain, privatisation was primarily driven by Tory ideological motives, to “roll back the frontiers of the State”. The “survival of the fittest’ Conservative social policies are simple translations from the “very privileged survival of the wealthiest at all cost” and “profiteering for Tory donors and sponsors'” economic ideology.

Consider, for example, who the beneficiaries of Tory workfare policy are. Despite spectacular failure in “helping people into work”, these schemes persist. In 2012, the National Institute of Economic and Social Research (NIESR) reviewed the DWP’s impact assessment into how its “mandatory work programme” was working. Former Cabinet Office chief economist and NIESR director Jonathan Portes wrote: “Whatever your position on the morality of mandatory work programmes like these – the costs of the programme, direct and indirect, are likely to far exceed the benefits.”

“At at time of austerity, it is very difficult to see the justification for spending millions of pounds on a programme which isn’t working.”

So we ask ourselves who benefits from this “scheme”. Big business does of course. They get free labour, funded by the tax payer, to maximise profits. The service providers also benefit. What this means is that the money “saved”’ in public sector cuts has been used to subsidise some of this Country’s richest companies, and they have been provided with free labour from a reserve of State induced unemployment. Workfare is nothing less than the gross exploitation of the economic victims of this Government.

The apparent Conservative desire for wider share ownership in some instances of privatisation was certainly intended to make the privatisation reforms difficult to reverse: it would make them very expensive to reverse, but also, it’s partly because re-nationalisation risks alienating the critical middle class swing voters in the electorate, quite apart from the fiscal implications.

Private ownership is considered by the Tories as one of the better ways of reducing the power of the trades unions, and with it the perceived support for the opposition Labour Party. Indeed, creating counterweights to the perceived and mythologised “monolithic” unions meant that inadequate attention was given to dispersed control and competition, evident in the early utility privatisations of telecoms and gas, for example.

Privatisation and liberalisation are distinct policies, whilst it is possible (and common) to privatise services without liberalising, it is less often understood that one can liberalise without privatisation.

For example, it is quite common for gas and electricity distribution networks to be municipally owned, with private ownership elsewhere. After the collapse of Railtrack, the British Government created Network Rail, a not-for-profit-distribution public-private partnership, a quasi-commercial public entity that is a compromise between the desire to renationalise and a desire to keep the debt off the public sector’s balance sheet.

Roads are almost entirely in public ownership while transport services are almost entirely privately supplied. The main case for privatising networks like the power grid is that they can be more effectively exposed to profit-related incentives, while at the same time clarifying the nature of regulation, and separating the regulatory and ownership functions.

Of course the alternative view is that the state can better pursue its interests [on behalf of citizens] by direct control through ownership than by indirect control through regulation. Tory privatisation has been a total failure. It’s entirely ideologically driven.

The Conservatives are endorsing the Trans Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP) , which will enshrine the rights of Corporations under International Law, and restrict future governments in overturning the changes through the threat of expensive legal action. These are the largest trade agreements in history, and yet they are NOT open for review, debate or amendment by Parliaments or the public. This agreement will shift the balance of power between Corporations and the State – effectively creating a Corporatocracy. It will have NO democratic foundation or restraint whatsoever. The main thrust of the agreement is that Corporations will be able to actively exploit increased rights in the TPP and TTIP to extend the interests of the corporation, which is mostly to maximise their profits.

Human rights and public interests won’t be a priority. Six hundred US corporate advisors have had input into this trade agreement. The draft text has not been made available to the public, press or policy makers. The level of secrecy around this agreement is unparalleled. The majority of US Congress is being kept in the dark while representatives of US corporations are being consulted and privy to the details.

A major concern is that many of the regulations likely to be affected under TTIP are designed to protect our health and the environment by setting safe levels of pesticides in food and chemicals in our toiletries and household cleaning products for example. These safeguards will be eroded or eliminated, potentially exposing people to greater risks of unsafe, unregulated commercial goods to support  the interests of multinationals.

In November, WikiLeaks published a draft chapter of the agreement – and the reasons for secrecy became clear. The draft confirms our fears that this agreement tips the balance of power between Corporations and the State and citizens firmly in favour of Corporations.

The Transatlantic Trade and Investment Partnership includes a particularly toxic mechanism called investor-state dispute settlement (ISDS). Where this has been forced into other trade agreements, it has allowed big global corporations, already with too much power, to sue Governments in front of secretive arbitration panels composed of corporate lawyers, which bypass our domestic courts and override the decisions of parliaments and interests of citizens. Not that this would be a particular issue in the case of the UK, with the Government always favouring policies that promote the interests of such powerful businesses at the expense of the public, anyway. But this mechanism would also remove any chance whatsoever of public interests being a consideration in the decision-making process  In short, it will bypass what remains of our democratic process completely.

We have seen already that this mechanism is being used by mining companies elsewhere in the world to sue governments trying to keep them out of protected areas; by banks fighting financial regulation; by a nuclear company contesting Germany’s decision to switch off atomic power. After a big political fight we’ve now been promised plain packaging for cigarettes. But it could be anexed by an offshore arbitration panel. The tobacco company Philip Morris is currently suing the Government in Australia through the same mechanism in another treaty.

In the UK, we already have a highly corporatised Government. These agreements will suppress internet freedom, restrict civil liberties, decimate internal economies, stop developing countries distributing the lowest cost drugs, endanger public healthcare, and hand corporations the right to overturn decisions made by democratic governments in the public interest.

The chief agricultural negotiator for the US is the former Monsanto lobbyist, Islam Siddiqui. If ratified, the TPP would impose punishing regulations that give multinational corporations unprecedented rights to demand taxpayer compensation for policies that corporations deem a barrier to their profits.

It seems to me that our Government has been paving the way for this shortcut to corporocratic hell since they took Office. If you want an idea of what kind of socio-political changes the outlined Agreements will entail, J P Morgan gave us a chilling preview, earlier this year. What J P Morgan made clear is that “socialist” and collectivist inclinations must be removed from political structures; localism must be replaced with strong, central, authority; labour rights must be removed, consensus politics [that’s democracy] must cease to be of concern and the right to protest must be curtailed.

This is an agenda for hard right, corporatist government.

Say goodbye forever to your human rights, to democracy, and to the environment.

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Pictures courtesy of Robert Livingstone

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Please ask your MP to sign the EDM:

TRANSATLANTIC TRADE AND INVESTMENT PARTNERSHIP

Session: 2013-14
Date tabled: 26.11.2013
Primary sponsor: Lucas, Caroline
Sponsors: Meale, Alan Caton, Martin Hopkins, Kelvin Corbyn, Jeremy Flynn, Paul

That this House is concerned about the inclusion of investor-to-state dispute settlements in the Transatlantic Trade and Investment Partnership (TTIP); notes that their inclusion would enable foreign investors to file complaints against a national government whenever investors perceive a violation of their rights and that these complaints are filed directly to international arbitration tribunals and completely bypass national courts and the judicial system; believes there is a real risk that these provisions in the TTIP could overturn years of laws and regulations agreed by democratic institutions on social, environmental and small business policy on both sides of the Atlantic and is of the view that the Government’s assertions about the economic benefits of the trade deal are questionable; further believes that any transatlantic partnership implies a relationship based on mutual trust, respect and shared values, something that the ongoing revelations about US secret services’ surveillance of EU citizens and public representatives up to the highest level has shown to be gravely lacking; therefore calls for investor-to-state dispute settlements to be removed from the TTIP; and further calls on the Government to push for talks on the partnership agreement to be frozen immediately, in order to allow for a full public debate and Parliamentary scrutiny from both Houses of Parliament with a view to establishing whether full transparency and fundamental EU rights and rules can be guaranteed.

Early day motion 793

The Alternative Trade Mandate Alliance (and the Corporate Europe Observatory), which has just been launched, is a European alliance of over 50 civil society organisations. It forwards a proposal to make EU trade and investment policy work for people and the planet, not just the profit interests of a few.

EU – wide campaign to make Trade/Investment Policies work for People not Corporations

Further reading:

The lies behind this transatlantic trade deal

How the EU is making NHS privatisation permanent

THE SECRET TRADE AGREEMENT ABOUT TO COMPLETE THE CORPORATE TAKEOVER OF DEMOCRACY 

Osborne’s bid to end democracy by the back door