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The Trouble With the TPP, Day 42: The Risks of Investor-State Dispute Settlement

The TPP’s investor-state dispute settlement provisions have rightly attracted considerable attention given the risks that come with a process that gives companies the right to sue governments for hundreds of millions of dollars. Yesterday’s post discussed why the TPP ISDS rules do not meet the Canadian government’s own standard for dispute settlement as reflected in the Canada – EU Trade Agreement. The CETA provisions include a clear affirmation of governmental power to regulate, an appellate process, and rules designed to ensure fairness and non-bias in settlement cases. The TPP does not contain equivalent provisions.

The Trouble with the TPP’s ISDS provisions extend beyond the absence of policy freedom and fairness safeguards. The Columbia Center on Sustainable Development has published one of the most exhaustive examinations of the problems with the TPP’s ISDS rules, noting that the deal entrenches, rather than reforms, a flawed system. While the failure to address government regulation and procedural fairness consistent with the standards articulated by International Trade Minister Chrystia Freeland tops the list, the report also points to other issues that strike close to home from a Canadian perspective.

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March 2, 2016 5 comments News
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The Trouble With the TPP, Day 41: ISDS Rules Do Not Meet Canada’s New “Gold” Standard

Chrystia Freeland, Canada’s International Trade Minister, yesterday unveiled the final legal draft of the Canada – EU Trade Agreement. While CETA is still awaiting translation, Freeland indicated that she hopes the agreement will come into force in 2017.  The lengthy delay in arriving at a final legal draft arose from ongoing European opposition to investor-state dispute settlement provisions that many fear may limit governmental regulatory power and lead to expensive corporate lawsuits. The CETA text unveiled yesterday features some notable changes to the ISDS rules, with Canada largely acquiescing to European demands.

The ISDS changes raise in CETA at least two points that are relevant for TPP purposes. First, claims that completed trade agreements are non-negotiable and cannot be changed simply isn’t true. CETA was completed years ago, yet political demands for changes to the ISDS rules led all parties to go back to the bargaining table to work out a new system. While Freeland called the changes “modifications”, the reality is that a major aspect of the deal was re-worked in face of European protests. If elements of CETA can be reworked, there may be ways to re-do aspects of the TPP.

Second, CETA and the TPP are no longer consistent with respect to investor-state dispute settlement.

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March 1, 2016 1 comment News
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Why the FBI’s Apple iPhone Demands Are Rotten to the Core

The U.S. government’s attempt to invoke a centuries-old law to obtain a court order to require Apple to create a program that would allow it to break the security safeguards on the iPhone used by a San Bernardino terrorist has sparked an enormous outcry from the technology, privacy, and security communities.

For U.S. officials, a terrorism related rationale for creating encryption backdoors or weakening user security represents the most compelling scenario for mandated assistance. Yet even in those circumstances, companies, courts, and legislatures should resist the urge to remove one of the last bastions of user security and privacy protection.

My weekly technology law column (Toronto Star version, homepage version) argues that this case is about far more than granting U.S. law enforcement access to whatever information remains on a single password-protected iPhone. Investigators already have a near-complete electronic record: all emails and information stored on cloud-based computers, most content on the phone from a cloud back-up completed weeks earlier, telephone records, social media activity, and data that reveals with whom the terrorist interacted. Moreover, given the availability of all of that information, it seems likely that much of the remaining bits of evidence on the phone can be gathered from companies or individuals at the other end of the conversation.

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March 1, 2016 4 comments Columns
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The Trouble With the TPP, Day 40: Mobile Roaming Promises Unfulfilled

The Trouble with the TPP series has identified several instances where promises about deal’s benefits for consumers prove to be largely illusory upon closer examination of the actual text. These include weak privacy protections, anti-spam standards, and e-commerce rules. The same over-promise and under-deliver TPP approach arises with respect to consumer mobile roaming.  The TPP contains a large telecom chapter, which some governments used to promote as a key pro-consumer feature of the agreement. For example, the Australian government claimed:

Australia has successfully advocated for a provision that addresses, for the first time, the high cost of International Mobile Roaming.

The Canadian government used similar language in its TPP summary, stating that the TPP “includes, for the first time in a trade agreement, a dedicated article addressing the high cost of international mobile roaming.”

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February 29, 2016 Comments are Disabled News
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Quebec Court Dismisses Copibec Copyright Class Action Against Laval University

The recent Copyright Board ruling involving Access Copyright and copying at K-12 schools affirmed the fairness of educational copying practices across Canada. While writers groups continue to mislead with claims that the board’s decision springs from 2012 legislative reforms, the reality is that the current approach is grounded in several Supreme Court of Canada decisions. Writers groups and Access Copyright have repeatedly sought to downplay those decisions, yet it has been obvious to most observers that there is nothing unfair about copying up to 10% of a work for purposes such as research, private study, criticism, and education.

With repeated losses at the Copyright Board and the Supreme Court of Canada, copyright collectives have adopted another legal strategy: lawsuits and class actions against universities. The Access Copyright lawsuit against York University is ongoing, but the Quebec counterpart – an attempted class action filed by Copibec against Laval University in November 2014 –  hit a legal wall last week. Copibec had been seeking millions in compensation after Laval shifted to an approach based on fair dealing and transactional licenses. According to a release from Copibec, the court refused to authorize the class action. Copibec says it plans to appeal, but the decision suggests that the legal alternatives for the copyright collectives is rapidly diminishing.

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February 29, 2016 Comments are Disabled News