Alarms raised over new ‘corporate court system’ and workers’ rights at risk in post-Brexit deal

The new pacific trade deal for the UK is ‘bad for workers at home and abroad’ and will aid ‘corporate profiteering’, the trades union body and campaigners have warned.

Business and Trade Secretary, Kemi Badenoch signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in New Zealand yesterday, formally initiating the UK’s membership into the deal with 11 other countries in Asia and the Pacific.

The UK is the first European member and first new member since the formation of the bloc in 2018, and represents the country’s biggest post-Brexit deal.

But alarms have been raised in particular about the introduction of a ‘corporate court system’, which would allow foreign, multinational corporations to sue the UK government in secret courts for introducing policies which they don’t like.

Referring to this as a ‘a really awful one-sided legal system’, Nick Dearden, director of the social justice campaign organisation, Global Justice Now said most countries in the world were trying to get out of this – whilst our government has, ‘run right towards it’.

Dearden said on LBC that the deal will, “hand way more power to the very same businesses that have been driving the cost of living” and that, for many, it will be a ‘betrayal’.

“The incredible thing about all this is that we were told all along that this was about our sovereignty, that’s why we left the EU in the first place,” said Dearden.

“It was supposed to be about new freedoms and sovereignty to do what we want, and yet the government has just signed up here to hand over a load of power to a bunch of big businesses and their lobbyists.

“For many people, that’s going to feel like a betrayal.”

The Trades Union Congress (TUC) warned of the threat the deal poses to workers’ rights. As TUC general secretary Paul Nowak accused the government of using trade deals as ‘publicity tools’ rather than promoting good work practice.

“This Pacific trade pact is bad for workers at home and abroad,” said Nowak.

“Once again, Conservative ministers have turned a blind eye to egregious human and workers’ rights abuses in their pursuit of trade deals.

“Workplace exploitation is widespread in the countries involved in this agreement – from Vietnam and Brunei where independent unions are banned, to Malaysia where migrant workers are subject to forced labour.

“This deal also allows multinational corporations to sue the UK government in secret courts for introducing policies which threaten their profits – this could include an increase in the minimum wage or bringing energy companies back into public ownership.

“The UK government should be using its leverage on the global stage to promote decent work, deliver green jobs and protect our public services – not treating trade deals as publicity tools.

“It’s time to meaningfully consult with unions and listen to our concerns. That’s how you get trade agreements that work for working people.”

Kemi Badenoch said she was ‘delighted’ to sign the deal which she called a, ‘big boost for British businesses’ to ‘deliver billions of pounds in additional trade’. Government experts have said the deal will grow the economy by 0.08%.

Tory MPs including Lee Anderson having also been singing its praises whilst the Sunday Express led with the headline ‘£12 trillion brexit trade boost’. However this has faced a barrage of criticism for spreading disinformation.

As writer Femi Oluwole pointed out, the UK already had trade deals with most of the countries via the EU, with his calculations putting the 0.08% GDP gain as an actual net loss of about £98 billion.

(Photo credit: HM Treasury / Creative Commons)

Hannah Davenport is trade union reporter at Left Foot Forward

Left Foot Forward’s trade union reporting is supported by the Barry Amiel and Norman Melburn Trust

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