Future food labelling and product safety laws could be scrapped if legal pressure from multinational companies increases as a result of clauses within the Trans-Pacific Partnership (TPP) agreement.
Consumer advocacy group Choice has called on the Minister for Trade to opt out of dangerous clauses in the TPP and defend Australia's labelling laws.
The TPP trade agreement currently being considered by the Federal Parliament will enforce Investor State Dispute Settlement (ISDS) provisions.
In its submission to the Joint Standing Committee on Treaties, Choice urged the Federal Government to stand firm and defend Australia’s sovereign law-making abilities.
“This agreement threatens future laws to protect and inform consumers about the products and services they purchase,” Choice CEO Alan Kirkland said.
“Laws that require food companies to list specific ingredients, meaningful country of origin statements, and health and nutritional information on food packaging could all be on the chopping block.
“It’s particularly concerning that in other jurisdictions, ISDS provisions have been used to oppose bans of potentially dangerous products, overriding a country’s domestic laws designed to protect the public.
“Effectively the Federal Government is providing a veto on our domestic law making ability to international corporations and foreign legal tribunals.”
Choice found that the ISDS clause in the TPP could let foreign companies take action against Australia if the Federal Government changes laws or regulations to:
- Require specific-ingredient labelling on food products, like palm oil;
- Change or strengthen Australia's country of origin labelling system;
- Require the display of ‘health stars’ or ‘traffic lights’ on the front of packaged foods;
- Ban the import of products that are dangerous or potentially dangerous; and
- Improve the Australian Consumer Law to, for example, ban unfair trading or to strengthen consumer guarantees.
“We are urging MPs and Senators to oppose any TPP legislation until the risks associated with ISDS are dealt with,” Kirkland said.
“Australia has already opted-out of ISDS provisions with New Zealand. It needs to opt out of ISDS with other TPP countries as well, especially the USA and Japan.
“Although Australia has signed the TPP, it’s not too late. The Federal Government is still able to negotiate bilateral agreements to opt out of the devil in the detail, Investor State Dispute Settlement provisions.
“The fact is, ISDS provisions give foreign companies the option to stop or stall new laws, or receive massive payouts.
“ISDS provisions are risky. It makes no sense to allow foreign corporations the ability to sue the Australian Government for passing laws designed to protect and inform the public.”
