Labor to oppose ISDS in Peru and Indonesia FTAs
Monday March 25, 2019: The Australian reports that Federal Labor Trade Spokesperson Jason Clare has confirmed that Labor in government would seek to remove Investor-State Dispute Settlement clauses from the Peru and Indonesia FTAs, which the Morrison government has signed but not ratified.
Labor policy also commits it to oppose ISDS while in Opposition, and the Peru FTA implementing legislation could be put to the parliament before the federal election is called.
Peruvian Trade Minister Edgar Vasquez has ruled out renegotiating the FTA because his government has already ratified it. The Australian Department of Foreign Affairs and Trade stated that any attempt by Labor to remove the ISDS clauses would delay both the Peru and Indonesia agreements.
Jason Clare said that the DFAT advice confirms that ISDS could be removed without affecting the market-access gains made in the deals.
“This advice confirms that ISDS could be removed without market access issues … ISDS was inserted at the Abbott-Turnbull-Morrison government’s request, so its removal does indeed benefit both sides,” he said.
Peru and Australia are both parties to the TPP-11, which has already been ratified. This means Australia will have access to Peruvian markets through that agreement.