APEP Should Be Used to Eliminate ISDS, Say Members of Congress, U.S. and Latin American Civil Society

July 22, 2024

APEP Should Be Used to Eliminate ISDS, Say Members of Congress, U.S. and Latin American Civil Society

Washington, D.C.- Today, members of Congress, grassroots activists, and civil society organizations from the U.S. and Latin America urged the United States to use the Americas Partnership for Economic Prosperity (APEP) to undo the damage of decades of corporate-dominated trade policy, starting with elimination of Investor-State Dispute Settlement (ISDS).

In a commentsubmitted to the United States Trade Representative (USTR) this morning, Public Citizen called for APEP to address the harmful legacy of past U.S. trade policy in the Americas, noting the destruction that corporations have done through the ISDS system, which empowers foreign investors to sue governments over public interest policy.

Ahead of an August 1-2 APEP ministers meeting, Representatives Lloyd Doggett, Rosa DeLauro, and Linda Sánchez led 46 members of Congresson a comment to the USTR noting growing opposition to ISDS among APEP members. USTR Katherine Tai "and President Biden have taken important steps to shift U.S. trade policy to one that prioritizes workers, consumers, small businesses, and the environment, and eschewed the corporate-driven trade policies of the past," the members explained in their comment. "We urge you to build on this progress and establish a working group or similar forum within the APEP Trade Track to explore pathways towards eliminating ISDS from any trade or investment agreements to which the U.S. and APEP partner countries are party."

This comment echoed recent bicameral congressional letters calling for ISDS elimination via APEP: a May 2023 letter led by Senator Elizabeth Warren and Rep. Doggett led a letterwith 30+ signers; and a November 2023 letterled by Sen. Warren, Sen. Sheldon Whitehouse, and Rep. Steve Cohen with 35+ signers. Additionally, this March, Reps. Sánchez and Doggett and 45+ members of Congress calledfor the removal of ISDS from the Central America-Dominican Republic Free Trade Agreement (CAFTA), citing the system as harmful to addressing the root causes of migration from the region.

Over a thousand grassroots activists additionally sent comments condemning previous U.S.-backed "Banana Republic" policies in the region and highlighting the importance of eliminating ISDS and centering worker rights and climate justice in APEP.

In response to growing momentum, Global Trade Watch Director Melinda St. Louis stated: "It is empowering to see members of civil society and elected officials proposing actionable solutions to address damages done by decades of corporate trade in the Western Hemisphere. If APEP seeks to deliver on its commitments to workers and communities, the Biden-Harris Administration must take leadership alongside our trading partners to remove ISDS from trade deals in the region."