Andrew Robb confirms he is negotiating controversial investor dispute clause to get 'ambitious market access' in the Pacific

This article is more than 6 years old

This article is more than 6 years old

Australia is prepared to give ground on investor-state dispute settlement (ISDS) powers – which allow multinational companies to sue the government – in return for “substantial market access” in the Trans-Pacific Partnership (TPP), the trade minister, Andrew Robb, said.

Robb predicted the TPP would be a “platform for 21st-century trade rules” as negotiations were being watched closely by other countries but “ambitious market access” was fundamental to its successful completion.

Speaking at the conclusion of the latest round of talks, Robb confirmed he was negotiating on the controversial ISDS clause in return for market access for Australian exporters and that “substantial progress” had been made on the issue.

The TPP was due to be completed by December 2013 but it is now unlikely to be signed before next year.

“The Australian government has said it’s prepared to consider on a case by case basis the possible support for an ISDS – investor state dispute settlement procedure,” Robb said on Tuesday night.

“We have said we are prepared to consider that in the context of the TPP provided there is a substantial market access result and other conditions are met.

“That is not just an issue with the US, it is the response we see collectively from all countries involved in this negotiation. We’ve made, on this issue, substantial progress over the last few days.”

The ISDS allows companies to sue foreign governments under international law and is being used by Philip Morris against Australia on plain packaging and graphic warnings for cigarettes.

Robb was speaking at the conclusion of four days of talks to thrash out the TPP with trade representatives of New Zealand, the US, Peru, Chile, Mexico, Canada, Singapore, Brunei, Malaysia, Vietnam and Japan.

He said the final TPP agreement would act as a model for world trade agreements, given the inclusion of chapters pertaining to the new century.

The TPP will cover issues such as e-commerce, intellectual property on medicine and creative products such as movies and music that are now shared and illegally copied online.

“There are many other chapters in this that are critical and new in the sense of being a 21st century agreement,” Robb said.

“The rest of the world in the trade community are looking at this, looking for it to be a platform for 21st century trade rules much wider in the region and beyond.

“We feel a sense of responsibility to do it in a thorough and an effective way … there is a united sense of wanting to get the job done.”

Labor put a motion to the Senate on Wednesday to force the government to release full details of the Australia-Korea free trade agreement as well as the final text (before signing) of any bilateral or plurilateral trade agreements.

The Senate will vote on the motion later on Wednesday.