Inside U.S. Trade: "U.S. Formally Proposes Carveout Of Anti-Tobacco Measures From ISDS"


ATLANTA – In a move that is likely to ignite a firestorm on Capitol Hill, the Obama administration on Wednesday (Sept. 30) formally proposed language in the Trans-Pacific Partnership (TPP) agreement that would prevent tobacco control measures from being challenged under the deal's investor-state dispute settlement (ISDS) mechanism, according to sources close to the negotiations.

October 1, 2015 | Inside U.S. Trade

The U.S. proposal is likely to elicit stern criticism from tobacco companies and members of Congress from tobacco-producing states, while drawing praise from anti-smoking and public health groups as well as their supporters in Congress.

There is some indication that the Office of the U.S. Trade Representative has shared the tobacco language with some members of Congress before tabling it here. One industry source here said the tabling of such a proposal by USTR would indicate that the U.S. truly believes the TPP talks are in their end game, due to its sensitive nature.

"Our goal is to ensure that the outcome negotiated in TPP promotes the interests of American farmers, while ensuring that governments can implement tobacco regulations to protect public health," a USTR spokesman said, when asked about the proposal.

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