The professor of the University of Cambridge and Usach, José Gabriel Palma, explained about the TPP-11 that the treaty applies indirect expropriation, which is extremely harmful for governments, as any legislation that affects multinationals economically, such as an increase in the minimum wage that is greater than what the multinationals are willing to pay, they will have the right to compensation in a “very restrictive” way, he said.
In conversation with the panelists of the radio programme “Sin Tacos Ni Corbatas”, on Radio Usach, José Gabriel Palma, PhD in Economics from Oxford University, explained what the Trans-Pacific Agreement really consists of.
The economist, who also holds a PhD in Political Science from the University of Sussex and is a professor at the FAE Usach, said that “of the 30 chapters of the Treaty, only five are commercial, the remaining 25 being indirect issues that benefit transnationals and large Chilean conglomerates”.
On the nature of the treaty, Palma pointed out that it is also important to clarify that this is not primarily a commercial treaty, “it is a treaty about 10 things, one of which is commercial. It is a combo where you have to take the whole package or else you are left without it,” he said.
The Cambridge University professor argued that the trade aspects were introduced to make “the treaty sellable”, but that at its core it had another objective, one that is related to the genesis of the initiative.
The academic recalled that the treaty started with an agreement between the US State Department and two US multinationals: the entertainment and pharmaceutical industries “to create a new definition of intellectual property that is highly damaging even to the creation of knowledge”, said Palma.
The Cambridge University and Usach professor explained that “the so-called indirect expropriation (of property) was invented, which is the most damaging thing of all, which is that any government legislation, in environmental or health matters for example, or an increase in the minimum wage that is more than the multinationals are willing to pay, or any measure adopted by the government that affects the profitability of the multinationals, they have the right to compensation, and this is very restrictive”.