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Singapore treaty is a sell-out to multinationals

13 February 2019

Singapore treaty is a sell-out to multinationals

The SP has major concerns about the European Parliament's decision to vote in support of the investment treaty with Singapore. The treaty opens the door to foreign investors looking to speculate on our financial markets. In particular, opening state bonds to foreign investors is a recipe for disaster.

Commenting on the decision, SP Euro-MP Anne-Marie Mineur said: “It's appalling that the European Parliament is going along with the European Commission's wish to make our countries into a playground for multinationals. Not only can foreign investors buy up national debts, in the event of a financial crisis they can prevent debt forgiveness, as the recent report from the Centre for Research on Multinational Corporations demonstrates. In addition, the treaty once again contains an arbitration clause giving foreign investors the possibility to lodge huge claims against decisions taken democratically. The Commission has changed the name, but it's simply the ISDS. The profits go to the private investor, while the risks are added to the taxpayer's bill.”

“The trade treaty with Canada, CETA, could become a role model for new trade treaties,” Mineur continued. “But this treaty certainly doesn't represent progress. Singapore is a country that pays little attention to human rights, trade union rights or the freedom of the press, and which still uses the death penalty. The treaty contains no binding agreements on sustainability, and no mention has been made of the fact that the US National Bureau of Economics Research puts Singapore at number three in the global list of tax havens.”

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