21. It threatens national sovereignty and democracy

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Previous: 20. It cuts small island states out of climate talks

Investor-state dispute settlement clauses in free trade agreements give multinational corporations the power to sue a government for any policy that hurts their profits. An ISDS tribunal would have the authority to overrule a national government and force it to pay unlimited compensation to companies, with no accountability. It would effectively be a radical transfer of power from government to corporations, and an attack on national sovereignty and democracy. If governments sign away their power to regulate transnational corporations, then it will become virtually impossible to solve climate change. Any climate policy or restriction on fossil fuel industries could be overturned through ISDS.

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