Jefferson Reporter

House Committee on Oversight and Government Reform Chairman James Comer and Representative Gary Palmer have initiated an investigation into the Biden Administration's efforts to alter investor protections in free trade agreements. They express concern over reports that the Office of the United States Trade Representative (USTR) is moving to remove these protections from the U.S.-Mexico-Canada Agreement (USMCA) without proper consultation.

In a joint statement, Comer and Palmer wrote, “The Committee on Oversight and Government Reform (Committee) is conducting oversight of the Office of the United States Trade Representative’s (USTR) actions to remove investor protections from free trade agreements. Specifically, the Committee has become aware of USTR’s efforts to renegotiate investor-state dispute settlement (ISDS) provisions in the U.S.-Mexico-Canada Agreement (USMCA).” They have requested a briefing with USTR to understand its decision-making process.

The issue has sparked debate among various stakeholders. Some Congressional Democrats and United Nations activists argue that these investor protections hinder environmental and human rights initiatives. Conversely, Comer and Palmer believe that removing these safeguards could weaken American businesses' ability to defend themselves in international disputes.

They stated, “We are aware that there are Democrats in Congress who sympathize with the assessment of the United Nations’ rapporteur on human rights and the environment that investor protections are a ‘major obstacle to the urgent actions needed to address the planetary environmental and human rights crises.’ However, ISDS protections benefit U.S. companies, and USTR’s mission is to advance U.S. interests.”

The Oversight Committee remains focused on ensuring that American business interests are upheld in international agreements.