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When the United States negotiates a trade agreement, we expect our trading partners to abide by the rules and obligations to which they agree. Under the TPP, countries will first seek to address an issue cooperatively. If they are unable to do so, the Parties have recourse to an independent tribunal to determine whether a Party has failed to meet its obligations, and ultimately to allow suspension of benefits if a Party fails to come into compliance. Through the TPP dispute settlement mechanism, we are seeking to give the American public the confidence that the United States has the means to enforce the strong, high-standard obligations we are negotiating in this agreement.
Specifically, in the TPP we are seeking:
- Establishment of a fair and transparent dispute settlement mechanism that applies across the agreement; and
- Procedures to allow us to settle disputes on matters arising under TPP in a timely and effective manner.
For more information on dispute settlement, visit www.ustr.gov/trade-agreements/wto-multilateral-affairs/wto-issues/dispute-settlement.
The Facts on Investor State Dispute Settlement