When it goes into effect, the Trans-Pacific Partnership Agreement (TPPA) will bring together nations comprising nearly 40 percent of the world’s economy, making it the largest regional trade agreement ever. However, as FaegreBD Consulting senior advisor Bob Kabel aexplained in an article he co-authored for World Finance, the TPPA still has hurdles to clear as member-states—including the United States—enter the political process of approving the agreement. Kabel highlighted the TPPA’s dispute resolution mechanism as controversial to some U.S. political leaders.

“Despite the fact that investor-state dispute settlement mechanisms have been included in numerous investment and trade agreements […] the concept is nonetheless controversial in certain legal and political circles,” the article said. “Some legal scholars have long maintained that such provisions violated protections afforded to citizens by the U.S. Constitution, including Article III, which established the judicial branch of the U.S. government.”

Kabel also discussed the “intense” domestic politics at issue in the TPPA approval process, citing opposition from unions and liberal groups and little expressed support from candidates vying for either party’s presidential nomination. Congress is not expected to vote on the TPPA until after the 2016 election.

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