Within the power balances of globalization, corporate governance mechanisms have reconfigured national sovereignty. Free Trade Agreements (FTAs) and Bilateral Investment Treaties (BITs) operate as a legal architecture that privileges investor rights over state legislation. This system allows corporations to sue governments through private arbitration tribunals under the Investor-State Dispute Settlement (ISDS) system.

The so-called “foreign direct investment protection” has become an instrument to scrutinize public policies. When a country passes environmental, labor, or health laws that might reduce corporate profits, companies can claim million-dollar compensations. This framework has generated a paralyzing effect on progressive policies, turning democratic legislation into a hostage of private interests.

Legal asymmetry is enshrined through clauses that allow corporations to bypass national judicial systems. States, on the other hand, have limited capacity to sue for abusive practices. This dynamic redefines sovereignty: governments act as territory administrators, while corporations accumulate powers once reserved for nations.

Data reveal alarming patterns: 70% of arbitration cases are resolved in favor of corporations, with compensations that exceed, in some cases, the annual budget for basic public services. This practice not only diverts social funds but also sets precedents for legislative self-censorship.

The anti-capitalist challenge requires exposing these mechanisms and building alternatives that invert the power pyramid. Defending popular sovereignty necessarily involves dismantling corporate legal privileges and reclaiming people’s capacity to decide over their resources and collective rights.