I think it's pretty accurate. There are already examples of how this works.

Philip Morris has sued Australia for forcing warning-signs on tobacco packages. They've used a few methods, one avenue has been to sue through trade agreements.

http://www.smh.com.au/federal-politics/political-news/austra...

There is another one with Uruguay, where they've also sued under a trade-agreement.

https://en.wikipedia.org/wiki/Philip_Morris_v._Uruguay