ISDS suppresses buy-local and supports climate change.
Sending more stuff around the globe! The aim of global free trade is to send evermore objects and services around the globe. Free trade suppresses local exchange by its philosophy and now, with the rise of investor state dispute settlement (ISDS), also by its law. Can we afford such unbalanced economics in a world beginning to witness the horrors of climate change?
Trade-ables are community assets! New generation trade deals are far more radical than most realize because of their content and how they are enforced. The majority of tariffs for goods were dropped by the nineties, and so trade industry specialists sought new markets. Trade-ables now are public assets like energy and water. The North American Free Trade Agreement (NAFTA), a first in this new trade frame, is one part energy treaty. For example, NAFTA article 605 requires Canada to export energy to the US.
Transnational Corporations hold serious power in trade! NAFTA popularized a way to hold nations to account for a corporation’s profits — Investor State Dispute Settlement (ISDS). ISDS gives trade legal options for corporations to sue countries or communities to make more money in their sector, even from practices that may contribute to climate change, while sometimes making grassroots incentives illegal. ISDS has no capacity to reprimand corporate practices because it does not jury a nation’s complaints, only a business’!
Cases of Energy Corporations Suing Countries! The first NAFTA-case was won in 1997 by a company in the gasoline industry. Ethyl Corporation won the right to continue using gasoline that contained additives that Canada banned because studies showed them as potential carcinogens. Using the National Treatment clause in ISDS, Ethyl won 13 million from Canadians for their right to be treated like any other national interest. The fancy trade law term in ISDS is National Treatment. Canada was stuck with the additives.
What are NAFTA’s risks now as we move into the potential CETA– TTIP era? The world has moved on from NAFTA to CETA–TTIP, TTP! Does NAFTA still have impacts twenty-plus years after implementation? You bet your bottom dollar, and your communities. Quebec presently has a moratorium on fracking in the St. Lawrence region to study potential risks to water supply. Lone Pine Corporation launched a complaint against Canada under NAFTA. Lone Pine’s complaint is being heard in private trade courts, and whatever is decided there, like all ISDS cases, will supersede national and regional law. NAFTA’s foundation will shape the relationship and rules of the new CETA — TTIP with the EU. Trade rules, legally-binding, build on one another!
Dropping rules in Newfoundland, Labrador and beyond to help out corporations! On Friday March 6th, it was reported in the Globe and Mail that Canada was ordered to pay ExxonMobil and Murphy Oil 17.3 million because of policy for regional economic development in struggling East coast communities. Newfoundland and Labrador, still struggling from unrecovered cod fisheries, told the companies to pay into local Research and Development (R&D) in exchange for use of oil. The companies sued and Canada lost in the trade courts.
What does our future under the NAFTA–CETA–TTIP–TPP trade chain look like? Our future relies on humanity creating a much better balance of the environment and business in global economic policy. It’s time to try some new moves. Bring the public back to the dance of country-to-country economic affairs. Free trade treaties set the quality of life for all generations into the future, and will shape the outcome of climate security. I know, innocuous sounding policy. Who knew? A future case, reported in May 2014 in The Globe and Mail, could be launched under NAFTA for the Keystone Pipeline. TransCanada Corporation could ISDS-sue the US for its resistance to Alberta bitumen oil.
Do North Americans, known for contributing a hefty share of CO2, not have a responsibility to secure trade that puts the concerns of communities first? Or shall we continue to spend taxpayers’ money on legal fees and fines from corporate trade-suits against our laws.