Whenever I hear the name Canada, I go all mushy. Chipmunks capering in suburban gardens; waitresses that sing the word “awesome” every time someone asks for a beer; summer afternoons beside majestic lakes. Could this be the world’s cutest country?
There is one anomaly: a repugnant government. Stephen Harper, its prime minister, has arguably posed a bigger threat to the survival of the human species than his buddy, George W Bush. Though little known over here, Harper should be regarded as an enemy of the European people.
Tar sands buried in Alberta comprise the largest reserves of crude oil outside of Saudi Arabia. Because scientists are almost unanimous in linking fossil fuels to climate change, the only responsible course of action is to leave them in the ground. Much to the delight of Shell and BP, the Harper government is adamant that they should be extracted and exported.
In February, the Canadian trade minister Peter Van Loan said that the issue of selling tar sands to Europe is being treated separately from talks aimed at reaching a free trade agreement with the EU. His statement was misleading. Reuters subsequently published details of a letter that the Canadian embassy sent to the European Commission in March, which warned that Ottawa may take retaliatory action if the EU was to introduce strict rules on the environmental effects of tar sands. The letter argued that “singling out” tar sands by subjecting them to tougher standards than conventional oil would amount to “unjustified discrimination” and implied that this would have repercussions for the trade negotiations.
Over the past few days, a Canadian newspaper The Dominion has revealed details of a major offensive undertaken by Harper and his minions in Europe. A “pan-European oil sands advocacy strategy” was launched in December 2009, under which politicians worked with energy giants to address the “reputational risk” for Canada caused by tar sands. The strategy focused on the EU’s fuel quality legislation, with Canadian diplomats in Brussels coordinating a lobbying campaign to convince MEPs and the Union’s officials to lay off tar sands.
The strategy has clearly had an impact. In a 2009 paper, the European Commission cited estimates that petrol derived from tar sands were 20% more damaging to the climate than conventional petrol. Yet when the Commission recommended “implementing measures” for a fuel quality directive in February last year, it left out any reference on the need for a separate standard for tar sands.
MEPs gathering in Strasbourg this week are scheduled to debate what effect the tar sands debate is having on the aforementioned trade talks. I hope that they will denounce Harper’s attempts to prolong and worsen our oil addiction but I wouldn’t bet on them doing so.
The idea of a free trade agreement with the EU was not hatched by Harper, it appears. A US diplomatic cable published by WikiLeaks indicates that Jean Chrétien was eager to kickstart the process of attaining a deal with Europe before he stepped down as Canada’s premier in 2003. Yet Harper – seldom missing a chance to court corporate power - has shown particular brio in encouraging the talks with Europe, which eventually got underway in 2009.
The objective is no bog-standard deal, apparently, but a “comprehensive economic and trade agreement” (CETA). Full-on liberalisation and privatisation will be positively encouraged in what Stuart Trew from the Council of Canadians, a social justice group, calls this “freakish economic experiment”.
One draft of a potential agreement recommends setting up a trade in goods arrangement where countries could not show a preference for less polluting versions of the same product. If enforced, this would prevent Europe from restricting imports of tar sands.
Another proposal under discussion is that the agreement would be based around the concept of “negative lists”. This would mean that if a government or regional authority in either Europe or Canada did not explicitly exclude a sector of economic activity or a particular service from the agreement, it would automatically be included. This could pave the way for opening up vital services like healthcare to competition among companies, who would only be inclined to treat patients if doing so was deemed commercially advantageous.
The European Services Forum, an influential outfit banding together Veolia, Goldman Sachs and Vodafone, is advocating that CETA should be modelled on the North America Free Trade Agreement, concluded between the US, Canada and Mexico in 1994. The forum particularly wants chapter 11 of NAFTA pasted into an EU-Canada accord. That chapter allows private firms to sue governments over laws or measures regarded as obstacles to profit-making.
NAFTA has undermined the concept that water is a public resource. In 2008, AbitibiBowater, a Canadian company registered in the US, closed a paper mill it operated in Newfoundland. When the province sought to re-appropriate water use permits allocated to the company, AbitibiBowater invoked NAFTA to argue it owned the licenses (even though they were conditional on production). Effectively enabling water to be privatised, the federal government decided to settle the company’s 130 million Canadian dollar (93 million euros) claim.
If comparable provisions make their way into CETA, we could easily see North American behemoths waging war against authorities in Europe which, say, oppose genetically modified crops. Providing executives with all that ammunition is an assault on democracy, yet CETA has elicited little comment on this continent. Unless it’s stopped, we could be sleepwalking towards disaster.
·First published by New Europe (www.neurope.eu), 5-11 June 2011
Showing posts with label Canada. Show all posts
Showing posts with label Canada. Show all posts
Sunday, June 5, 2011
Friday, October 29, 2010
Corporate power bleeds Canada dry
Barely noticed by most media outlets, top corporations are finding ways to assert their control over policies nominally designed to serve public interests. Unglamorous trade talks between the European Union and Canada offer a prime example of the headway they are making. Since their launch in Prague last year, these negotiations have largely followed an agenda drawn up by the European Services Forum (ESF). Bringing together Goldman Sachs, IBM, Vodafone and Deutsche Bank, the ESF is determined to usher in a trans-Atlantic investment regime where elected institutions play second fiddle to unaccountable chief executives.
The forum’s principal recommendation is that an EU-Canada trade deal should be modelled on the North Atlantic Free Trade Agreement (NAFTA). More specifically, it wants chapter 11 of NAFTA to be copied and pasted into an EU-Canada accord. That chapter facilitates private firms to sue any of the three governments that signed NAFTA – the US, Canada or Mexico – if obstacles to making profits are encountered. The courts of arbitration provided for by the chapter can issue legally binding verdicts after hearings held in camera. If the ESF has its way, firms would also be able to put the European Union in the dock.
The likely implications of the ESF’s demands can be foreseen by examining the case law for NAFTA. When an American waste management company called Metalclad was ordered to cease building a toxic dump in Mexico during the 1990s, it initiated proceedings against the Mexican government. Even though there were sound reasons – for protecting human health and preventing soil and water pollution - why Metalclad had been told to stop work on a site that was already contaminated, a NAFTA tribunal found that Mexico had failed to ensure there was a “clear, transparent and predictable framework for foreign investors.” And so Metalclad was awarded almost $17million.
The EU-Canada talks cannot be viewed in isolation from a discussion taking place among Brussels officials about how imports of tar sands from the Canadian province of Alberta should be regulated. Last year a European Commission paper proposing revisions to an EU fuel quality law stated that petrol derived from tar sands would have a 20% greater effect on the climate than conventional petrol. But this warning was removed from later versions of the paper after Ross Hornby, Canada’s ambassador to the EU, objected. Hornby signalled that Canada would retaliate if a “barrier” to trade in tar sands was erected.
Should the EU-Canada trade deal be tailored to satisfy big business, Shell and other energy companies could litigate against measures that impede them from selling tar sands. And so the EU would be giving its tacit blessing to the large-scale vandalism being planned in Alberta, where an expansive boreal forest – one quarter of the world’s remaining undisturbed forest – is under threat. Operations that encroach into this ecosystem will not only harm bears, caribou and lynx but the First Nations communities, who are already suffering heightened incidences of cancer because of exposure to naphthenic acid, a constituent of petroleum that becomes concentrated in the hot water required to process tar sands.
Similarly, it is conceivable that Europe’s restrictions on genetically modified (GM) foods could be one of the first targets of aggrieved corporations once the EU-Canada deal comes into effect. Whereas the planting of GM crops can only be authorised in the EU after their probable ecological consequences have been assessed, the safeguards in Canada are considerably less robust. Last year SmartStax, a new corn designed by Monsanto and Dow Chemicals to resist a variety of different pesticides, was authorised in Canada without having to go through the health and environment checks required in Europe.
As its contribution to the trade talks, Monsanto’s Canadian subsidiary has advocated that the EU and Canada would recognise each other’s standards, rather than having to introduce anything more rigorous than those currently in place. This position has been endorsed by the Canada Europe Roundtable for Business, an influential lobby group in both Brussels and Ottawa.
The strategy being pursued by the captains of industry is all the more troubling, when one considers that they are sneakily trying to attain objectives that have been rejected by separate international fora. In a triumph for the so-called anti-globalisation movement, the Multilateral Agreement on Investment (MAI) was shelved in the late 1990s. Discussed at the level of the World Trade Organisation, that treaty was also designed to give corporations the power to counter green or social rules they regarded as pesky.
Recently, however, a letter signed by prominent writers and activists such as Naomi Klein, Susan George and José Bové (now a French MEP) dubbed the draft EU-Canada agreement a “carbon copy” of the MAI. Both contain the same “judicial monstrosity”, the letter noted.
Often the EU’s representatives seek to portray themselves as slightly more progressive than their north American peers by bragging of how they have set deeper targets for greenhouse gas reductions or of how they are committed to maintaining a “social market” economy. Yet in reality, they are just as ideologically blinkered as Stephen Harper and his right-wing government in Canada. It was the European side, for example, which insisted that public procurement markets at both federal and provincial levels in Canada should be opened up to European competitors. Although Canada’s 10 provincial governments were not party to the NAFTA talks, they are participating in the trade discussions with the EU.
In the past few weeks, the EU has complained about entirely reasonable efforts by the Montreal authorities to ensure that new trains for its subway were made in Quebec. If the EU’s arm-twisting pays off, it will be illegal for such tenders to contain “buy local” caveats in the future, while a range of other vital services – including healthcare and water – will be opened to competition. Michael Moore’s film “Sicko” indicated that politicians across the political spectrum in Canada regarded access to affordable healthcare as a basic right. That right would be harder to protect once the business of keeping people alive is handed over to the private insurance industry.
The EU-Canada talks should be viewed against the backdrop of the wider external trade policy being pursued by the European Commission. In 2006, Peter Mandelson, then the EU’s trade chief, published a strategy known as Global Europe. It committed the Union to attack relentlessly any obstacles encountered by corporations doing business abroad. Brussels officials have had no qualms about seeking counsel from some of the least ethical players in the marketplace. When the Commission held a conference in 2008 to evaluate the first two years of Global Europe, the vehicle-maker Caterpillar was invited to thunder against air pollution standards it felt should not apply to its products. None of the conference speakers saw fit to query if Caterpillar, provider of the specially designed bulldozers that Israel uses to demolish Palestinian homes, was a suitable source of advice.
During November, a follow-up paper to Global Europe will be published by the current EU trade commissioner Karel de Gucht. It is expected that this will recommend sticking to the objectives set by Mandelson, though to enlarge the geographical focus of trade policy. With a free trade agreement with South Korea in the bag though encountering difficulties winning approval from the European Parliament) and one with India likely to be clinched next year, the European Commission is eyeing potential deals with China and Japan.
Heedless to regional variations within its negotiating “partners”, the EU has been striving to ram through a series of largely identical trade deals. At the behest of the pharmaceutical industry, it has been pressurising India into imposing patents on medicines in a way that would jeopardise its status as a leading manufacturer of generic drugs for the world’s poor. Some African governments, meanwhile, have accused the EU of trying to bully them into accepting liberalisation plans they regard as inimical to their economic development. And the Union has gone ahead and finalised a free trade agreement with Colombia, despite receiving voluminous evidence from human rights watchdogs documenting how the Bogota authorities have connived in numerous violent attacks on trade unionists.
Back in 1999, protesters fighting the ‘Battle of Seattle’ raised many awkward questions about how the rules of world commerce had been rigged to benefit the super-rich. Global trade talks have been at a standstill for most of the subsequent decade, yet that doesn’t mean the rigging has stopped. Rather, it is taking place in a greater number of venues, making resistance to it increasingly difficult, yet no less urgent.
·First published by openDemocracy (www.opendemocracy.net), 29 October 2010
The forum’s principal recommendation is that an EU-Canada trade deal should be modelled on the North Atlantic Free Trade Agreement (NAFTA). More specifically, it wants chapter 11 of NAFTA to be copied and pasted into an EU-Canada accord. That chapter facilitates private firms to sue any of the three governments that signed NAFTA – the US, Canada or Mexico – if obstacles to making profits are encountered. The courts of arbitration provided for by the chapter can issue legally binding verdicts after hearings held in camera. If the ESF has its way, firms would also be able to put the European Union in the dock.
The likely implications of the ESF’s demands can be foreseen by examining the case law for NAFTA. When an American waste management company called Metalclad was ordered to cease building a toxic dump in Mexico during the 1990s, it initiated proceedings against the Mexican government. Even though there were sound reasons – for protecting human health and preventing soil and water pollution - why Metalclad had been told to stop work on a site that was already contaminated, a NAFTA tribunal found that Mexico had failed to ensure there was a “clear, transparent and predictable framework for foreign investors.” And so Metalclad was awarded almost $17million.
The EU-Canada talks cannot be viewed in isolation from a discussion taking place among Brussels officials about how imports of tar sands from the Canadian province of Alberta should be regulated. Last year a European Commission paper proposing revisions to an EU fuel quality law stated that petrol derived from tar sands would have a 20% greater effect on the climate than conventional petrol. But this warning was removed from later versions of the paper after Ross Hornby, Canada’s ambassador to the EU, objected. Hornby signalled that Canada would retaliate if a “barrier” to trade in tar sands was erected.
Should the EU-Canada trade deal be tailored to satisfy big business, Shell and other energy companies could litigate against measures that impede them from selling tar sands. And so the EU would be giving its tacit blessing to the large-scale vandalism being planned in Alberta, where an expansive boreal forest – one quarter of the world’s remaining undisturbed forest – is under threat. Operations that encroach into this ecosystem will not only harm bears, caribou and lynx but the First Nations communities, who are already suffering heightened incidences of cancer because of exposure to naphthenic acid, a constituent of petroleum that becomes concentrated in the hot water required to process tar sands.
Similarly, it is conceivable that Europe’s restrictions on genetically modified (GM) foods could be one of the first targets of aggrieved corporations once the EU-Canada deal comes into effect. Whereas the planting of GM crops can only be authorised in the EU after their probable ecological consequences have been assessed, the safeguards in Canada are considerably less robust. Last year SmartStax, a new corn designed by Monsanto and Dow Chemicals to resist a variety of different pesticides, was authorised in Canada without having to go through the health and environment checks required in Europe.
As its contribution to the trade talks, Monsanto’s Canadian subsidiary has advocated that the EU and Canada would recognise each other’s standards, rather than having to introduce anything more rigorous than those currently in place. This position has been endorsed by the Canada Europe Roundtable for Business, an influential lobby group in both Brussels and Ottawa.
The strategy being pursued by the captains of industry is all the more troubling, when one considers that they are sneakily trying to attain objectives that have been rejected by separate international fora. In a triumph for the so-called anti-globalisation movement, the Multilateral Agreement on Investment (MAI) was shelved in the late 1990s. Discussed at the level of the World Trade Organisation, that treaty was also designed to give corporations the power to counter green or social rules they regarded as pesky.
Recently, however, a letter signed by prominent writers and activists such as Naomi Klein, Susan George and José Bové (now a French MEP) dubbed the draft EU-Canada agreement a “carbon copy” of the MAI. Both contain the same “judicial monstrosity”, the letter noted.
Often the EU’s representatives seek to portray themselves as slightly more progressive than their north American peers by bragging of how they have set deeper targets for greenhouse gas reductions or of how they are committed to maintaining a “social market” economy. Yet in reality, they are just as ideologically blinkered as Stephen Harper and his right-wing government in Canada. It was the European side, for example, which insisted that public procurement markets at both federal and provincial levels in Canada should be opened up to European competitors. Although Canada’s 10 provincial governments were not party to the NAFTA talks, they are participating in the trade discussions with the EU.
In the past few weeks, the EU has complained about entirely reasonable efforts by the Montreal authorities to ensure that new trains for its subway were made in Quebec. If the EU’s arm-twisting pays off, it will be illegal for such tenders to contain “buy local” caveats in the future, while a range of other vital services – including healthcare and water – will be opened to competition. Michael Moore’s film “Sicko” indicated that politicians across the political spectrum in Canada regarded access to affordable healthcare as a basic right. That right would be harder to protect once the business of keeping people alive is handed over to the private insurance industry.
The EU-Canada talks should be viewed against the backdrop of the wider external trade policy being pursued by the European Commission. In 2006, Peter Mandelson, then the EU’s trade chief, published a strategy known as Global Europe. It committed the Union to attack relentlessly any obstacles encountered by corporations doing business abroad. Brussels officials have had no qualms about seeking counsel from some of the least ethical players in the marketplace. When the Commission held a conference in 2008 to evaluate the first two years of Global Europe, the vehicle-maker Caterpillar was invited to thunder against air pollution standards it felt should not apply to its products. None of the conference speakers saw fit to query if Caterpillar, provider of the specially designed bulldozers that Israel uses to demolish Palestinian homes, was a suitable source of advice.
During November, a follow-up paper to Global Europe will be published by the current EU trade commissioner Karel de Gucht. It is expected that this will recommend sticking to the objectives set by Mandelson, though to enlarge the geographical focus of trade policy. With a free trade agreement with South Korea in the bag though encountering difficulties winning approval from the European Parliament) and one with India likely to be clinched next year, the European Commission is eyeing potential deals with China and Japan.
Heedless to regional variations within its negotiating “partners”, the EU has been striving to ram through a series of largely identical trade deals. At the behest of the pharmaceutical industry, it has been pressurising India into imposing patents on medicines in a way that would jeopardise its status as a leading manufacturer of generic drugs for the world’s poor. Some African governments, meanwhile, have accused the EU of trying to bully them into accepting liberalisation plans they regard as inimical to their economic development. And the Union has gone ahead and finalised a free trade agreement with Colombia, despite receiving voluminous evidence from human rights watchdogs documenting how the Bogota authorities have connived in numerous violent attacks on trade unionists.
Back in 1999, protesters fighting the ‘Battle of Seattle’ raised many awkward questions about how the rules of world commerce had been rigged to benefit the super-rich. Global trade talks have been at a standstill for most of the subsequent decade, yet that doesn’t mean the rigging has stopped. Rather, it is taking place in a greater number of venues, making resistance to it increasingly difficult, yet no less urgent.
·First published by openDemocracy (www.opendemocracy.net), 29 October 2010
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