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    NAFTA Continues to Curb Environmental Protection PDF Print E-mail
    Contributed by Jim Elliott   
    Tuesday, 29 January 2008

        NAFTA continues to put up barriers for the Canadian government to protect the environment and to manage their natural resources.  In a report from the Canadian Centre for Policy Alternatives, there are currently 49 investor-state claims against Canada (18), the United States (14) and Mexico (17).


    NAFTA’s controversial investor-state dispute settlement mechanism allows foreign investors to bring claims against NAFTA governments for breaches of the broadly worded investment rights and protections in NAFTA’s investment chapter (chapter 11).
        Foreign investors have used chapter 11 to challenge a wide range of government measures that allegedly diminish the value of their investments. Because almost any government regulation or policy affects property interests, NAFTA’s investment rules have been criticized as constraining the fundamental role of democratic governments.
        The report looked into 6 cases filed against Canada.  Two of these were the multinational oil giant Exxon-Mobile challenging Newfoundland's local economic development policies and Ontario's decision to halt a controversial project to dispose of Toronto's landfill into a man-made lake.    “Unfortunately, NAFTA’s investment rules are so broadly worded that these aggressive claims might well succeed,” remarked Scott Sinclair, the report’s author. “At a time when Canadians are more concerned than ever about protecting the environment, this is simply unacceptable.”
        What is concerning about these challenges is that this is not a legal or judicial decision but the decision of an independent behind closed doors tribunal with no appeal mechanisms.  In the reports assessment, Canada has lost 2 of the last 3 claims.  In two, Canada paid the investors damages and in one repealed the challenging measure.  Mexico has lost all of its 3 cases.  By contrast, the investors' four claims in the United States have all been dismissed.
        “Instead of eliminating the NAFTA investor-state mechanism, our government seems intent on expanding it through bilateral trade agreements,” Sinclair said. “New agreements with Peru, Colombia and South Korea contain versions of NAFTA’s chapter 11 rules, which permit foreign investors to challenge government measures that allegedly diminish the value of their investments.”
        Foreign investors have also aggressively challenging measures that governments maintained were not covered by NAFTA. These include challenges related to water exports, log export controls, public postal services, Canada’s agricultural supply management system, Canadian cultural policy, and other matters which were supposedly excluded from the NAFTA.

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    Last Updated ( Tuesday, 29 January 2008 )
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