Showing posts with label US Free Trade Agreement. Show all posts
Showing posts with label US Free Trade Agreement. Show all posts
Global Crises, Regional Solutions
In this video, activists from Asia, Africa, Latin America and Europe argue that regional integration is the only viable response to the current economic, climate, food and energy crises.
Interactive transcript available (only from youtube site)! Click on the icon to be able to read the transcript while watching.
CHAPTERS
Introduction (animation) 0:00'
1 - Why are the regions relevant in a context of global crises? 1:37'
* No country can face the crises on its own 1:52'
* Regional Integration: Breaking the dependence from global markets 4:44'
* Alternative Regional integration: towards a different development model 6:48'
* People-Centred regional integration: much more than economic cooperation 12:08'
2 -- What issues are best dealt with at regional level? 16:24'
3 --Reclaiming the regions: the role of social actors. 21:04'
Credits 25:22'
Global Corporations Undermining Democracy Worldwide
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In a world where governments are increasingly subservient to global finance capital, multinationals are gaining ground in the fight against state regulations that aim to protect the environment, public health or social policies.
According to the most recent data released by the United Nations Conference on Trade and Development (UNCTAD), the number of lawsuits brought against governments by companies evoking clauses in bilateral investment treaties (BITs) was 450 at the end of 2011.
These are only the known cases; most are kept secret.
In the many instances in which these lawsuits have been successful, governments have been made to pay fines amounting to tens, sometimes hundreds of millions of dollars or euros.
The highly controversial BITs – which establish the conditions for investment by companies of one country in another state – have handed multinational corporations an arsenal of clauses with which to fight state regulations against harmful investment.
In 2011, Argentina held the record of known cases (51), followed by Venezuela (25), Ecuador (23) and Mexico. Most of the claims against Argentina are related to the 2011 financial crisis and many to the privatisation of water. In total, Buenos Aires has been fined more than one billion dollars by multinational corporations.
Last year, Ecuador was forced to pay fines of 78 million dollars to the United States’ oil company Chevron, which claims that the country’s efforts to protect the Amazon from pollution have negatively affected business.
This year, Argentina may face a new case, after the government moved to regain state control over the country’s biggest oil firm, which had been owned by the private Spanish oil company Repsol for many years.
According to UNCTAD, the year 2011 saw 40 percent of cases decided in favour of states and 30 percent in favour of investors, while the remaining 30 percent resulted in settlements.
Ironically, BITs allow companies to sue governments but not vice versa.
In December 2011, for instance, the Stockholm-based Vattenfall threatened to sue Germany for the federal government’s decision, in the aftermath of the Fukushima catastrophe, to phase out nuclear energy by 2022.
The Swedish nuclear company was poised to rake in compensation amounting to more than a billion euros. Evoking the Energy Charter Treaty – a multilateral agreement that protects investment in the energy sector – Vattenfall first tried, unsuccessfully, to convince the federal government to accommodate its requests.
The deadline for peaceful dispute settlement expired last March and now Vattenfall could sue the government at any time.
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| "governments are increasingly subservient to global finance capital" |
"Foreign investors may challenge, in an international arbitration process, any change in law and policy to protect the environment and public health, to promote social or cultural goals, or to grapple with financial or economic crises. However, it is impossible to predict the outcome with any precision because each will depend in large part on the composition of the arbitral tribunal deciding the case, which consists of three highly-paid individuals, typically specialised in commercial rather than public law."
It is the second time that Vattenfall has attacked Germany on environmental charges. In 2009, it challenged the standards set out in an environmental permit required for the operation of its coal-fired power plant situated on the river Elbe, which runs through Hamburg.
Claiming that the regulations – aimed at limiting the increase in water temperatures caused by the plant’s operations – were too strict, the company brought the case to an arbitral tribunal at the International Centre for Settlement of Investment Disputes (ICSID).
In order to settle, Germany agreed to change the conditions under which the permit was delivered and the case was dropped.
"A legal analysis by a German law firm commissioned by Greenpeace confirms that the environmental standards in the permit were diluted in a way that was probably not required under German law. It is a typical case where a government... (has) abandon legislation or standards it originally planned to adopt out of fear of being sued or condemned in an international procedure," Bernasconi commented.
Another emblematic example of the power corporations wield over governments is the case brought by Philip Morris International against Uruguay and Australia under BITs the countries had signed with Switzerland and Hong Kong respectively.
The U.S. tobacco giant is using these treaties to challenge new legislation concerning the health warnings and advertising on cigarette packages - even though the regulations are in compliance with and encouraged by the World Health Organisation (WHO) framework convention on tobacco control.
According to Veijo Heiskanen, a specialist in international arbitration at Lalive law firm in Geneva, "From the 1960s to the 1970, states had a direct role in economies. With the privatisation (wave) of the 1990s, this direct role was replaced by regulation."
This led to questions about whether the implementation of these regulations was adversely affecting investors, particularly foreign ones, which is often the case.
While investor protection was initially necessary to regulate government measures like nationalisation, the trend now seems to be leaning heavily on corporations challenging these regulations.
For example, in the late 1990s, Mexico was fined 16.7 million dollars for forbidding the U.S.-based company Metalclad from dumping toxic waste in the Guadalcazar County in the northern part of the north-central state of San Luis Potosí.
"The real question is whether (BITs) regulations are appropriate and states should seek (sound) legal advice to make sure that they are in compliance with international standards," stressed Heiskanen. "These disputes are politically sensitive because there are (millions of dollars) at stake."
Prior to paying fines to Chevron last year, Ecuador was sentenced to the payment of 700 million dollars back in 2010. That same year the Swiss cement supplier Holcim obtained 650 million dollars from Venezuela, when the country nationalised cement production.
All experts are agreed that legislation and regulations need to find a better equilibrium so that they cannot be exploited by states or investors.
"Investment protection treaties must be modernised to strike a better balance between investors’ and states rights," Bernasconi concluded. "The old model doesn’t work anymore."
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| Philip Morris International: 'using these treaties to challenge health warnings and advertising on cigarette packages' |
"A lack of transparency, unpredictability and conflicts of interest have simply become unacceptable. This discontent has led countries like Australia to disfavor investor-state dispute settlement entirely and others to terminate their investment treaties.
"Watching these developments, countries like Brazil, which never ratified any of its investment treaties, must count themselves lucky," she added.
By Isolda Agazzi Inter Press Service via Countercurrent
Submissions called for on Free Trade Agreement with the US - get in quick - they close on December 8th
Submissions called for on FTA with US
(Submissions close on December 8)
Press Release by New Zealand Government at 3:13 pm, 15 Oct 2008
The Government is inviting submissions on New Zealand's upcoming FreeTrade Agreement negotiations with the United States as part of theTrans-Pacific Partnership (currently called the P4), Trade Minister PhilGoff said today.
The negotiations were announced in New York on 22 September, following ameeting between Mr Goff, United States Trade Representative Susan Schwaband trade ministers from Singapore, Chile and Brunei (the other P4countries)."The US is the world's largest economy, with more than 270 millionconsumers with a very high average income, notwithstanding recenteconomic difficulties," Phil Goff said."It is New Zealand's second largest export market. Total trade with theUS in the year to June 2008 was worth $8.14 billion, accounting for 9.6per cent of New Zealand's overall total trade. That means this deal isof huge significance to New Zealand.
"An American study on the impact of an FTA with the US, the BergstenReport, published in 2002, estimates that New Zealand exports to the USwould rise by $1 billion."That figure is indicative only. With its membership likely to expandfurther, the Trans-Pacific Partnership will likely bring much greaterbenefit for New Zealand and the US. The strategic benefits to the US should win bipartisan support for the agreement and ensure that it isboth high quality and comprehensive in nature."
In the current world economic climate, improving market access for Kiwiexporters, and the boost to growth, jobs and confidence that thisprovides, makes this negotiation and proposed agreement criticallyimportant."The more favourable New Zealand exchange rate will also boost exporterconfidence. New Zealand's export future however, relies not on cheapnessbut on quality and innovation."Essential to this is the encouragement of research and developmentpromoted by both Labour's 15 per cent tax credit for R and D and the$700 million Fast Forward Fund for the primary sector."National's promise to eliminate these policies is incomprehensible,"Phil Goff said.
"Our major exports to the US, dairy and meat, will benefit significantlythrough the removal of export quotas."Horticultural exports to the US worth $370 million last year currentlyface tariffs of up to 23 per cent. They will also be significantbeneficiaries."Fish and seafood, industrial products, metal products, wood, pulp andpaper account for more than $1.5 billion in New Zealand exports to theUS.These too will be able to trade into the US at lower cost."New Zealand companies will also be able to bid for US Governmentprocurement contracts, worth an estimated $200 billion a year."One example of facilitating new opportunities for New Zealand exportersis in the US Territory of Guam, where US Marines are transferring tofrom Okinawa over the next five years. This involves contracts of around$14 billion for work such as building and support services around thenew base.
An FTA with the US could allow New Zealand companies to bid directly forDefense Department projects."Our high tech companies will also benefit. Christchurch-based TaitElectronics last week welcomed the advantages an FTA with the US wouldbring, allowing them to bid for US Government contracts, currentlyblocked under the Buy American Act."Tait said this would greatly reduce the time and effort taken to meetUS regulations to export its radio equipment into the US. It would alsoallow it to bring its manufacturing base back from Texas to NewZealand," Phil Goff said."Public submissions are an essential part of a consultation process thatwill take place as the negotiations proceed.
The negotiations are due tobegin in March 2009, and are expected to be completed within 12 to 24months," Phil Goff said.Background to the negotiations and an online submission form areavailable on the Ministry of Foreign Affairs and Trade Website,mfat.govt.nz.
(Submissions close on December 8)
Press Release by New Zealand Government at 3:13 pm, 15 Oct 2008
The Government is inviting submissions on New Zealand's upcoming FreeTrade Agreement negotiations with the United States as part of theTrans-Pacific Partnership (currently called the P4), Trade Minister PhilGoff said today.
The negotiations were announced in New York on 22 September, following ameeting between Mr Goff, United States Trade Representative Susan Schwaband trade ministers from Singapore, Chile and Brunei (the other P4countries)."The US is the world's largest economy, with more than 270 millionconsumers with a very high average income, notwithstanding recenteconomic difficulties," Phil Goff said."It is New Zealand's second largest export market. Total trade with theUS in the year to June 2008 was worth $8.14 billion, accounting for 9.6per cent of New Zealand's overall total trade. That means this deal isof huge significance to New Zealand.
"An American study on the impact of an FTA with the US, the BergstenReport, published in 2002, estimates that New Zealand exports to the USwould rise by $1 billion."That figure is indicative only. With its membership likely to expandfurther, the Trans-Pacific Partnership will likely bring much greaterbenefit for New Zealand and the US. The strategic benefits to the US should win bipartisan support for the agreement and ensure that it isboth high quality and comprehensive in nature."
In the current world economic climate, improving market access for Kiwiexporters, and the boost to growth, jobs and confidence that thisprovides, makes this negotiation and proposed agreement criticallyimportant."The more favourable New Zealand exchange rate will also boost exporterconfidence. New Zealand's export future however, relies not on cheapnessbut on quality and innovation."Essential to this is the encouragement of research and developmentpromoted by both Labour's 15 per cent tax credit for R and D and the$700 million Fast Forward Fund for the primary sector."National's promise to eliminate these policies is incomprehensible,"Phil Goff said.
"Our major exports to the US, dairy and meat, will benefit significantlythrough the removal of export quotas."Horticultural exports to the US worth $370 million last year currentlyface tariffs of up to 23 per cent. They will also be significantbeneficiaries."Fish and seafood, industrial products, metal products, wood, pulp andpaper account for more than $1.5 billion in New Zealand exports to theUS.These too will be able to trade into the US at lower cost."New Zealand companies will also be able to bid for US Governmentprocurement contracts, worth an estimated $200 billion a year."One example of facilitating new opportunities for New Zealand exportersis in the US Territory of Guam, where US Marines are transferring tofrom Okinawa over the next five years. This involves contracts of around$14 billion for work such as building and support services around thenew base.
An FTA with the US could allow New Zealand companies to bid directly forDefense Department projects."Our high tech companies will also benefit. Christchurch-based TaitElectronics last week welcomed the advantages an FTA with the US wouldbring, allowing them to bid for US Government contracts, currentlyblocked under the Buy American Act."Tait said this would greatly reduce the time and effort taken to meetUS regulations to export its radio equipment into the US. It would alsoallow it to bring its manufacturing base back from Texas to NewZealand," Phil Goff said."Public submissions are an essential part of a consultation process thatwill take place as the negotiations proceed.
The negotiations are due tobegin in March 2009, and are expected to be completed within 12 to 24months," Phil Goff said.Background to the negotiations and an online submission form areavailable on the Ministry of Foreign Affairs and Trade Website,mfat.govt.nz.
US Free Trade Agreement - CAFCA Press Release
US FREE TRADE AGREEMENT A POISONED CHALICE FOR NZ
The proposed expansion of the Trans-Pacific Strategic Economic Partnership (NZ, Chile, Brunei, and Singapore, commonly known as the P4 Agreement) to include investment and financial services, and to add the US to its membership, was bad enough.
For a succinct, detailed critique of that original proposal, go to http://nznotforsale.wordpress.com/danger-ahead/ on the New Zealand Not For Sale Website.
But for this to suddenly morph into a fullblown Free Trade Agreement with the US is catastrophic for any remaining economic sovereignty that New Zealand has. We say this not because we are “anti-American”. All such FTAs – such as with China, or the existing P4 partners, for instance - pose the same threat to a greater or lesser degree. And our opposition to them is not because of “xenophobia” but for well founded grounds that they simply enmesh NZ more and more tightly in a cobweb of transnational corporate control.
So it’s a recipe for disaster to enter into an FTA with the biggest economy in the world, headed by a Government that aggressively pushes the interests of American Big Business (there is a seamless flow between the US Government and US Big Business, as is evidenced by the current trillion dollar bailout of the mega-greedy financial sector, a textbook example of socialism for the rich).
A full blown US FTA will:
Remove any remaining “restrictions” on foreign investment, as the US regards NZ’s (purely token) oversight regime as “discriminating” against US transnational corporations
push up the price of medicines by potentially hundreds of millions of dollars a year by attacking Pharmac;
make access to digital recordings more expensive, and copying more restricted;
attack our GE controls and food labelling,
weaken our controls on food imports where they might carry diseases.
Both Labour and National myopically see a US FTA as being the Holy Grail of their adherence to the cargo cult of “free trade”. It’s actually a poisoned chalice and it will be New Zealand which will be poisoned by it.
The proposed expansion of the Trans-Pacific Strategic Economic Partnership (NZ, Chile, Brunei, and Singapore, commonly known as the P4 Agreement) to include investment and financial services, and to add the US to its membership, was bad enough.
For a succinct, detailed critique of that original proposal, go to http://nznotforsale.wordpress.com/danger-ahead/ on the New Zealand Not For Sale Website.
But for this to suddenly morph into a fullblown Free Trade Agreement with the US is catastrophic for any remaining economic sovereignty that New Zealand has. We say this not because we are “anti-American”. All such FTAs – such as with China, or the existing P4 partners, for instance - pose the same threat to a greater or lesser degree. And our opposition to them is not because of “xenophobia” but for well founded grounds that they simply enmesh NZ more and more tightly in a cobweb of transnational corporate control.
So it’s a recipe for disaster to enter into an FTA with the biggest economy in the world, headed by a Government that aggressively pushes the interests of American Big Business (there is a seamless flow between the US Government and US Big Business, as is evidenced by the current trillion dollar bailout of the mega-greedy financial sector, a textbook example of socialism for the rich).
A full blown US FTA will:
Remove any remaining “restrictions” on foreign investment, as the US regards NZ’s (purely token) oversight regime as “discriminating” against US transnational corporations
push up the price of medicines by potentially hundreds of millions of dollars a year by attacking Pharmac;
make access to digital recordings more expensive, and copying more restricted;
attack our GE controls and food labelling,
weaken our controls on food imports where they might carry diseases.
Both Labour and National myopically see a US FTA as being the Holy Grail of their adherence to the cargo cult of “free trade”. It’s actually a poisoned chalice and it will be New Zealand which will be poisoned by it.
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