Global trade has advantages. For starters, it allows those of us who live through winter to eat fresh produce year-round. And it provides economic benefits to farmers who grow that food. That could change as oil, the world's main transport fuel, becomes increasingly scarce, hard to obtain and costly, but we'll be trading with other nations for the foreseeable future.
Because countries often have differing political and economic systems, agreements are needed to protect those invested in trade. Canada has signed numerous deals, from the North American Free Trade Agreement (NAFTA) to several Foreign Investment Promotion and Protection Agreements (FIPA), and is subject to the rules of global trade bodies, such as the World Trade Organization (WTO).
Treaties, agreements and organizations to help settle disputes may be necessary, but they often favour the interests of business over citizens. With Canada set to sign a 31-year trade deal with China, a repressive and undemocratic country with state-owned corporations, we need to be cautious.
Should we sign agreements if they subject our workers to unfair competition from lower-paid employees from investor nations, hinder our ability to protect the environment or give foreign companies and governments excessive control over local policies and valuable resources? Under some agreements, basics like protecting the air, water and land we all need for survival can become difficult and expensive.
One recent case could put Canada on the hook for $250 million. Quebec has put a hold on fracking pending a study into the environmental impacts of blasting massive amounts of water, sand and chemicals into the ground to fracture rock and release gas deposits. A U.S. resource company plans to sue Canada under Chapter 11 of NAFTA, claiming compensation for the moratorium's damage to its drilling interests. Similar disputes have already cost Canada millions of dollars.
Ontario also wants assurances that fracking is safe before it allows the practice. That province is facing costs and hurdles because of another conflict between trade and environment. Japan and the European Union filed a complaint with the WTO, claiming a requirement under the Ontario Green Energy Act that wind and solar projects must use a set percentage of local materials is unfair.
Many of the problems arise because of an investor-state arbitration mechanism, which is included in NAFTA, as well as the proposed Canada-China FIPA, Canada-European Union Comprehensive Economic and Trade Agreement and Trans-Pacific Partnership. It allows foreign investors to bring claims before outside arbitrators if they believe their economic interests are being harmed by a nation's actions or policies. So economics trump national interests.
This has caused many countries, including Australia, South Africa, India and several in Latin America, to avoid signing deals that include the investor-state arbitration mechanism. In Australia's case, the country recognized the pitfalls when tobacco companies, including Philip Morris, attempted to claim damages under a bilateral investment treaty after the federal government introduced a science-based law requiring cigarettes to be sold in plain, unappealing packages.
According to Australian National University law professor Thomas Faunce, Philip Morris then lobbied the U.S. government to include a similar mechanism in a new trade agreement it was negotiating with Australia. In an article for Troy Media, Faunce wrote that, with such a mechanism, the International Centre for the Settlement of Investment Disputes "would, in effect, become the final arbitrators on major Australian public policy questions concerning mineral royalties, fossil fuel and renewable energy, water, telecommunications, banking, agriculture and power."
The 31-year trade agreement between Canada and China is worrisome, with its 15-year opt-out clause (compared to just six months for NAFTA), but the inclusion of the mechanism in other agreements is also cause for concern. At the very least, we could be on the hook for millions or billions of dollars if our environmental, health, labour or other policies were deemed harmful to the interests of those investing in or trading with Canada.
The government's desire to expand global trade may be understandable, but we mustn't give away too much. We must tell our elected representatives to at least delay the Canada-China FIPA until it has been examined more thoroughly, and to reconsider the inclusion of investor-state arbitration mechanisms in all trade deals.
Written with contributions from David Suzuki Foundation Communications Manager Ian Hanington.
Learn more at www.davidsuzuki.org.
For more insights from David Suzuki, please read Everything Under the Sun (Greystone Books/David Suzuki Foundation), by David Suzuki and Ian Hanington, now available in bookstores and online.
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State Lawmakers And Environmental Activists Express Opposition To Hydro Fracking
NEW YORK, NY - JANUARY 11: Opponents of hydraulic fracturing in New York state attend a news conference and rally against hydraulic fracturing, also known as fracking, on January 11, 2012 in New York City. The event, which was held on the steps of City Hall, called for an end to the controversial gas drilling method as environmental groups increasingly warn about contamination of the state's aquifers that could poison its drinking water. (Photo by Spencer Platt/Getty Images)
State Lawmakers And Environmental Activists Express Opposition To Hydro Fracking
NEW YORK, NY - JANUARY 11: Eric Weltman of Food & Water Watch attends a news conference and rally against hydraulic fracturing, also known as fracking, in New York State on January 11, 2012 in New York City. The event, which was held on the steps of City Hall, called for an end to the controversial gas drilling method as environmental groups increasingly warn about contamination of the state's aquifers that could poison its drinking water. (Photo by Spencer Platt/Getty Images)
Department Of Environmental Conservation Holds Hydro Fracking Hearing
NEW YORK, NY - NOVEMBER 30: Opponents and supporters of gas-drilling, or fracking, walk into the last of four public hearings on proposed fracking regulations in upstate New York on November 30, 2011 in New York City. Fracking, a process that injects millions of gallons of chemical mixed water into a well in order to release gas, has become a contentious issue in New York as critics of the process belive it contaminates drinking water among other hazards. NewYork City gets much of its drinking water from upstate reservoirs. If the regulations are approved, drilling in the upstate New York Marcellus Shale could begin next year. (Photo by Spencer Platt/Getty Images)
Cuadrilla Shale Fracking Plant
PRESTON, LANCASHIRE - OCTOBER 07: Engineers on the drilling platform of the Cuadrilla shale fracking facility on October 7, 2012 in Preston, Lancashire. The controversial method of extracting gas by pumping high pressure water and chemicals into shale formations deep underground has been blamed for two minor earthquakes in the surrounding region. Environmental campaigners are calling for a halt to the drilling of what Cuadrilla believe could be significant reserves of natural gas. (Photo by Matthew Lloyd/Getty Images)
Cuadrilla Shale Fracking Plant
PRESTON, LANCASHIRE - OCTOBER 07: Engineers at work on the drilling platform of the Cuadrilla shale fracking facility on October 7, 2012 in Preston, Lancashire. The controversial method of extracting gas by pumping high pressure water and chemicals into shale formations deep underground has been blamed for two minor earthquakes in the surrounding region. Environmental campaigners are calling for a halt to the drilling of what Cuadrilla believe could be significant reserves of natural gas. (Photo by Matthew Lloyd/Getty Images)
Cuadrilla Shale Fracking Plant
PRESTON, LANCASHIRE - OCTOBER 07: General views of the Cuadrilla shale fracking facility on October 7, 2012 in Preston, Lancashire. The controversial method of extracting gas by pumping high pressure water and chemicals into shale formations deep underground has been blamed for two minor earthquakes in the surrounding region. Environmental campaigners are calling for a halt to the drilling of what Cuadrilla believe could be significant reserves of natural gas. (Photo by Matthew Lloyd/Getty Images)
Cuadrilla Shale Fracking Plant
PRESTON, LANCASHIRE - OCTOBER 07: Engineers look at the Cuadrilla shale fracking facility on October 7, 2012 in Preston, Lancashire. The controversial method of extracting gas by pumping high pressure water and chemicals into shale formations deep underground has been blamed for two minor earthquakes in the surrounding region. Environmental campaigners are calling for a halt to the drilling of what Cuadrilla believe could be significant reserves of natural gas. (Photo by Matthew Lloyd/Getty Images)
Cuadrilla Shale Fracking Plant
PRESTON, LANCASHIRE - OCTOBER 07: A lump of shale rock on display at the Cuadrilla shale fracking facility on October 7, 2012 in Preston, Lancashire. The controversial method of extracting gas by pumping high pressure water and chemicals into shale formations deep underground has been blamed for two minor earthquakes in the surrounding region. Environmental campaigners are calling for a halt to the drilling of what Cuadrilla believe could be significant reserves of natural gas. (Photo by Matthew Lloyd/Getty Images)
Cuadrilla Shale Fracking Plant
PRESTON, LANCASHIRE - OCTOBER 07: Engineers on the drilling platform of the Cuadrilla shale fracking facility on October 7, 2012 in Preston, Lancashire. The controversial method of extracting gas by pumping high pressure water and chemicals into shale formations deep underground has been blamed for two minor earthquakes in the surrounding region. Environmental campaigners are calling for a halt to the drilling of what Cuadrilla believe could be significant reserves of natural gas. (Photo by Matthew Lloyd/Getty Images)
Cuadrilla Shale Fracking Plant
PRESTON, LANCASHIRE - OCTOBER 07: Engineers at work on the drilling platform of the Cuadrilla shale fracking facility on October 7, 2012 in Preston, Lancashire. The controversial method of extracting gas by pumping high pressure water and chemicals into shale formations deep underground has been blamed for two minor earthquakes in the surrounding region. Environmental campaigners are calling for a halt to the drilling of what Cuadrilla believe could be significant reserves of natural gas. (Photo by Matthew Lloyd/Getty Images)
Cuadrilla Shale Fracking Plant
PRESTON, LANCASHIRE - OCTOBER 07: Drill heads on display at the entrance to the Cuadrilla shale fracking facility on October 7, 2012 in Preston, Lancashire. The controversial method of extracting gas by pumping high pressure water and chemicals into shale formations deep underground has been blamed for two minor earthquakes in the surrounding region. Environmental campaigners are calling for a halt to the drilling of what Cuadrilla believe could be significant reserves of natural gas. (Photo by Matthew Lloyd/Getty Images)
Cuadrilla Shale Fracking Plant
PRESTON, LANCASHIRE - OCTOBER 07: An engineer displays a lump of shale rock at the Cuadrilla shale fracking facility on October 7, 2012 in Preston, Lancashire. The controversial method of extracting gas by pumping high pressure water and chemicals into shale formations deep underground has been blamed for two minor earthquakes in the surrounding region. Environmental campaigners are calling for a halt to the drilling of what Cuadrilla believe could be significant reserves of natural gas. (Photo by Matthew Lloyd/Getty Images)
Hydraulic Fracturing Prevention Press Conference
NEW YORK, NY - APRIL 25: Actor/director Mark Ruffalo (C) speaks at the Hydraulic Fracturing prevention press conference urging the protection of the drinking water source of 15 million Americans at Foley Square on April 25, 2011 in New York City. (Photo by D Dipasupil/Getty Images)
Hydraulic Fracturing Prevention Press Conference
NEW YORK, NY - APRIL 25: (L-R) Actor/director Mark Ruffalo, Denise Katzman, Wenonah Hauter, and Water Defense co-founder/campaign director Claire Sandberg attend the Hydraulic Fracturing prevention press conference urging the protection of the drinking water source of 15 million Americans at Foley Square on April 25, 2011 in New York City. (Photo by D Dipasupil/Getty Images)
Josh Fox on Obama, the EPA, and House Republicans Who Had Him Arrested
HuffPost Green Editor Joanna Zelman talks to Josh Fox, director of the documentary 'Gasland,' about hydro-fracking, the EPA, and the House Republicans who had him arrested during a Congressional hearing.
Game Changer in Green: Mark Ruffalo
The expertise and the grassroots zeal Mark Ruffalo has brought to the issue of fracking is changing the game in green.
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So if the next government comes in and tries to put back environmental controls, China (or whomever) can say...
"We only agreed to this because your environmental standards were so low. You're changing the rules us? You owe is millions for the profits we will lose."
Harper knows what he's doing with these deals. He's purposely handcuffing future Canadian governments so they will never be able to raise our environmental standards above where he has lowered them.
Balloon flights
In fact science will shortly be almost illegal. Give the man some time and one more election.
There is a very informative documentary called Gasland about fracking in the US. People should watch it and know the dangers. It's not worth the risk to poison our drinking water.
"don't sign anything unless David Suzuki says it's okay."