By Maude Barlow and Paul Moist
As the EU-U.S. Transatlantic Trade and Investment Partnership (TTIP) agreement vote was postponed in the European Parliament on June 10th, the European Union is on the precipice of a major decision. Lurking in the background is another key decision about the EU-Canada Comprehensive Economic and Trade Agreement (CETA).
We Canadians are writing to you, the Socialists, New European Left, and Greens, because you have the power to stop these dangerous trade deals. With this type of trade agreement, we have a choice: Do we accept rising inequality, unchecked corporate power, and lowered social and environmental standards, allowing the one per cent to become richer at our expense, or do we draw a line in the sand?
As Canadians, we have first-hand experience with these kinds of deals, having passed the North American Free Trade Agreement (NAFTA) with the U.S. and Mexico. And we have some tales to tell.
In 1988, many of us took to the streets to fight the Canada-U.S. Free Trade Agreement, later expanded to include Mexico. NAFTA included one of the first investor-state dispute settle provisions, the infamous clause that allows foreign corporations to sue governments for lost profits. We worried about losing our public services, our water, and our environmental and safety standards.
Free trade was a defining issue in the Canadian election of 1988. But while a majority of Canadians voted against the agreement, our first-past-the-post electoral system delivered a Conservative government that signed the deal.
Fast forward 27 years to present-day Canada. We now face more investor-state lawsuits than any other developed country.
Even the historic St. Lawrence River, the river that European settlers sailed down when they first explored Canada, is affected. The province of Quebec put a moratorium on petroleum exploration on the river to prevent hydraulic fracturing (fracking), a controversial extraction technique banned in France and other jurisdictions. As a result, the Canadian government was sued for $250 million by a company headquartered in Canada but registered in the United States.
Meanwhile in the small community of Digby, a picturesque fishing town near the much-loved Bay of Fundy, a joint federal-provincial panel rejected a quarry after an exhaustive environmental review. The Canadian government paid the price: Bilcon, the company, won an investor-state lawsuit.
Also on the east coast, the province of Newfoundland and Labrador used to have an economic development plan requiring oil companies to contribute to petroleum research. Investment arbiters ruled that requirement was a hindrance to profit-making, and Canada paid $17.3 million.
Canadians' ability to govern themselves as they see fit has been usurped.
EU Trade Commissioner Ceclia Malmström and the EU international trade committee has said that investor-state provisions will be reformed - at least in TTIP. They're promising to replace investment arbiters, often accused of being in the pocket of investors, with independent judges. But as Canadian academic Gus Van Harten has stated, investor courts inevitably elevate the rights of investors. They provide companies with legal, binding rights that do not extend to citizens or their environment.
Europeans must remember, too, that Canadian Trade Minister Ed Fast has publicly stated that CETA is a closed deal. As such, it will go through with the investor-state provisions that we Canadians know and fear. Once it's passed, there's nothing to stop American corporations from registering in Canada and launching their dreaded lawsuits from here.
To stop TTIP, you first have to stop CETA.
With CETA, our governments have been promising new jobs. Ours has been promising 80,000 new jobs, a figure for which no one can find a source. We heard this all before with NAFTA. Fellow Canadian Murray Dobbin writes: "By the late 1990s Canada had lost hundreds of thousands of highly paid industrial jobs due to NAFTA. The trade numbers look even worse today. In our largest export market - the three NAFTA countries - Canada has steadily lost ground to Mexico."
On both sides of the Atlantic, decision-makers sell the deal based on positive stereotypes about the other. In Canada, Europeans are seen as sophisticated, environmentally conscious allies who won't harm us. CETA, unlike TTIP, has gone under the radar because unlike Americans, Canadians seem innocuous, small and powerless. Like our national symbol, the Mountie, we are the stand-in for earnest, cooperative, non-violent people far away under ice and snow.
But don't be fooled by appearances. Our corporations, whether European or Canadian, by nature exist to make money. They are trying to increase profits and please shareholders, and will use whatever trade deals are available to help them do so, whatever the social and environmental cost.
As we have seen in trade deals all over the world, companies are eager chameleons, taking on any national identity in order to get their way. There are countless so-called "American" companies with head offices in Canada suing the Canadian government at the moment. With CETA, an American company can easily get a foothold in Canada with little more than a post office box in order to sue an EU country.
Regulatory harmonization gives industry groups the ability to easily challenge "undue" regulations, on food safety, GMOs, and more. The rules that protect us are up for constant debate by business. Also, it puts pressure on governments to privatize public services, the very vectors of an equal, educated and healthy society. Unless specifically excluded from trade agreements, once an industry is privatized, it is then subject to legal challenges if future governments want to make it public again.
Already, Canada's oil industry is paving the way to sell tar sands crude to Europeans. Claiming that the EU's Fuel Quality Directive is unfair to Alberta's tar sands, the Canadian government successfully lobbied to lower Europe's leading edge environmental standards and labeling of "dirty oil." CETA could bring in more dirty oil to the EU.
As witnessed in various elections, Europe is screaming for change: more democracy, more equality, and more protection of the environment, the very goals your parties strive to achieve. But these goals cannot be achieved by words or even legislation in the face of all-encompassing trade agreements. To ignore these agreements is to throw out your own platforms and submit to the demands of the one per cent.
Many are asking for a line in the sand. In Munich, 40,000 people protested TTIP; protesters at the G7 were pepper sprayed for their troubles. Two million people have signed a European petition to reject TTIP and CETA, and 97 per cent of the 150,000 consulted by the European Commission rejected the investor-state provisions and resulting corporate lawsuits.
Citizens are becoming more informed and sophisticated. As many leftist parties go through internal questioning, citizens look to you for visionary leadership. They, and we, are hoping that you can work together to hold the line for Europe and for the rest of the world.
Maude Barlow is national chairperson of the Council of Canadians, a citizens' organization founded 30 years ago to fight the U.S.-Canada Free Trade Agreement. She is a former UN Advisor and recipient of the Right Livelihood Award (Alternative Nobel Prize).
Paul Moist is national president of the Canadian Union of Public Employees (CUPE), Canada's largest union with 628,000 members.
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The trade pact needs the consent of Canada's provinces and EU member states to become law. So far, it's looking good on the provincial front: Quebec, Manitoba, New Brunswick, Newfoundland and Saskatchewan's leaders have all praised the deal, and Ontario seems open to it assuming it can get compensation for some of its industries that will be harmed by the deal. Pictured: Canadian Prime Minister Stephen Harper and European Commission President Jose Manuel Barroso shake hands following a joint media availability Friday, October 18, 2013 at the European Commission in Brussels, Belgium.
Canada will partially extend patent protection for brand-name drugs, which would delay the introduction of cheaper generics by up to two years. Officials say it will be eight years before any impact of these changes show up as higher costs for provincial drug plans. Earlier reports have suggested the cost to the health care system of extended drug patents could run between $1 billion and $3 billion annually. Jim Keon, president of the Canadian Generic Pharmaceutical Association: The EU trade deal will "delay market entry of cost-saving generic prescription medicines in Canada in the future, increasing health-care costs for provinces, employers that sponsor drug plans for their employees and Canadians who pay for their prescription medicines out-of-pocket." The federal government has suggested it will compensate provinces for higher costs as a result of the agreement.
Domestic car producers will be able to increase sales into Europe to 100,000 units from about 10,000 today under relaxed rules. The EU will phase out its 10-per-cent tariff on imports, and Canada will phase out a 6-per-cent tariff on European car imports. That could be good news for Canadian fans of European luxury cars, as those vehicles will be cheaper. But that, in turn, could be bad news for Canadian auto manufacturers. Dennis DesRosiers of DesRosiers Auto Analysts: "I don’t think anyone can definitively know what the impact of the current EU Agreement will be on the automotive sector. ... The [Canadian] industry peaked in the year 2000 and has been struggling since and, indeed, just finished one of its worse decades in history and continues to deteriorate. Was this the long term result of FTA and NAFTA? We don’t know but it could be."
Canadian beef farmers increase their quota by 50,000 tonnes, in addition to 15,000 tonnes for high-quality beef. Pork farmers will see their quota rise to 80,000 tonnes from the current 6,000. But producers will have to convert to hormone-free product for the European market, which experts say can add about 15 per cent to costs. Martin Unrau, president of the Canadian Cattlemen's Association: "The removal of long-standing barriers in this agreement, such as high tariffs, finally enables Canadian beef producers to benefit from the high value that the European beef market represents." Dairy Farmers of Ontario: "It will take income from Canadian dairy farmers and their communities and give it to the European industry."
Companies will be allowed to bid on major government procurement contracts right down to the municipal level. A joint study showed the new access will give European companies leeway to bid on federal contracts worth between $15 billion and $19 billion an year, and municipal contracts worth $112 billion a year. Critics say that, because of the common practice of "hiring Canadian" in government contracts, EU access to them could mean job losses in Canada. Trade Justice Network: "Canadian governments would lose a powerful tool for spurring job creation and economic development."
Foreign takeovers of Canadian firms now require a formal federal government review if the deal is worth $1 billion or more, but this agreement will raise that to $1.5 billion.
Labour and consumer groups fear CETA could lead to the privatization of Canada's water supply and infrastructure. According to early leaks from the negotiations, Canada did not try to protect water resources as part of the trade deal. The Council of Canadians writes: "This deal will give French companies Suez and Veolia, the two biggest private water operations in the world, access to run our water services for profit. Under a recent edict, the Harper government has tied federal funding of municipal water infrastructure construction or upgrading to privatization of water services. Private water operators charge far higher rates than public operators and cut corners when it comes to source protection."
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