On February
4, the United States and 11 other countries in the "Pacific Rim"
signed the controversial Transpacific Partnership (TPP), which encompasses 40
percent of the world economy. The other countries are Canada, Mexico, Chile,
Japan, Vietnam, Australia, New Zealand, Brunei, Singapore and Peru.
Pointedly
excluded is China.
Meanwhile,
a parallel treaty is being negotiated between the United States and the
European Union: The Transatlantic Trade and Investment Partnership (TTIP). The
European Union is also negotiating another such treaty with Canada, the CETA -
Comprehensive Economic and Trade Agreement. Coming down the road is the
Trade in Services Agreement, or TISA. All of these treaties are being
negotiated in secret without input from the people, or even their elected
legislative representatives. Much of what we know about them comes from
leaks (including Wikileaks).
If all of
these treaties are implemented, they will encompass most of the world's
economy. And this is not good news for workers, minorities, indigenous people,
small farmers, consumers and the planet.
There are
many things wrong with the TPP, the TTIP, CETA and TISA-too many to cover in
one article. But an overarching concern is that under these agreements,
transnational corporations will have the power to override national laws, legislatures,
governments and courts.
The
"Investor-State Dispute Settlement" mechanisms contained in these
treaties, and in others already in force, will empower corporate-dominated
tribunals, not accountable to either the governments or the people, to negate national
laws and judicial decisions and thus imperil labor, environmental and
regulatory protections that the corporations fear will limit their future
profits.
This is
already starting to happen under existing "free trade" agreements.
In El
Salvador protests led to the cancellation of a Canadian gold mining project
which threatened to harm the water supply of small farmers. The Canadian
company, Pacific Rim, sued El Salvador under the terms of the Central
America-Dominican Republic Free Trade Agreement, and an Investor-State Dispute
Settlement tribunal assessed a penalty of $315 million. A number of poor
countries have received the same treatment under existing "free"
trade agreements.
Under
the TPP, TTIP, CETA and TISA, this sort of situation will be multiplied many
times. Among other
pressures caused by these agreements, the threat of such penalties is likely to
increase the motivation for repressive regimes to use police violence to
suppress the people's protests against transnational corporations that are
engaging in abusive or destructive practices.
Even such a
well off country as Australia finds itself in the same bind. An Australian law
on cigarette packaging, designed to protect the country's citizens from lung
cancer and emphysema, was successfully challenged by Philip Morris through an
Investor-State Dispute Settlement action. In another case, Canadian courts had
ruled against the pharmaceuticals transnational Eli Lilly on a question of
product effectiveness, and the corporation used an Investor-State Dispute
Settlement action to challenge the court order, to force the Canadian
government to change its consumer protection laws and to get compensation to
the tune of of $500 million. These and many other examples demonstrate the
degree to which corporations under this kind of international treaty are given
virtual veto power over the parliaments and courts of sovereign states.
The TPP has
been the target of protests by indigenous people in the United States, Canada,
Latin America and beyond. Indigenous peoples have in many cases found
themselves on the front lines of resistance to the most abusive extractive
projects that threaten the environment and the people's livelihoods. In the
summer of 2013 the Nez Percé tribe of Idaho mounted successful protests to
prevent the passage of heavy equipment through their reservation on the way to
the Alberta Oil Sands operations in Canada. Members of the Nez Percé nation
blocked a key highway over which a company was trying to transport the
equipment. Tribal members were arrested, but a U.S. judge eventually ruled that
the tribe was in the right and ordered the company to cease and desist. In
their struggle, the Nez Percé were supported by other U.S. and Canadian
indigenous communities, environmentalists and even the U.S. Forest Service.
In that and
other cases, indigenous groups were able to withstand corporate assaults
because of their own determination and courage, but also because of the
sovereignty granted to them by treaties with the U.S. government over 250 years.
In other affected countries there are similar legal protections for indigenous
communities. With the TTP in force, what would happen to that sovereignty and
those legal protections? Would some corporate lawyers in a Corporate-State
Dispute Settlement tribunal be able to put an end to the ability of Native
American communities to defend themselves and the environment? Under
international and national laws, indigenous people have the right to
"free, prior, informed consent" about projects to be carried out on
their lands. Would this laudable principle survive a corporate full court press
under the TTP or the TTIP?
The special
United Nations Rapporteur on the rights of indigenous people, Victoria
Tauli-Corpuz, notes that poorer countries generally lose in these cases in part
because the corporations have the money to mount very sophisticated legal
campaigns. Tauli-Corpuz thinks indigenous groups may have to resort to
Convention 169 of the United Nations International Labor Organization in these
cases. This agreement, the Indigenous and Tribal People's Convention of 1989,
fixes these rights in international law. Unfortunately, to date Convention 169
has not been signed by the United States, Canada, Britain, Germany, France,
South Korea, Japan or other major industrialized countries which house the home
offices of the most abusive transnational corporations.
For this
reason and others, most progressive governments in Latin America are dead set
against the TPP. The right wing governments of Mexico and Peru are enthusiastically
pro TPP but face strong opposition from the grassroots.
Beyond
Latin America, criticisms of the TPP come from the opposition and are directed
at their own governments as well as the United States and the corporations. In
Japan, farmers are particularly worried that under the TPP massive agricultural
imports will wipe out their livelihoods, and have organized militant protests.
The
European Parliament and the individual governments of the European Union are
still on board with the other monster treaty, the TTIP. But there are very
strong protests movements against it by the labor unions, environmental groups
and the left. In Germany, an organization of judges has strongly protested the
idea that corporate controlled tribunals would, under the terms of the TTIP, be
able to completely bypass countries' court systems and thus undermine the
national sovereignty of Germany and other countries. Environmental groups are
also alarmed and aim to fight against the TTIP. There will soon be a small electoral
test: The left wing Workers' Party in Ireland says it is going to make
opposition to the TTIP a major plank in its program for the national elections
coming up on February 26. This is a small scale political party but we will see
if other Irish parties with higher electoral profiles can be persuaded or
shamed into taking the same stance.
In the
United States, opposition to the TPP comes from organized labor and
environmental activists as well as indigenous groups. Democratic Party
candidates Bernie Sanders and Hillary Clinton, and Republican candidates Donald
Trump and Ted Cruz have come out against the TTP. But the Obama administration,
which managed to get fast-track authority for the deal, continues to promote it.
Not much is
being said here in the United States about the TTIP which has raised such
protests in Europe. Yet it is part of the same corporate power grab, and
affects us too. It is instructive to note that European labor fears that under
the TTIP, weaker labor standards in the U.S. will drag European labor standards
down. European opponents of the TTIP fear that U.S. private corporations
will buy up publically controlled health care systems and other public services.
So we are
all in the same boat. Worldwide opposition to the TTP, the TTIP and the other
proposed treaties is united in its goals. What is needed now is actual unity of
workers, small farmers, indigenous people and environmentalists in all the
countries affected. To achieve this requires recognition that the enemy is
transnational monopoly capital, not workers in other countries. We have
to leave behind the divisive notion that "foreign workers want to take our
jobs" and understand who the corporate, ruling class enemy really is.
One thing we must also
leave behind is the unfortunate tendency to bash China and Vietnam. Vietnam has
opted to be part of the TPP, probably because, like all countries, they need
trade and thus don't want to be on the outside looking in. That is their
business. But in the discussions about the TPP we see exaggerated and often
downright false statements about Vietnam's labor policy. In the case of China,
which is pointedly being left out of the TPP negotiations, a similar warning is
in order. Scott Marshall of the SOAR Executive Board, District Seven, USW
(AFL-CIO) points out that unions and workers in countries like Vietnam and
China are not the enemy; that "honor" belongs to the rapacious
transnational corporations that want to use these treaties to hurt workers
everywh.
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