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ACTION ALERT: Provinces to make TILMA national – Tell premiers meeting in Vancouver this week that you reject unfair investor rights!
July 18, 2011
Last month in Prince Edward Island, provincial trade ministers agreed to include a highly controversial investor-to-state dispute process in the Agreement on Internal Trade. These totally imbalanced investment rights, which allow people or businesses to challenge government policy before an unelected trade panel, are one of the worst parts of NAFTA and the so-called New West Partnership (TILMA) between B.C., Alberta and Saskatchewan. They are also increasingly rejected globally because they give corporations unreasonable, undemocratic powers.
The press release from the PEI meeting says:
Today, Ministers agreed to undertake a more effective enforcement mechanism under the Agreement on Internal Trade (AIT) for disputes brought by "persons" (individuals, businesses and other organizations) against a government. This dispute process allows persons to challenge a government's actions that appear to be contrary to the AIT. The changes agreed to today include monetary penalties and the removal of dispute resolution privileges in situations of continued non-compliance by a government following a decision by an independent dispute resolution panel.
As Erin Weir, an economist who writes for the Progressive Economics Forum, explained this week, there are links between this move and the ongoing Canada-EU free trade negotiations:
The Canadian government is simultaneously trying to negotiate similar provisions with much larger fines for investor-state disputes involving the European Union. Since the proposed Canada-Europe deal would include provincial governments, creating an investor-state dispute process encompassing provinces may help pave the way. The [provincial trade ministers’] press release even notes “the importance of linkages between the Agreement on Internal Trade and international trade agreements.”
WIDESPREAD OPPOSITION IN CANADA
Last December, a wide cross-section of Canadian groups urged governments to deny corporations the right to sue the provinces and territories under the AIT, as frequently requested by big business lobbies and Canada’s westernmost provinces. The groups also asked that financial penalties in province-to-province disputes, which were included in the AIT in 2009, be taken out of the agreement. Their statement said:
Two years ago, the Committee on Internal Trade agreed to include penalties of up to $5 million against provincial or territorial governments whose measures are found to interfere with interprovincial trade or investment flows…. This is contrary to basic notions of democracy. Despite high-profile cases… there has been little use of this heavy-handed AIT dispute process by provinces and territories in Canada. Private investors, on the other hand, have proven much less scrupulous around the world where investment rights have been enshrined in binding trade treaties. Including an investor-to-state dispute process in the AIT would multiply the number of challenges to provincial and territorial policies. The result would be a chill on government policy of all types for fear of sparking costly and time-consuming lawsuits.
The Australian government recently stated it “does not support provisions that would confer greater legal rights on foreign businesses than those available to domestic businesses. Nor will the Government support provisions that would constrain the ability of Australian governments to make laws on social, environmental and economic matters.” Canada’s premiers and federal government representatives must take the same position in trade agreements.
To read the full statement from December 3, which was endorsed by the Council of Canadians and other organizations representing millions of Canadians, click here.
TAKE ACTION
Canada’s premiers are meeting in Vancouver this week (July 20-22) for their annual Council of the Federation meeting. Though provincial trade ministers have agreed to amend the dispute resolution chapter in the AIT to allow person-to-government challenges, they won’t finalize the process until their meeting in June 2012. In other words, we can stop the provinces from taking this anti-democratic decision.
Write to your premier today to demand these unreasonable investor rights not be included in the AIT. You can use the sample letter below.
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