Courting TILMA: U.S. investors eye Alberta and B.C.’s interprovincial trade agreement
by Stuart Trew
Policy harmonization and
investor rights are the goals
of all free trade agreements.
They were a main component
of NAFTA and are acquiring
new urgency within the
Security and Prosperity Partnership
of North America (SPP). They are
also at the heart of the Alberta-B.C.
Trade, Investment and Labour Mobility
Agreement (TILMA), which will go
into effect on April 1, 2007.
TILMA creates a legally binding process
by which corporations and individuals
can challenge
- government programs and regulations
if they “restrict or impair”
investment;
- regulations in one province that are
different from those in another;
- the establishment of new, stricter
regulations;
- initiatives by one province with
which the other province does
not agree.
TILMA does not fully apply to existing
local government policies until after a
two-year transition period, but as soon
as the agreement comes into force, new
government initiatives will be challengeable
by lawsuits if a company or private
individual feels they restrict their trade
or investment. Since all local government
regulations in some way restrict
investment, everything will be up for
grabs. Government “entities” covered
by TILMA, and therefore vulnerable to
private lawsuits, include regional, local,
district or other forms of municipal government
as well as school boards.
Changing the rules
So far, Alberta and B.C. are the only
two signatories, but TILMA has a
far wider fan club, with Ontario and
Saskatchewan suggesting they are about
to sign on, and certain U.S. states
drooling at the possibility.
At the most recent meeting of the
Pacific Northwest Economic Region
(PNWER), a bi-national association
of Canadian and American businesses
with heavy involvement from the oil
and gas sector, representatives from
north-western U.S. states alongside B.C.
and Alberta officials committed
to explore the possibility of “expanding
the TILMA concept throughout
the PNWER region.”
The U.S. Trade Representative frequently
complains about the Canadian Wheat
Board and other agricultural policies.
Entry to TILMA would give U.S. companies
the legal means to dismantle
or rewrite these policies, as well as any
other provincial or municipal government
rules they didn’t like.
Like these U.S. states, Industry Minister
Maxime Bernier is clearly enamoured
with TILMA. “The Alberta-B.C. agreement is a very good one,” he told
a Senate committee looking into interprovincial
trade barriers. “I hope that
the other provinces will jump in. That
will help us to improve the Agreement
on [Internal] Trade at a federal level.”
The AIT had been trying to create a
national TILMA-like agreement since
1995, but had little success until B.C.
and Alberta’s free trade pact rejuvenated
the discussion.
Unfortunately, a larger, national legal
framework for TILMA, with U.S.
participation, would give U.S. companies
the same rights as Canadians
to sue local governments, formalizing
a process of policy harmonization and
deep integration that so far has no legal
backing. Such an arrangement would
require Canadian and U.S. regulations
on everything, including health care
and the environment, to be harmonized
throughout the free-trade area, hastening
a process of deep integration with
the U.S. that Canadians have not had
a chance to debate in public or in the
House of Commons.
Dangerous consequences
So why did Alberta and B.C. sign an
agreement that radically shifts the balance
of power in favour of corporate
interests and that could ultimately
legalize a process of deep integration
with the U.S.? And why did they sign it
without even consulting with the public
or elected representatives first? These are
questions that demand answers before
TILMA goes into effect this April.
The consequences to public health and
the environment, and the danger that
TILMA will lead us quickly toward
economic integration with the United
States, are severe. Let’s not let this agreement
pass without a fight.
For more information about TILMA,
including research, action tools and
upcoming events, please visit our
website at www.canadians.org/DI/issues/TILMA/.
Stuart Trew is a Communications
Administrator for The Council of Canadians.
INTEGRATE THIS! Challenging the Security and Prosperity Partnership of North America
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