 
Archived document: Private Member’s Bill opposing
Chapter 11 type mechanisms
Background
The very first demand of the Common Frontiers and KAIROS “No
to the FTAA: It’s Hazardous to Your Health” Campaign
calls on the Canadian government to:
* Stop negotiations on the FTAA ,and all trade agreements that
put profits before public well-being AND remove “Chapter 11”
from NAFTA.
(This controversial provision, also planned for the FTAA, allows
investors to sue governments for public policies that curb profits,
even those that protect public health or the environment.)
Peoples across the Americas are resisting the proposed FTAA through
public action and consultation; here in Canada, a petition is at
the core of the “No to the FTAAA: It’s Hazardous to
Your Health!” campaign. The deadline for this campaign was
recently extended to October 31. For more details, or to sign the
petition, click here.
In another important effort related to the “No to the FTAA”
campaign, MP Pierre Paquette of the Bloc Quebecois introduced Motion
M-391 in the House of Commons on April 3 2003. It draws on the campaign
demands and reads:
That in the opinion of this House, any free trade agreement entered
into by Canada, whether bilateral or multilateral, must include
rules for the protection of foreign investments which do not violate
the ability of parliamentary and government institutions to act,
particularly on behalf of the common good, and must exclude any
investor-state redress provisions; and consequently
That, the Canadian government must enter into negotiations with
its American and Mexican partners with a view to bringing the North
American Free Trade Agreement (NAFTA) in line with the aforementioned
principles.
How does “Chapter 11” affect Canadians?
The NAFTA demonstrates how Chapter 11 investor-state mechanisms,
in particular, are a threat to Canadians and Canadian sovereignty.
Since NAFTA was implemented, 24 cases have been filed under Chapter
11. Eight have been against the Canadian government, claiming a
total of 2.55 billion dollars of public money. Currently, there
are three pending cases: one threatening Canada’s natural
resources (Sunbelt vs. B.C. ban on exporting bulk freshwater), Canada’s
public services (UPS vs. Canadian Postal Services), and Canada’s
environmental regulations that protect human and environmental health
(Crompton vs. pesticide ban).
Chapter 11 has effectively become an economic supranational constitution
over and above national laws and regulations. It also prevents our
government from acting in our best interest.
Chapter 11: a global role model?
Since NAFTA came into effect, Chapter 11 has become the model for
bilateral investment treaties like the Canada-Costa Rica Free Trade
Agreement. It is proposed as a regional model, as in the proposed
investment chapter of the FTAA, and is also the proposed model at
the World Trade Organization (WTO). The WTO currently uses a state-to-state
dispute settlement mechanism. Chapter 11 provisions would instead
allow a model similar to NAFTA’s trade dispute panel, where
corporations may directly challenge governments, and trade lawyers
and experts deliberate on these cases in private and unaccountable
forums.
To find out more on the WTO and the next round of negotiations
see Global Economic Justice Report, Vol. 2, # 2 “From Bad
to Worse: Old and New at the WTO.”
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