Naomi Klein: Fighting free trade laws

From: Per I. Mathisen (Per.Inge.Mathisen@idi.ntnu.no)
Date: Sat Mar 10 2001 - 17:03:35 MET

  • Next message: Trond Andresen: "Giskes reform og Klassekampen."

    En kort artikkel fra Naomi Klein om nyliberalisme versus demokrati. Verd å
    lese.

    Mvh,
    Per

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    http://www.guardian.co.uk/Print/0,3858,4144152,00.html

    Comment

    Fighting free trade laws

    The best-selling Canadian author of No Logo, the international
    anti-corporate activists' guide, begins her fortnightly column for the
    Guardian today.

    Naomi Klein
    Thursday March 1, 2001
    The Guardian (London)

    Anyone still unclear about why here in Canada the police are
    constructing a modern-day Bastille around Quebec City in preparation
    for a forthcoming American summit and the unveiling of the Free Trade
    Area of the Americas should take a look at a case being heard by one
    of the Canadian provincial supreme courts.

    In 1991, a US waste management company, Metalclad, bought a
    closed-down toxic treatment facility in Mexico, in Guadalcazar. The
    company wanted to build a huge hazardous waste dump and promised to
    clean up the mess left behind by the previous owners.

    In the years that followed, it expanded operations without seeking
    local approval, earning little goodwill in Guadalcazar. Residents lost
    trust that Metalclad was serious about cleaning up, feared continued
    groundwater contamination, and eventually decided that the foreign
    company was not welcome.

    In 1995, when the landfill was ready to open, the town and state
    intervened with what legislative powers they had available: the city
    denied Metalclad a building permit and the state declared that the
    area around the site was part of an ecological reserve.

    By this point, Nafta, the North American free trade area, was in full
    effect, including its controversial Chapter 11 clause which allows
    investors to sue governments. So Metalclad launched a legal challenge,
    claiming Mexico was "expropriating" its investment.

    The complaint was heard in Washington by a three-person arbitration
    panel. Metalclad was awarded $16.7m. Using a rare mechanism allowing
    appeal to a third party, Mexico has chosen to challenge the ruling
    before a Canadian court.

    The Metalclad case is a vivid illustration of what critics mean when
    they allege that free-trade deals amount to a "bill of rights for
    multinational corporations". Metalclad has successfully played the
    victim, oppressed by what Nafta calls "intervention" and what used to
    be called "democracy".

    Sometimes democracy breaks out when you least expect it. Maybe it's in
    a sleepy town, or a complacent city, where residents suddenly decide
    that their politicians haven't done their jobs and step in to
    intervene. Community groups form, council meetings are stormed. And
    sometimes there is a victory: a hazardous mine never gets built, a
    plan to privatise the local water system is scuttled, a rubbish dump
    is blocked.

    These outbreaks of grassroots intervention are messy, inconvenient and
    difficult to predict. It is precisely this kind of democracy that the
    Metalclad panel deemed "arbitrary".

    Under so-called free trade, governments are losing their ability to be
    responsive to constituents, to learn from mistakes and to correct them
    before it's too late. Metalclad's position is that the federal
    government should simply have ignored the local objections.

    There's no doubt that, from an investor perspective, it's always
    easier to negotiate with one level of government than with three. The
    catch is that our democracies don't work that way: issues such as
    waste disposal cut across levels of government, affecting not just
    trade but drinking water, health, ecology, and tourism.

    Furthermore, it is in local communities where the real impacts of
    free-trade policies are felt most acutely. It is cities which are
    asked to absorb the people pushed off their land by industrial
    agriculture, or forced to leave their provinces due to cuts in federal
    employment programmes.

    It is cities and towns which have to find shelter for those made
    homeless by deregulated rental markets, and municipalities which have
    to deal with the mess of failed water privatisation experiments - all
    with an eroded tax base. There is a move among many local politicians
    to demand increased powers in response to this offloading.

    For instance, citing the Metalclad ruling, Vancouver city council
    passed a resolution last month petitioning "the federal government to
    refuse to sign any new trade and investment agreements, such as the
    Free Trade Area of the Americas, that include investor-state
    provisions similar to the ones included in Nafta".

    Cities and towns need decision-making powers commensurate to their
    increased responsibilities, or they will simply be turned into passive
    dumping grounds for the toxic fallout of free trade. Sometimes, as in
    Guadalcazar, the dumping is plain to see. Most of the time it is
    better hidden.

    No Logo is published in the UK by Flamingo (£8.99)



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