A new report released today from IATP takes an in-depth look at how tar sands have developed from an unconventional, inefficient energy source to the spotlight of the corporate agenda as conventional oil supplies dwindle. Tar Sands: How Trade Rules Surrender Sovereignty and Extend Corporate Rights follows the development of energy policy from NAFTA up to current free trade negotiations to illustrate that while energy sources evolve, one trend remains constant: The protection of corporate profits at the expense of human rights, sovereignty and the environment. With new free trade agreements in negotiation, the time for action is here: The public needs a seat at the negotiating table.
The Washington Post’s disclosure last month of yet another leaked EU Transatlantic Trade and Investment Partnership (TTIP) negotiating document on Energy and Raw Materials (ERM) brings to light the overwhelming emphasis placed on dismantling the United States’ ability to govern its own energy resources. Pressure to repeal the Energy Policy and Conservation Act (EPCA), due to new-found U.S. energy reserves through hydraulic fracturing, stands as most controversial to environmentalist and anti-globalist.
Late July is a quiet time for much of the Northern hemisphere: even the United States takes a week or two off work at some point to enjoy the summer. It is a busy time, however, for international trade negotiators—this year more than most. The General Council of the WTO (its primary decision-making body) concluded its last meeting before the summer recess yesterday without signing the trade facilitation agreement (TFA). Director-General Azevêdo was not pleased.
WTO members committed to the TFA at the Bali ministerial last year, promising to adopt it before the end of this month. No one knows what comes now: those who most wanted the agreement passed say the multilateral trading system itself is in jeopardy. U.S. trade officials have been busy making dire pronouncements on social media and at press conferences about the loss of credibility of the multilateral trading system, while a joint statement signed by 26 countries, including Australia, Canada, Malaysia, Nigeria and Viet Nam, warned that if the WTO members failed to adopt the TFA, the whole “Bali Package” (three issues on which governments agreed to make commitments at the WTO Ministerial in December 2013) would unravel. India replied, with some support from other countries, that they needed to see progress on all issues, especially on agriculture talks, before any single agreement can become law.
This past weekend, the Toronto Globe and Mail reported that Germany would reject the Canadian-EU Comprehensive Economic and Trade Agreement (CETA) as it contains investment provisions that allow foreign investors to sue governments over policies that undermine corporate profits. That reportgot the attention of those tracking the U.S.-EU trade negotiations. The Mail article was based on German newspaper Sueddeutsche Zeitung’s coverage of the issue.
Saturday’s announcement created a flurry of calls to the German Economic Ministry. Was the most powerful EU country going to block the negotiations in their endgame? If so, it would be an unprecedented event in Europe with massive implications on how corporate investment rights are handled in free trade treaties around the globe, including with the United States. The Sueddeutsche Zeitung reported that [translated] “while Germany in principle would be willing to initial the treaty [CETA] in September, the chapter on investment protection is seen to be ‘problematic’ and currently not acceptable.”
Trade policy negotiations, such as those for the Transatlantic Trade and Investment Partnership (TTIP), are conducted largely as if they were private business deals. Despite many public interest issues that are subject to “least trade-restrictive” criteria in the TTIP and other so-called Free Trade Agreements, access to draft negotiating texts is restricted to negotiators and their security-cleared advisors, overwhelmingly corporate lobbyists. About 85 percent of 566 advisors to the U.S. Trade Representative (USTR) come from various industry sectors.
Trade negotiations texts are exempted from public disclosure otherwise required under the U.S. Freedom of Information Act by presidential Executive Order 13526, which can be rescinded by President Barack Obama. U.S. NGOs, including IATP, have repeatedly urged the USTR to end trade policy transparency exemptions. IATP was among 250 non-governmental organizations to sign a May 19 letter to the EC’s director of trade demanding the EC release for public comment draft negotiating texts and related documents.
An interesting window of opportunity for legislators dialogue between the USA and the European Union opened last week in Strasbourg, during the plenary session of the European Parliament, when Sharon Anglin Treat, from the House of Representatives of the US State of Maine, met Members of Parliament (MEPs) from various Committees and political groups in order to exchange views on the impact of on-going negotiations on a free trade agreement between the United States and Europe (TTIP) with regard to food, agriculture, environment and related issues.
Rep. Treat co-chairs the Citizen Trade Policy Commission, which advises the Maine Legislature and Governor on trade policy, and also is a member of the Intergovernmental Policy Advisory Committee (IGPAC) in the office of US Trade Representative Froman.
Trade agreements are negotiated in a top down process: negotiators cut secret deals and then push for approval. These trade deals set rules on investment by corporations and banks, and lowering standards and regulations to the “least trade restrictive” possible. Local decision-makers are then left to figure out exactly what these rules mean for their state or community programs to build local economies, protect the environment or promote public health, or face challenges in special trade courts. This problem, and the fact that trade talks are held in secret until the completed deal is dropped on lawmakers’ desks, is a huge point of tension in the public debate on the Transatlantic Trade and Investment Partnership (TTIP) and Trans Pacific Partnership (TPP), as well as the continuing debate on fast track authority, which would restrict Congressional input to an up or down vote.
The Maine Citizen Trade Policy Commission (CTPC) takes a proactive approach to this dilemma. The CTPC, made up of state representatives and senators, along with representatives of important state agencies and civil society, holds public hearings and weighs in with the U.S. Trade Representative on issues of concern to local citizens. Under Maine law, the commission is mandated to “conduct an assessment of the impacts of international trade agreements on Maine’s state laws, municipal laws, working conditions and business environment.”
The UN’s Human Rights Council passed a historic resolution today for a binding International treaty to regulate human rights violations of transnational corporations. The resolution directs members to “to establish an open-ended intergovernmental working group with the mandate to elaborate an international legally binding instrument on Transnational Corporations and Other Business Enterprises with respect to human rights.” The resolution comes after heated debates at the Council with key industrialized democracies such as the United States, United Kingdom, France, Germany, Italy, Ireland, Austria, Japan and South Korea opposing the resolution—a total 14 countries voted against it (including Czech Republic, Estonia, Montenegro, Romania and Macedonia). Tabled by Ecuador and South Africa, a total of 20 countries voted in favor (Algeria, Benin, Burkina Faso, China, Congo, Côte d'Ivoire, Cuba, Ethiopia, India, Indonesia, Kazakhstan, Kenya, Morocco, Namibia, Pakistan, Philippines, Russia, South Africa, Venezuela, Vietnam) while 13 others abstained (Argentina, Botswana, Brazil, Chile, Costa Rica, Gabon, Kuwait, Maldives, Mexico, Peru, Saudi Arabia, Sierra Leone, UAE).
Over 600 non-governmental organizations, including IATP, signed a statement supporting the resolution in the two months preceding the Human Rights Council meeting. The statement was initiated by several civil society organizations as part of the launch of a “Global Movement for a Binding Treaty” called the Treaty Alliance.
Negotiating text on the EU-U.S. trade agreement leaked by the Huffington Post exposes the European Union’s hypocrisy when it comes to renewable energy and climate protection. Despite the moral and economic leadership that Europe claims around these issues, trade positions outlined by the E.U.’s negotiators (which are shared by their U.S. counterparts, as discussed previously) makes clear that these globally critical goals are less important than the potential profits of transnational companies. As explained in an excellent analysis of the leaked text by Sierra Club and the German organization PowerShift, the E.U. negotiators are very clear about their support for expansion of fossil fuel extraction and trade and imposing limits on national policies for and local benefits from renewable energy policy. The direct result is that renewable energy and green jobs programs around the world and here in the U.S., such as the Made in Minnesota Solar Program, are now at risk.
On Friday, President Obama announced new commitments to support the solar industry and create green jobs. Too bad the President’s trade agenda didn’t get the memo.
In practice, the Obama Administration’s relentless free trade agenda is colliding with its climate and renewable energy goals, leaving four U.S. state programs, designed to spur green jobs and renewable energy, vulnerable to trade challenges, while directly limiting renewable energy growth in one of the world’s fastest emerging economies.
In April, the U.S. Trade Representative (USTR) took the first steps toward challenging India’s program to expand solar energy production by supporting local companies and green jobs, charging that it violates World Trade Organization (WTO) rules by limiting U.S. companies’ access to the program.
Now, India has responded (subscription required, alternative link) by raising questions about solar energy programs in four states—Minnesota, Delaware, Connecticut and Massachusetts—that also provide benefits for companies that use renewable energy equipment manufactured in that state.
When U.S. and EU officials talk about the Transatlantic Trade and Investment Partnership (TTIP), they say it will bring the two economies together as leaders in the global economy. Just this week, European Commission President José Manuel Barroso told the U.S. Chamber of Commerce that, “TTIP should become the economic pillar of the EU and US alliance. It should be our joint attempt to shape a fast changing world and to set the standards of the future. It should act as a platform to project shared EU-U.S. values worldwide with regard to open markets and rule of law.”
But what do they mean, and how would that work? Negotiating a series of bilateral or regional trade deals seems like a direct challenge to multilateralism, and something likely to further weaken the already anemic World Trade Organization. TTIP and the 15 bilateral or regional trade deals being negotiated by the EU create a cobweb of interlocking agreements that in many ways serve to lock in global norms on issues like investment, intellectual property, food safety and other issues that go well beyond what WTO members have agreed to even consider at the multilateral level.