Globalization.chapter11

Chapter 11: NAFTA's Chapter 11 and the Environment:Addressing the Impacts of the Investor-State Process on the Environment Howard Mann, International Institute for Sustainable Development Konrad von Moltke, International Institute for Sustainable Development The investor protections provided in NAFTA's Chapter 11 have been used repeatedly to challenge environmental laws and administrative decisions that have negative economic impacts for foreign investors.

The two most controversial aspects of Chapter 11 are: 1. A broad definition of expropriation which includes any government administrative measures, policies or laws which are "tantamount to expropriation." This includes the partial loss of the commercial value of an investment, and even the loss of future or potential profit earnings. (See my previous briefing note on Metalclad vs. Mexico). 2. The investor-to-state dispute resolution mechanism which allows corporations to sue governments directly. As long as a corporation can establish that it is an "investor party", it can lodge a direct complaint against the government where it has an investment. Ethyl Corp was able to launch a lawsuit against the Canadian government, winning a settlement and the reversal of environmental laws banning the gasoline additive MMT, by using these two aspects of Chapter 11. According to a report on investment by the BC Ministry of Employment & Investment in November 1999: "The most controversial part of NAFTA is the investor-state provision whereby a private investor can sue a state over an alleged breach of the agreement to obtain mandatory compensation, even if the action is for a public purpose such as protecting the environment."

Participant Comments follow below

chapter 11 is just another feudalistic-fascist globalist tool. Which, unfortunately will be used to further undermine our soverignty and democratic rights. Past capitalists would role over in their grave in marvel, as to how their present day descendents are getting away with it all. Vasislozz vasislozz@aol.com 08/18/03 06:20:33 GMT