NAFTA Chapter 11 has this phrase. Pretty much it means if the laws of a country in NAFTA devalues property or causes financial hardship to an entity in another NAFTA country. This basically means Mexican ,Canadian, and American corporations have to follow the laws of the other countries, but can sue the country for denying them to do something. I don't know the specifics, but this sounds scary to me. It would mean Nafta could overturn the Supreme Court. If this is true its unconstitutional because the Executive and legislative branches do not have the right to usurp the Supreme Court's highest court of the land status....even if NAFTA is a treaty. Anyone knowledgeavble on this topic is welcome to correct anything I mentioned that isn't entirely correct. http://www.naftaclaims.com/
Bill Moyers just did an hour-long PBS show called "Trading Democracy" on this very topic. You're right to be scared. This provision basically gives away all of our judicial rights to foreign corporations. There are currently several cases making their way through the American legal system right now which will serve as barometers for how far this provision can be carried. One involves a Canadian corporation that is suing the state of California because California banned the use of MTBE's (a chemical compound) in gasoline sold in the state. The compound has been contaminating water all over the state. Turns out this Canadian corporation is one of the leading producers of a key ingredient in MTBE. They are arguing that banning the product is "tantamount to expropriation" of their revenue. If California loses the case (and it is very possible they will) they will either have to continue using a chemical compound in their gasoline that has been determined to be negatively impacting the environment or they will have to pay the Canadian corporation 9 Billion in lost revenue. A similar case brought by an American company in Canada has already resulted in a reverse on a ban of environmentally harmful fuel additives there. These cases are tried by a secret tribunal and the American judicial system has no say whatsoever. In the worst case scenerio, this provision allows foreign corporations to have a greater say in American life than the American government. Instead of trying to close this loophole, the crafters of NAFTA are now considering language that makes it even easier to sue for "expropriation". Plus they're looking to expand NAFTA to an additional 31 countries. It's probably going to get pretty ugly.
MTBE!!!!!!! That stuff is dangerous. It isn't that it is more toxic than the other chemicals in gas, its that it moves very quickly through the ground and gets to the water table more easily.
Heh... ...in the US, a corporation is considered commensurate with an individual person to the extent of granding it the rights of an individual. Is this true in Canada? I think this hurts us less than our Canadian counterparts. Of course, I'd hate to know whta Mexican laws are on the books regarding labor practices. Thankfully here, even if they were legally applicable, it would be practically meaningless (conditions, etc).
If American coorporations are as bad as everyone claims them to be, I'm sure they'll figure out a way to screw over Canada and Mexico. That's what they do best! Ask Ken Lay; I'm sure he'd have some ideas. On a more serious note, this is scary. I mean, we're just a few people who didn't know about it. Think of how many more out there don't know. What are the potential effects this could have on our everyday life (since I'm sure there are some, but it's late and I don't feel like thinking anymore)?
