CAFTA opens another can of worms

KEENE, N.D. - Have you ever heard of the Chapter 11 provision in the North American Free Trade Agreement? You will.

NAFTA's Chapter 11 is a little known but insidious provision that allows foreign corporations to sue the United States over any laws or subsidies that they think are a barrier to trade.

Not only is Chapter 11 language in NAFTA, but it is also in the proposed Central American Trade Agreement.

What laws have been challenged, you ask?

An environmental law protecting drinking water in California has been challenged. Methanex, a Canadian corporation, is suing the United States for $970 million in "anticipated lost profits." Methanex claims that California's ban of MTBE restricts free trade. MTBE is a cancer-causing gasoline additive, which leached into the state's drinking water.

A Canadian steel company also is suing the United States, claiming that the "Buy America" law is a barrier to free trade.

Not only are foreign companies suing the United States, but also U.S. companies are suing our "trade partners" - Canada and Mexico. United Parcel Service is suing the Canadian Postal Service stating that its Canadian government subsidies are an unfair trade advantage.

Who decides these cases? It's not the U.S. court system or any other country's judicial system. A secret tribunal behind closed doors decides these Chapter 11 cases. This tribunal is composed of trade experts chosen by the parties involved, not democratically chosen by the people.

Do we need to extend this threat to our sovereignty to more countries? I say no.

If our Congress passes CAFTA, five more countries will have the option to sue us over the very laws that protect our health, environment and economy.

Anyone who is concerned about property rights must beware of Chapter 11. Contact your congressmen today.

John Hagen
Hagen is a rancher-farmer and a Dakota Resource Council member.

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