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NAFTA Holds A Dirty Secret July 5, 2004 The Grand Forks Herald KEENE, N.D. - Have you ever heard of the Chapter 11 provision in NAFTA? 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 they think are a barrier to trade. Not only is Chapter 11 language in NAFTA, but it also is in the Central American Free 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 MTBE ban restricts free trade. MTBE is a cancer-causing gasoline additive that 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 U.S. companies also are suing its trade partners, Canada and Mexico. UPS currently 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. They are not democratically chosen by the people. Do we need to extend this threat to our sovereignty to more countries? I say no. If Congress passes CAFTA, five more countries will have the option to sue the United States 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 Editor's Note: Hagen is a rancher-farmer and Dakota Resource Council member from Keene, N.D. |