Canada's cattle herd has mad cow disease.  USDA shut the border in 2003 when it was  discovered.  Every country in the world had, at that time, barred imports of cattle and beef from any country with mad cow disease.  USDA worked hard to open the border, despite the risk posed to the U.S. cattle herd, and even after more diseased animals were found.

Canadian cattlemen are suing the U.S. government under NAFTA seeking $350 million in restitution for the border closure. Chapter 11 of NAFTA allows this suit to proceed.

Public Citizen explains the process:

If a company believes that a NAFTA government has violated these new investor rights and protections, it can initiate a binding dispute resolution process for monetary damages before a trade tribunal, offering none of the basic due process or openness guarantees afforded in national courts. These so-called "investor-to-state" cases are litigated in the special international arbitration bodies of the World Bank and the United Nations, which are closed to public participation, observation and input. A three-person panel composed of professional arbitrators listens to arguments in the case, with powers to award an unlimited amount of taxpayer dollars to corporations whose NAFTA investor privileges and rights they judge to have been impacted.

Private foreign businesses could not sue other governments before NAFTA.  A full list of NAFTA Chapter 11 cases by foreign companies against U.S. governmental bodies is here (PDF file).

The Peru, Panama and other pending trade agreements have this same stupid chapter within them.  That's what happens when Congressmen can't amend the deals, but must conform to an "upperdown vote" under Fast Track. 

TrackBack URI for this entry

Comments (0)

Subscribe to this comment's feed

Write comment

Name

Title

Comment

smaller | bigger

Subscribe via email (Registered users only)

I have read and agree to the Terms of Usage.

Add Comment