NAFTA

[low_delta]

Did you see the Bill Moyers special about Chapter 11 of the North American Free Trade Agreement? Holy shit arewe in trouble. Not soon, but it's only a matter of time. I think the only thing holding off governments from making any legislation that would have an adverse affect on a company's ability to make as much profit as they possibly can, is the fact that a corporation can only sue the government of a different country.

What am I talking about?

On March 25, 1999, California's governor ordered that MTBE be phased out of all gasoline sold in the state.

But that order didn't sit well with Methanex, a Canadian company that is the world's largest producer of the key ingredient in MTBE. Within months, Methanex invoked Chapter Eleven and claimed that its market share, and therefore its future profits, were being taken away - expropriated - by the governor's action. Allow us to sell MTBE for gasoline in California, the company argued, or pay us $970 million dollars in compensation.

Or have you heard about how the U.S. based United Parcel Service is suing the Canadian government because it is subsidizing Canada's own parcel delivery system?

I imagine that soon a Canadian bottled water producer will sue to be reimbursed for the cost of making its water pure enough to be sold in the U.S.

How about that American company that bought a Mexican toxic waste dump, and when the local government disallowed them to open it until they cleaned it up, they sued under chapter 11, claiming both that the Mexican Federal government said they could operate there, and that the local government prevented their investors from recieving a profit.

All this used to be rather pessimistic science fiction. And not rare, either.

Comments

[sunshine-two.livejournal.com]

The U.S. Government claimed the Canadian Lumber industry was *dumping*, and added an 18 to 21% import tax. The lumber industry in Canada has done a downslide, and alot of mills have gone out of business as a result. The U.S. Goverment did that to our pork industry as well. Not too long ago a U.S. company was suing the Canadian Government because certain chemicals are banned in Canada for environmental reasons, and they claimed it was unfair trading practise.

[low-delta.livejournal.com]

The lumber industry is a highly unprofitable one, and has been suing governments for a long. Remember the spotted owl?

[sunshine-two.livejournal.com]

I work in commercial/business banking. The lumber industry can make money. They simply couldn't afford 18 to 21% being added on to their goods before sale.

[cynnerth.livejournal.com]

Yep, it's happening from both sides. What's the old saying...two wrongs don't make a right?

[vlinker.livejournal.com]

i haven't seen any real good come from NAFTA.....the company i work for owns a small share of a canadian affiliate that was established before NAFTA......there has been virtually no change in how we do business across the border......as far as i'm concerned, the whole of NAFTA should be shelved.......

[low-delta.livejournal.com]

I think it has more of an effect on *big* business. The automakers, for example.

Re:

[vlinker.livejournal.com]

yeah, like the SR-4 aluminum case tranny that was in in my '80 jeep CJ......with the "FOMOCO" stamped on it right next to the "made in mexico".....not strong enough for 4WD and not heavy enough for a boat anchor......but wait, that was before NAFTA.....take a peak under the hood of your mustang and see how many of the parts are made in canada......i know that cyn's car is loaded with canadian parts.......

now that's all a bit off the point, i suppose i'm just in a rambling mood this morning...

but, i stand with my earlier statement, NAFTA should be shelved.....

[low-delta.livejournal.com]

When it first happened, I was against it because of all the jobs going to the other countries. Now I'm against it for worse reasons.

Re:

[vlinker.livejournal.com]

NAFTA doesn't allow me to sell our products in Canada any easier......in fact, it's a pain in the ass to cross the border if i tell the Canadian customs agent that i am traveling on business.....of course, if i'm there to buy something, all is different.....

BTW, i think you should look up that Canadian MTBE producer.......was it in vancouver?.......just who started up the plant?.......there's a good chance, that the circle will come back to a US based business.....

Ethanol can provide much of the same result in fuel as MTBE without the detrimental health effects....