Canada-EU Trade Agreement and the 'Buy American' scare

Why does it fall to a former Irish MP and Member of the European Parliament to raise questions about the dangers of privatization to Canadians when the Canada-EU trade agreement (CETA) gets passed? Isn't that the job of the Canadian government and the Canadian media? *rhetorical lol*

Under the guise of harmonizing regulations between provinces, TILMA enjoyed limited success in the west in ending the provinces' and municipalities' right to "Buy Local" in favour of investor rights for international corps. This was a big sticking point for the EU decision in going ahead with a Canada-EU trade deal - if European companies weren't going to be allowed to bid as equals on government contracts for both goods and services and if the provinces refused to end the favouring of local or national providers of public-sector services, well then the EU wasn't very interested in pursuing the deal.

Luckily for Harper and the Canadian Council of Chief Executives and the 100 transatlantic CEOs plumping for CETA, the big "Buy American" scare came along. In exchange for a one day opportunity window into the 4 or 5 billion dollars left in Obama's Buy American stimulus package - jobs! jobs! jobs! - Harper convinced the provinces to give up their local procurement rights.

Between these two deals - the throw-away Buy American 'exemption' and the proposed Canada-EU deal - we're caught in a pincer move to further corporatize public services.

Good thing there's one Irishman at the European parliament asking a few questions on our behalf then, eh?

Cellucci wants huge aqueducts to carry water from Canada to the US

Embassy Mag :

"Pointing out the imminent droughts in the southwestern United States caused by climate change, [former US Ambassador to Canada] Paul Cellucci raised the idea of constructing huge aqueducts to carry Canadian water south of the border.
He added that "to some extent, fresh water is a renewable resource," and that this opinion is shared by a recent report by the Montreal Economic Institute."

Yes, we already covered that Montreal Economic Institute report back here, Paul :

The chairman of the board of the Montreal Economic Institute, the 'independent non-profit' so keen on privatizing and exporting Canadian water, is Helene Desmarais. Helene Desmarais is married to Paul Desmarais Jr., co-CEO of Power Corporation of Canada and board member of GDF Suez, a multinational corporation that is a world leader in water privatization.

So. Not entirely arm's length then.
GDF Suez recently spun off its water equities into Suez Environnement Company, now Europe's 2nd largest private water management corp, in which it maintains a 35% controlling interest.

Meanwhile, we learn Paris is the latest city to reverse this trend and take action to put water back into public hands.
Is the Water Privatization Trend Ending? is an interesting article about Suez, "corruption, fraudulent accounting practices, and high prices", and the EU's attempt "to impose the worldwide privatisation of water and other public services through the WTO".

"In the 1990s many countries privatised their water and sanitation services, particularly in Africa, Asia and Latin America, under strong pressure from neo-liberal governments, particularly in the European Union (EU), and from international financial institutions such as the World Bank, the International Monetary Fund and the World Trade Organisation (WTO) to 'open up' national services.

The biggest beneficiaries were Suez and Veolia."

Oh yeah, by all means bring on that Canada-EU Free Trade Agreement with its "deep economic integration negotiations", so enthusistically touted by French President Sarkozy, currently also in rotation as President of the EU, as he awarded France's highest honour to Paul Desmarais Sr. ten days ago as thanks for helping him to become president.


In 2006, Mr. Cellucci suggested "that water should be included in the same category as other natural resources exported as Canadian commodities on the open market," an opinion also shared by the Montreal Economic Institute.

Stick it, Paul.
Cross-posted at Creekside

Will the Canada-EU Free Trade Agreement out-NAFTA NAFTA?

EUtopia - Be careful what you wish for.

Melvin J Howard, CEO of the Arizona-based Centurion Health Corporation, is in the process of filing a NAFTA Chapter 11 complaint against Canada's public healthcare system. Although our government has repeatedly assured us that Canadian healthcare is protected under NAFTA, recent tinkering with private clinic P-3s and privatization by the Quebec, BC, and Alberta governments has led Mr. Howard to believe he has a case, as argued on his blog :

1. Canada claims to have exemptions on their public health care system.
2. Canada has registered health insurance at the World Trade Organization as a financial service.
3. The World Trade Organization allows governments to exempt any service provided "in the exercise of government authority," as long as such services are not also available commercially.
4. Canadian private companies are already in the health business in Canada.
5. NAFTA dictates that Canadian, US, and Mexican businesses must have equal opportunities in all three countries.
6. Centurion has been barred from having the same investment opportunities private Canadian companies enjoy because it is based in the US.

Enter Chapter 11.

Mr. Howard is claiming $4 million in expenses and an additional $150 million in lost profit after a failed attempt to invest in the BC health care system. Although he has put his claim on hold until after the Canadian election, he states his intention to proceed "after the new Government is installed" if private negotiations with the federal government do not satify him.


Yesterday Red Tory was rather amused by my post about Harper's insistence on keeping his upcoming secret squirrel Canada-EU Free Trade Agreement negotiations out of the public eye till after the election. A "yawning non-story" and a "conspiracy theory", says Red, in spite of the fact that the EU negotiators have already pressured Canada into accepting, as a precondition of their participation, a stipulation "which would require that Canadian governments allow European companies to bid as equals on government contracts for both goods and services and end the favouring of local or national providers of public-sector services."

I'm sure you can see where I'm going with this.
After, say, a company in Liechtenstein wins the bid to run the CBC on a for-profit basis, how long do you think it will take Fox News to file a Chapter 11 complaint at the WTO? An extreme and unlikely scenario? To be sure, but I submit it to all of you who automatically assume that a free trade agreement with the EU would naturally provide a much-needed corrective balance to NAFTA and our trade dependence on the U.S.

Under the corporate-friendly conditions Canada has unfortunately already agreed to in the EU talks due to begin three days after the election, I see no assurance that the balance will necessarily tip in our favour.

As Christos Sirros, head of Quebec's mission to the EU explains : "Europe views such a relationship with Canada as a precursor to entering the U.S. market."

And Harper doesn't want to talk about it.

Cross-posted at Creekside

Isn't THIS interesting

Did you know about this? I didn't know about it. Apparently it's a deep dark secret.... just like the the Security and Prosperity Partnership.

Now, I happen to think a much more robust trade deal with the European Union is a good idea. This country needs to get out from under the economic dependency of being strapped to the US. But given the conditions that seem to come with it, it's not the right way to do it. And since it's being driven by the Canadian Council of Chief Executives, you just know the average Canadian is going to get thoroughly and properly screwed. That and one other important and salient point:

Harper is preparing entering into major trade negotiations without consulting Canadians. He's checked it out with big business but he's afraid to put it on the table for the Canadian electorate. And he has the perfect opportunity to do so in an election campaign.

So, why isn't he doing it? Easy. He has polls which tell him it is politically unpalatable. In other words, the political impact is negative and the communications strategy has not yet been formulated. The "jelly bean" lines have yet to be properly refined.

You see, this will set off a firestorm of protest:

The proposed pact would far exceed the scope of older agreements such as NAFTA by encompassing not only unrestricted trade in goods, services and investment and the removal of tariffs, but also the free movement of skilled people and an open market in government services and procurement – which would require that Canadian governments allow European companies to bid as equals on government contracts for both goods and services and end the favouring of local or national providers of public-sector services.

Yes, you read that correctly. Governments - plural. Even provincial and municipal governments.

If Harper goes ahead with this, having had it in his pocket during an election and doesn't put it to the electorate, even if he wins a majority, he will have no mandate to proceed. Witholding this kind of information is patently dishonest. And Harper needs to learn that those CEOs have the same number of votes as every other Canadian over the age of 18 - one each.

Go read Alison.