Posted 13th June 2001
(Photo shows Prime Minister ChrÈtien, Heads of State, Government and delegation at the Citadelle. Quebec City, April 21, 2001)

The Corporate Divide

Trade, and how to regulate it, goes to the heart of any economic system and hence underlies much of what politicians do and say, sometimes to the point of declaring war over it. Free markets is all about trade and leaving open slather to private interests who want to hear nothing from state regulations, until their `investment' is threatended, then they call in the government for protection.

There has never been unanimity over how to do trade and there never will, due to conflicting interests - that's where governments come in, to mediate for the mutual good of all society. To take government out of trade does appeal, to the extreme minority who happen at any given time to feel in control of trade, but for society as a whole and for environmental quality and diversity, governments do need to be the mediator. Some corporate heads may want to speak out in defense of regulation for the greater good, but they are either scared or actively suppressed. Instead we have to bear witness to war-cries like the below from some of the most powerful, and most blind voices in the world today.

A letter from 29 multinational corporations, written prior to the Quebec Summit but only released this week, explains why Prime Minister Jean ChrÈtien retreated from his commitment to remedy NAFTA's controversial Chapter 11, New Democrat Leader Alexa McDonough told the Canadian House of Commons Monday.

The Letter: April 19, 2001

The Honorable Robert Zoellick, United States Trade Representative, 600 17th St. NW, Washington, DC 20508, USA

Dear Ambassador Zoellick:

We are writing to affirm the business community ís support for the inclusion of effective investment provisions in the proposed Free Trade Agreement of the Americas (FTAA) and in free trade agreements with Chile and Singapore. International investment is a sine qua non for U.S. firms to compete successfully in todayís globalized economy. Investment is a principal catalyst for economic growth in developing countries and helps to ensure that globalization is an inclusive, rather than an exclusive process.

Investment agreements facilitate this objective by helping to create stable business environments, which in turn generate substantial growth opportunities. To that end, we endorse investment provisions, modeled on NAFTA, to achieve the following:

• removal of barriers to entry;

• 100 percent foreign ownership of investments permitted;

• non-discriminatory and fair and equitable treatment guaranteed;

• elimination of performance requirements;

• protection of assets from direct or indirect expropriation, to include
protection from regulations that diminish the value of investors’ assets;

• guarantee that investor disputes with host governments can be brought to
arbitration panels such as those offered by the World Bank’s Center for
Dispute Settlement; and

· transparency in government rulemaking.

Recently, U.S. investment agreements have come under attack. Citing recent cases, critics argue that NAFTA ís investment rules, and the findings of ìsecret îarbitration panelsíí impede a governmentís ability to promote environmental protection. We respectfully disagree. Investment treaty provisions are no bar to but can compliment strong, effective, and transparent regulations to protect the environment, as well as worker safety and health. Indeed, investment treaty protection serves to encourage international investment that frequently includes the transfer of environmental technologies and practices. We would be pleased to work with you to develop ideas to address these issues.

Identical letters are being sent to Secretaries Powell, Evans, and O íNeill.

Thank you for consideration of our views. Sincerely, American Chemistry Council, American Forest and Paper Association, Caltex Corporation, Chevron, Chubb Corporation, Daimler-Chrysler, The Dow Chemical Company, E.I. Du Pont De Nemours and Company, Eastman Chemical Company, Emergency Committee for American Trade, The EstÈe Lauder Companies, Inc., Ford Motor Company, General Electric, General Motors Corporation, Hills and Company, Honeywell International Inc., International Paper, 3M, Metalclad Corporation, Motorola Inc., National Association of Manufacturers, National Foreign Trade Council, Pacific Basin Economic Council, U.S. Committee, Pricewaterhouse Coopers LLP, Procter &Gamble, Texaco Inc., U.S. Chamber of Commerce, United States Council for International Business, United Parcel Service.y