Sierra Club Home Page   Environmental Update   My Backyard
chapter button
Explore, enjoy and protect the planet
Click here to visit the Member Center.         
Search
Take Action
Get Outdoors
Join or Give
Inside Sierra Club
Press Room
Politics & Issues
Sierra Magazine
Sierra Club Books
Apparel and Other Merchandise
Contact Us

Join the Sierra ClubWhy become a member? Explore, Enjoy and Protect

Trade and the Environment
Get an overview. Sign up for an e-newsletter. Find out what you can do to help.
Backtrack
Environmental Update Main
Responsible Trade Main
In This Section
Trade Agreements
Trade Reports
World Trade Organization
Solutions
Campaigns
Take Action
News
Factsheets
Links & Resources
   
Search the Trade pages
Archives

Get The Sierra Club Insider
Environmental news, green living tips, and ways to take action: Subscribe to the Sierra Club Insider!

Subscribe!

Responsible Trade
World Trade Organization

At Cancun Summit, Bush Administration Advocates New Trade Rules that Put Communities at Risk

September 8, 2003
Cancun, Mexico: At the World Trade Organization (WTO) ministerial meeting in Cancun, Mexico, the environmental group Sierra Club is voicing the concern of its more than 700,000 members that the interests of corporations are being put above the interests of working families and environmental protections.

"The Bush Administration is putting the health and safety of our communities at risk by negotiating new international trade rules that make it much harder to protect our clean air, clean water, and public land," said Daniel Seligman, Sierra Club’s Senior Trade Fellow. "There’s a better way. We can make trade safe, clean and fair if our negotiators uphold environmental safeguards and agree to cut the subsidies for global agribusiness."

Daniel Seligman is the former Sierra Club Senior Trade Program Director, and represented the Club at the WTO meeting in Cancun. Please e-mail responsible.trade@sierraclub.org to reach new Trade Director Margrete Strand.

New "investor" and "services" rules under negotiation under the WTO threaten the ability of local, state and federal governments to protect the environment. Under Bush administration proposals, the services agreements could slash environmental safeguards for such risky industries as mining, logging, and factory farming. Under proposed new investor rules, the home countries of foreign companies in the United States would gain new powers to sue taxpayers for cash damages if environmental laws or other safeguards affect their profits.


Environmental Protections at Risk
Under the services rules on "market access," US trading partners could challenge the right of a local government to restrict the size or location of a new residential or commercial development.

States could be penalized for limiting the number of fishing licenses granted in coastal waters, the amount of waste dumped into a landfill, the amount of timber that can be logged from public lands, or the amount of water extracted from an aquifer. Even limits on energy production in wilderness areas could be challenged as illegal restrictions on "market access."

Clean Water at Risk
New investor rules on "expropriation" could prevent governments from setting standards that protect the public if doing so harms a foreign company's profits. For instance, the Methanex Corporation of Canada used NAFTA's investor provisions to sue U.S. taxpayers for $1 billion after California phased out a hazardous gasoline additive, which the company helps to manufacture.

Should Methanex prevail, the federal government would have to force California to reverse its ban or pay damages. Similar lawsuits are expected to grow if investor provisions are included in the WTO.

Under the services rules on "domestic regulation," our laws cannot be "more burdensome than necessary" to a foreign service supplier. This sweeping provision could unravel a wide range of protective laws and programs. For example, foreign water companies such as France's Vivendi/Veolia are already moving into U.S. markets to operate water systems. If local authorities then decide to improve water quality, cutting into profits, the foreign company could than ask its home government to challenge the new standards before the WTO.

Clean Air at Risk
The service rules would enforce a broad version of "non-discrimination" that could threaten a wide range of environmental safeguards. For example, California recently passed a law that requires automakers to reduce global warming pollution from cars. Germany could challenge the law as discriminatory on behalf of Daimler-Chrysler arguing it would suffer greater impact because it would have to spend more than other automakers to meet the new standards.

Instead of services and investor rules now under negotiations, we need trade rules that protect the environment, uphold the authority of federal, state and local governments, and strengthen communities while promoting commerce.

New rules shouldn’t give greater rights to foreign investors than US. Citizens have under U.S. law. Cuts in production subsidies for global agribusiness would reduce the crop surpluses that harm family farmers the world over and allow government to redirect funds toward sustainable agriculture, rural development, and conservation.


Factsheet: New Rules on Services Threaten our Air, Water, and Land
Factsheet: New Pro-Corportate Rules Threaten our Environment & Health


Up to Top


HOME | Email Signup | About Us | Contact Us | Terms of Use | © 2008 Sierra Club