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Contents
As a member of the Americas Policy Group (APG) of the Canadian Council for International Cooperation, KAIROS has closely monitored the negotiations of the secret Canada-Central America Four Free Trade Agreement (CA4FTA) that includes Guatemala, El Salvador, Honduras and Nicaragua. Canada has been in and out of negotiations of the CA4FTA since 2001, yet citizens and parliamentarians in both countries have been denied basic information on negotiating positions and draft texts. As a result of to civil society pressure on June 21st, one day before parliament shut down, the Standing Committee on International Trade finally held a hearing on the deal.
Canada has strong policy priorities and non-economic interests in the region stemming from our steadfast support for human rights and peace throughout decades of civil strife. These priorities need to be reaffirmed and prioritized in any economic agreement Canada pursues with these small, fragile economies.
Despite not having access to information, the little information that is known is generating great concern. A key aspect of Canada’s position includes negotiating an investment chapter akin to the problematic NAFTA Chapter 11. Although the new model proposes some changes to the definition of direct expropriation and includes a clause stating that countries have a right to regulate in the public interest it remains to be seen how effective these new aspects are in defending and preserving governments’ rights to regulate and uphold community rights since the model remains untested.
Regardless of these changes, some of the most worrisome aspects of NAFTA remain in the proposed CA4FTA: National Treatment (NT), the prohibition of performance requirements and judicial powers granted to trade tribunals.
The demand for NT in the context of developing countries does not work. There is a requirement for a negative list approach. This means that unless a government specifically lists which sectors are off the table, everything is open to liberalization. This approach has been severely critiqued in both the FTAA and WTO arenas.
In addition, the list of prohibited performance requirements has been expanded beyond what is found in NAFTA. Prohibited tools include local purchase rules, procurement obligations or domestic content. In that regard, the very same policy tools that Canada used to develop its own economy are being stripped away from these small developing economies.
With regard to the dispute-settlement mechanism - the tribunal process - it is disconcerting that tribunals continue to retain the power to make decisions affecting community rights.
Because negotiations have been held in near secrecy for over four years, the democratic process has been brought into question. Where are Canada’s true commitments to transparency, accountability and democracy without any healthy public debate, hearings with human rights experts, or participation of affected Central Americans? These key components would all contribute to an informed parliamentary debate that will provide parliamentarians with the opportunity to deliberate and decide.
Prior to the hearing, civil society tried to deliver an Open Letter signed by over 200 organizations in Central America, Mexico, the US and Canada to the government. The letter, which government officials refused to accept in person, called for the suspension of talks until there is a release of the texts and ample opportunity for public and parliamentary debate. To see the letter and the full text of the KAIROS submission to the Standing Committee go to: http://www.kairoscanada.org/e/media/lettersTopic.asp#3
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Take Action Now!
Although the Standing Committee eventually permitted KAIROS partner, Salvadoran economist, trade activist, and Hemispheric Social Alliance member Raúl Moreno to testify at the hearing, the ad hoc nature of the proceedings along with the lack of importance attached to these negotiations is cause for concern.
Standing Committee members need to be reminded that Canadians will not accept negotiations moving forward in secrecy. Our years of solidarity with Central America provide strong footing for us as we work to ensure that Canada continues to prioritize our human rights commitments in the region.
Write to the Chair of the Committee (ccing the members) calling on him to respond to the KAIROS-APG recommendation for an immediate suspension of the CA4FTA until draft texts are disclosed and there is informed public and parliamentary debate. Insist that this is an important issue for Canadians and demand serious deliberation of civil society recommendations.
| Chair: | Leon Benoit, Benoit.L@parl.gc.ca |
| Members: | Dominic LeBlanc LeBlanc.D@parl.gc.ca , Peter Julian Julian.P@parl.gc.ca , Ted Menzies Menzies.T@parl.gc.ca , John Maloney Maloney.J@parl.gc.ca , Pierre Lemieux Lemieux.P@parl.gc.ca , Guy Andre Andre.G@parl.gc.ca , Ron Cannan Cannan.R@parl.gc.ca , Mark Eyking Eyking.M@parl.gc.ca , Helena Guergis Guergis.H@parl.gc.ca , Pierre Paquette Paquette.P@parl.gc.ca , Lui Temelkovski Temelkovski.L@parl.gc.ca |
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