November 24, 2024
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Reviewing international trade agreements

The way in which the world operates is changing rapidly as world markets become integrated at an unprecedented rate. At the same time, the decision-making processes surrounding these changes are becoming increasingly inaccessible to the average citizen. International trade agreements should not simply be the arena of economists and international lawyers.

Trade agreements, such as the North American Free Trade Agreement (NAFTA) or the proposed Central American Free Trade Agreement (CAFTA), impact the lives of all people. Because these effects are both positive and negative, the citizens of Maine need the opportunity to understand and help to shape the role that this state plays in the global economy.

The Maine Citizen Trade Policy Commission was formed by the 121st Legislature in July 2004 in order to look at the ways in which international trade agreements are affecting life in Maine. The goal of the commission is to support international trade while ensuring that Maine is able to preserve its health, labor, safety, and environmental standards.

The commission consists of Maine legislators, workers, business people, and representatives from nonprofit and development organizations. The group will work both as a resource to educate the public and policy-makers on trade issues and also as a venue through which citizens can air their suggestions or concerns regarding international trade.

In many ways, international trade is producing real benefits for the Maine economy. From 1998 to 2003, Maine’s exports increased by twenty percent. Maine companies benefit from this expanded market in which to sell their goods.

However, existing trade agreements also place constraints on a state’s freedom to govern itself and to protect the health and well-being of all its citizens. For example, Chapter 11 of NAFTA establishes a mechanism through which corporations can sue governments if they believe that a law affects their right to property, market access, or future profits. There is no transparency in these trials, which are held in secret in

ad hoc international tribunals.

For example, in the case Metalclad v. Mexico, the U.S. corporation Metalclad sued the Mexican government when it tried to prevent the company from running a hazardous waste facility on top of an aquifer that provided drinking water to a town in San Luis Potosi. Metalclad won the dispute and was awarded $16.5 million from the Mexican treasury. The case of Metalclad v. Mexico sets a dangerous precedent for future cases. The Canadian corporation Glamis Gold is currently filing a suit against California, claiming that the state’s laws that protect Native American sacred sites interferes

with its right to future mining profits.

CAFTA, which will go before Congress for a vote later on this year, includes expanded investor-state dispute resolution provisions. Under NAFTA, states can challenge the decisions of the international tribunals in national courts. However, under CAFTA, cases will be reviewed in a different international tribunal, removing the possibility for review by our domestic courts.

These investor-state dispute provisions significantly impacts Maine’s ability to set its own environmental, health, safety, and labor standards. Some of our state laws that could be challenged include access to affordable generic prescription drugs, drug reimportation laws, and zoning and land-use regulations that have been put in place to encourage smart growth. These are important issues that deserve a healthy debate by

the citizens of Maine.

State governments have been largely excluded from the negotiations of international trade agreements. A federal agency, the United States Trade Representative (USTR) negotiates trade agreements for the U.S. government. Despite the impacts that NAFTA has on state government, the USTR negotiated NAFTA without consulting the states or asking for their consent.

The Maine Citizen Trade Policy Commission will hold a public hearing from 7 p.m. to 9 p.m. Feb. 3 at Husson College in Bangor. The hearing will provide a venue through which the public can share and discuss the ways in which international trade agreements are affecting their lives. We hope you will join us. The time has come for the people of Maine to have their voices heard as international trade agreements are negotiated.

This commentary was written by Sen. Peggy Rotundo, D-Androscoggin County, and Rep. John Patrick, D-Rumford.


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