A LOOK INSIDE THE TRANS-PACIFIC PARTNERSHIP Canadian Centre for Policy Alternatives, November/December 2016 November/December Alternatives, Policy for Canadian Centre Contributors Ben Lilliston Frank Bayerl is Director of Corporate Vol. 23, No. 4 is a translator by trade who Strategies and Climate ISSN 1198-497X volunteers at the CCPA’s Change at the Institute for Canada Post Publication 40009942 national office in Ottawa and Agriculture and Trade Policy. CCPA Monitor is published six times contributes regularly to the Jen Moore a year by the Canadian Centre for Monitor. is Latin America Program Co- Policy Alternatives. Gail Davidson ordinator at Mining Watch The opinions expressed in the CCPA is a lawyer (retired status) Canada, working to support Monitor are those of the authors communities, organizations and do not necessarily reflect whose work is devoted to and networks in the region the views of the CCPA. promoting global adherence to international human struggling with mining Please send feedback to conflicts. [email protected]. rights and humanitarian law through advocacy, Dr. Pamela D. Palmater Editor: Stuart Trew education and research. She Senior Designer: Tim Scarth is a Mi’kmaw lawyer and is the founder and executive Layout: Susan Purtell member of the Eel River Editorial Board: Peter Bleyer, director of Lawyers’ Rights Bar First Nation in New Kerri-Anne Finn, Seth Klein, Kate Watch Canada. Brunswick. She teaches McInturff, Erika Shaker, Emily Turk Lynne Fernandez Indigenous law, politics CCPA National Office: is the Errol Black Chair and governance at Ryerson 500-251 Bank St., Ottawa, in Labour Issues with the University and is Chair in ON K2P 1X3 CCPA-Manitoba. She has a Indigenous Governance. tel: 613-563-1341 particular fondness for labour In June, she presented to fax: 613-233-1458 Parliament’s international [email protected] and environmental issues, as trade committee on the HELP US SHED LIGHT ON THE www.policyalternatives.ca well as community economic Twitter: @ccpa development, government impacts of the TPP on facebook.com/policyalternatives policy and economic history. Indigenous rights and governance. ISSUES THAT MATTER TO YOU. 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ON THE COVER THE TPP BEHIND THE NUMBERS AND CANADA 12 The landlords gaming Airbnb in Toronto It’s big, menacing and stands Trish Hennessy and Zohra Jamasi /8 There is no case for LNG in B.C. no chance of improving Marc Lee /9 the Canadian economy or How to support workers hit by cap-and-trade in Ontario sparking global growth. CCPA Meg Gingrich /11 researchers and colleagues FEATURES unpack the embattled Trans- Northern development Pacific Partnership on the eve should benefit northerners of a U.S. election that could Lynne Fernandez /32 B.C.’s Site C dam and First Nations decide the deal’s fate. Gail Davidson and Rohan Shah /36 Murdered Honduran activist’s legacy lives on in her daughter Asad Ismi /40

ARTS Canadian imperialism in Latin America: Jen Moore reviews Blood of Extraction by Todd Gordon and Jeffery Webber /43 Noam Chomsky’s Who Rules the World reviewed by Frank Bayerl /47

NOTE FROM THE EDITOR /2 LETTERS /4 NEW FROM THE CCPA /6 INDEX /27 THE GOOD NEWS PAGE /42 Note from the editor Stuart Trew Continuity and “real change”

YEAR AGO, CANADIANS voted for “The Crown’s practice of relying supply chains, not consumers) is in- “real change.” Today, questions solely on engagement activities by timately connected to Canada’s free are being raised about whether industry proponents and complet- trade agenda—the one policy area Athe Liberal government is pre- ing the Crown’s consultation obli- where the Liberals and Conserv- pared to deliver on some of its most gations after project decisions are atives in government clearly sing hopeful election pledges. made is wrong-headed and has to from the same hymnbook. With each For example, the party promised end,” wrote Assembly of First Na- new free trade deal the tools Cana- the 2015 election would be “the last… tions Chief Perry Bellegarde in the dian regulators are allowed to use— conducted under the first-past-the- Toronto Star after the Site C green for protecting the environment, en- post voting system.” But months into light. “The practice of forcing First hancing public services, better organ- a cross-Canada public consultation Nations to court because the regula- izing the delivery of private services, on what a new voting system might tory system is not designed to con- or improving food quality standards, look like, Prime Minister Trudeau has sider our rights before decisions are etc.—are fewer and fewer. suggested reform may be less urgent made, has to end.” One of those deals, the Trans-Pa- with the Harper Conservatives out Should we be surprised about the cific Partnership, is the focus of this of power. gap between the government’s rhet- special issue of the Monitor. As ex- In October, the government moved oric and its actions? Probably not. plained in our “Coles Notes” sum- swiftly to ratify the Paris climate For some time, Canada’s two dom- mary and accompanying features, agreement and announced it would inant political parties have shared the TPP will place even more oner- create a national carbon pricing the economic belief that “the mar- ous restrictions on Canada’s ability scheme by 2018. But Environment ket” works best when free of state to protect the environment, expand Minister Catherine McKenna has meddling. Where regulatory agen- the health care system and keep the now said Canada will not revisit the cies have sought to respond to new cost of medicines down, transition Conservative government’s low tar- public needs or new science (e.g., on away from fossil fuels to a more re- get of reducing greenhouse gas emis- GMO labelling, plain packaging laws newable energy and industrial mod- sions by 30% under 2005 levels by on tobacco, bans on likely toxic chem- el, and meet its obligation to consult 2030—a target Canada will not even icals or more activist climate policy) with First Nations on all matters af- be able to meet because of planned they have been frequently shut down fecting their international and trea- expansion in the fossil fuel sector. by politicians or powerful corporate ty rights. The pursuit of new energy pipe- interests. Responding to public and some lines and other megaprojects—a cor- The National Energy Board has be- business concerns about the TPP, nerstone of Conservative economic come a rubber stamp for fossil fuel the Liberal government has been policy—has been unaltered so far megaprojects, for example. Health consulting for the past year on by the government’s stated goal of Canada seems more interested in ap- whether Canada can ratify the deal working toward real reconciliation proving new GMOs, based on indus- or not—a decision the prime minis- with First Nations. In a move that try science, than on opening the test- ter will likely not make until after a angered many Indigenous commu- ing process to independent scrutiny. new U.S. president takes office in the nities in British Columbia, the fed- Deregulation reforms initiated short- new year (see Scott Sinclair on page eral government recently approved ly after Canada signed a free trade 12). “[P]eople do not feel that trade is both the unnecessary and highly un- agreement with the United States in working for them,” said Trudeau at a popular Site C hydroelectric dam on the late-1980s have rolled along since youth labour summit in Ottawa last the Peace River (see Gail Davidson then no matter who held power in Ot- month, echoing comments from Ca- and Rohan Shaw on page 39) and an tawa, all in the name of reducing the nadian Trade Minister Chrystia Free- equally controversial liquefied natu- burden on business and eliminating land. ral gas pipeline to transport fracked barriers to trade. The TPP doesn’t just expand NAF- gas to the West Coast (see Marc Lee In fact, the deregulation project TA geographically, it entrenches a on page 7). (or re-regulation to serve business type of globalization that has con- 2 centrated income in the hands of The TPP will presidential nominee Donald Trump, the global one per cent, and which Canada’s prime minister answered contradicts the positive objectives place even “as a feminist, as someone who has of the Paris climate agreement and more onerous stood clearly and strongly all my life UN Sustainable Development Goals. around issues of sexual harassment, But while a parliamentary trade com- restrictions on standing against violence against mittee scrutinizes the transpacific Canada’s ability women.” Words matter—they are the agreement, the government has es- entry point for a true understanding sentially shut out democratic debate to protect the of the too many ways women remain about an equally (and in some cases environment. unequal citizens in this country. more) harmful deal with the Europe- It is a positive sign that where the an Union. federal government once saw deficits The fate of CETA hung in the bal- lurking behind every positive public ance as the Monitor went to print. policy enhancement, it is current- Despite enormous outside pressure, ly (if mostly on paper for now) look- the plucky government of Wallonia, ing to invest large amounts of mon- and its charismatic minister-pres- ey in public and private infrastruc- ident Paul Magnette, held out for ture. The Canada Child Benefit has changes to the agreement, particu- been a relief for many families strug- larly its controversial investment undermines the already laughable gling to raise children. The success or court system. European consumer, idea that CETA is “the most progres- failure of the program should not be environmental and other civil socie- sive” trade deal either Canada or the judged by whether or not monthly ty groups, who have been campaign- EU has ever negotiated. government cheques are stimulating ing for two years against CETA and Some things have changed for the personal consumption. a sister agreement with the United better since the 2015 federal election. The government has in these and States, support the Walloon resist- Where the last government encour- other ways changed the conversa- ance, as do hundreds of cities that aged us to see terrorists under every tion, and polls show the public shares have declared themselves CETA/ bed, behind every encrypted phone Trudeau’s more optimistic world- TTIP-free zones. call, and entering the country in large view. But as long as the fundamen- Given Canada’s dismal record of numbers as refugees, the new regime tal building blocks of our economy being sued under NAFTA’s inves- talks of strength in diversity, and the stay in place—extractivism, deregu- tor-state dispute process, one might social and economic benefits of wid- lation, the pursuit of anti-democratic expect our new government to jump er immigration. trade deals—Canadians are sure to at the chance to fix or remove the Likewise, it is important that when see more continuity than change, let same anti-democratic feature from asked about sexual harassment and alone the “real change” they so clear- its European deal. But it hasn’t, which sexual assault allegations against ly demanded a year ago. M

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Send mail to 500-251 Bank St, Ottawa, ON K2P 1X3. FURTHER For more information, contact Jennie at 1-613-563-13413 ext. 305 or [email protected]. real concern to bear on background, though they model in that the buyers, the undemocratic state of made up only between rather than the sellers, Canada’s news media. The 1.7% and 7% of the of sex will be charged shock and awe of American population. When asked as criminals. This type citizens and the world at about their current of legal framework has large at a massive outbreak needs, respondents in the also been adopted in of neofascist opinion Vancouver study were Norway, Iceland and, most among the marginalized most likely to list four: to recently, Northern Ireland working class of America, exit prostitution (95%), and France. While it may Leers and the threat to the to get drug or alcohol be the case that the law nation’s judicial system, addiction treatment (82%), needs to be strengthened, is frightening evidence of job training (67%) and a there is absolutely no what can result from years home or safe place (66%). acknowledgement in Can the media of cultivated ignorance. Clearly, those involved the CCPA article of the be fixed? in prostitution are not a existence of the bill or of George Burrett, typical cross-section of the Nordic model. The issue hank you to Marc Edge Cambridge, Ont. women in Canada, nor do now in Canada should be to for describing the failures T they appear to be a group work to uphold the law as of past, feeble attempts to of people who have freely it exists, ensure there are act on ongoing, seemingly The Nordic chosen the sex trade. rigorous exit and recovery continuous public concern model works programs available for for the increasing business Let’s now take a look at the read with dismay the those who wish to leave and political bias of demand side. In a 2009 article in the January- prostitution, and work Canadian news sources I study by the London, U.K. February issue of the with educating police and their concentration group Eaves, among 103 Monitor entitled “Sex forces so that they are fully (“Can Canada’s media be men interviewed about Work is Work,” which is committed to upholding reformed,” May-June 2016). their use of trafficked most notable for what it the law. women, the four reasons The emergence of does not say and for its most often cited for buying Rosemary Dzus, digital newcomers like complete lack of data. sex were the immediate Deux-Montagnes, Que. the National Observer, The article seeks to frame satisfaction of a sexual along with the The Tyee prostitution as just another urge, entertainment or in Vancouver, testifies way to make a living. There pleasure, the ability to seek to the mainstream is no acknowledgement Banking reform variety in sexual partners news vacuum where of the core issue: why clarification based on physical, racial the impact of extractive does prostitution exist? appreciate David or sexual stereotypes, industries on Canadian Is it because so many MacDonald’s article and lack of sexual or I ecology and politics is women and girls are (“Ask the CCPA,” July- emotional fulfillment in concerned. In fact, the clamouring to join this August 2016) saying a current relationship. In words “social democracy” glamorous profession? Or that provinces and other words, buying sex, never appear in Canada’s does it have more to do municipalities in Canada for men, appears to be “national newspaper,” with desperation and the could be saved money, simply the fulfillment of and its “science reporter,” demand side—the (mostly) without causing inflation, their sense of entitlement appearing ever more men who want to buy sex? through receiving interest- to have sex whenever they infrequently, forgoes free loans from the Bank In Canada, according to a want. The evidence for the mentioning the latest of Canada. Mentioned, but 2005 study in the journal truth of this is being borne atmospheric CO2 readings not stressed, is the fact Transcultural Psychiatry, out in Sweden, where the or even climate change. the federal government most people in prostitution number of men buying The longtime reader has to could benefit similarly. enter as adolescents (89%) sex has been reduced go back to issues from the But try as I may, I cannot starting before the age of from one in eight to one in 1980s to find meaningful follow his argument that if 16, some 12 or younger. 13, according to Swedish news or comment about the Bank of Canada made A majority of them (82%) journalist Kajsa Ekis Ekman. concerns for the biosphere. such loans, its participation were sexually abused as Swedes overwhelmingly in the private banks’ The late senator Keith children. In the same study, support the law, which cheque-clearing process Davey should also be Indigenous women were criminalizes buyers but not would result in costing mentioned as the last shown to be dramatically sellers of sex. the federal government “activist” member of overrepresented—52% of Canada recently passed money (how much is not that now-tormented those in Vancouver’s sex a law that follows the clear). The upshot of the chamber, who brought trade were of Indigenous Swedish (or Nordic) article is an unenthusiastic 4 acknowledgement that Our Liberal government should be true of those of Do we even have the right such loans are possible, but does not have to consult us who live in large cities, to supplant populations perhaps inadvisable. with Wall Street bankers as well as those who live in of other species to make (as I understand it has remote communities in the more space for ourselves? Missing from this article is been doing) about how to North. The idea of funding All these factors will any mention of the huge establish an infrastructure this service through contribute to not only a amounts of interest that bank, which would surely our taxes should be no higher climate temperature governments at all levels favour private banking more controversial than but also an increased across Canada have been interests. We already have spending tax dollars on shortage in food supply, paying on their debts to our publicly owned Bank roads, other infrastructure just as the needs increase. private banks and other of Canada, which served us and health care. The increase in industrial- private money lenders— very well between 1938 style agriculture promoted some $50 to $60 billion Marcia Almey, Ottawa, Ont. and 1974, and could be by some sources is, at best, each year, even with used now for infrastructure only temporary. It borrows current low interest rates. and for all sorts of other from the future potential Use of the Bank of Canada public benefits. Population of the land by mining it of to provide interest-free and climate its nutrients and befouling loans could enable our George Crowell, have just been reading the soil with all sorts of governments to phase out London, Ont. the powerful article by chemical interventions. their interest payments, I Naomi Klein in the last And, of course, these to invest quickly in issue (“Edward Said and higher levels of population infrastructure with green Keep postal the violence of othering will need to consume ever- jobs, and to overcome services public in a warming world,” larger quantities of all our the devastating austerity am writing to thank you September-October 2016). resources, both renewable agenda. I for the excellent article However, I am concerned and non-renewable. Also missing from the on Canada Post by Erika that this article is similar I am not optimistic about article is mention of the Shaker (“Canada Post’s to most commentaries on the outcome and, in spite fact that about 97% of reality check is in the mail,” climate change in its failure of my advancing age, I our money in circulation September-October 2016). to recognize the role of am distinctly unhappy has been created out of While I agree with all the population growth. about it. I think of the nothing by private banks points Ms. Shaker made, It seems as if the disturbing legacy we are in their process of making I would like to raise an population explosion leaving to our children loans. Bank-created money additional issue, and that is is being accepted as and grandchildren. I see requires interest payments that there is no reason why inevitable rather than as too few signs of society that add 30% to 40% to Canada Post should be, or another aspect of the crisis taking the draconian steps the cost of everything we— need be, making a profit. demanding our attention. needed to bring the Earth businesses, governments Postal service should be a The increased consumption back to a sustainable and ordinary folk—buy. service that is available to of all resources due to level of occupation If all these parties began all Canadians, no matter this reality will be very and consumption of its responsibly to pay off their what their location. In measurable. A population resources. debts, the money supply geographical terms, Canada of nine billion in 2050 will would shrink, quickly Peter Moller, Almonte, Ont. is the second largest be much more of a threat bringing on depression. We country on the planet, and I to our survival than the need to have in circulation think it is reasonable to say current seven billion. We lots of debt-free Bank of that all Canadians should are rapidly filling up our Correction Canada–created money in have access to postal spaces with human bodies, In the Good News Page of order to have a thriving, service. Just as we expect gradually taking up space the September-October fiscally responsible our health care system and needed by other flora and issue, it should have read economy. CBC/Radio-Canada to be fauna, and for agricultural that Salt Lake City hopes to Would Bank of Canada available and accessible production. This is even reduce carbon emissions by lending cost the federal by all of us, so also should true in Canada where we 80% by 2040 (not 2014). government money? postal services. have a relatively small Perhaps. But would not area of land suitable for Postal delivery was never its savings on interest agricultural production and intended to be a money- payments, and its are rapidly turning natural making enterprise, rather a increased tax receipts from areas and agricultural land service that we all should a stimulated economy, into urban or suburban Send us your feedback expect as residents of this greatly exceed its costs? development. and thoughts: monitor@ very large country. This policyalternatives.ca 5 heart of its advertising campaign, and what the data reveals. For example, almost two-thirds (64%) of Airbnb listings in Toronto are for entire homes (houses, apartments or condos), while private room listings Behind the represent 33% and shared rooms only 3% of available city listings. Overall, 13% of hosts in Toron- to have more than one listing. This small group is a key player in the Airb- numbers nb business in Toronto — renting out 37% of all listings and generating 46% of estimated revenues in the city. ZOHRA JAMASI AND TRISH HENNESSY Not only does Toronto’s waterfront region attract the greatest number of Airbnb listings and visits, growth there Nobody’s business: has soared over the past year — from about 400 listings between Decem- Airbnb in Toronto ber 2013 and May 2014 to 1,676 in July this year. A remarkable 84% of these listings are for entire homes (hous- ome sharing” platform on the Airbnb website — a 288% in- es, condos or apartments) and 35% Airbnb has grown signifi- crease from December 2013. of those listings are posted by hosts “Hcantly in popularity, includ- What type of listings predominate with multiple listings. ing in Canada, since hitting the market Airbnb rentals in Toronto? Where are This begs the question: Are the To- less than 10 years ago. But how much those listings located? And who is do- ronto waterfront’s Airbnb hosts part “sharing” is really happening? ing the renting? of the sharing economy or are they We looked into Airbnb activity for Our new report for the CCPA-Ontar- an extension of unlicensed short-term Toronto, whose city council is just io, Nobody’s Business, came up with rentals? beginning to grapple with regulatory some surprising findings. A look at vacancy rates for row/ap- considerations. Airbnb markets its service as an op- parent rental units in Toronto’s three The first thing we noticed was Air- portunity for homeowners to make ex- Airbnb hotbeds raises a significant bnb’s dramatic rise in popularity: in tra money by “sharing your extra space concern for policy-makers tasked with 2011, there were no known Airbnb with travellers.” But we found a dis- ensuring affordable housing in the city. listings in Toronto. In July 2016, there connect between the Airbnb narra- Vacancy rates have virtually flat- were 10,156 Toronto rentals available tive around “sharing,” which is at the lined in the Liberty Village and

6 OPEN GRID SCHEDULER Church-Yonge areas, and increased MARC LEE by only 2% in the waterfront commu- nity between 2013 and 2016, which is far less than the rise in the number of The abysmal condos or units that have been built in that area. economics of LNG The affordable housing waitlist in Toronto is one of the longest in the country: there were 82,414 house- n the lead up to the last provincial ports. China is a small but growing holds on the list in 2015, representing election, British Columbians learned player in LNG (about 8% of global im- a 5.1% increase over 2014, according Iabout an economic panacea named ports), but saw no import growth in to the Ontario Non-Profit Housing As- LNG: liquefied natural gas. This new 2015 due to its economic slowdown. sociation. industrial sector would take vast China also has other, cheaper options The increase in unregulated, short- amounts of fracked gas piped from like piped gas from Russia, so it is not term rentals could very well impact northeast B.C. and convert it to liquid clear that future Chinese economic the supply of long-term rentals and form for shipment to Asia, where high growth will be sufficient to drive up potentially increase the cost of the prices would justify multi-billion-dol- global demand for new LNG supply. rest of the available housing stock. lar investments. B.C., it was alleged, On the supply side, major new liq- Many U.S. cities are already experi- would benefit from a staggering $100 uefaction capacity has come online encing this and have moved to regu- billion in additional revenues to the from the United States and Austral- late Airbnb. public sector, and 100,000 new jobs. ia, with much more to come between In San Francisco, where short-term The CCPA has been critical of these now and 2020. According to the IGU, rentals have been blamed for con- bloated claims, while raising con- new LNG plants already under con- tributing to the city’s housing crisis, cerns about the impacts such meg- struction will add 142 million tonnes the city’s board of supervisors fines aprojects would have on energy se- to global supply. That’s equivalent to Airbnb $1,000 a day for every unreg- curity, carbon emissions and key en- almost half the existing world LNG istered host on its service, and effec- vironmental areas like water. But it is market (301.5 million tonnes in 2015). tive July 2, 2016, hosts are required to neither climate nor environmental is- In spite of current low prices, oil and pay $50 to register. In New York, law- sues that are hampering the birth of gas companies in B.C. and elsewhere makers have made it illegal to rent a an LNG industry; rather, it is the glob- have kept production levels high rath- whole apartment on Airbnb for fewer al marketplace. er than lose market share, in order to than 30 days. Anaheim, California has In part this reflects the massive get any cash flow they can after hav- decided to phase out and ultimately drop in oil prices since the second half ing sunk billions upfront into projects. ban short-term rentals in that com- of 2014, which has continued into this You don’t need a degree in eco- munity, while Chicago has set limits year and is likely to persist for the fore- nomics to conclude that surging sup- on where and for how long listings seeable future. Because LNG prices ply amid weak demand will lead to can be available. are often contractually linked to the lower prices—and these conditions It is clear the City of Toronto, and price of oil, price falls get passed onto could persist for some time. The IGU other Canadian communities with LNG. It is also about the specific sup- report shows how much prices have a growing Airbnb listing base, have ply and demand dynamics of the glob- come down relative to the heady days many options for addressing the poli- al trade in LNG: a lot of new supply of 2012–13, when the B.C. government cy issues that arise from online short- coming onto the market but a weak- began its wishful thinking about LNG term rental platforms. One thing is ening of demand. riches (see Figure 3.16 of the IGU re- for certain: short-term rentals offered A look at the International Gas Un- port). through the platform do not in any ion’s 2016 World LNG Report is instruc- Note that by 2015, prices fell below way help the problem of low vacancy tive. On the demand side, the heyday $10 in all key regional markets. This is rates for long-term renters seeking af- of high prices in Asia came largely in a significant threshold as the full cost fordable housing in Toronto and else- the aftermath of the Fukushima nu- of getting LNG to Asia (including ex- where. clear disaster, which led the Japanese traction, processing, pipeline, lique-

ZOHRA JAMASI IS AN ECONOMIST WITH THE CANADI- government to take its nuclear capac- faction, shipping and regasification) AN CENTRE FOR POLICY ALTERNATIVES’ ONTARIO OF- ity offline. A nuclear scandal in South is estimated to be about $10. If B.C. FICE (CCPA-ON). TRISH HENNESSY IS THE DIRECTOR OF CCPA-ON. Korea involving faked safety docu- exporters could get that price, they mentation also led to reactors being would break even and perhaps turn a shut down. small profit. For the B.C. government In both cases this capacity is being to generate substantial additional restored, and in 2015, LNG imports fell revenues by taxing LNG profits, pric- by 3.5% in Japan and 12.2% in Korea. es would need to be much higher. Yet, Importantly, the two countries rep- by May 2016, the price of LNG in Asia resent almost half of global LNG im- dropped even further than the figure 7 Monthly Average Regional Gas Prices, 2009–16 to help out a B.C. government that has staked so much political capital 20$/mmBtu on LNG. Despite a green light for the project from the Trudeau government 15 in late-September, Petronas still faces challenges in getting the approval of First Nations on the north coast. 10 Perhaps the best shot B.C. has at reaching a final investment decision is the relatively small Woodfibre LNG 5 plant proposed near Squamish. This plant is only a fraction of the size of the proposed Pacific Northwest LNG 0 or LNG Canada facilities. It also does 2009 2010 2011 2012 2013 2014 2015 2016 not require significant new pipeline capacity, and can tap into BC Hy- US (Henry Hub) UK (NBP) German Border Price dro electricity (although a purchase NE Asia Spot Price Japan (based on LNG) agreement has not been signed). The project has received approval from Source IGU, 2016 World LNG Report federal and provincial governments, and from the Squamish First Nation. According to news reports, the pro- on this page shows—to $4.24, as re- LNG Canada announced it was post- ject has buyers for half its planned ported in the Wall Street Journal. poning a final investment decision on supply. But it still faces local opposi- In this tough economic environ- its proposed terminal in Kitimat. tion from the people of Squamish. And ment, major oil and gas companies Further up the coast, an LNG ven- even this smaller proposal has signifi- have been under pressure to reduce ture with similar characteristics, pro- cant GHG impacts, as I’ve outline pre- their capital spending. The IGU adds posed for Alaska, was also shelved. viously for the CCPA. that B.C.’s prospects have been hurt This project featured carbon majors Four years down the road, B.C.’s LNG by an inability to secure buyers and BP, ExxonMobil and ConocoPhillips, dream is still just that—a dream— high costs relative to the alternatives: but proponents decided in August largely due to global market condi- not to proceed to the design and en- tions. While one or more LNG projects Apart from high liquefaction gineering phase. A report commis- could get off the ground in coming costs, greenfield projects sioned by the proponents found: years, they would need Asian buyers proposed in Western Canada willing to pay a substantial premium and Alaska require lengthy Currently the competitiveness over market prices for the privilege of (300 miles or more) pipeline of the Alaska LNG project locking down several decades of sup- infrastructure. Fully integrated ranks poorly when compared ply. Virtually no one outside the B.C. Western Canadian projects have to competing LNG projects government believes that an LNG in- announced cost estimates of that could supply North Asia, dustry of five to seven plants is real- up to $40 billion, while in Alaska specifically Japan, South Korea, istic. the estimate ranges from $45– China and Taiwan.… [N]ot In light of concerns the costs of 65 billion. only will the project not make LNG development could vastly exceed sufficient returns for investors Arguably, the B.C. government has benefits, this delay is a good thing for at current LNG market prices, pulled out all the stops to lower the the province. Indeed, as governments but it may struggle to make cost of capital for potential LNG inves- begin to take serious climate action acceptable returns even under a tors. Yet, the IGU also finds that the in response to the 2015 Paris Agree- US$70/bbl [oil] price. B.C. government’s attempts to provide ment, future demand for fossil fuels certainty on taxes and regulatory re- Another massive B.C. proposal, Pa- will be squeezed in favour of renewa- quirements are “unlikely to have a ma- cific Northwest LNG (on Lelu Island ble sources, with only lower-cost sup- jor impact on the overall pace of pro- near Prince Rupert), led by Malaysia’s plies being developed. The legacy of ject development.” Petronas, has also delayed making a the B.C. government’s failure to close Even those LNG projects that have final investment decision many times. a deal on LNG may be saving com- major buyers as equity partners have In 2015, it issued a “conditional final in- panies from investing in tomorrow’s been reluctant to say yes to expensive, vestment decision” after a deal with stranded assets, as the world shifts multi-decade LNG megaprojects. This the B.C. government to lock in the tax away from fossil fuels.

includes the LNG Canada consorti- and regulatory regime for 25 years. MARC LEE IS AN ECONOMIST WITH THE CCPA-BC. FOL- um led by Shell, with PetroChina, Ko- But conditional is not final, and this LOW HIM ON TWITTER @MARCLEECCPA. gas and Mitsubishi as partners. In July, statement may have been an attempt 8 MEG GINGRICH ducing emissions from energy-inten- sive industries cannot be to offload our emissions to other jurisdictions Cap-and-trade’s where emissions standards and wag- es are lower, while causing the loss of potential impact on many well-paid jobs in Ontario. Any broad-based climate change strategy Ontario jobs must ensure that this type of carbon leakage does not occur. Along with low wages for work- ers, and inadequate health and safe- his spring, the Ontario Govern- ergy-intensive and trade-exposed in- ty standards, steel from places such ment introduced legislation that dustry, will be negatively impacted by as China and India has a much larger lays the groundwork for a green- GHG emission reduction efforts. T carbon footprint than the steel made house gas cap-and-trade system and The initial four-year exemption in Ontario. This is a result of produc- is the legislative basis for Ontario for large industrial emitters may be tion methods, electricity sources for joining Quebec and California in the a short-term solution. However, we steel-making and emissions from Western Climate Initiative. Setting need a more comprehensive plan to transportation. Options to address emission reduction targets and put- deal with the threats posed by carbon these carbon leakages include tar- ting a price on carbon are essential leakage and trade agreements over iffs, taxing imported steel to reflect to combat climate change. This leg- the longer term. The solution to re- the environmental cost of produc- islation is a decent start, but there is tion and transportation, and invest- more that needs to be done on a num- ing in the domestic steel industry to ber of issues, including internationally compete with state subsidies in oth- traded goods, the use of funds raised 2010 GHG Emissions By Sector er jurisdictions. Ontario, as a sub- through cap-and-trade and just tran- national jurisdiction, has somewhat sition for workers in carbon-intensive limited options, but that does not industries. mean it has none. The province could The government has made only press the federal government to im- broad statements acknowledging pose border carbon adjustments to the connection between jobs and the ensure that the true environmental cap-and-trade legislation, stating: Transportation 34.9% price is reflected in the cost of im- “good environmental policy is good ported steel. economic policy. Reducing our use of Alongside such efforts, the govern- fossil fuels, such as coal, oil and gas, ment must also make concrete plans will create jobs now and form a central to address the impact on workers in pillar of our prosperity in the coming industries more affected by measures years.” Its focus is frequently on start- to lower greenhouse gas emissions. ups that may emerge, or on promoting That should include using the planned private electric car ownership rather Greenhouse Gas Reduction Account than public investment. Industry 26.0% to help displaced workers transition The hope seems to lie in incentives into new areas of work. Marginalized for private business to take on large- groups, who might bear a dispropor- scale shifts that will be required rath- tionate impact of a transition to a low- er than a focus on the need for large- er-carbon economy as a result of high- scale public projects like transit in- er electricity prices, should also bene- frastructure. This sidesteps the issue Electricity and Heat fit from the fund. These kinds of specif- that government will have to lead the Generation 11.6% ics need to be added to the guidelines way to protect workers from mass job on the use of the funds. displacement as a result of this pol- Border adjustments, intelligent use icy. Residential Buildings 10.8% of the Greenhouse Gas Reduction Ac- The steel industry is an example count, and involvement of workers to of the kinds of industries and work- Agriculture and Waste help determine the best way to shift ers that will be affected. According to Non-Energy toward a less carbon-intensive econ- the Canadian Steel Producers Asso- 10.5% omy are necessary to ensure Ontario’s ciation, the industry in Canada pro- C&I Buildings legislation is effective. vides 20,000 direct and 100,000 indi- 6.3% rect jobs, many of which are unionized MEG GINGRICH IS A RESEARCHER WITH THE UNITED SOURCE Climate Vision: Climate Change Progress Report STEELWORKERS’ CANADIAN NATIONAL OFFICE. and located in Ontario. Steel, as an en- (Government of Ontario) 9 purposes to set up a short- corporations and foreign Prices for most products term rental business investors,” wrote Sinclair rose in Alberta after without being subject to and Trew in a Toronto Star privatization, even as the regulatory oversight.” column in September. “It is percentage of revenues a backward-looking, last- going to government went century free trade deal down. Alberta’s move to Making (more) that will erect even more privatization has resulted New from sense of CETA barriers to addressing in a deadweight welfare today’s two most pressing loss, says Flanagan. the CCPA he Canada–EU free issues: climate change and Not only do consumers T trade agreement (CETA), inequality.” pay more, but alcohol negotiated by the Harper consumption has increased. Conservatives but fully As Alberta’s net revenue “Commercial” hosts embraced by the current Liquor regulation from sales decreased, so dominate Airbnb in Liberal government, was in Manitoba too did its capacity to deal Toronto still on rocky ground with the health and social in Europe when the ew research by the problems arising from t’s supposed to be a Monitor went to print. N CCPA’s Manitoba alcohol consumption. “home sharing” platform, Environmentalists, labour office concludes the I Overall, Manitoba has the but a small percentage unions, students, farmers provine’s liquor sales and best results among the of hosts account for and hundreds of other distribution model is better four western provinces just under half of all progressive organizations than in other western in mitigating the harms Toronto Airbnb revenue, are so opposed to CETA provinces. generated by alcohol according to estimates in that its ratification cannot Balancing Convenience consumption. But there a new report by the CCPA’s be assured. with Social Responsibility, is always room for Ontario office. The CCPA recently by public finance improvement. In some In Nobody’s Business, partnered with a dozen economist Greg Flanagan, instances, such as alcohol CCPA-ON Director Trish European NGOs to produce finds that Manitoba abuse or dependence, our Hennessy and economist a follow-up to the 2014 employs the responsible standing is worse than the Zohra Jamasi find that report Making Sense of social practice of setting national average. In order 13% of Toronto’s Airbnb CETA, so that citizens in alcohol taxes so that more to improve these results, hosts offer 37% of the Canada and Europe have revenue is collected on we need to maintain our city’s total listings, which the fullest information a lower volume of sales. commitment to a strong generated 46% of all possible on CETA’s This method dampens the public system, argues Airbnb rental revenues in likely impacts on public tendency to over-consume Flanagan. Toronto in July 2016. More services, environmental while raising necessary than this, the report finds and consumer safety revenue to pay for the that 64% of listings are regulations, financial health and social programs B.C. underfunding for entire homes (houses, stability, food sovereignty that alcohol consumption education apartments or condos), and democratic inevitably necessitates. compared to 33% for governance. ontrary to provincial Government net income as private rooms. (See Behind government claims Scott Sinclair and Stuart a percentage of revenue C the Numbers on page 8 for that education funding is Trew of the CCPA were from the sale of alcohol more details.) at “record levels,” a new invited to Europe in is lowest in Alberta, analysis from the CCPA- “For a company that bills October for a Week of where liquor sales are BC finds it has dropped by itself as an opportunity to Action on CETA, where they fully privatized, and 25% since 2001 as a share share your home for extra went over the concerns second lowest in B.C., of the provincial economy cash, a large proportion raised in the report with whose system is also (GDP). of listings are posted by a elected representatives, partially private. Manitoba small group of hosts who government officials and and Saskatchewan did In What’s the Real Story list multiple properties,” other NGOs. “European extremely well on this Behind B.C.’s Education says Hennessy. “The high opponents can see CETA measure, with considerably Funding Crisis?, the CCPA- concentration of revenue is a ‘gold-standard’ higher net incomes (though BC’s public finance policy in the hands of a small agreement only in the this might change now that analyst Alex Hemingway percentage of multiple sense that it goes further Saskatchewan is privatizing demonstrates how listing hosts suggest they than previous free trade half its publicly owned education funding dropped may using the Airbnb treaties in protecting the liquor stores.) from 3.3% of GDP in 2001 platform for commercial ‘gold-plated’ rights of to a projected 2.5% in the 10 2016 provincial budget. As a result, B.C. has the second lowest level of education funding in the country— nearly $1,000 per student below the national average. “The government’s numbers are misleading because they don’t take into account inflation or cost pressures from higher hydro and MSP (Medical Services Plan) rates, which are being downloaded onto school districts,” says Hemingway. “The government says this is about declining school enrolment, yet the funding Calling underfunding much additional funding crunch has hit school a political choice, might go beyond what’s districts with growing Hemingway says: “If necessary, but it tells enrolments, as well as we dedicated the same us what’s possible. We those seeing declines. And For more reports, share of our economy certainly wouldn’t be the government’s own commentary and (GDP) to public education facing school closures, data project an almost infographics from the today as we did 15 years overcrowded classrooms or 40,000-student increase in CCPA’s national and ago, we’d have nearly cuts to vital programs and provincial offices, visit enrolment by 2024.” another $2 billion. That student supports.” www.policyalternatives.ca.

11 UNTANGLING THE MYTHS AND FALSE PROMISES OF THE TRANS-PACIFIC PARTNERSHIP SCOTT SINCLAIR HE TRANS PACIFIC PARTNERSHIP (TPP) is an overtly U.S.-driven and dominated trade agreement designed to bolster America’s corporate and geopolitical ambitions. The U.S. Trade Representative even calls it a “made in America” deal. This does not mean the majority of U.S. citizens and workers will benefit. On the contrary, the TPP is simply the latest in a series of U.S.-led agreements that subject American workers to intensified globalization and international competition, resulting in job losses, growing inequality and downward pressure on wages. The deal protects the rights of corporate investors while offering little assurance that any benefits from enhanced trade will be shared fairly. Whether the TPP ever comes into force will also be largely determined by U.S. domestic politics. Both Hillary Clinton and Donald Trump profess their opposition to the TPP as currently negotiated. This makes U.S. ratification far from certain, especially since both houses of Congress must either ap- prove or reject the deal without amendments. As I write this, the outcome of the U.S. elections is still undecided. Even for Canadians it has been chilling to watch the campaign unfold. A Trump vic- tory would be an unthinkable calamity on so many levels. The likely demise of the TPP, while welcome, would hardly register in the balance given his cli- mate change denial, support of lavish tax cuts for the rich and services cuts for the rest, threats to abolish the Environmental Protection Agency, racist and sexist slurs, and disturbing personality. On the other side there is Clinton, who now opposes the TPP, despite her past support of the agreement. Unfortunately, this provides one of the few openings for Trump’s bombast and bullying to resonate in head-on debate. Trump’s attack on the TPP, which mostly boils down to a narcissistic belief in his own deal-making acumen, has little in common with the principled op- position of U.S. progressives such as Bernie Sanders, or the contributors to this special issue of the Monitor. In July 2016, Clinton’s supporters on the Democratic platform committee de- feated an attempt by Sanders’s followers to have the party clearly oppose ratifying the TPP. Sadly, Trump’s “Is it Obama’s fault?” taunt to Clinton evokes the disillusionment many feel with the party establishment’s approach to trade treaties. Trump’s rhetoric strikes a chord with the Democrats’ disre- garded working class base. To the extent there is any elite soul-searching over the negative impacts of a quarter-century of NAFTA-style globalization, it is mostly confined to hand-wringing over failures to share the benefits of trade and help displaced workers adjust to intensified global competition. The policy neglect for the plight of blue-collar workers, marginalized groups and rust-belt communi- ties is indeed shameful. But this narrative conveniently misses the main substance of the progressive critique of globalization and free trade agreements. These treaties are more about concentrating corporate power than they are actual trade. In fact, the addressable barriers to international trade (mainly tariffs) are now so low that

ILLUSTRATION BY REMIE GEOFFROI even the proponents of new deals like push from the incoming U.S. admin- dustry demands on copyright, trade the TPP are forced to admit any con- istration to re-negotiate the already secrets and digital rights that dig us ceivable economic boost is marginal imbalanced deal. Whoever becomes further into this hole; and (see article by Hadrian Mertins-Kirk- the next president, U.S. pressure for The locking-in of future privatiza- wood on page 29). Further liberaliza- re-negotiation can hardly be expect- tion of public services, down to even tion would create little new wealth to ed to improve the deal from a public the local level, through so-called distribute, even if elites were so in- interest perspective. standstill and ratchet clauses that pre- clined. While most of the TPP drama is occur- vent remunicipalization of privatized Unfortunately, as Sanders, Elizabeth ring south of the border, the Canadi- services such as sanitation or transit. Warren, Joseph Stiglitz and other an people and their new government As currently written, the TPP can only progressive critics warn, the not-so- still have the power to decide wheth- worsen today’s inequality of wealth hidden purpose of the TPP and simi- er Canada should be part of the agree- and power. Likewise, it will strip gov- lar treaties is to coerce governments ment. There are very good reasons, ernments of the tools they need to ad- into making legislative and regulato- many of them outlined in this special dress climate change—an existen- ry changes that favour corporate spe- issue, why Canada should walk away. tial threat that will require more, and cial interests—reforms that most pol- The commitments government trade more assertive, government interven- iticians are not willing or able to jus- negotiators make behind closed doors tion and regulation. Extreme investor tify in open debate before their own lock in a myopic and increasingly em- rights agreements such as the TPP are citizens. battled neoliberal orthodoxy—small relics of an era when market funda- The Obama administration’s dogged government, big finance, weak regu- mentalism—the belief in the virtues support for the TPP is a case in point. lation and a preference for privatized of fully liberalized markets—was the The president must rely almost en- service delivery—that prevents future prevailing political wisdom. Even insti- tirely on Republican members of Con- governments from changing course tutions like the International Monetary gress to advance his failing hopes of without great political and financial Fund, the notorious enforcer of neolib- approving the treaty on his watch. As costs. Progressives might welcome eral “structural adjustment” the world Melinda St. Louis and Melanie Foley such policy handcuffs as part of a glob- over, is rethinking this position. write in their TPP update on page 32, al environmental treaty for reversing The significant public opposition to the Obama administration still views climate change. In the case of the TPP the TPP in the U.S. from across the po- the lame-duck session of Congress, we get the opposite: more restraints litical spectrum is a sign the ideology when enough retiring and defeated on environmental protection meas- driving the TPP and other expansive members might be coaxed into back- ures in the interest of freeing capital trade and investment agreements is ing the unpopular deal, as its chance and investment. close to exhausting its public legitima- to ram through TPP ratification be- From a Canadian perspective the cy. Protest against the TPP is as strong fore a new president takes office. It is agreement is riddled with ideolo- in Japan, Malaysia, New Zealand, Aus- pursuing this profoundly cynical, an- gy from the previous Harper govern- tralia and Mexico. Canadians and their ti-democratic strategy even at the risk ment, surely one of the most right- political leaders would be wise to pay of undermining the Democratic cam- wing regimes in recent Canadian his- attention. At the same time, it would paign for the White House and control tory. There are numerous examples of be irresponsible for progressive voic- of Congress. how the TPP does not reflect the val- es to sit back and expect the TPP to Fortunately, at this point, it looks like ues of those who voted for a new gov- meet its demise as a result of U.S. do- the administration does not have the ernment and progressive change: mestic politics. Congressional backing it needs, and The inclusion of the increasing- This special issue of the Monitor sets progressive U.S. groups are working ly discredited investor-state dispute out the case against Canadian ratifi- hard to keep it that way. The most settlement (ISDS) mechanism when cation of the TPP. Criticism of the na- probable scenario appears to be that NAFTA’s similar system has already led kedly self-interested corporate agen- the new U.S. president, especially if it to Canada being the most sued devel- da embodied in the TPP is neither an- is Clinton, will reject the agreement oped country in the world; ti-trade nor protectionist—it is sim- in its current form and seek to reopen ply drawing an obvious conclusion. A negotiations. This, and the recent nar- The extension of monopoly pat- project defined overwhelmingly by the row electoral victory for the ruling co- ent protections when we already pay commercial aims and interests of U.S. alition in Australia (which threatens too much for prescription drugs, while multinationals—from Big Pharma and TPP ratification there), could well un- brand-name drug companies invest so Hollywood to the powerful fossil fuel, ravel the deal. little in Canadian research and devel- banking and biotech industries—can- opment; Canadians and their government need not be assumed to advance the broad- to prepare for either eventuality: U.S. The pigeonholing of Canada as er public interest within any of the TPP ratification in the lame-duck session a seller of raw and semi-processed countries. M or, as appears more likely, a renewed goods while acceding to U.S. and in- 14 WHAT’S THE

IT’S 6,000 PAGES LONG, SPREAD OUT OVER 30 FREQUENTLY IMPENETRABLE CHAPTERS, AND DANGEROUSLY CLOSE TO BEING RATIFIED BY CANADA

The TPP was crying out for a Coles Notes version, and the Monitor is only happy to oblige (with A LOT of help from the experts). Keeners are encouraged to grab a copy of the new Lorimer-CCPA collection, The Trans-Pacific Partnership and Canada: A Citizen’s Guide, from which many of these excerpts are taken.

The TPP will further increase these costs by requiring the federal government to extend the term of patents to account for supposed regulatory delays. Specifical- ly with respect to patented drugs, TPP parties must “make available an adjustment of the patent term to UNNECESSARY COSTS TO compensate the patent owner for unreasonable cur- tailment of the effective patent term as a result of THE HEALTH CARE SYSTEM the marketing approval process.” The TPP does not specify precisely how countries must meet this obli- ithout doubt, the TPP’s single biggest direct im- gation, leaving some flexibility to define national pat- pact on the Canadian health care system will ent term restoration systems. Canadian officials have be to increase drug costs as a result of extend- indicated the federal government will meet this obli- ing patents. Canada already has an industry-friendly gation through the so-called sui generis patent exten- system of intellectual property protection for pharma- sion system required by the signed but not yet ratified ceutical patent holders. This is reflected in the high Canada–European Union Comprehensive Economic prices Canadians pay for prescription drugs. Per cap- and Trade Agreement (CETA). ita drug costs in Canada are the third highest among It should be stressed that when the previous federal countries in the Organization for Economic Cooper- government insisted the TPP would require no chang- ation and Development (OECD). According to recent es to Canada’s existing intellectual property regime OECD data, Canadians pay an average of US$713 an- for drugs, it was already including the future changes nually for pharmaceuticals, significantly higher than Canada would have to make to comply with the CETA. the OECD average of US$515. 15 RD--S R standards. Canada is committed to fundamental la- bour rights, and supporting high labour standards through a fully enforceable TPP Chapter is a key part of that commitment. This is not the view of labour federations from many of the participating TPP countries, as well as a range of human rights–focused non-governmental organizations and aca- P P demics, who argue the labour chapter fails to provide suffi- P E cient tools to address labour rights violations—even where they are most apparent as in Brunei, Malaysia, Mexico and Vietnam. The experience of workers under similar free trade Ratification of the pact with the EU, initialled by the feder- agreements provides ample evidence to back this position. al government and European Commission in late 2013, was still, in the fall of 2016, in question over strong public oppo- Article 19.3.2 of the TPP’s labour chapter establishes the sition in Europe. By agreeing to the TPP system of patent requirement to adopt and maintain laws and regulations term restoration, the federal government concedes that our on minimum wages, hours of work, and occupational safe- drug costs will rise, whether the CETA goes ahead or not. ty and health. This article is limited by a footnote clarify- ing that it refers to “acceptable conditions of work as de- The TPP and CETA requirements for patent term restora- termined by that Party.” Both articles are further limited by tion are roughly equivalent. Under its proposed sui gen- the requirement to demonstrate that the failure to adopt eris approach, Canada plans to limit the patent term ad- or maintain a specific statute or regulation affects trade or justment to a maximum of two years. Carleton University investment between the parties. professor Marc-André Gagnon estimates that if the patent term restoration system required by the TPP were imple- The pending Canada–European Union trade deal has mented in Canada today it would increase the average mar- stronger language in its labour chapter referring to the ket exclusivity for patented drugs by 287 days. By further ILO’s Decent Work Agenda and committing to implement delaying the availability of cheaper generic medicines, this ILO conventions that have already been ratified, as well as would result in an annual cost increase of $636 million, or committing to “continued and sustained efforts” to ratify 5% of the annual cost of patented drugs in Canada. Prov- those ILO core conventions not yet ratified. The TPP pre- inces have demanded compensation for the fiscal impacts sented a real opportunity to advance the language on la- of these changes—costs the Harper government claimed, bour rights, but failed to do so. in a technical summary of the CETA, it was “prepared to Article 19.5 of the TPP deals with the enforcement of labour address.” Yet even if the new Liberal government were to laws. As in the U.S. May 10 Agreement, non-enforcement is abide by this vague pledge, it simply means that Canadian limited to cases of a “sustained or recurring course of ac- taxpayers would pay at the federal rather than the provin- tion or inaction in a manner affecting trade or investment cial level in order to boost the profits of the brand-name between the parties.” This presents an extremely high bar pharmaceutical industry. People paying for their drugs out for any potential complaints regarding enforcement of la- of pocket or through private insurance will be hit twice — bour provisions under the TPP. through higher drug costs and an increase in their federal taxes (or reduced public services). Article 19.4, the “non derogation clause,” deals with weak-

FROM THE REPORT, “MAJOR COMPLICATIONS: THE TPP AND CANADIAN HEALTH ening or lowering labour standards to encourage trade or CARE,” BY SCOTT SINCLAIR, SENIOR TRADE RESEARCHER AT THE CCPA. investment. Its sub-clause (a) specifies a general prohibi- tion on weakening or offering to weaken labour laws with respect to Article 19.3.1 (fundamental rights), but contains nothing with respect to Article 19.3.2 (acceptable condi- tions of work). Article 19.4(b) applies only to special trade and customs areas such as export processing zones (EPZs), and specifies the obligation around non-derogation with WORKERS THROWN UNDER respect to both 19.3.1 and 19.3.2. All this seems to imply that TPP governments would be per- THE FREE TRADE BUS mitted to weaken laws around minimum wages, hours of work, and occupational safety and health outside of EPZs— n promotional material for the agreement, Global Af- even if it were clear that doing so would affect trade or in- fairs Canada states the TPP: vestment between the parties. For example, member states provides the opportunity to raise and improve la- must adopt and maintain a minimum wage according to bour standards and working conditions in TPP mem- 19.3.2, but they are within their rights to lower that mini- ber countries through an ambitious level of obliga- mum wage outside export processing zones in order to at- tions to ensure that national labour laws and poli- tract investment. If this is the case, it is difficult to imagine cies in partner countries respect international labour 16 with the European Union is to public policy on medicines. HOW WILL THE TPP ratified first, drug costs are Specifically, an investor–state expected to rise by between dispute settlement (ISDS) AFFECT DRUG POLICY 5% and 12.9% from about the process would allow inves- year 2023. tors (e.g., brand-name phar- maceutical corporations) in AND PRICING? An annex of the chapter TPP countries to challenge on transparency and government measures anticorruption (Chapter 26), outside the normal court mong the 30 chapters requirements on Canadian related to “transparency system, in largely unaccount- in the TPP, five contain manufacturers to be open and procedural fairness for able private tribunals whose language specifically about public inspections of pharmaceutical products and decisions are binding. Can- related to medicines in the their facilities. medical devices,” could have ada is already facing such a following ways: negative effects on pharma- Chapter 18 (Intellectual challenge from U.S. drug firm ceutical costs and regulation Chapter 8 (Technical Property) creates additional Eli Lilly, which is demanding in the future. Though there Barriers to Trade) contains monopoly rights for brand- $500 million in compensation is currently no national drug clauses on transparency, name pharmaceutical for Canadian court decisions plan in Canada, should one regulatory harmonization and companies in the form of invalidating two of its patents be established this annex acceptable marketing ap- extended patent terms, on the grounds they were would threaten the ability proval processes that further while locking in Canada’s granted based on claims of the federal government entrench the views of foreign costly patent-linkage system about the drugs that could to use certain cost-control governments—and by proxy and permanently setting not be demonstrated. measures. their pharmaceutical sec- long data exclusivity terms FROM THE REPORT, “INVOLUNTARY MED- tors—in federal medicines on traditional and biologic The dispute resolution ICATION: THE POSSIBLE EFFECTS OF THE TRANS-PACIFIC PARTNERSHIP ON THE policy, with no guarantee drugs. Depending on whether procedures in Chapter 9 COST AND REGULATION OF MEDICINE IN that harmonization will the TPP or the very similar (related to investment) and CANADA,” BY JOEL LEXCHIN, EMERITUS PROFESSOR IN THE SCHOOL OF HEALTH be upward (to the highest Comprehensive Economic Chapter 28 create unneces- POLICY AND MANAGEMENT AT YORK UNI- standards) and no additional and Trade Agreement (CETA) sary and unforeseeable risks VERSITY IN TORONTO.

a successful TPP labour complaint related to acceptable U.S.–Peru FTA. Unfortunately, while business groups were conditions outside of EPZs. regularly consulted throughout the TPP negotiating pro- cess, labour unions in Canada were given little opportunity While the TPP officially offers equal access to dispute settle- to put their alternative proposals on the table. As such, the ment for labour violations, there is a lengthy process of co-op- TPP simply reproduces an ineffective rights regime while eration (Article 19.10), co-operative labour dialogue (Article further expanding a free-trade model that has perpetuat- 19.11) and labour consultations (Article 19.15) before a party ed labour rights violations in many countries. The race to may request the establishment of a dispute settlement pan- the bottom continues. el. Cases may be raised by individual workers, unions or other FROM THE REPORT, “DOES THE TPP WORK FOR WORKER?” BY CARLETON UNIVERSI- civil society actors, but are actually brought by governments. TY PROFESSOR LAURA MACDONALD AND CANADIAN LABOUR CONGRESS ECON- OMIST ANGELLA MACEWEN. For example, unions in Canada and Vietnam might make a submission to Canada’s labour department on behalf Viet- namese workers—an institutionally awkward arrangement for protecting labour rights. Documenting violations will be time consuming and expensive given the requirement to demonstrate an impact on trade or investment between the parties. The lack of reference to the details of the ILO core conventions further limits the extent to which exist- CLIMATE CHANGE AND ing ILO jurisprudence will be helpful in resolving disputes. On the other hand, the article on co-operation (19.10) is ex- THE ENVIRONMENT SIDELINED tensive, and may be a more effective route for raising la- n February 2016, a World Trade Organization (WTO) dis- bour standards in TPP nations because of the possibility pute panel ruled that India’s national solar program was of trade sanctions if co-operation fails. illegal under the General Agreement on Tariffs and Trade Unions from nine of the 12 signatory states to the TPP have (GATT 1994) because of its domestic technology quotas. proposed an alternative labour chapter that builds on and Two years earlier, the local content requirements in Ontar- improves the labour and dispute resolution chapters of the io’s Green Energy Act were similarly found to be illegal at the

17 WTO. In March 2015, a NAFTA investment arbitration panel In other words, state sovereignty is treated as inviolable held that a company’s rights were violated because the Ca- with regard to setting minimum levels of environment pro- nadian government adopted the decision of an independ- tection, while elsewhere in the agreement strong environ- ent environmental assessment panel to reject a planned mental measures that might interfere with trade and in- quarry project. vestment are exposed to challenge under the TPP’s invest- ment chapter. The limitations that trade agreements put on environmen- tal policy-making are becoming easier to point out with The TPP’s reliance on the current state of environmen- each new case like these. It’s the reason the United States tal law in each member country is also reflected in Arti- Trade Representative (USTR) felt the need to assure every- cle 20.4.1, which affirms the state’s commitment to imple- one the Trans-Pacific Partnership (TPP) contains “the most ment the multilateral environmental agreements to which robust enforceable environment commitments of any trade it is already a party. There is no requirement for TPP parties agreement in history.” In fact, the language in the TPP’s to adopt any additional multilateral environmental agree- environment chapter is generally weak and unenforcea- ments or uphold the standards in particular agreements ble, TPP parties are given discretion to decide whether and to which it is not a party…. how to act on environmental issues, and, importantly for While the language of many TPP environment chapter arti- federal states like Canada and Australia, the chapter only cles is vague and discretionary, its reach is also narrowed by covers central governments, leaving the provinces off the the definition of “environmental law” in Article 20.1, which hook altogether—a privilege these levels of government is limited to any statute or regulation of the central govern- do not have under the rest of the agreement. ment of each TPP party. There appears to have been no ef- Environmental protection measures vary widely between fort to expand the scope of protections or include subna- TPP member countries. Rather than encourage the adop- tional governments (provinces) in the negotiations of the tion of high standards across the region, Article 20.3.2 of environment chapter…. the TPP’s environment chapter allows each party to deter- A further weakness of the TPP environment chapter is that mine “its own levels of domestic environmental protection it does not regulate a TPP party’s environmentally detrimen- and its own environmental priorities.” Article 20.3.5 pro- tal actions in general. Rather, it seeks to prevent such ac- vides states with further discretion to determine whether tions only if they can be demonstrated to affect trade be- or how to investigate and prosecute violations of domes- tween the parties. The commitment in Article 20.3.4 is that tic environmental rules. a party shall not “fail to effectively enforce its environmen- tal laws through a sustained or recurring course of action

residency in the places where FTA to hire the same migrant MIGRATION BASED ON they are employed…. The worker, provided they meet TPP does nothing to address the FTA’s requirements. EMPLOYER PREFERENCES employer abuse of Canada’s Moreover, even if the TPP migrant worker programs. did not significantly worsen We can expect more of it in the situation created by the t is increasingly common unlimited number of certain certain sectors under the temporary entry provisions for international free- types of workers between TPP, especially as companies in past FTAs, that would not trade agreements (FTAs) countries regardless of local become more familiar with mean the present situation to contain a chapter on labour market conditions. the rules for transferring and is desirable. Canada’s entire temporary entry for business hiring foreign workers. international mobility regime Unfortunately, past FTAs persons. These provisions, is a troubled model that does such as the North American Indeed, as the Canadian included in the TPP, allow little to address the long-term Free Trade Agreement government cracks down on certain categories of workers needs of either workers or (NAFTA) have had precisely abuses of the more trans- to cross borders on a tem- employers. If Canada has this negative effect. Employ- parent Temporary Foreign porary basis without going genuine labour shortages, ers are finding ways to game Worker Program, employers through the usual immigra- then greater training and the FTA system in order to may seek out other, tion process. In theory, this greater permanent immigra- import workers, with little less-regulated pipelines for is meant to help executives tion are necessary. regulatory oversight. To make migrant workers. There are and investors move capital matters worse, the migrant no institutional measures FROM THE REPORT, “MIGRANT WORKERS into, or manage their invest- AND THE TRANS-PACIFIC PARTNERSHIP: workers themselves are at to prevent an employer A REGULATORY IMPACT ANALYSIS OF THE ments in, other countries. risk of abuse and have limited banned from the TFWP from TPP’S TEMPORARY ENTRY PROVISIONS,” In practice, these provisions BY CCPA RESEARCHER HADRIAN MER- pathways to permanent turning to the terms of an TINS-KIRKWOOD. allow employers to move an 18 will be forced to change their carefully consider before “THE WORST TRADE laws to incorporate abusive they sign on the dotted line intellectual property pro- whether this is the direction AGREEMENT FOR tections for pharmaceutical they want to take on access companies. to affordable medicines and the promotion of biomedical ACCESS TO MEDICINES” “For example, the additional innovation. The negative monopoly protection impact of the TPP on public provided for biologic drugs SF (Doctors Without ering generic competition. health will be enormous, be will be a new regime for all Borders) expresses The big losers in the TPP felt for years to come and TPP developing countries. its dismay that TPP are patients and treatment it will not be limited to the These countries will pay a countries have agreed to providers in developing current 12 TPP countries, as heavy price in the decades to United States government countries. Although the it is a dangerous blueprint for come that will be measured in and multinational drug text has improved over the future agreements.” the impact it has on patients. company demands that will initial demands, the TPP will As the trade agreement now JUDIT RIUS SANJUAN, U.S. MANAGER AND raise the price of medicines still go down in history as LEGAL POLICY ADVISER FOR THE MSF goes back to the national ACCESS CAMPAIGN, OCTOBER 5, 2015. for millions by unnecessarily the worst trade agreement level for final approval, we extending monopolies and for access to medicines in urge all governments to further delaying price-low- developing countries, which

or inaction in a manner affecting trade or investment be- pute settlement (ISDS) provides for foreign investors and, in tween the Parties.” Article 20.12.9 similarly provides for a turn, how it privileges foreign investors over everyone else: dialogue regarding a sustained or recurring course of ac- There is no right of a government or any other affected tion or inaction by a subnational level of government only party to bring a claim against a foreign investor in ISDS. In- if it affects trade or investment between the parties. stead, foreign investors have been granted the most power- This threshold for compliance is weaker than the require- ful rights and protections that exist for any private actor in ment in Article 22.1 of the North American Agreement on international law, without any corresponding and actiona- Environmental Co-operation (NAAEC), NAFTA’s environ- ble duties for foreign investors to respect labour standards, mental side-agreement, which allows a party to challenge the environment, public health, anti-corruption rules, etc. actions that show a “persistent pattern of failure by that Foreign investors can challenge directly any decision other Party to effectively enforce its environmental law,” of a country — even by its highest legislature, government but does not require that the complaint show how those body or court — at the international level. Typically, inter- actions affect North American trade or investment flows. national disputes are resolved among countries and their FROM THE REPORT, “BAIT AND SWITCH: THE TRANS-PACIFIC PARTNERSHIP’S PROM- ISED ENVIRONMENTAL PROTECTIONS DO NOT DELIVER,” BY JACQUELINE WILSON, A governments, as at the World Trade Organization (WTO), LAWYER WITH THE CANADIAN ENVIRONMENTAL LAW ASSOCIATION. for example. Foreign investors can be awarded uncapped amounts of compensation as the primary remedy for sovereign con- duct that is deemed by the arbitrators to have been un- lawful. This is an extraordinarily powerful and highly unu- sual aspect of the treaties. It can create major challenges for legislatures and governments attempting to plan for CORPORATE PROTECTION the cost of their decisions. In effect, corporate lawyers and lobbyists working for foreign investors can use this aspect BEYOND THE LAW of ISDS to put an unknown price tag on a proposed law or other decision when a deep-pocketed foreign investor ob- here is a simple reason why investment lawyers have jects to the proposal. encouraged foreign investors to use treaties like the TPP to attack countries’ decisions, even at a poten- There is no general doctrine of deference or balancing tially high cost in legal and arbitration fees for both the for- in the ISDS arbitrators’ review of legislatures and courts, eign investor and the sued country. The reason is that the in contrast to the domestic law of Canada and other coun- treaties give advantages for foreign investors that are not tries such as France, the United Kingdom and the Unit- available to them, or anyone else, in domestic law and oth- ed States. These doctrines of deference or balancing were er areas of international law. The following list illustrates developed historically to accommodate the role of legis- some of the special legal benefits that investor–state dis- latures as elected bodies and the role of governments in dealing with complex or urgent policy questions. 19 Net Transfers No right of “standing” is allowed in ISDS arbitration pro- in ISDS ceedings for other affected parties, besides the foreign in- vestor and the state’s national government. For a legal pro- ceeding to be fair, all parties whose legal interests are af- fected by the process should be given a right of standing to the extent of their interest. There is no requirement for a foreign investor to use a country’s domestic courts before resorting to ISDS, no mat- ter how fair and independent the domestic courts are. This anomalous situation arises because the TPP does not ap- ply the usual requirement in international law that a foreign national must go to a country’s own courts first, where they are reasonably available and offer justice, before bringing an international claim against the country. Thus, implicit- The provisions that describe the rights and protections ly, agreements like the TPP operate from the position that of foreign investors—such as “fair and equitable treatment” the courts in all countries cannot be relied on to protect or “indirect expropriation” or “de facto discrimination”—are foreign investors. Foreign investors are not required to use very broadly worded. As a result, they give immense power the courts, or even to demonstrate that the courts are in- to the lawyers who sit as arbitrators and decide foreign-in- adequate in some way, before bringing an ISDS claim. Yet vestor claims. The core power of the arbitrators is to inter- the courts in Canada and many other countries are clearly pret the ambiguous rights and to award public money to more independent and more fair than ISDS itself. foreign investors, with no monetary cap on the amounts that can be awarded. In past cases, the amounts that coun- To repeat, in these and other ways, the TPP gives special tries have been ordered to pay have ranged from tens of privileges to foreign investors. No other system of inter- thousands to billions of dollars per case. national protection, beyond other trade and investment agreements that allow for ISDS, comes close to deliver- The foreign investor directly controls or influences half ing such a powerful legal position to anyone, even in the of the makeup of the arbitration tribunal’s membership. most extreme situations of mistreatment. By adding to ex- Normally, judges would be appointed by a public body and isting agreements that cover far fewer foreign-owned as- as a part of a publicly accountable process. sets, the TPP would vastly expand this lopsided arrange- The lawyers appointed as arbitrators in each case, espe- ment in which the largest and wealthiest actors in society cially the “core” arbitrators who have been appointed over are given special access to public compensation for risks and over, stand to profit from their own decisions. Because that apply to everyone and against which no one else has they do not have secure tenure and are paid a lucrative daily these special protections.

or hourly rate, the arbitrators have an evident interest to en- FROM THE REPORT, “FOREIGN INVESTOR PROTECTIONS IN THE TRANS-PACIFIC PART- courage claims, which can be brought only by one side (the NERSHIP,” BY OSGOODE HALL LAW PROFESSOR GUS VAN HARTEN. foreign investors), and to stretch out the proceedings. Due to the absence of conventional safeguards of judicial independ- ence, a range of conflicts of interest arises in the system, typ- ically favouring deep-pocketed potential claimants, i.e., multi- national companies and very wealthy individuals (see chart). There is no opportunity—or a very limited opportuni- ty, depending on the rules under which a foreign investor FROM PROTECTING TO chooses to bring the ISDS claim—for review of the arbi- trators’ decisions in any court, whether domestic or inter- COMMERCIALIZING CULTURE national. Instead, review of the arbitrators’ awards is done n the TPP negotiations, the U.S. and several other coun- on limited grounds by another tribunal of for-profit arbitra- tries were radically opposed to the idea of acknowledg- tors or by a domestic court in a place that is typically cho- ing a distinction between cultural products and oth- sen by the arbitrators themselves. In this way, the power er commercial products, as well as recognizing the legiti- of the arbitrators over public money is de-linked from the macy of state intervention for protecting or promoting na- courts as well as legislatures and governments. tional cultural expressions. Though Canada took a similar The arbitrators’ awards are widely enforceable against a negotiating approach on culture in the TPP as it did in the country’s assets located in other countries. Corporate law- CETA, and even had allies at the TPP table, in the end the yers have adopted creative strategies to chase assets in pacific agreement significantly dilutes Canada’s tradition- this context by attempting to seize warships, public art on al approach in three important ways: loan to foreign galleries, or cultural properties—let alone 1. The expression of cultural considerations in the TPP pre- more conventional commercial assets such as money owed amble makes no reference to any UNESCO legal instru- by the customers of a country’s state-owned companies. 20 ments; instead, it prioritizes a neoliberal conception of the TPP can be relied on to adequately safeguard Canadi- cultural promotion through trade and investment, with an cultural identity and industries in the future. no clear statement on the legitimacy of cultural policies; FROM THE REPORT, “THE TPP AND CULTURAL DIVERSITY,” BY ALEXANDRE LAROUCHE- MALTHAIS, FORMER TRADE AND LEGAL AFFAIRS CONSULTANT WITHIN THE UNITED 2. The cultural exception in the TPP is conditional on wheth- NATIONS CONFERENCE ON TRADE AND DEVELOPMENT (UNCTAD). er or not member countries are parties to other internation- al treaties for the protection and promotion of cultural di- versity, and further limited to those related to traditional knowledge and traditional cultural expressions, concepts that are too narrow to preserve the integrity of Canada’s cultural policies; and 3. Relying on limited chapter-specific cultural reservations, THREATS TO CANADA’S which are constrained by the TPP’s ratchet effect and cir- cular general cultural exception, will have long-term neg- PUBLIC POSTAL SYSTEM ative consequences for cultural policy flexibility at the na- anada Post’s involvement in express delivery servic- tional and provincial levels. This threat is compounded es, including its relationship with Purolator, has been for Canadian-content rules, and with respect to regulat- a source of controversy and risk. Competitor com- ing streaming video and audio services, by Canada’s prob- panies, most notably UPS, have long argued that Canada lematic “exception to the exception” in Annex II with re- Post’s relationship with Purolator is not only anticompeti- spect to Cross-Border Trade in Services and Investment tive but also unlawful under international trade rules. Non-Conforming Measures. In 2000, UPS launched a lawsuit against the government of In the TPP, Canada fell far short of attaining the moderate- Canada under NAFTA, raising numerous allegations relat- ly effective cultural exception that has been sought by pre- ed to issues as diverse as pension regulation and customs vious Canadian governments in all free trade agreements. processing rules. Among the various complaints UPS raised Instead, the outcomes far more closely reflect the views were allegations that Canada Post violated rules related to and interests of the U.S. government and entertainment equal treatment for foreign investments and competition industry. This is a setback for Canadian advocates of cul- policy by granting Purolator access to its infrastructure and tural diversity and their international allies. It is far from facilities (thousands of post offices and delivery networks clear whether the partial and fragmented cultural exclu- across the country) while denying equal access to UPS, and sions the Canadian government ultimately settled for in that Canada Post’s own courier services unfairly took ad- vantage of monopoly infrastructure. UPS launched a simi- lar case under European Union competition rules after the

policy, regulations and other in Quebec, a government INVESTORS TARGET decisions—through binding environmental assessment private arbitration instead process in Nova Scotia ENVIRONMENTAL POLICY of national courts. ISDS and the U.S. government’s grants investors guarantees decision to block the of “minimum standards controversial Keystone XL efore the North inclusion of environmental of treatment,” protection pipeline. Foreign investors American Free Trade and labour side-agreements, from direct and indirect have targeted a broad range Agreement (NAFTA) which have proven extremely expropriation resulting from of government measures in came into force in 1994, there difficult to enforce. government action, and other North America—notably in was significant debate about broadly defined investor the areas of environmental Much less attention was paid its likely impact on jobs, rights. protection and natural at the time to an obscure energy and sovereignty. The resource management— investor–state dispute The number of ISDS cases environmental movement of that allegedly impaired their settlement (ISDS) provision has expanded exponentially the day nearly scuttled the investments. Canada has in the NAFTA investment since 2000, with high- deal on fears that it would faced 39 ISDS claims, more chapter. It established a profile examples including severely curtail the ability of than any other developed process through which corporate challenges to governments to enact strong country in the world. foreign investors could anti-smoking legislation in environmental protection and choose to settle disputes Australia and Uruguay, a SOURCE: CANADIAN CENTRE FOR POLICY conservation policies. It was ALTERNATIVES with government—related to ban on hydraulic fracturing saved only by the last-minute 21 judicial restraint typically services, welfare services or A BOOST FOR PUBLIC- shown by domestic and other similar social services.” international courts in similar While this clarification contexts. PRIVATE PARTNERSHIPS excludes core health care These draconian rules would services that might be apply to new P3s at the feder- provided through P3s, it does espite their serious investment agreement itself. al level in Canada. In defining not clearly exclude services shortcomings and This is the case even if the P3 investment agreements, such as maintenance, com- negative track record, contract obliges the parties the TPP investment chapter puter and data management public-private partnerships to use other forms of dispute includes typical public-pri- services, administration and (P3s) are increasingly used resolution. vate partnerships such as other health care support as an alternative to direct It is astonishing that Canada those between a central services. Indeed, even if a government provision and/ would agree to rules that government and an investor future P3 contract attempted or conventional government allow the private party in a to “supply services on behalf to exclude such matters procurement of services. The P3 to disregard contractually of the Party for consumption as related to health care it investment chapter of the agreed upon dispute resolu- by the general public would be futile. Since the TPP TPP contains provisions that tion provisions and bypass for: power generation or gives foreign investors the would allow foreign investors the domestic courts in favour distribution, water treatment right to bypass the dispute to submit an investor–state of investor–state arbitration or distribution, telecommu- resolution mechanisms spec- claim on the grounds that a under the TPP. Investor–state nications, or other similar ified in the P3 agreement, government has breached arbitration is a very lengthy, services supplied on behalf sensitive decisions about the “investment authorizations” complex, and costly proce- of the Party for consumption scope of the loosely worded or “investment agreements.” dure for resolving disputes. by the general public.” A exclusion for health care It should be stressed that Even more troubling is the footnote to this definition services would be made by these provisions enable fact that arbitration tribunals explains: “For the avoidance investor arbitration panels international investment tend to exhibit a pro-investor of doubt, this subparagraph that are beyond the reach of arbitration tribunals to bias at the expense of the does not cover correctional domestic law and the courts. adjudicate not only breaches public and taxpayer interests, services, healthcare services, of investment treaties, but SCOTT SINCLAIR, CCPA and fail to exercise the education services, childcare also disputes regarding the

European Commission signed off on Deutsche Post’s ac- ter mark for efforts by the express delivery industry to es- quisition of a significant interest in DHL. tablish international trade rules that serve its objectives. Their crowning achievement is Annex 10-B – Express De- UPS lost both lawsuits, but the company never abandoned livery Services of the TPP’s services chapter (Chapter 10), its campaign against these kinds of arrangements by na- which directly targets how postal systems are permitted to tional postal entities. In parallel to their legal battles in operate in the express delivery market. As acknowledged North America and Europe under existing trade rules, UPS by the U.S. Trade Representative (USTR), the annex was in- and other private companies aggressively lobbied the U.S. cluded “to address the unique challenges private suppliers government for new trade rules that would, from their per- face when competing with national postal entities in ex- spective, level the playing field. These efforts saw expres- press delivery,” and includes “new commitments that ad- sion in a number of bilateral trade agreements between dress longstanding issues for U.S. service suppliers.” the U.S. and other countries that included special provi- sions related to express delivery services. The TPP annex on express delivery services imposes a wide range of restrictions and rules that challenge arrangements For example, the 2003 Chile–U.S. Free Trade Agreement such as those between Canada Post and Purolator, and (FTA) required that Chile, but not the U.S., refrain from im- even how postal services can engage in express delivery di- posing new restrictions on express delivery services in its rectly, such as through Xpresspost. In doing so, the annex territory. The 2004 Australia–U.S. FTA included language raises the real risk that Canada Post’s use of express deliv- designed to restrict the ability of state postal monopolies ery revenues to maintain universal domestic postal servic- to compete with private companies in the express delivery es could be subject to more trade challenges. market. The U.S. also enacted domestic reforms in 2006 that prohibited “subsidization [by the U.S. Postal Service] The express delivery annex contains two key rules that of competitive products by market-dominant products.” could challenge Canada Post’s continued operations in the express delivery sector. The first prohibits a postal service The TPP replicates and expands upon these targeted provi- using money generated from monopoly activities (i.e., the sions, and can rightly be seen as representing the high-wa- delivery of letter mail) to “cross-subsidize” its own or any- 22 Friends of the Earth protests the TPP in Washington, D.C., December 2013.

one else’s express delivery services. The second rule re- quires that postal monopolies not “abuse [their] monopoly position” in a way that treats foreign companies (like UPS) less favourably than domestic ones (like Purolator) or un- dermines cross-border trade in services between signa- tory states. These provisions go well beyond comparable rules in existing trade agreements such as NAFTA or the World Trade Organization’s General Agreement on Trade in Services (GATS). cept of an indirect subsidy, which might include the use of It is hard to predict what these rules will mean for Cana- mail delivery infrastructure developed over decades to fa- da Post’s continued work in the express delivery market. cilitate the processing, tracking and shipment of packag- For one thing, the prohibition against cross-subsidization es. But evaluating the existence of an indirect subsidy, par- is remarkably difficult to apply in practice. The allegation, ticularly within a fully integrated corporation like Canada broadly speaking, is that Canada Post uses revenues from Post, would be extremely difficult conceptually and empiri- its exclusive privilege letter operations to subsidize express cally. Claims that a dominant position is being abused—the courier services (both Xpresspost and Purolator). Numer- second significant rule in the annex—can also be factual- ous investigations and reviews, including by Canada Post’s ly complex. Regardless of how difficult it is to work though auditors, consistently found no evidence of direct financial such arguments, the existence of rules in the TPP direct- cross-subsidization. However, this does not preclude argu- ly targeting postal operators constitutes a significant risk ments by unsatisfied companies that cross-subsidization that Canada Post’s current operations will be scrutinized, is occurring indirectly. criticized and potentially challenged.

The TPP may offer a new venue to assert such claims since FROM THE REPORT, “SIGNED, SEALED AND DELIVERED? THE TPP AND CANADA’S the express delivery services annex speaks of “subsidies” PUBLIC POSTAL MONOPOLY,” BY GOLDBLATT PARTNERS LAWYERS DANIEL SHEP- PARD AND LOUIS CENTURY. in general. International trade law also recognizes the con-

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23 Ben Lilliston The TPP, food security and climate change

N EARTH DAY 2016, the duce GHG emissions. Though these other words, trade agreements set U.S. joined 175 countries INDCs are voluntary, they are con- broad-reaching rules for the econo- in signing the United Na- sidered a critical first step for an my and government policy that often tions Paris climate agree- agreement designed to progressive- adversely affect the climate. ment, setting a path for- ly ratchet up national commitments ward to reduce global greenhouse to collectively limit a global tem- early 80% of countries’ INDCs gas (GHG) emissions. A few months perature rise to 1.5 degrees Celsius include policies and actions earlier, the U.S., along with 11 other above pre-industrial-age levels. With- related to agriculture, accord- countries [including Canada], signed in each INDC are goals, policies and ing to the Consultative Group on In- the Trans-Pacific Partnership (TPP) strategies to reduce GHG emissions ternational Agricultural Research trade and investment deal. Remark- and adapt to climate change in var- (CGIAR). Nearly 120 countries cited ably, neither agreement acknowl- ious sectors. agriculture in their mitigation tar- edged the other. The Paris agreement The goals for trade agreements in- gets, and 126 listed climate adaptation was silent on trade, and the TPP ig- cluding the TPP are much different, in agriculture as a priority within nored the climate. As countries take and often conflict with climate objec- their INDC. More than 60 countries action to protect the climate, con- tives. Trade agreements are first and listed livestock management as a pri- flicts between trade rules and cli- foremost about expanding trade, of- ority for mitigation. Other areas of mate goals will escalate. The inten- ten in highly extractive, energy-in- agriculture prioritized for mitigation tional separation of these two glob- tensive sectors. They are also about included fertilizer management, crop al priorities is becoming increasing- protecting the rights of corpora- residue and rice paddies. Countries ly untenable. tions and financial firms, undermin- are grappling with the best strate- At the heart of the Paris climate ing and lowering regulations intend- gies to both reduce agricultural emis- agreement are national-level plans, ed for the public good, dictating gov- sions and adapt their food produc- called Intended Nationally Deter- ernment spending, and strengthen- tion to climate change. Yet, the pol- mined Contributions (INDCs), to re- ing intellectual property rights. In 24 PABLO TOSCO/OXFAM

icy straightjackets of current trade equivalent gases emitted from the ag- ber country Malaysia. The FAO esti- regimes are major obstacles. riculture sector each year. mates that an additional four billion The global food system, including While agriculture’s direct emis- tonnes of carbon dioxide equivalent agricultural production and associ- sions are considerable, so are land are emitted each year due to deforest- ated land use, is responsible for one- use changes like deforestation driv- ation associated with expanded agri- third of global greenhouse gases, ac- en by expanded agricultural pro- cultural production. cording to CGIAR. The UN Food and duction, such as increased soy pro- Most of agriculture’s global emis- Agriculture Organization identifies duction in Brazil and the growth of sions are associated with the growth the top sources of agricultural emis- palm oil plantations in the TPP mem- of an industrial model of agriculture sions as coming from methane pro- designed to compete in global mar- duced by livestock (39% of the sec- kets and take advantage of interna- tor’s GHG emissions, with much of tional trade rules put in place over this from large-scale, confined oper- the last several decades. Not sur- ations) and nitrous oxide from syn- The global food prisingly, global agribusiness com- thetic fertilizers used to grow com- panies sit prominently on U.S. trade modity crops, such as corn and soy- system, including advisory committees and companies beans. A recent analysis by Oxfam agricultural like Cargill and Monsanto are flex- found that the global production of ing their lobbying muscles in sup- five agriculture commodities—rice, production and port of new trade deals like the TPP. corn, soybeans, wheat and palm oil— associated land use, The forms of industrial agricultural emit more GHGs than all individual production that suit global agribusi- countries except the U.S. and China. is responsible for ness tend to mirror the FAO’s analysis Livestock and commodity crop pro- one-third of global of high GHG emitting practices: syn- duction contribute the bulk of the thetic fertilizer–dependent commod- five billion tonnes of carbon dioxide greenhouse gases. ity crop production, massive palm oil 25 ast year, MIT researchers found that strengthening Because trade and food production at the national level (sourcing less from international markets) will be essential for ad- investment rules have dressing food security concerns associated with climate change. But agricultural trade rules often limit a coun- eased restrictions on try’s ability to build strong national and local food sys- tems. WTO rules place restrictions on the extent to which the movement of capital governments can support domestic farmers through cer- tain types of subsidy programs, many of which have been between countries, land has characterized as “trade distorting.” The rules also place limits on tariffs importing countries use to slow an in- become an attractive asset flux of cheap imports that undercut their domestic pro- duction. for international investors. The devastating practice of imports entering a mar- ket at below the cost of production is known as dump- ing. While the WTO has an anti-dumping agreement, and the U.S. International Trade Commission regularly inves- tigates industrial dumping (like Chinese steel dumping), actions on agricultural dumping are extremely rare. Com- modity crop (corn, rice, soybean, wheat) dumping by U.S. plantations and large-scale confined animal feeding op- agribusiness was rampant in the first 10 years of the WTO. erations (CAFOs). Increased dependence on international markets for ag- Trade rules governing agriculture have been among ricultural food imports made some countries more vul- the most contentious areas of negotiation in nearly every nerable to global price spikes; we saw this effect most free trade agreement. These conflicts centre on how clearly in 2007-08 with a dramatic increase in global hun- much protection and support governments can provide ger. Climate change is expected to disrupt agricultural for their own farmers and food systems, without unfair- production, therefore increasing food price volatility in ly discriminating against imports from other countries. years to come. As a result, agribusiness firms are urgent- Trade rules at the WTO, and regional deals like the TPP, ly incorporating climate risks into their business models. also seek to harmonize food safety rules between coun- For example, Cargill is working to reduce its carbon foot- tries, including rules governing pesticide and veterinary print, while also investing in climate science research and drug residues on food. Trade rules put extensive adminis- policy development to increase climate resilience in ag- trative burdens on food safety policies, demanding they ricultural supply chains. be “least trade restrictive,” rather than prioritizing pub- Among developing countries, food reserve strategies lic health and the environmental sustainability of agri- are regaining traction. A centuries-old strategy of putting cultural production as criteria. food (usually storable grains and beans) aside in times The application of intellectual property rights provi- of plenty for times of scarcity, food reserves are seen as sions to seeds is another aspect of trade rules particu- particularly critical for vulnerable, food import–depend- larly relevant to agriculture and the climate. Maintain- ent countries. Yet WTO rules have routinely conflicted ing genetic diversity in crop and animal production is a with various approaches to food reserves. The most re- critical tool for adapting to climate change, according to cent skirmish is over India’s National Food Security Pol- a report published last year by the FAO. But the TPP re- icy Act. Here, again, the U.S. government has threatened quires all participating countries to sign on to a global to challenge a locally oriented program designed to ben- seed breeders’ rights treaty (known as UPOV 91), which efit local farmers while addressing national food secu- prohibits farmers and breeders from exchanging protect- rity concerns. ed seeds, while empowering global seed companies like Land use and domestic ownership of land are also Monsanto and Syngenta. heavily influenced by trade and investment rules. Be- The international battle over plant patenting, pitting cause these rules have eased restrictions on the move- the biotech companies versus the rights of farmers, is not ment of capital between countries, land has become an a new one. The biotech industry has won a favourable pat- attractive asset for international investors. Trade and ent regime through the use of free trade agreements, and investment rules are thus increasingly linked to “land through the World Trade Organization’s TRIPS (Trade grabs”—large-scale land leases or purchases by foreign Related Aspects of Intellectual Property Rights) Agree- corporations or governments to gain access to agricul- ment. While the International Treaty on Plant Genetic tural or forest land, water and other natural resources. Resources for Food and Agriculture (adopted in 2001) pro- Investment rules require “equal treatment” for huge tects farmers’ rights and establishes a system of shared multinational investors and local investors. And inves- global genetic resources, like most UN treaties it is con- tor-state dispute settlement (ISDS) provisions in agree- sidered “soft law,” superseded by the “hard” law of trade ments like NAFTA and the TPP grant those foreign inves- agreements. tors special legal rights. According to researchers from 26 Tufts University, free trade deals limit the ability of governments to address land grab- PROPOSED REFORMS bing and to implement the Voluntary Guide- lines on the Governance of Land Tenure ON TRADE AND AGRICULTURE (which set guidelines on appropriate land in- vestment) established by the UN FAO. Many recent land grabs have been driven by a rush Climate-focused trade reforms can benefit from substantive reform to control scarce resources in the wake of proposals that have emerged from agriculture and food security circles over the 2007-08 food price crisis and in the face the last several decades. of expected global supply chain disruptions caused by climate change. PROTECTIONS AGAINST DUMPING s the effects of climate change wors- Developing countries continue to push at the WTO for expanded use of what is en, climate policy will have to become called a Special Safeguard Mechanism, which would temporarily allow those more aggressive, not only in putting a countries to raise tariffs to block surges in dumped imports that threaten to price on carbon, but also supporting clean undercut their farmers and food systems. energy production, fostering less emitting and more resilient agricultural systems, FOOD RESERVES and further regulating emissions. Policy ac- The G-33, a group of net-importing developing countries, has advanced a pro- tions that include sharp increases in costs posal at the WTO that would allow countries to create and operate food re- and market-oriented approaches to pollu- serves. Other proposed WTO-related reforms focus on eliminating export sub- tion can hit poor and rural communities par- sidies (which give big agricultural exporters an advantage), and on reforming ticularly hard. Governments at all levels will food aid programs in ways that will incentivize local food systems. need policy flexibility to address these chal- lenges—they can scarcely afford to have their hands tied by outdated trade rules. HUMAN RIGHTS PROTECTIONS Further, trade agreements should no The Paris climate agreement reaffirms human rights commitments in its pre- longer be considered in isolation, or given amble. There is a large body of work focused on how human rights law should legal priority over other global agreements. be integrated within trade rules, including substantive reforms to the WTO’s Trade policy is too influential, and provides Agreement on Agriculture. The UN Special Rapporteur on the Right to Food too many obstacles for successful governing has outlined principles for conducting a human rights impact assessment that on issues like climate change, health, food se- governments should undertake on all current and future trade agreements. For curity and natural resource management— example, the Economic Commission for Africa has authorized a human rights issues that the WTO and other free trade assessment for the proposed Continental Free Trade Agreement for Africa. agreements are ill-equipped to handle… The official signing of the Paris climate PROTECTING FARMERS’ RIGHTS treaty is an important first step toward a To counteract restrictive patent laws embedded in trade deals, farmers have global response to climate change. But no fought to protect their rights on seeds through the International Treaty on Plant climate deal will work if it is not supported Genetic Resources, which grants farmers the right to save and share seed. In by other policies. A next step must be the 2012, a high-level panel of experts established under the FAO’s Committee rejection of the TPP and any other trade on Food Security called for countries to adopt the International Treaty on Plant commitments that undermine our abili- Genetic Resources for Food and Agriculture and urgently implement provi- ty to address climate change. The TPP and sions on farmers’ rights to conserve and curate genetic resources to adapt to the WTO are outdated trade regimes mod- climate change. The UN Special Rapporteur on the Right to Food has been elled on 19th century ideas of “big power” trea- particularly critical of trade agreements, like the TPP, that require strong in- ties and commercial might. The 21st century tellectual property protections for global seed companies. demands something very different—trade rules that move countries together toward sustainability, starting with the urgent need GUARDING AGAINST LAND GRABS to curb greenhouse gas emissions and sup- There have been a number of efforts to introduce new global policy guide- port adaptations to climate change. M lines to counteract legal challenges tied to trade and investment rules. The THIS ARTICLE AND SIDEBAR ARE EXCERPTED AND ADAPTED UN Committee on Food Security went through a multi-year process to estab- FROM THE REPORT, “THE CLIMATE COST OF FREE TRADE: HOW lish voluntary guidelines on the responsible governance of land tenure. These THE TPP AND TRADE DEALS UNDERMINE THE PARIS CLIMATE AGREEMENT,” RELEASED BY THE INSTITUTE FOR AGRICULTURE guidelines for national-level governments help protect the rights of their own AND TRADE POLICY IN SEPTEMBER. FOOTNOTES IN THE ORIGI- people to own land, forests or fisheries in the face of the growing influence of NAL HAVE BEEN OMITTED HERE. outside foreign investors buying land around the world. The voluntary guide- lines are starting to be used by governments in Latin America to manage land acquisitions in order to protect the rights of local people, human rights, food security and the environment. 27 Meghan Sali On the TPP impact assessment, the government needs to show its work

N SEPTEMBER 9, the gov- result, “there could be some under- ed the cost of extending copyright ernment released its “Eco- or overestimation of the size of TPP terms alone would be $55 million a nomic Impact of Canada’s gains for Canada.” year. Like New Zealand, Canada is a Potential Participation in Which is why Canadians reading net importer of copyrighted goods, the TPP Agreement.” To call this appraisal won’t be faulted for but our economy is much larger. We this document “long-awaited” would asking themselves, “Where is the rest can therefore guess the TPP will cost be the understatement of the year. of it?” Particularly as this is the doc- us much more by extending patents Canadian organizations drawing at- ument we expect to see members of on books, film, software, audio and tention to the repercussions of the Parliament and proponents of the other goods. Trans-Pacific Partnership have been agreement pointing to as proof pos- And with the government’s incom- calling on the government to come itive the TPP is good for Canada. plete impact assessment, it looks like out with an impact assessment for Consider the assessments per- that’s what we’ll have to keep on do- the better part of a year. formed by other nations that are ing—guessing. And arrive it finally did, as a nerv- part of the TPP. For example, a New Parliamentary consultations on ous media officer’s weapon of last re- Zealand government report on the the TPP continue (in St. John’s as I sort: the Friday afternoon press re- impacts of the agreement estimat- write this), though the deadline for lease. It’s little wonder the govern- written submissions from the pub- ment hoped to downplay its signifi- lic was October 31. Both the stand- cance. Predicting a mere $4.3-billion ing committee on international trade bump to GDP over the next 25 years, 4 REASONS TO OPPOSE and Global Affairs Canada are seek- the benefits of the TPP would be, THE TPP, ACCORDING ing input from Canadians to inform by the government’s own estimates, their TPP position before a fast-ap- barely noticeable. The costs, on the TO OPENMEDIA proaching ratification deadline. other hand, would be tremendous. Canadians are skeptical at best You’d be forgiven, however, for hav- 20-year extensions for copyright about the touted “benefits” of the ing a hard time finding those costs terms that would rob the public do- TPP agreement. At a recent day of ac- accurately represented in this doc- main, cost Canadians millions, and tion on the TPP in Toronto, Tracey ument masquerading as objective make it harder for artists and crea- Ramsey, MP for Essex (Ontario) and analysis. Areas where we’re likely tors to make new works. the sole NDP member on the parlia- to find the greatest cost to Canadi- Locking Canada into some of the mentary trade committee, stated that ans are either downplayed or glossed most restrictive digital rights man- over 95% of the more than 20,000 re- over entirely. There is zero mention agement (DRM) rules in the world, sponses to the public consultation of the intellectual property chapter giving us less control over our le- express opposition to the agreement. and its impact on the cost of medi- gally purchased digital devices and Those Canadians who contributed cines, despite this issue dominating criminalizing tinkering and repair. to the TPP consultation process must the conversation among Canadians now wait for the trade committee to concerned about the TPP. Spreading the broken U.S. cop- prepare its report, and hope their What’s more, the impact on the yright system that allows for take- concerns—and the costs they out- digital and innovation economy, an downs of content without judicial lined—outweigh the results of the area OpenMedia community mem- oversight, opening the door to global government’s inadequate, last-min- bers have been raising concern about Internet censorship-by-copyright. ute impact assessment. Those who for over four years, is entirely omitted Investor–state rules that could missed the government deadline are from the assessment. In fact, the gov- see Canada sued for millions or welcome to share their views on the ernment report admits its forecast- even billions if we choose to update TPP through OpenMedia’s public con- ing model does not take into account our digital policy and copyright sultation tool at LetsTalkTPP.ca. M the TPP’s sweeping changes to intel- laws to better serve Canadians. lectual property rules and that, as a 28 nearly $50 billion per year In other words, the TPP will put thanks largely to targeted downward pressure on wages public spending. and employment. According to the Tufts study, that downward A universal child care program pressure will result in 58,000 is just one progressive public net job losses in Canada. Index policy option that could have a Sizing up the TPP bigger economic impact than HIDDEN COSTS Compiled by Hadrian the TPP. Affordable, accessible Mertins-Kirkwood child care could increase IGNORED BY ESTIMATES Canada’s GDP by as much as $5 billion. ot only do the potential ccording to a recent economic benefits of the Global Affairs Canada TPP pale in comparison (GAC) study, the TPP SMALL GAINS to the social and environmental will result in long-term GDP NOT SHARED EVENLY risks, the agreement poses gains for Canada of $4.3 billion a threat to the economic per year. That sounds like a e should also consider wellbeing of workers across the lot of money! But it actually that the government country. Farmers in supply- represents an increase of just numbers likely managed sectors, for example, 0.127 per cent to our more than exaggerate the economic were promised $4.3 billion $2-trillion economy. gains from ratifying the (there’s that number again) over TPP. One study from the fifteen years to compensate for In comparison, corporate and business-friendly C.D. Howe expected losses from the deal. personal tax cuts initiated Institute, which uses a similar The TPP’s intellectual property under the Harper government methodology to GAC’s, peg the chapter is expected to add more cost the federal government long-term gains at just $2.5 than $600 million annually to more than $42 billion per year. billion per year, or 0.068 per the cost of medicines. Neither And Canada loses $22–$81 cent of GDP. cost was included in GAC’s billion every year to tax evasion assessment, nor were the costs and tax havens. To make matters worse, these to government of defending studies overlook important a proliferation of investor– In part due to tax cuts and tax variables. For example, they state lawsuits from Japanese, flight, Canadian corporations assume that anyone who loses Australian and Malaysian are currently sitting on cash their job due to the TPP will investors. reserves of more than $700 automatically find a new one. billion. If corporations were But that’s not how the real to spend just 1% of their war world works. chests it would provide a much bigger economic boost than A study by Tufts University the TPP—and with none of the that attempts to correct for downsides described in this deficiencies in the government issue of the Monitor. methodology arrives at very different conclusions. Notably, Alternatively, the federal the authors find the TPP will government could choose to cause labour’s share of income invest in the economy directly. (the gains flowing to workers The plan laid out in the 2016 from economic growth) to Alternative Federal Budget decrease by 0.86 per cent. would see GDP increase by

SOURCES Economic Impact of Canada’s Potential Participation in the Trans-Pacific Partnership Agreement, Global Affairs Canada, September 2016; David Macdonald,Corporate Income Taxes, Profit, and Employ- ment Performance of Canada’s Largest Companies, Canadian Centre for Policy Alternatives, April 2011; Revenue and Distribution Analysis of Federal Tax Changes: 2005-2013, Office of the Parliamentary Budget -Of ficer, May 2014; Dean Beeby, “Revenue Canada still withholding data on tax havens, budget watchdog says,” CBC News, April 4, 2016;“Huge Cost of Tax Evasion Revealed as Campaign to Tackle Tax Havens Launch- es,” Canadians for Tax Fairness, November 2011; “CANSIM Table 378-0121: National Balance Sheet Accounts,” Statistics Canada; Alternative Federal Budget 2016, Canadian Centre for Policy Alternatives; Kaylie Ties- sen, “Universal Affordable Child Care: don’t scrap it, improve it,”Behind the Numbers, September 28, 2015; Dan Ciuriak, Ali Dadkhah and Jingliang Xiao, Better In than Out? Canada and the Trans-Pacific Partnership, C.D. Howe Institute, April 2016; Jeronim Capaldo, Alex Izurieta and Jomo Kwame Sundaram, Trading Down: Unemployment, Inequality and Other Risks of the Trans-Pacific Partnership Agreement, Global Development and Environment Insitute at Tufts University, January 2016. 29 Pamela Palmater TPP dead in the water without First Nation consent From pipelines to free trade deals, the government must be prepared to consult Indigenous nations or watch megaprojects fail

ANADA HAS promoted the and control of specific territories by In- The government’s failure to consult Trans-Pacific Partnership digenous Nations. and obtain the consent of First Na- (TPP) as being in the “best Aboriginal title rights are protect- tions at each phase since then has interests” of the national ed in Section 35 of Canada’s Consti- compounded the legal uncertainty economy, promising more tution, making the Indigenous right of the agreement. jobs and export opportunities while to make decisions over their lands However, the TPP is by no means a claiming it will also improve social and resources the highest law in the done deal. While all 12 participating conditions, reduce poverty and in- country. Canada was therefore re- states signed off on the text of the clude strong environmental protec- quired to obtain the consent of First TPP in February 2016, it still needs tions. An economic impact assess- Nations before engaging in TPP ne- to be ratified by at least six coun- ment of the TPP released in Sep- gotiations. Had this consent been tries, representing 85% of the TPP re- tember by Global Affairs Canada granted, Canada should then have in- gion’s economic output, by February estimates GDP gains of about $4.3 cluded First Nation representatives 2018 for it to take effect. Each coun- billion by 2040 if Canada ratifies the in the negotiation process. Neither try also has to implement the agree- deal, and GDP losses of $5.3 billion if of these steps happened, which calls ment in its own legislature and there it doesn’t. Both amounts are essen- into question the legality of any Ca- is no guarantee that Canada will end tially rounding errors—the equiva- nadian ratification or implementa- up with the support it needs to make lent of a few months’ worth of nor- tion of the TPP. this happen. If the current level of mal economic growth—but that A major part of the problem is that opposition to the TPP by civil society didn’t stop TPP supporters using the this deal was negotiated in secrecy by groups and Indigenous peoples is any announcement to urge the Trudeau the former Conservative government indication, Prime Minister Trudeau government to commit, sooner than of Stephen Harper. Neither First Na- faces an uphill battle. later, to firmly endorsing the agree- tions nor Canadians were asked for Even prominent Americans like ment. their views about Canada joining the Bernie Sanders and U.S. presidential Lost in all the hype is the question TPP or subsequently given a role in candidates Hilary Clinton and Don- of whether Canada can legally ratify the negotiation process. (An online ald Trump have said the TPP is a bad the TPP—even if the Trudeau govern- consultation quietly advertised in the deal and should not be ratified. Ca- ment decides that’s what it would like Canada Gazette in December 2011 was nadian civil society groups have to do. Had the government asked this clearly targeted at business groups, raised concerns related to negative question of First Nations in Canada, as it sought advice only “on the scope impacts on the cost of medicine and the answer would likely have been no. of possible free trade negotiations be- health care, the environment, post- Canada has, once again, wrongly tween Canada and Trans-Pacific Part- al and auto workers, and even copy- assumed it has the legal and politi- nership (TPP) members,” which as- right rules. Still others worry that it cal authority to negotiate a major in- sumes Canadian entry.) will increase corporate powers and ternational free trade agreement that In fact, the actual text of the agree- erode Canadian sovereignty by al- would significantly impact the consti- ment was not shared publically until lowing transnational corporations tutionally and internationally protect- November 2015, after five years of se- to sue countries in private hearings ed rights of Indigenous peoples and crecy. Keeping the negotiating details not subject to Canadian laws. their lands, waters and resources with- from First Nations violated Canada’s With regard to First Nations, the out their consent. Much of Canada has constitutional obligations to act hon- potential impacts are substantial and never been ceded or surrendered by In- ourably and in good faith by sharing can’t be remedied after the fact (i.e., af- digenous Nations. Decisions from Can- all relevant information with a view ter ratification). The transfer to third ada’s Supreme Court confirm that un- to obtaining consent prior to mak- parties of lands, waters, natural re- ceded Indigenous lands can be claimed ing any decisions that might impact sources or any other property inter- as Aboriginal title, which amounts to rights and title. So, from the very be- est (timber licences, for example) is the exclusive use, ownership, benefit ginning, Canada’s participation in the a diminution of Aboriginal title and TPP contravened the Constitution. requires consent. The TPP purports 30 to establish rules related to timber and other products extracted from Indigenous lands in Canada without first obtaining First Nation consent. The TPP fails to include specific pro- visions related to First Nation deci- sion-making, control or benefit on any and all exports from their lands. Trading relations with First Na- tions and negotiated treaties are the founding blocks of the state known as Canada. Even the Supreme Court has noted that trade was a critical as- pect of developing and maintaining peace between First Nations and co- lonial governments. Furthermore, some of the treaty provisions also recognize the authority of First Na- tions over important economic and governance matters such as control of trade within their sovereign terri- tories. Some treaties, especially those with the Mi’kmaq, specifically pro- tected the right of First Nations to trade to their best advantage; these state dispute settlement cases under Tsleil-Waututh leaders sign the Treaty Alliance Aboriginal and treaty rights, agree- existing bilateral investment treaties Against the Tar Sands in Vancouver on ments and practices now form part and free trade agreements can re- September 22, 2016. of Canada’s Constitution. sult in severe penalties when states ELIZABETH MCSHEFFREY/NATIONAL OBSERVER Canada acted outside of its con- attempt to protect the environment, stitutional authority when it denied food or access to medicines. First Nations information about, Many of these experts have col- and access to negotiations and deci- lectively called for the TPP to be While some may think this a dras- sion-making related to, the TPP. The amended to include protections for tic measure, one need only refer to government exacerbated the prob- Indigenous and human rights. Here the Northern Gateway pipeline con- lem by failing to include provisions in at home, the TPP is also inconsist- troversy as an example of what hap- the TPP that recognize First Nation ent with Canada’s pledge to fully im- pens when governments ignore First decision-making (and benefit) over plement the United Nations Decla- Nations. The Federal Court of Appeal trade, while enshrining legal rights ration on the Rights of Indigenous recently held that if governments are to investors that could undermine Peoples (UNDRIP), which protects not prepared to engage in proper con- Indigenous land and food security, Indigenous lands and enshrines the sultations with First Nations, they and sovereign governance generally. guarantee to free, informed and pri- should be prepared to watch their Some UN experts point out the or consent. As a result, the TPP vio- project approvals fail—no matter TPP and similar free trade and in- lates the core principles and obliga- what their stated economic benefit. vestment deals seriously threaten tions of international law and Indig- If, in the words of the Court, “brief, Indigenous land rights and natu- enous human rights and should not hurried and inadequate” consulta- ral resources, while others have de- be ratified. tions do not suffice for a pipeline, a nounced the TPP for how it will un- The interests at stake vis-à-vis complete lack of consultations on an dermine state sovereignty and fail to First Nations are significant and de- arguably more consequential Pacific protect international human rights. mand a serious consideration before free trade zone is unlikely to pass a In undermining the capacity of states the TPP gets to the debate stage in similar legal test. to protect Indigenous rights from be- Parliament. In fact, the legal deficien- On Thursday, September 22, First ing violated by transnational corpo- cies and potential impacts on First Nations in Canada and Tribes in the rations, they argue, the TPP could Nation rights are so substantial that United States signed a historic treaty lead to gross human rights violations Canada should be required to start alliance vowing to stop pipelines on and other significant threats to inter- over. There is no such thing as retro- Indigenous lands. First Nations have national peace and security, includ- active consultation and consent. The taken back their power. ing negative impacts to food sources, legal defect is so substantial that, on It’s long past time to start talking water, health and living conditions. balance, the TPP can’t be saved—at to First Nations. The TPP is dead in The evidence shows that investor– least not in its present form. the water otherwise. M 31 Melinda St. Louis and Melanie Foley Fighting corporate trade A TPP update from the United States

HE CAMPAIGN against the ed sums of taxpayer money, includ- atives have publicly opposed the TPP Trans-Pacific Partnership ing for the loss of “expected future despite the dual pressures from the (TPP) in the United States profits.” These decisions are not sub- White House and the business lobby has reached unprecedented ject to appeal. is a testament to the voter outrage proportions. The movement The ISDS provision in the TPP over this corporate-rigged pact. has surpassed its core group of la- expands and locks in the ISDS sys- Given the unprecedented level of bour unions and activist groups to tem already in existing trade deals opposition, TPP proponents know include members of the general pub- like the North American Free Trade that their only shot at passing the lic not traditionally concerned with Agreement (NAFTA). Under NAF- deal, according to U.S. Vice-Pres- “trade” issues—because the TPP is TA’s ISDS system, Canada has been ident Joe Biden, is by sneaking it not really about trade at all. sued over pharmaceutical standards through in the “lame-duck” session That is the key message behind (case pending), toxic substances pro- of Congress—the unique moment the recent, extraordinary back- tections (Canada lost), anti-fracking in the legislative calendar after the lash against the status quo, corpo- laws (case pending), fossil fuel extrac- November election, when members rate-driven model of trade that the tion permits (Canada lost), and toxic who have retired or been voted out presidential campaign season has waste disposal requirements (Cana- of office can still make decisions and unveiled. A “trade” pact negotiated da lost) to name just a few. are the least accountable to their con- with 500 corporate advisors under In the United States, the threat of stituents. extreme secrecy, the TPP has become ISDS became much more real this American civil society organi- the primary target of the present day year. After the historic victory of zations—labour, environmental, outrage over corporate threats to our Indigenous and environmental ac- faith, consumer, family farm, youth, democracy. tivists over the construction of the LGBT, civil rights, senior citizen, pub- Both major parties’ candidates op- Keystone XL pipeline, TransCan- lic health and other groups—are tak- pose the deal, as do most House Dem- ada, the corporation behind Key- ing advantage of this critical time be- ocrats and a sizeable bloc of House stone, launched a $15-billion ISDS fore the election. For instance, a can- Republicans. More and more repre- claim against us. The TPP would also cer patient, mother and activist was sentatives who voted for “fast track” threaten our food safety, jack up med- just arrested protesting the TPP at authority for the TPP last year are icine prices, and shirk the global com- the office of an undecided represent- now responding to their constitu- munity’s responsibility to meaning- ative; the video of her calm, concise ents’ demands and moving to oppose fully address labour standards and TPP critique while in handcuffs has the TPP itself. Democratic vice pres- human rights. been watched by hundreds of thou- idential nominee Senator Tim Kaine Despite the array of horrors in sands of people. is in that camp, changing his stance the deal and the growing, trans-par- Across the country, musicians and on the deal due to unacceptable pro- tisan opposition to it in the United other celebrities have been educat- visions in the final text, such as the States, the TPP is not yet dead. Dis- ing and entertaining the public in a undemocratic investor–state dispute appointingly, President Barack Oba- Rock Against the TPP concert tour. settlement (ISDS) system. ma has been promoting the pact with The goal of this diverse coalition is to ISDS is the corporate power-gr- a passion not seen from this admin- get undecided members of Congress ab at the heart of the TPP. It em- istration on any other initiative, in- on the record right now, when the po- powers multinational corporations cluding his signature health care re- litical price of failing to oppose the to sue our governments before pan- form—twisting arms and calling in TPP can be fully paid, and to continue els of three corporate lawyers. These favours to get members of Congress to educate the general public about corporations need only convince the to fall in line. the TPP corporate power-grab. M panel that a law or safety regulation The good news is the pro-TPP forc- in dispute violates their new inves- es still do not have the votes they tor rights. The corporate lawyers need to pass the House of Repre- can award the corporations unlimit- sentatives. That so many represent- 32 “This powerful collection of essays lays bare what the TPP is really all about: enhancing corporate power. Under the guise of a trade deal, the treaty hands corpo- rations an assortment of tools for striking down domestic laws that protect citizens and the environment. Easy to read and authoritative, this ‘citizen’s guide’ deftly expos- es how the TPP would negatively affect our lives—increas- ing inequality and hampering efforts to deal with global emergencies like climate change.”

Linda McQuaig, author and journalist

A NEW BOOK EDITED BY

SCOTT SINCLAIR is a senior research fellow with the STUART TREW is the editor of the CCPA Monitor, a Canadian Centre for Policy Alternatives, where he directs bimonthly publication of the Canadian Centre for Policy the centre’s Trade and Investment Research Project. He Alternatives. Prior to joining the centre, he worked for was formerly a senior trade policy advisor with the gov- eight years as a trade researcher and campaigner with ernment of British Columbia. the Council of Canadians.

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WWW.LORIMER.CA Feature

Lynne Fernandez It’s time to give back to Manitoba’s north ILLUSTRATION BY JAMES CULLETON Corporate welfare is not the right solution to the boom-and-bust cycle. We need to consider what real regional development could look like.

HIS SUMMER HAS not been kind ly willing to sell for a hefty price, de- will effect close to 10% of the commu- to Manitoba’s workers. First spite having bought the port in 1997 nity’s workforce. The same propor- Omnitrax announced the clo- for only $10.00, and receiving millions tion of Churchill’s workforce will be sure of the Port of Churchill, in subsidies since then (from both the affected. putting 65 people out of work. provincial and federal governments) The closure of Churchill’s port Then it reduced train service to keep it running. had already reverberated in The Pas Tto the community from twice a week As if the Omnitrax affair was not where grain is loaded onto the train to once, constricting the lifeline that enough, The Pas’ largest employer, as it takes the last leg of its trip north. brings tourists and supplies to the Tolko Industries, subsequently an- Thirty-five people lost that seasonal town, and grain and other commodi- nounced it was shutting down its pa- work, and dozens more are worried ties to the port. That lifeline connects per plant in December 2016. Around about their jobs. Just four days after on the other end with The Pas, now 330 employees will be out of work in Tolko’s announcement, word came facing its own crisis. To date, Omni- a town of 5,500. This will also impact out the Aseneskak Casino may re- trax has refused to show its hand. It’s the 250 mostly contract loggers who locate to a more populous area. The not clear, for example, if the company provide material to the plant, bump- casino, located on Opaskwayak Cree is holding out because it wants fur- ing the number of unemployed closer Nation next door to The Pas, employs ther subsidies or if it would be willing to 580. With a working population of 147 people. The closure of the Tolko to sell the port and railway. It is like- approximately 3,400, the Tolko layoff plant (with its attendant loss of de- 34 mand for timber), reduced rail usage and the casino relo- and that it would remain The Pas’ largest employer. cation delivered a triple blow to the local economy. Those hopes now seem lost. In absolute numbers, the job losses might not sound Tolko claims it is too difficult to transport raw mate- high, but in relative terms their effect will be devastat- rials to the mill and that its steam generator is too inef- ing. If Winnipeg were to lose 10% of its jobs in one fell ficient and expensive, making the company uncompet- swoop, more than 42,500 people would be without work itive. It is not known if management ever approached the and, of course, income. When workers and their families province for help to convert the generator, or if it would are knocked off their feet, the local economy suffers. From be willing to discuss other forms of government assis- stores to car dealerships to travel agents to restaurants to tance at this point. baby sitters, all kinds of businesses and individuals who Should the government intervene in Churchill or The rely on someone else’s income to make their own living Pas? The quick answer is yes. But there are short- and will feel the pinch—or in this case the punch. long-term issues to consider, including how to ensure unemployed workers can access employment insurance, he boom and bust scenario is common in our economic how to connect Canada with its northern communities T system. Private corporations that cannot make enough as the Arctic opens up due to climate change, and the profit have no loyalty to the communities they are based need to reassess regional development plans at the pro- in or to the workers they employ. History is strewn with vincial and federal levels. towns that gave up the ghost when companies moved on. On the other hand, there are examples of governments he Port of Churchill has been essential for Saskatche- bailing out companies just to keep people employed: T wan and Manitoba farmers to get grain to port, espe- when corporations like Chrysler are declared “too big to cially in bumper-crop years like this one. According to fail,” it is the taxpayers who foot the bill. the Western Grain Elevators Association, the 2016 Cana- The Manitoba layoffs, while following this trend, are dian grain harvest could be as high as 74 million tonnes, doubly difficult. The “remoteness” of these communi- which would approach the 76.8-million-tonne record set ties makes the opportunities harder to see for out-of- in 2014. Bumper crop expectations have only heightened town business, while the smaller economic base makes concerns over the Port of Churchill shutting down. “This it tougher for laid-off workers to find new jobs. People is a major blow to us,” said Dan Mazier, president of Key- are tempted to leave town, causing real estate prices to go stone Agricultural Producers, in July. “We’ve had so many down, which further reduces economic activity in the re- issues shipping our grain east and west to port, and [the gion. Eventually the tax base erodes, leaving municipali- Port of Churchill] was an excellent option. If ever there ties with less money to provide services. was a case for government intervention, this is it.” Tolko pays $836,318 in property taxes to the Town of Of course, it must be the right kind of intervention. The The Pas. Of this amount, $238,359 is forwarded to the catalyst for this crisis was the Harper government shut- Kelsey School Division and $144,335 is for provincial ting down the Canadian Wheat Board (CWB), the port’s school taxes. The remaining $453,620 represents rough- biggest customer—an example of how bad (and in this ly 7% of The Pas’ total municipal tax revenues. To put case ideologically driven) government policy can cripple Tolko’s contribution in perspective, The Pas’ fire protec- an entire region. In the event that this year’s shipping tion costs are $409,877 per year, and it spends $423,306 a potential cannot be salvaged, workers and their fami- year on garbage collection and landfills. The above fig- lies will need help. ures demonstrate how a downward spiral can start that, Unfortunately, employees at the Port of Churchill work if not stemmed, causes permanent damage. seasonally and many will not have put in enough hours Certainly, The Pas’ fortunes have waxed and waned to qualify for employment insurance. Given the wages over the past 50 years. The Tolko mill used to be owned of 65 people will be lost to the local economy, EI regula- by a provincial Crown corporation called Manitoba For- tions need to be modified so these workers can collect estry Resources Ltd. The province had to take over the benefits. A special EI zone should be established in the mill from scandal-ridden Churchill Forest Industries, a Churchill region so that anyone losing their job has a company brought in by former premier Duff Roblin to spur economic development in The Pas. Manitoba For- estry Resources was not able to run the mill without los- ing money and was eventually sold to Repap Enterprises in 1989, which sold it nine years later to Tolko. At its height the mill employed over 1,000 work- ers. A local sawmill (also owned by Tolko), which em- A special EI zone should be ployed 236 people, supplied the paper operation with sawdust before the company closed it down in 2006. established in the Churchill region Until Tolko’s recent decision to completely leave town, so that anyone losing their job has it was hoped the mill had stabilized operations with 330 workers—and millions of dollars in subsidies to a better chance of qualifying for weather the softwood lumber dispute with the U.S.— support. 35 better chance of qualifying for sup- Infrastructure is not just about help- ful commitment to the North’s peo- port, as a means of softening the blow ing private corporations make a prof- ple and land. and keeping the local economy on an it; it is deeply connected to nation even keel. building. As the Arctic takes on more illions of dollars of profit have Luckily, many of The Pas’ work- importance nationally and globally, B been extracted from the North. ers are members of Unifor and cov- some are suggesting a Federal Port This money has enriched people ered by a collective agreement that Authority should be established in and companies with little or no con- assures them a severance package. Churchill, ideally with the collabo- nection to the region. Whether they Once this runs out, however, those ration of interested First Nations. were hydro, mining or logging pro- people still looking for work will need Churchill is but one community jects, First Nations have rarely bene- quick access to EI. The government in an expansive northern region. As fitted from southern enterprise. Until should ensure there is enough staff the news from The Pas demonstrates, recently, these communities were not to process claims and answer ques- it is not the only town that vulnera- even consulted when megaprojects tions so that families don’t face un- ble to the vagaries of corporate ac- were planned and implemented— due hardship and anxiety. Keeping tivity. After all, if corporations like even when the projects destroyed income flowing into households also Tolko (or Vale, which is planning to traditional lands and lives. cushions the blow to the local econo- close its Thompson smelter in 2018) According to a forthcoming report my, although disposable incomes will can’t make a go of it, some would ar- by the Thompson Neighbour Re- be considerably lower. gue the North is doomed to remain newal Corporation, prior to 1962 in Among the longer-term concerns underdeveloped, its people cut off Thompson, “INCO’s early hiring regu- about losing the port is the pres- from services—like comprehensive lations displayed overtly discrimina- sure it will put on Canada’s other health care and affordable food— tory policies which expressly forbade deep-water ports to take on the grain that southerners take for granted. the hiring of First Nations workers.” export burden. The Port of Vancou- Not everyone takes such a narrow This happened even though the com- ver, for example, has been operat- view. The Winnipeg Free Press, for ex- pany’s operations were on tradition- ing near capacity for the past sever- ample, has called on the province to al Indigenous lands. al years and is struggling to imple- take action. But when private corpo- Thompson has evolved from a ment a $300-million expansion plan. rations like Omnitrax and Tolko fail, one-industry town, born from a pro- But Churchill’s port could and argua- despite receiving millions of dollars vincial government agreement with bly should be about more than mov- of government money, it becomes INCO in 1956, to become a region- ing grain. very difficult to make a case for fur- al hub providing administrative, The Manitoba Chamber of Com- ther public support. There is a role health-related, educational and shop- merce, for instance, wants a “North- for government to play in regional ping services to tens of thousands of ern Commission” to assess the prov- development and nation building, people throughout the North, includ- ince’s transportation infrastructure but it does not entail throwing public ing Churchill (the Omnitrax line goes and its limitations on northern de- money at private corporations that through Thompson). Today, fully 36% velopment. “The Commission should do not and cannot have a meaning- of Thompson’s population is Indige- document and identify the current nous—the largest concentration of facilities, assess additional require- any Canadian city—and local busi- ments and propose options for re- ness is slowly starting to reflect that payment of capital costs,” argues the demographic reality. But as the forth- business group. Furthermore, it says, coming Manitoba Research Alliance the province should “develop a strat- report by elders Ted Chartrand and egy and mobilize investment in the Mabel Bignell explains, racism and Port of Churchill as a strategic trans- discrimination are still huge prob- portation hub for Northern resupply, Billions of dollars lems. Arctic sovereignty, and as an Arctic of profit have Fortunately, discriminatory la- Gateway to international markets.” bour practices are on the wane. Les Beyond these international trade been extracted Ellsworth, president of Local 6166 of concerns, the Port of Churchill will from the North. the United Steelworkers, says he is become more important as a launch- starting to see far more Indigenous ing-off point to other northern com- This money has workers at Vale, the result of compa- munities in the Northwest Terri- enriched people ny efforts, supported by the union, to tories and Nunavut. As the sea ice make the workforce more represent- melts, Churchill could be the gate- and companies ative of the community. With Mani- way to the central and eastern Arc- with little or no toba’s Indigenous population grow- tic, and its growing tourism sector re- ing as it is, these measures cannot quires a reliable means of transpor- connection to the be brought in fast enough. It will be tation to deliver people and supplies. region. doubly frustrating if Vale closes the 36 ATEC students on a worksite in Nisichawayasihk Cree Nation. LYNNE FERNANDEZ

smelter, as it is planning to do in 2018, when the indus- is an important economic hub in itself. According to its try is finally committing to training and hiring local In- website: digenous workers. OCN is a thriving community, which, since the Manitoba’s population is around 17% Indigenous, and 1960s, has pursued the road to autonomy through the median age in this group is 21 years (versus 39 in the the development of strategies that enhanced population as a whole). When we talk about the north- its economic base while controlling its own ern economy, we should be putting it in the context of the commercial enterprises, education and health predominately Indigenous population, keeping in mind it services, community works, and finances. is diverse, young and growing faster than the non-Indig- enous population. Because northern Indigenous peoples Another First Nation that is leading the way in local have not fared well under modern, colonial economic de- economic development is Nisichawayasihk Cree Nation velopment, they are now turning to their own resources (NCN), also known as Nelson House. Economist John and ideas to chart a new course. Loxley reports that NCN has benefited from develop- Many of the contractors who provide timber to the ment agreements with Manitoba Hydro and flood com- Tolko plant are from First Nations. Some own and oper- pensation funds from the Northern Flood Agreement. It ate enterprises such as Moose Lake Logging Inc. Grand has invested in community-based economic initiatives, Chief Sheila North Wilson of the Manitoba Keewatino- some located in the newly formed Urban Reserve in near- wi Okimakanak Inc. (MKO) wants local Indigenous en- by Thompson, where NCN owns and runs the Mystery terprise to take over the Tolko mill, and there is a con- Lake Hotel. sortium of First Nations interested in running the port Now that the Urban Reserve has been officially -ap at Churchill and taking over the railway. Churchill’s pop- proved, both NCN and the City of Thompson are opti- ulation is more than half Indigenous, so First Nation in- mistic about the opportunities. NCN Chief Marcel Moody volvement makes a lot of sense. told the Thompson Citizen: “It’s not all about us. We have There are compelling reasons for the province and the a vested interest in maintaining the economic viability federal government to think about how to accommodate of Thompson. The more people we can attract to Thomp- these ideas. The key would be to negotiate with First Na- son, the better it is for both NCN and for Thompson.” tions to ensure their concerns, best interests and aspira- NCN Development Corporation also owns a variety of tions are reflected in any development plans. businesses in Nelson House including a building supplies The population of The Pas is roughly half Indigenous, store, food store, gas station, restaurant and even a radio but many people who work and shop there live on Opask- and TV station. wayak Cree Nation (OCN) on the opposite side of the NCN has used resources from its relationship with Saskatchewan River. With a population of 4,500, OCN Manitoba Hydro to run the Ataoskiwin Training and Em- 37 ployment Centre (ATEC) Inc. Housed than the competitors’ systems. As it forward linkages that could be built in a new and state-of-the-art build- turns out, the MKO’s economic plan around the creation of basic goods ing built by the Crown hydro com- embraces alternative green energy. If industries that meet the needs of lo- pany when work was being done the current government were to mod- cal communities and could culminate on the Wuskwatim Dam, ATEC pro- ernize Manitoba Hydro to include into a network of regional develop- vides specialized training to NCN res- biomass (woodchips) as a means of ment. Over time, such development idents, many of whom have dropped heating new homes (and converting may even be able to feed into the Port out of school and/or never held a job. existing homes to the technology), it of Churchill and keep the train run- The model incorporates features would open up new economic oppor- ning more often. determined to be important for In- tunities. Where better to source this The province’s minister of growth, digenous jobseekers and employers renewable fuel than in and around enterprise and trade, Cliff Cullen, is who wish to hire them. It includes The Pas? reported to have visited Churchill re- an extensive intake process to deter- European prices for biomass are cently with a group of business offi- mine trainees’ education and employ- high enough to support Canadian ex- cials, and federal Minister of Inno- ment interests, education levels and ports; rail shipments could be load- vation Navdeep Singh Bains is also upgrading needs, as well as other so- ed onto boats in the Port of Church- monitoring the situation. It’s not cial and cultural needs. One of AT- ill. With government help, Indige- clear what sort of strategy, if any, EC’s most innovative programs trains nous enterprises might even pro- they will be offering the communi- NCN youth building much-needed duce woodchips to replace imported ty, but surely it should go beyond housing for the community while oil for domestic use. This plan would pledges that private business from they earn their Red Seal accreditation. create more jobs, be eligible for emis- outside the region (nationally or in- As successful as NCN has been, sion credits, and possibly be cost ternationally) will eventually come Loxely notes such examples are few competitive. A viable model to sub- to the rescue. and far between. But he says the sidize conversion to affordable geo- The experience of MKO’s Commu- NCN experience proves how crea- thermal while employing local work- nity Economic Plan tells us social en- tive community development pro- ers already exits with Manitoba Hy- terprises that are run by the commu- jects can flourish with government dro and Fisher River Cree Nation. nity, and give back to the community, support. His research highlights how Such a plan could be tailor-made to are much more likely to provide the important Manitoba Hydro’s role is fit any number of business plans us- goods and services—and jobs—peo- in northern development: when done ing biomass. ple in the North actually need. NCN properly, government or Crown cor- Alternatively, infrastructure has shown how partnering with poration support can leverage long- could be converted to meet different Manitoba Hydro can result in crea- term funding for First Nations so needs. Northern First Nations need tive and holistic development fold- they can take control of the local homes—a high-value development ing in local supplies and job training economy. initiative that lends itself to spinoffs for northerners. Both the federal and There is no shortage of similar ide- in areas like construction materials, provincial government need to step as in Manitoba’s North. MKO came training, etc. Loxley has done a great up to ensure that northerners have up with a 10-point plan for northern deal of research on the backward and the skills they need to enter and stay economic development that both in the labour market. They can rely the federal and provincial govern- on the ATEC model for an example ments should be looking at closely. of how to do this. The most important element of the On a final note, it would be a mis- plan is that it is community driven. take for southern Manitobans to Another is that it turns communi- think that what happens in the North ty challenges, such as the high dia- does not affect them. Not only do we betes rate and lack of affordable en- When done rely on northern resources, but there ergy, into job-creation schemes that properly, is a constant movement of peoples will make First Nation communi- from northern urban centres and ties self-sufficient. Such initiatives, government or First Nations to southern cities and spearheaded by Aki Energy (an In- Crown corporation back again. A stronger North would digenous- owned and run social en- only benefit the rest of the province terprise), have already taken shape in support can and country. other First Nations including Garden leverage long-term There is no need for an entire re- Hill and Fisher River Cree Nation. gion to remain underdeveloped. But funding for First northerners themselves need to drive ack in The Pas, Unifor’s Paul McKie Nations so they the change. As we enter a new era of B claims the Tolko mill’s steam gen- truth and reconciliation, that is a erator is fuelled by waste oil, which can take control of message ministers Cullen and Bains makes it 33% more expensive to run the local economy. need to hear loud and clear. M 38 Feature

Gail Davidson and Rohan Shah A COMPUTER RENDITION OF THE PLANNED SITE C DAM. No need and no market for Site C / GOVERNMENT OF BRITISH COLUMBIA B.C. and feds stacking the deck for private profit

HE SITE C hydroelectric project in Twenty-four years later, the pro- consuming 70 terawatt hours of en- northeastern British Columbia ject has been granted an environ- ergy in 2016-17, B.C. is only using 60 is an alarming example of gov- mental assessment certificate by the terawatt hours despite the province’s Ternments acting with impunity B.C. and federal governments. This is population growth. In fact, demand to extinguish treaty rights of Indig- despite the fact BC Hydro, the Crown for energy in B.C. has flatlined since enous peoples, authorize irreversible corporation responsible for develop- 2005. environmental damage, cause food ing B.C.’s power infrastructure, has Perhaps more disconcerting is the and water insecurity, and override again failed to justify the need for unparalleled and irremediable dam- democratic processes. Site C. A joint review panel (JRP) set age that Site C will cause to the envi- The third dam on the Peace Riv- up to conduct the required environ- ronment and to rights of members of er, Site C will cost taxpayers at least mental assessment concluded in 2014 Treaty 8 Nations. A statement signed $8.8 billion and produce 5,100 gigawatt that “basing a $7.9 billion Project on a by 364 Canadian, American and Euro- hours (GWh) annually when construc- 20-year demand forecast without an pean academics, addressed to Prime tion is completed in 2024. As early as explicit 20-year scenario of prices is Minister Trudeau, emphasized, “The 1980, BC Hydro applied for an “energy not good practice…the Proponent has number and scope of significant ad- project certificate” for Site C, but the not fully demonstrated the need for verse environmental effects arising British Columbia Utilities Commis- the Project.” from the Site C Project are…greater sion (BCUC), the body charged with Even so, Dr. Harry Swain, chair of than for any project ever assessed overseeing utilities in the province, the JRP, recently commented that under…the Canadian Environmen- determined there was insufficient -ev BC Hydro’s forecast has turned out tal Assessment Act.” idence of future demand. to be completely wrong. Instead of 39 Moreover, in assessing the effects of Site C on Indig- currently estimated around $126, with a selling price of enous peoples’ land use, the JRP concluded the project $25–$35. Reducing consumption, on the other hand, could will permanently damage Treaty 8 rights to fishing, hunt- provide power at prices ranging from $32–$49. In other ing and trapping practices, the use of lands and resourc- words, conservation would provide additional electrici- es, and would destroy heritage sites. Treaty 8, signed in ty (when and if it is needed) at between 25% and 39% of 1899 by representatives of Queen Victoria and members the cost of Site C power. of several Indigenous peoples, promised that “the same In addition, BC Hydro has touted Site C’s job-creation means of earning a livelihood would continue after the numbers, but its own calculations indicate that double treaty as existed before it” and “only such laws as to hunt- the jobs could be created through conservation. More- ing and fishing as were in the interest of the Indians and over, under the Columbia River Treaty — an agreement were found necessary in order to protect the fish and… whereby B.C. manages the Columbia River to reduce U.S. animals would be made.” flooding risk and, in return, is entitled to some of the U.S. As such, Site C represents the violation and extinguish- power produced (but currently sells it back) — B.C. could ment of treaty rights agreed to over 100 years ago and is obtain the same amount of power that Site C would pro- a betrayal of recent reconciliation promises. As stated duce annually at rates ranging from $30 to $50 per MWh. by Royal Society of Canada President Maryse Lassonde, The provincial government, however, has ruled out this “Past projects often neglected or ignored aboriginal peo- option. ples and their concerns — with adverse and lingering con- Swain said the only realistic option is for B.C. to sell Site sequences. Those days are supposed to be over.” The fed- C power to the U.S. at market prices ranging from $25 to eral and provincial governments have nevertheless ap- $35 per MWh. But the present value of such sales over proved the project, despite evidence the dam will cause a 20-year period is $1.6 billion, only 18% of the conserva- incalculable damage just to produce electricity that is tive $8.8-billion cost estimate of the project. not needed. That legal challenges against both govern- In short, a likely consequence of producing this un- ments have all been dismissed is even more troubling. needed power (that will cost well above alternatives) is the bankruptcy and privatization of BC Hydro. Given its current $18.1-billion debt load, such a collapse appears in- The numbers do not add up creasingly likely. In the interim, ratepayers should not be In an August interview with CBC’s The Current, Dave surprised if prices skyrocket as BC Hydro attempts to dig Conway, a BC Hydro community relations manager, ad- itself out of a financial black hole. mitted additional power is not needed: “it’s not about to- day…it’s about what the requirement is (sic) 20–40 years out,” he said. This fanciful prediction is not only incon- An unprecedented attack on food and water security gruent with B.C.’s stagnant demand, but also seems to be The JRP’s finding that Site C will result in permanent and based on doubtful assumptions. irremediable adverse environmental damage points to BC Hydro appears to be assuming that population two potential consequences: food and water insecurity. growth necessarily results in an increased demand for The Peace Valley is the only Class 1 agricultural land in energy: “we’re building this based on StatsCan’s projec- the North and arguably B.C.’s last fertile east-west agri- tion of a population growth of more than a million peo- cultural valley. It has the capacity to grow the same range ple in the next 20 years,” said Conway. Yet B.C.’s popula- of crops as the Fraser Valley, but with higher yields due to tion has increased by almost 12% since 2005, when de- more daylight. Flooding the valley will irreversibly com- mand stalled. BC Hydro also appears to be counting on promise its capacity to provide food to 1–2 million peo- “economic development coming from…natural gas and ple — an alarming degree of devastation. liquid natural gas development.” Although the Pacific B.C. imports more than half its fruit and vegetables Northwest project was approved in September, LNG from California and Mexico, regions that due to severe prices have remained low amid a supply glut, so it is droughts will not be able to continue exporting at current unclear whether much economic development will in prices. In fact, BC Food Systems Network Co-chair Brent fact occur. Mansfield has predicted that, between 2014 and 2019, pro- Not only does Site C purport to solve a problem that duce prices could increase 25% to 50%. Given that one in does not exist, it is also far from the cheapest option to 12 Canadian households experienced food insecurity due meet B.C.’s energy needs. BC Hydro’s $8.8-billion esti- to lack of money during 2011-12 (it was almost one in four mate does not account for the cost of transmission and among single-parent households), the impact on family distribution. When these are included, the price tag to health will undoubtedly worsen. power homes in the Lower Mainland and Vancouver Is- Secondly, the valley is much closer than California to land — where the province’s population growth is likely northern B.C., Yukon and the Northwest Territories, are- to occur — rises to $11 billion. as that have been struggling under what Indigenous and Even without this increase, Site C is far more expen- Northern Affairs Minister Carolyn Bennett has called the sive than energy conservation, alternatives, or repatriat- “abject failure” of Canada’s Nutrition North program. Site ing Canada’s entitlement to energy under the Columbia C will eliminate a cost-effective source of nutrition for River Treaty. The cost per megawatt hour from Site C is these and other communities. 40 Signs protesting the Site C dam are plentiful along Highway 29 between Fort St. John and Hudson’s Hope. EMMA GILCHRIST / DESMOG CANADA

Although BC Hydro has insisted of Engineers, tasked with ensuring strict environmental and needs as- that water quality will not worsen, America “never runs out of water,” sessment. the JRP concluded “[t]here would be set about mapping Canada’s water The CEA exempts BC Hydro from a risk of exceedances of drinking wa- resources. Every engineering plan having to obtain from BCUC — the ter quality guidelines for a number proposed shows only two routes to same body that rejected Site C in of wells.” The City of Fort St. John, divert coastal runoff water from the 1980 — a “certificate of public conven- whose population is 11.5% Indige- north into rivers in the south: the Co- ience and necessity,” without which nous, obtains its water from a well lumbia River (to bring it west of the the project could not proceed, open- field 12 kilometres downstream from Rockies) and the Peace River (to bring ing the door to provincial authorities Site C that could be affected by water it east of the Rockies). making decisions against the pub- quality changes in the Peace River. Site C is the last dam in the sys- lic interest and relatively immune Additionally, the Alberta government tem. If BC Hydro is privatized, and from review. As Blair Lekstrom lat- has identified that the dam’s flow rate U.S. investors are involved, full NAF- er conceded, the CEA enabled B.C. to could “cause undue risk to Alberta in- TA water rights will apply, includ- “streamline” approval of Site C. frastructure,” designed with only the ing Chapter 11 investor rights to sue For its part, the CEAA was intro- Bennett and Peace Canyon dams in the government of Canada for loss- duced by the Harper government mind. Indeed, communities may be es sustained if NAFTA rights are not via the 425-page omnibus Bill C-38, forced to shut down their water in- upheld. which precluded consultation with takes. Conveniently, BC Hydro is not First Nations and prevented respon- liable for any damage or interference sible voting. The bill included provi- it causes to wells as per the Hydro Regulations stacked sions that weakened environmental and Power Authority Act 1996. in favour of Site C assessment, reduced fish habitat pro- Moreover, according to Wendy The provincial Clean Energy Act tection and increased the cabinet’s Holm, agrologist and policy econ- 2010 (CEA) and the federal Canadi- ability to make arbitrary decisions. omist, “Site C is being built exact- an Environmental Assessment Act Most importantly, the new CEAA ly where it should be to deliver 2012 (CEAA), both enacted by un- reversed the presumption of appli- continental water sharing plans.” democratic means for questiona- cation of the federal environmental The Peace River’s Site A, B, C and ble purposes, “stacked the deck” in assessment process: while the 1992 D dams along the Columbia River favour of Site C by making it easier version of the act required such an were planned at the same time in for governments to ignore evidence, assessment, now only those projects the 1950s, after the U.S. Army Corps bypass public consultation and re- specifically designated by the gover- 41 Site C represents the violation in the Peace Valley region (PVLA) challenged the provin- cial minister of environment’s decision to issue an envi- and extinguishment of treaty ronmental assessment certificate on the grounds that the rights agreed to over 100 years minister did not take into account the JRP’s “Economic Recommendations” and did not provide reasons for ap- ago and is a betrayal of recent proving the project. Based on the conclusion that there reconciliation promises. was no need for Site C, the JRP recommended referral to BCUC for detailed examination of and public comments on “costs…and revenue requirements,” “a reasonable long- term pricing scenario for electricity and its substitutes,” and “load forecast and demand side management plan details.” The Court dismissed PVLA’s application, ruling it was not necessary for the minister to give reasons for issuing the certificate and that the recommendations re- lied on were “not specific to the Project” and “outside the nor-in-council (GIC) need to be reviewed. Unlike its pre- scope of the [JRP’s] mandate.” decessor, the CEAA gives the minister of environment It is difficult to see how recommendations that the pro- unilateral power to change the types of projects that are ject’s costs, pricing and demand forecast should be sub- subject to review. If a designated project is deemed like- jected to rigorous scrutiny could be legitimately ignored ly to cause significant adverse environmental effects, as by the minister, especially given the JRP’s conclusion that in the case of Site C, the matter must be referred to the “[j]ustification [for Site C] must rest on an unambiguous GIC to determine if such effects are “justified in the cir- need for the power, and analyses showing its financial cumstances.” costs being sufficiently attractive as to make tolerable the However, the CEAA does not furnish explicit criteria bearing of substantial…costs.” As such, the decision effec- to be taken into account. There is no requirement, for tively endorsed the province’s use of the B.C. statutory example, for the GIC to consider reports drafted by a re- framework to avoid examination by BCUC and the pub- view panel, and directly respond to the concerns raised, lic. The B.C. Court of Appeal dismissed the subsequent when determining whether such a project is justified and appeal, ruling that while the recommendations were not should proceed. This permits decisions to be made that outside the JRP’s remit, they did not satisfy the precise are at odds with scientific evidence, expert recommenda- definition of “recommendations.” In essence, the appeal tions and the public interest. As distinguished academic was defeated on a mere technicality. Robert Gibson has stated, “The new law gets its stream- The ruling by the Federal Court in another application lining chiefly by undermining effectiveness.” by the PVLA was similarly problematic. The PVLA sought As if these statutory changes did not bestow a suffi- judicial review of the GIC’s decision to accept the signifi- cient advantage for Site C approval, in May 2014 the Lib- cant adverse environmental effects of Site C as “justified eral cabinet appointed Jessica McDonald, one-time depu- in the circumstances.” Although the GIC refused to pro- ty minister to former premier Gordon Campbell, as pres- duce the record of information before it when making ident and CEO of BC Hydro, even though she had no ex- its decision, the Court gave it the benefit of the doubt by perience in the energy sector. inferring from the vaguely worded order-in-council and accompanying press release that all relevant economic considerations had been adequately considered. Given The failed legal challenges the uncontroversial evidence there was no need for, and It is perhaps not surprising, then, that the lawsuits seek- enormous consequential damage from, Site C, the Court’s ing judicial intervention to stop Site C have all failed so ruling — “[t]here is no basis to find that the GIC’s justifica- far. Firstly, there was significant inequality between the tion decision was either taken without regard for the pur- parties to these suits. On the one hand, Site C proponents pose of the CEAA 2012, or that economic considerations (BC Hydro, provincial and federal attorneys general and were not taken into account, or that the decision was ministers) were lavishly funded from the public purse, not reasonable” — is difficult to reconcile with the facts. arguably while promoting private interests. On the other In Prophet River First Nation v. Canada (Attorney Gen- hand, opponents advocating for the public interest essen- eral), Prophet River First Nation and Moberly River First tially passed the hat to raise funds. Secondly, each of the Nations of Treaty 8 sought judicial review of the GIC’s de- four judicial reviews heard so far has focused on a nar- cision to approve Site C without first considering wheth- row aspect of the law in isolation from examining the is- er it infringed rights guaranteed by Treaty 8. Dismissing sue of justification for Site C and the failure of the assess- the claim, the Federal Court ruled that although it was ment and approval processes to honour Treaty 8 rights, necessary for the GIC to consider the negative impacts protect the environment and ensure evidence-based de- of Site C on Treaty 8 rights, whether these impacts would cisions in the public interest. actually infringe treaty rights was not a matter the GIC In Peace Valley Landowner Association v. British Colum- had to consider or an appropriate issue for the Court to bia (Environment), an association of affected land-owners consider on a judicial review. The ruling inevitably delays 42 determination of this constitutional its civil right (and obligation) to car- one anyway in an apparent attempt issue while environmental destruc- ry out the construction of the Site C to shield BC Hydro from prosecution tion continues. In Prophet River First dam.” The second suit was settled by (by enabling it to claim that it did not Nation v. British Columbia (Environ- protesters unable to fund a defence. know that its activities were illegal). ment), the B.C. Supreme Court dis- Disquietingly, when all other means A judicial review is also just begin- missed the application to quash pro- of holding governments to account ning of the Fisheries and Oceans per- vincial approval on grounds that the have failed, even peaceful protest has mit authorizing BC Hydro to carry ministers failed to consider wheth- been restricted. out activities that will cause the ex- er the project would violate Treaty 8 tirpation of fish, the permanent de- rights and whether the federal gov- struction of fish habitat, and the ru- ernment had discharged its duty to What does the future hold? ination of Aboriginal and other fish- consult with Treaty 8 members. Given the apparent futility of chal- eries in contravention of the Fisher- In effect, these decisions support lenging Site C through the courts, ies Act 1985. B.C. Premier Christy Clark’s goal that it remains unclear how to halt this Furthermore, B.C.’s auditor gen- Site C should reach “the point of no unjustified project, the violation of eral, Carol Bellringer, is currently return” before the provincial elec- Treaty 8 rights and its permanent looking into BC Hydro’s policies and tions in May 2017. In fact, BC Hydro environmental, social, cultural and practices and said she would be re- has predicted that construction con- economic damage. Two possibilities, leasing details of an upcoming Site tracts worth no less than $4 billion however, are beginning to emerge. C report in the coming weeks. The will have been signed by then. The first is to bring suit against accounting practices at BC Hydro, According to provincial rules, con- the provincial government for in- as well as an examination of BCUC, tracts for the purchase of materials fractions of laws relating to Site C’s are also part of the auditor general’s and service or construction must be construction. A small victory may current performance audit coverage tendered publicly if they are valued already be on the horizon in this plan. We can only hope this investi- at more than $25,000 or $100,000, re- regard. In July, the environmental gation, and the pending court chal- spectively. However, it has been re- group Sierra Club Canada filed a pe- lenges, will shed light on the opaque vealed that BC Hydro relied on the tition for judicial review of the deci- ministerial decision-making leading exemptions of “critical expertise,” “ex- sion of the provincial minister of for- to Site C’s approval, BC Hydro’s un- tension due to increased scope,” and ests, lands, and natural resource op- derhanded contract tendering pro- “time constraints” to award 27 con- erations to exempt BC Hydro from cess, and the means by which it at- tracts, worth between $30,373 and prosecution for offences under the tempts to justify an unneeded and $900,000, outside of open tender- Wildlife Act 1996. In essence, BC Hy- calamitous project. ing. Not only does such non-com- dro was granted an “authorization” In the interim, opposition to Site petitive tendering risk undermin- to conduct amphibian salvage be- C continues to mount. Grand Chief ing public trust in BC Hydro, it will fore being assigned a permit — the Stewart Phillip, president of the Un- almost certainly further inflate Site only lawful means of undertaking ion of BC Indian Chiefs, recently ex- C’s costs — especially when there is wildlife operations. pressed outrage at the “underhand- a history of directly-awarded con- Not only is such “authorization” be- ed” approval of the Fisheries Act per- tracts ballooning in value between yond the minister’s authority, it ap- mits “in the face of enormous oppo- their announcement and final deliv- pears officials knew this and issued sition here in the province of British ery of services. Columbia from both Treaty 8 people, Finally, BC Hydro launched two indigenous people, as well as the gen- lawsuits to halt public displays of eral public.” The Union of BC Munic- opposition to Site C and potential- ipalities passed a resolution in Sep- ly impose crippling damages on pro- tember calling for the immediate sus- testers: the first against members of pension of all work on Site C, a review Treaty 8 Nations and other Peace Val- of the project by BCUC, and a public ley residents camped at Site C, and hearing and consultation process. If the second against people camped in Not only does Site such efforts stop Site C, they may also front of BC Hydro’s Vancouver office. C purport to solve help initiate meaningful reconcilia- In the first case, without reference tion with First Nations that has so to the defendants’ internationally a problem that far been wanting from the Trudeau protected rights to engage in peace- does not exist, it is government. M ful protest or consideration of the interests that the protesters were also far from the seeking to protect, the B.C. Supreme cheapest option to Court granted an injunction, stating “Hydro is seeking to address wrong- meet B.C.’s energy ful behaviour to allow it to exercise needs. 43 International affairs Asad Ismi Canada’s “looting of Honduras”

HE CANADIAN GOVERNMENT organize Lenca opposition to a dam murdered in Honduras, according to needs to act in a responsible on the Canjel River that is being built TeleSUR, making the country the sec- manner and should stop giv- by Hydrosys, a Canadian company. ond most dangerous place to be a re- ing legitimacy to the Hondu- “Yes, absolutely, the Canadian porter in Latin America after Mexico. ran regime which has crimi- government is complicit in Berta “The Canada-Honduras FTA helped nalized and killed many peo- Cáceres’ murder,” says Karen Spring, normalize the plunder of Indigenous “Tple in my country and has created a the Honduras-based co-ordinator of lands and financed the repression of grave situation there. The Canadian the Honduras Solidarity Network. the national resistance against the government should remove all their Shortly after backing the coup, the coup,” says Molina, adding it “also companies, investments and financ- Conservative government signed a gave political legitimacy to a regime ing from Honduras.” Canada-Honduras Free Trade Agree- that had little support in Honduran This was the plea of Berta Zúñiga ment (in 2011), “ignoring the well-doc- society, a regime that was economical- Cáceres when I interviewed her at umented human rights violations be- ly weak, and completely militarized.” the World Social Forum in Montre- ing committed against Honduran en- Canadian direct investment in al this summer. Zúñiga is the daugh- vironmentalists, journalists, Indige- Honduras intensified after Hurri- ter of renowned Indigenous Hondu- nous leaders, and peasant farmers,” cane Mitch in 1998, according to an ran environmentalist Berta Cáceres, she says. article by Sabrina Escalera-Flexhaug who was murdered this March by as- “The free trade agreement (FTA) for the Council on Hemispheric Af- sassins linked to the Honduran mili- has facilitated and legitimized the fairs, when aid money was tied to tary. Berta was targeted for her prom- continued repression as well as the the introduction of Canadian firms inent role in the Lenca nation’s oppo- looting of Honduras by Canadian to the country. But mining conces- sition to the construction of the Agua companies, particularly in the tex- sions were threatened by the elec- Zarca dam on its territory in the area tile, mining and hydroelectrical sec- tion, in 2006, of left-wing president of Rio Blanco. tors. Canada assisted in improving Manuel Zelaya, who was proposing Desarrollos Energéticos SA (DESA), Honduras’ image internationally and reforms to land use and mining poli- a Honduran company with Dutch fi- gave the impression to other foreign cy before the coup that deposed him. nancing, wants to expropriate Lenca governments that post-coup Hondu- “Canadian mining in Honduras land for a dam on the Gualcarque Riv- ras is a country to invest in.” has a long history of committing not er that will deeply affect farmland on only severe environmental crimes which the community’s livelihood de- he Canadian government pro- but also crimes against humanity,” pends. Opponents to the project and T vides other support to the Hondu- Zúñiga told me at the World Social others like it in Honduras—the post- ran government, including security Forum, accusing Goldcorp of having 2009 coup regime has signed 40 pri- training. As reported previously in “destroyed the Siria Valley” with toxic vate hydroelectric agreements with- the Monitor, the Harper government pollution and “spreading lots of can- out consulting affected communi- even helped write a new Honduran cer amongst the people there with ties—are routinely threatened, their mining law (as it has done in other their operations.” actions criminalized. When this fails, countries). These actions, accord- Spring, who has written a report those who speak out can end up tor- ing to Spring, “sent a message loud on Canadian mining in Honduras, tured, disappeared or killed. and clear to the Honduran popula- explains that Goldcorp began oper- As Zúñiga emphasized in our con- tion: Canada supports and endorses ations in the Siria Valley in 1999 but versation, Canada, as one of the first widespread human rights violations, closed its San Martin mine there in countries to endorse the right-wing the military coup, impunity, and cor- 2008 after an eight-year fight by the government installed after the 2009 ruption.” community against environmental military coup in Honduras, “legiti- Honduran radio journalist Félix contamination, repression and the mized all the deaths and all the kill- Antonio Molina agrees that both criminalization of local leaders. “To- ings that were done in the name of the Canadian and Honduran gov- day, the population of Siria Valley this coup.” They include that of her ernments are complicit in Berta and a large majority of Goldcorp’s for- mother, Berta, and the more than 100 Cáceres’s murder. Molina, a prom- mer employees are suffering ongoing environmentalists killed between inent critic of his government, fled health problems including hair loss, 2010 and 2014, as counted by British Honduras in May after two attempts skin rashes and rare cancers caused NGO Global Witness. Before she was were made on his life in one day. Since by the environmental contamination killed, Berta Cáceres was also helping the coup, 59 journalists have been left behind by the mine,” she says. 44 Another Canadian firm, Aura Min- erals, which operates in western Hon- duras, is currently attempting to dig up and displace a 200-year old ceme- tery to expand its open-pit gold min- ing operation, despite widespread community resistance. Besides mining, Canadian govern- ment fact sheets on Honduras note “prominent” investments in the coun- try’s garment manufacturing sector. Montreal-based Gildan Activewear, for example, chose Honduras as its main base of operations in 1997 and is today the country’s largest private sector employer with about 26,000 workers. Honduras is the fifth larg- est exporter of textiles to the U.S., and Gildan increased exports to Canada after tariffs were eliminated by the Canada-Honduras FTA. Porfirio Lobo Sosa and the current Berta Zúñiga Cáceres, 25, stands next to a WSF Spring describes Gildan as “one of president Juan Orlando Hernández memorial to her mother, who was assassinated the biggest violators of labour rights provide him with impunity.” earlier this year for opposing hydroelectric in the maquiladora sector,” with hun- dams in Honduras. dreds of mostly women workers sub- rade Minister Chrystia Freeland KRISTIN SCHWARTZ ject to extremely high production T supported the FTA as opposition quotas and suffering from “serious trade critic in 2014, but with caution. musculo-skeletal disorders like tend- “In implementing this trade deal, we ernment that was not democratical- initis and carpel tunnel from the re- have to be very aware of what is go- ly elected,” and said the new nation- petitive movements on the assem- ing on in Honduras and to the possi- al mining code the Canadian govern- bly lines.” Gildan has also been ac- bility that by having a trade deal with ment helped create, “legitimizes min- cused of firing workers who tried to this country and having our compa- ing extraction in Honduras, and is at unionize, all allegations the compa- nies engaged with it we could be com- the root of all of the problems we are ny denies. plicit in political, environmental and having.” She asked the Canadian gov- According to Canada’s trade com- labour violations,” she said in the ernment to investigate the actions of missioner for Honduras, speaking in House of Commons. “We do not just Canadian businesses in Honduras, its 2014, investment opportunities are sign a deal and walk away; we have to own participation in the coup and opening up in the country for infra- watch closely and be absolutely cer- the impacts of the free trade agree- structure, such as renewable energy tain that we and Canada are behav- ment on human rights. (presumably hydro). Questionable ing well.” (Freeland’s office had not re- “The Lenca people have resisted co- land sales have also attracted inves- plied to my requests for comment be- lonialism for 500 years,” Zúñiga told tors in the tourism industry. fore the Monitor went to print.) me in August. “And now the genocide Randy Roy Jorgensen, a Canadian On June 2, the 25-year-old Berta of my people started by the Spanish known as the “porn king” (for becom- Zúñiga Cáceres spoke by videocon- invaders continues through neoco- ing wealthy through a chain of por- ference to a parliamentary subcom- lonialism, with companies taking all nographic video stores), is building mittee on human rights during a spe- the territories and resources, stealing several tourism projects in Hondu- cial session on Honduras. She made it the rivers, the water, the Earth. Thir- ras on Indigenous Garifuna territo- clear the Canadian government’s role ty-five per cent of Honduras has been ry in the Bay of Trujillo. Gated com- in Honduras, and Canadian invest- given as concessions to private com- munities, an oceanfront commercial ment there, were “part of the prob- panies. Our resistance is about con- center and a dock for cruise ships are lem we have in our country.” She told fronting raw capitalism, the monster all part of Jorgensen’s plan, staunch- MPs about the pattern of repression that is trying to dominate us through ly opposed by OFRANEH, the Frater- against Hondurans who speak up militarization and assassination.” nal Black Organization of Honduras, for human rights and against envi- In spite of the many attacks on which has sued to stop it from hap- ronmental impacts, especially those her people, Zúñiga said “we still re- pening. linked to the mining industry. tain our own way of life, which is to Molina is convinced Jorgensen has Zúñiga called the Canada-Hon- live in harmony with nature and with evaded justice so far because “his in- duras FTA “illegitimate, because it other humans. We are battling to pre- fluence with ex-Honduran President was signed by the post-coup gov- serve this.” M 45 provided by the environ- a “Paris Breathes” day that the maiden voyage this ment here.” St. Louis Rams clears traffic from eight February of the $4-million centre Jason Brown is also lanes of the Champs- Energy Observer, a mul- going back to the land. He Élysées once a month. The ti-hulled, trophy-winning taught himself to till his plastic of Paris will not get catamaran that hopes to be 1,000 acres in Louisburg, off so easy. After banning the first boat to circumnav- North Carolina by watching plastic bags in July, France igate the planet powered The good YouTube videos. Brown announced in September only by solar, wind and donates the first fruits of it will ban all plastic cups, self-generated (from news page his labour each season to plates and cutlery by the desalination) hydrogen. pantries feeding the less year 2020. Over objections Over an estimated six fortunate. / Guardian U.K. from the packaging years, the Energy Observer Compiled by / Minnesota Public Radio industry, disposable dishes will stop in 50 countries Elaine Hughes / Good News Network will have to be made from and 101 ports as a floating compostable, biologically exhibition and clean sourced materials. Of energy laboratory. “The Regenerate Repurpose course, plastic has its uses, aim is actually to achieve too. After nearly dying in a energy self-sufficiency,” hat’s old is new he nonprofit Trust for Karachi, Pakistan hospital said Victorien Erussard of again in Sweden and W Public Land has donated 22 years ago, Nargis Latif France, who is behind the Minnesota. The Swedish T 400 acres of land to Yosem- created the Gul Bahao project. “This self-sufficien- government is proposing ite National Park, allowing (flow the flowers) project, cy can be transferred to tax breaks for people who it to expand for the first which takes the city’s daily land applications such as choose to repair broken time in 70 years. “Donating accumulation of 12,000 buildings, schools, hotels appliances (such as fridges, the largest addition since tonnes of rubbish to make and so on.” Energy Observ- ovens, dishwashers and 1949 to one of the world’s plastic bricks for shelters er will surely travel to the washing machines) rather most famous parks is a (including a movable Pacific Islands, where the than buying new models. great way to celebrate shelter for victims of the Women’s Barefoot Solar Per Bolund, the Green the 100th birthday of our 2005 earthquake, and Engineering initiative, run Party minister of financial National Park Service—and during floods and droughts out of Barefoot College, markets and consumer honour John Muir’s original since then), reservoirs is training women to affairs, estimates cutting vision for the park,” said and mobile toilets. “It’s an install solar panels and the value-added tax for trust president Will Rogers. environmentalist’s dream,” become solar trainers, in repairs will spur the crea- While Yosemite grows for she says. “The world will the process delivering tion of a new home-repairs wildlife, Paris is realizing be clean of pollution and renewable energy to 2,800 service industry, providing the benefits of shrinking plastic bags because we’re households in Fiji, Vanuatu, much-needed jobs for new space for cars. Mayor Anne putting them to good Samoa, Tonga, Kiribati, immigrants who lack formal Hidalgo initiated the city’s use.” Reuters / Guardian Tuvalu, Nuie, Solomon education. Across the pond, first Car-Free Day on Sep- U.K. / Associated Press / Al Islands, Cook Islands, over the last 20 years, the tember 25 last year, when Jazeera Micronesia, Marshall Fond du Lac Band of Lake about 650km of roads Islands, Palau, and Papua Superior Chippewa has were shut down to traffic. New Guinea. “We have a been slowly restoring wild Airparif, an independent responsibility to value and rice (manoomin in Ojibwe) Recreate air pollution monitor, said honour the skills, wisdom along the St. Louis River nitrogen dioxide levels cientists at Australian and knowledge of those estuary into Lake Superior dropped 40% and, accord- National University not formally educated, the at Duluth, sustaining up S ing to Bruitparif, sound (ANU) have set a world marginalized, discounted to 3,000 acres of the crop. levels were halved in the record with their solar and those so often under- A partnership of agencies city centre. “It’s one day thermal dish capable of valued and under utilized.” plans to restore up to 250 without cars, it’s symbolic, converting 97% of sunlight says Meagan Fallone, CEO more acres of wild rice over but at the same time it into steam, beating com- of Barefoot College. the next 5–10 years. “This allows us to imagine what mercial systems by 7%. / Business Insider /Barefoot was sort of a perfect place, the city of tomorrow could “This new design could College a Mecca of sorts is what be, or at least a city where result in a 10% reduction my uncle called it,” says you get around differently,” in the cost of solar thermal Thomas Howes, the band’s said Deputy Mayor Christo- electricity,” said John Pye natural resources director. phe Najdovski during this of the ANU Research School “Everything that one year’s Car-Free Day. Mayor of Engineering. It won’t needed for a good life was Hidalgo has also supported help, but nor will it hinder, 46 Books

A review essay by Jen Moore Military responds to mining protest in Peru More than a few bad apples THOMAS QUIRYNEN AND MARIJKE DELEU, CATAPA “Militarized neoliberalism” and the Canadian state in Latin America

THE BLOOD OF EXTRACTION: even they only tell us part of the sto- Canadian capital at the expense of lo- CANADIAN IMPERIALISM IN LATIN ry, as Todd Gordon and Jeffery Web- cal populations.” AMERICA ber make painfully clear in their new Fortunately, the book is careful, as TODD GORDON AND JEFFERY R. WEBBER book, The Blood of Extraction: Cana- it must be in a region rich with crea- dian Imperialism in Latin America. tive community resistance and social Fernwood Publishing, November 2016 “Rather than a series of isolated in- movement organizing, not to present cidents carried out by a few bad ap- people as mere victims. Rather, by pro- TORIES OF BLOODY, degrading vio- ples,” they write, “the extraordinary viding important context to the po- lence associated with Canadi- violence and social injustice accom- litical economy in each country stud- an mining operations abroad panying the activities of Canadian ied, and illustrating the truly vigorous sporadically land on Canadi- capital in Latin America are systemic social organization that this destruc- an news pages. HudBay Min- features of Canadian imperialism in tive development model has awoken, erals, Goldcorp, Barrick Gold, the twenty-first century.” While not the authors are able to demonstrate SNevsun and Tahoe Resources are completely focused on mining, The the “dialectic of expansion and resist- some of the bigger corporate names Blood of Extraction examines a con- ance.” With care, they also show how associated with this activity. Some- siderable range of mining conflicts Canadian tactics become differentiat- times our attention is held for a mo- in Central America and the north- ed to capitalize on relations with gov- ment, sometimes at a stretch. It usu- ern Andes. Together with a careful erning regimes considered friendly to ally depends on what solidarity net- review of government documents ob- Canadian interests or to try to con- works and under-resourced support tained under access to information tain changes taking place in countries groups can sustain in their attempts requests, Gorden and Webber man- where the model of “militarized neo- to raise the issues and amplify the age to provide a clear account of Ca- liberalism” is in dispute. voices of those affected by one of Can- nadian foreign policy at work to “en- ada’s most globalized industries. But sure the expansion and protection of 47 Canadian mining investment abroad The spectacular expansion count for over half of Canadian min- NRCAN of “Canadian interests” ing assets abroad (worth $72.4 billion in Latin America in 2014). Whereas Canadian compa- nies operated two mines in the re- expenditures of $187.7 million in in e are frequently told Canadian min- gion in 1990, as of 2012 there were 80, 2012—a good portion of this destined Wing investment is necessary to im- with 48 more in stages of advanced for training, infrastructure and legis- prove living standards in other coun- development. In 2014, Northern Min- lative reform programs intended to tries. Gordon and Webber take a mo- er claimed that 62% of all producing support the Canadian mining sector. ment to spell out which “Canadian mines in the region were owned by Or consider that the same year $2.8 interests” are really at stake in Lat- a company headquartered in Cana- billion was taken out of Latin Amer- in America—the principal region for da. This does not take into consider- ica by three Canadian mining firms, Canadian direct investment abroad ation that 90% of the mining com- remittances back to the region from (CDIA) in the mining sector—and what panies listed on Canadian stock ex- migrants living in Canada totalled it has looked like for at least two dec- changes do not actually operate any only $798 million (much more than ades: “liberalization of capital flows, mine, but rather focus their efforts Canadian aid). the rewriting of natural resource and on speculating on possible miner- Without spelling out the long- financial sector rules, the privatization al finds. This means that, even if a term social and environmental costs of public assets, and so on.” mine is eventually controlled by an- of these operations—costs that are Cumulative CDIA in the region other source of private capital, Cana- externalized onto affected communi- jumped from $2.58 billion in stock dian companies are very frequently ties—or going into the problematic in 1990 to $59.4 billion in 2013. These the first face a community will see in ways that private investment and numbers are considerably underes- the early stages of a mining project. Canadian aid can be used to condi- timated, the authors note, since they The results have been phenomenal tion local support for a mine project, do not include Canadian capital rout- “super-profits” for private companies Gordon and Webber posit that “su- ed through tax havens. In compari- like Barrick Gold, Goldcorp and Yama- per-profits” may be precisely the “Ca- son, U.S. direct investment in the re- na, who netted a combined $2.8-billion nadian interests” the government’s gion increased proportionately about windfall in 2012 from their operating foreign policy apparatus is set up to a quarter as much over the same peri- mines, according to the authors. (Ca- defend—not authentic community od. Despite having an economy one- nadian mining companies earned a to- development, lasting quality jobs or tenth the size of the U.S., Canadian tal of $19.3 billion that year.) Between a reliable macroeconomic model. investment in Latin America and the 1998 and 2013, the authors calculate Caribbean is about a quarter the val- that these three companies averaged ue of U.S. investment, and most of it a 45% rate of profit on their operat- State support for is in mining and banking. ing mines when the Canadian econo- “militarized neoliberalism” To cite a few of the statistics from my’s average rate of profit was 11.8%. Gordon and Webber’s book, Latin Compare this to Canada’s miser- he argument that the role of the America and the Caribbean now ac- ly Latin American development aid T Canadian state is “to create the best 48 possible conditions for the accumu- diplomacy on those countries most mote a comprehensive mining code lation of profit” is central to Gordon aligned with its economic interests. It to give clarity and certainty to our in- and Webber’s book. From the Prime is not unusual to see public gestures vestments.” Another embassy record Minister’s Office (PMO) down, Cana- of friendship or allegiance toward said that mining executives were dian agencies and foreign policy have governments “that share [Canada’s] happy to assist with the writing of a been harnessed to justify “Canadian flexible attitude towards the protec- new mining law that would be “com- plunder of the wealth and resources tion of human rights,” such as Mex- parable to what is working in other of poorer and weaker countries.” Fur- ico, post-coup Honduras, Guatema- jurisdictions” and developed with a thermore, they write, Canada has ac- la and Colombia. Meanwhile, Canada resource person with whom their tively supported the advancement of has used diverse tactics (in Venezuela “ideologies aligned.” “militarized neoliberalism” in the re- and Ecuador, for example) to contain In a highly authoritarian and re- gion, as country after country has re- resistance and influence even mod- pressive context, and under the de- turned to extractive industry, and ex- est reforms. ceptive banner of corporate social port-driven and commodity-fuelled responsibility, the Canadian Embas- economic growth, which comes with sy—with support from Canadian high costs for affected-communities Canada’s ‘whole-of-government’ ministerial visits, a Honduran dele- and other macroeconomic risks: approach in Honduras gation to the annual meeting of the Prospectors & Developers Associa- The extractive model of ne of the more detailed examples tion of Canada (PDAC), and overseas capitalism maturing in the Latin in Blood of Extraction of Canadian development aid to pay for technical American context today does O imperialism in Central America cov- support—managed to get the de- not only involve the imposition ers Canada’s role in Honduras follow- sired law passed in early 2013, lifting of a logic of accumulation by ing the military-backed coup in June the moratorium. Then, in June 2014, dispossession, pollution of 2009. Documents obtained from ac- with full support from Liberals and the environment, reassertion cess to information requests provide Conservatives in the House of Com- of power of the region by new revelations and new clarity into mons and the Senate, Canada ratified multinational capital, and new how Canadian authorities tried to a free trade agreement with Hondu- forms of dependency. It also, take advantage of the political op- ras, effectively declaring that “Hon- necessarily and systematically portunities afforded by the coup to duras, despite its political problems, involved what we call push forward measures that favour is a legitimate destination for foreign militarized neoliberalism: big business. Once again, though oth- capital,” write Gordon and Webber. violence, fraud, corruption, and er economic sectors are discussed, Contrary to the prevailing theory in authoritarian practices on the mining takes centre stage. Canada that sustaining and increas- part of militaries and security After the terrible experience of af- ing economic and political engage- forces. In Latin America, this fected communities with Goldcorp’s ment with such a country will lead has involved murder, death San Martin mine (from the year 2000 to improved human rights, the social threats, assaults and arbitrary onward), Hondurans successfully put and economic indicators in Honduras detention against opponents of a moratorium on all new mining per- have gotten worse. Since 2010, the au- resource extraction. mits pending legal reforms promised thors note, Honduras has the worst The rapid and widespread granting by former president José Manuel Ze- income distribution of any country of mining concessions across large laya. On the eve of the 2009 coup, a in Latin America (it is the most une- swaths of territory (20% of landmass legislative proposal was awaiting de- qual region in the world). Poverty and in some countries), regardless of who bate that would have banned open- extreme poverty rates are up by 13.2% lives there or how they might value pit mining and the use of certain tox- and 26.3%, respectively, after having different lands, water or territory, has ic substances in mineral processing, fallen under Zelaya by 7.7% and 20.9%. provoked hundreds of conflicts and while also making community con- Compounding this, Honduras is now powerful resistance from the com- sent binding on whether or not min- the deadliest place to fight for Indig- munity level upward. In reaction, ing could take place at all. The debate enous autonomy, land, the environ- and in order to guarantee foreign in- never happened. ment, the rule of law, or just about vestment, in many parts of the region Instead, shortly after the coup, and any other social good. states have intensified the demoniza- once a president more friendly to “Ca- tion and criminalization of land- and nadian interests” was in place follow- environment-defenders, while state ing a questionable election, the Ca- A strategy of containment armed forces have increased their nadian lobby for a new mining law in Correa’s Ecuador powers, and para-state armed forc- went into high gear. A key goal for es expanded their territorial control. the Canadian government, according n contrast to how Canada has more Far from being a countervailing to an embassy memo, was “[to facili- I strongly aligned itself with Latin force to this trend, the Canadian tate] private sector discussions with American regimes openly support- state has focused its aid, trade and the new government in order to pro- ive of militarized neoliberalism, the 49 experience in Ecuador under the ad- part” in ensuring that the Mining communities, workers and nature to ministration of President Rafael Cor- Mandate was never applied to most fill the pockets of a small transna- rea illustrates how Canada consid- Canadian-owned projects, and that a tional elite based principally in the ers “any government that does not relatively acceptable new mining law Global North. If we cannot see how conform to the norms of neoliberal was passed in early 2009. While em- deeply enmeshed Canadian capital is policy, and which stretches, howev- bassy documents show the Canadian with the Canadian state—how “Ca- er modestly, the narrow structures government considered the law use- nadian interests” are considered met of liberal democracy…a threat to de- ful enough to “open the sector to com- when Canadian-based companies are mocracy as such.” mercial mining,” it was still not busi- making super-profits, even through In the chapter on Ecuador, Gor- ness-friendly enough, particularly violent destruction—we cannot get don and Webber provide a detailed because of the higher rents the state a sense of how thoroughly things account of Canada’s “whole-of-gov- hoped to reap from the sector. As a re- need to change. M ernment” approach to containing sult, the embassy kept up the pres- modest reforms advanced by Cor- sure, including using the threat of rea and undermining the opposition withholding badly needed funds for Reviewed by Frank Bayerl of affected communities and social infrastructure projects until mining movements to opening the country company concerns were addressed WHO RULES THE WORLD? to large-scale mining. A critical mo- and dialogue opened up with all Ca- NOAM CHOMSKY ment in this process occurred in mid- nadian companies. 2008, when a constitutional-level de- Not discussed in The Blood of Ex- Metropolitan Books (May 2016), 307 pages, $39.00 cree was issued in response to local traction, we also know the pressure and national mobilizations against from Canadian industry contin- LTHOUGH NOT BILLED as such, mining. The Mining Mandate would ued for many more years, eventu- Who Rules the World is a com- have extinguished most or all of the ally achieving reforms, in 2013, that pilation of previously pub- mining concessions that had been weakened environmental require- lished essays and articles on granted in the country without prior ments and the tax and royalty re- a wide variety of topics. Noam consultation with affected communi- gime in Ecuador. Meanwhile, as the Chomsky travels virtually all ties, or that overlapped with water door opened to the mining indus- Aof global politics here, but with spe- supplies or protected areas, among try, mining-affected communities cial emphasis on the Middle East, ter- other criteria. It also set in place a and supporting organizations were rorism, neoliberalism, corporate con- short timeline for the development feeling the walls of political and so- trol over supposedly democratic in- of a new mining law. cial organizing space cave in, as they stitutions, and the role and position The Canadian embassy immediate- faced persistent legal persecution of the United States as a world power. ly went to work. Meetings between and demonization from the state it- He devotes special attention to the Canadian industry and Ecuadori- self, while the serious negative im- question whether the United States is an officials, including the president, pacts of the country’s first open-pit in decline. U.S. power reached its apex were set up to ensure a privileged copper mine started to be felt. at the end of the Second World War, seat at talks over the new mining law. he argues, but he is dubious about the Gordon and Webber’s review of docu- idea that power will soon shift to Chi- ments obtained under access to infor- Canada’s “cruel hypocrisy” na or India, concluding: “in the fore- mation requests further reveals that seeable future there is no competitor the embassy even helped organize he Blood of Extraction is a helpful for global hegemonic power. Despite pro-mining demonstrations togeth- T portrait of “the drivers behind Ca- the piteous laments, the United States er with industry and the Ecuadori- nadian foreign policy.” Gordon and remains the world’s dominant power an government. Embassy records de- Webber lay bear “a systematic, pre- by a large margin, with no competi- scribe their intention “to create sym- dictable, and repeated pattern of be- tor in sight, and not only in the mil- pathy and support from the people” haviour on the part of Canadian cap- itary dimension, in which of course, as part of a “a pro-image campaign,” ital and the Canadian state in the re- the United States reigns supreme.” which included “an aggressive adver- gion,” along with its systemic and al- The preservation of civil liberties tisement campaign, in favour of the most predictable harms to the lives, in an age of terrorist attacks is the development of mining in Ecuador.” wellbeing and desired futures of In- subject of an interesting treatment Meanwhile, behind closed doors, in- digenous peoples, communities and of Magna Carta and the related, but dustry threatened to bring interna- even whole populations. They call it much less well known, Charter of the tional arbitration against Ecuador Canada’s “cruel hypocrisy.” Forest, which was concerned with pro- under a Canada–Ecuador investor The problem is not Goldcorp or tecting common resources from mo- protection agreement (which a cou- HudBay Minerals, Tahoe Resources nopolization by the elite (privatiza- ple of investors eventually did). or Nevsun. These companies are all tion in today’s terms). Chomsky cites Ultimately, the authors conclude, symptoms of a system on overdrive, President Obama’s heavy reliance on Canadian diplomacy “played no small fuelling the overexploitation of land, drone attacks and “executive assassi- 50 nation” as egregious assaults on the ate a greatly improved climate for pri- Chomsky speaking at due process and habeas corpus guar- vate investments.” Occupy Wall Street in 2011. antees arising from Magna Carta. After consideration of how the Eu- ADAM RUSK One of the book’s best, if not most ropean Union is compromised by its topical, chapters is devoted to the Cu- own adherence to austerity and neo- ban missile crisis of 1962. Chomsky’s liberalism (leading to Brexit), Chom- masterful recounting of this most sky looks at power dynamics in three tifiable, are treated as more a reaction dangerous moment of the Cold War, regions: East Asia, Eastern Europe to provocation. replete with lesser-known backsto- and the Islamic world. China’s flex- Finally, with regard to the Islam- ry, undermines the usual narrative ing of its military muscles—by build- ic world, virtually everyone will now of unprovoked Russian aggression ing artificial islands in the Pacific and agree with Chomsky about the tragic skilfully countered by John F. Ken- pressing territorial claims to distant error of western intervention in Iraq. nedy. In late 1961, for example, the sea zones—poses a potential threat And it is becoming increasingly clear CIA launched Operation Mongoose, to American, Japanese, Vietnamese that Gadhafi’s fall in Libya created a a program of paramilitary opera- and Philippine zones of influence, dangerous power vacuum, which al- tions, economic warfare and sabo- but can be seen as an attempt to pro- lowed Islamic State fighters to spread tage directed at toppling the Castro tect its sea lanes and build a trading out over large areas of West Africa. regime. empire, Chomsky argues. The new The author has surprisingly little to The Russian installation of mis- Asian Infrastructure Investment say about Syria, except that there siles in Cuba was a logical response to Bank, opposed by the U.S. but joined were opportunities for diplomatic threats from the United States—in- by Australia and Britain, is another settlement that were ignored. cluding a planned military interven- brick in this new Silk Road. Who Rules the World is an uneven tion in 1962—and not an unjustified In Eastern Europe, Chomsky sees effort that contains some valuable provocation, as portrayed then and the western response to Russia’s col- insights but also a degree of repeti- generally today. A straight line can lapse as “triumphalist” and points tion that more careful editing would be traced from the U.S.-backed over- out that NATO expansion eastward have avoided. While Chomsky’s views throw of the elected government of began immediately after the end of on most of the topics covered may Guatemala in 1954 and the CIA-sup- the Cold War, despite verbal assur- be well known, readers unfamiliar ported coup against Allende in Chile ances given to Mikhail Gorbachev with his previous books will find in in 1973, not to mention the 1963 mil- that this would not happen. Giv- it powerfully expressed and passion- itary coup in Brazil that led to years en NATO’s plans to eventually offer ately held convictions about the glob- of terror and torture. The American membership to Ukraine and Geor- al situation and what can be done to ambassador to Brazil at the time ca- gia, Russian President Vladimir Pu- improve it. M bled home that the coup should “cre- tin’s actions in Ukraine, while not jus- 51 Perspectives

HOW S HOWS UR MEAL UR MEAL

Stig Harvor Am I out of touch with the world, or is the world out of touch with me? HELP US SHED LIGHT ON THE

AM AN 87-YEAR-OLD retired architect. and on and on endlessly. Among taurant will be on their handheld de- ISSUES THAT MATTER TO YOU. I was born in the historical period their features are touchtone inter- vices rather than talking to each oth- known as B.C., Before Computers. faces, cameras, apps (I learned that er. And how do they manage those (we’ve got some bright ideas) IThese incredible machines have means applications, not appendices), minuscule texting buttons? transformed the world. They have Wi-Fi, Bluetooth, NFC, GPS. People will cross streets immersed enriched and bedeviled our lives What do all these terms mean? In- in their devices. On sidewalks they with their innumerable, bewilder- structions for their use are full of bump into others by not looking up. ing and ever quickly growing digital incomprehensible jargon. It is like The design of their immediate phys- offspring. Small wonder my genera- learning a foreign language without ical environment is no longer of any MAKE A DONATION Tax receipts are issued for contributions of $15 or more. tion can feel lost. a dictionary. consequence. Forget about city plan- When I first became aware of the After much effort, I may finally ning and urban design, any nonde- I would like to make a monthly contribution of: I would like to make a one-time donation of: rudimentary existence of computers, learn the rules of how to use at least script environment will do. They I resisted their use in my profession- some of the devices. Then frequent are in their own electronic world. As $25 $15 $10 Other ____ OR $300 $100 $75 Other ____ al life. I felt my brain was a superior updates (improvements of what and an architect aware of the real world computer. My human brain had per- why?) force me to learn new or re- around me, this concerns me. PAYMENT TYPE: sonal memory and was full of my ex- vised rules. An agonizing relearning The speed of computers has in- I would like to receive my perience of real life and work. It could process starts anew. troduced new stresses in our work- I’ve enclosed a cheque (made payable to CCPA, or void cheque for monthly donation) subscription to The Monitor: produce better, more balanced solu- In our already occupied lives our ing lives. They instantly deliver com- VISA MASTERCARD tions to challenges I faced. Comput- brain and time become overloaded munication like emails at any time I’d like to make my contribution by: By e-mail ers could only work with what was by computers and their offspring. of day or night. While handy, it often Mailed to my address fed into their mechanical brain, both We fail to connect the dots to a wid- creates expectations of quick re- CREDIT CARD NUMBER: in programming and data. er view of what is happening around sponses. There is precious little time No Monitor, thanks These days, computerized techno- us and what has happened before. for careful and considered thought. EXPIRY DATE: SIGNATURE: logical development is racing ahead We withdraw into our private lives. Deadlines are tight. Work speeds up. and leaving me way behind. I cannot Even there, we are limited to 140 char- To top it off, employees are expect- keep up with learning about and us- acters on Twitter. This has given rise ed to be reachable whether or not CONTACT INFORMATION ing these new, bewildering technical to abbreviated spelling and a new in- they are at work, even on weekends. devices that are multiplying more comprehensible jargon of acronyms. In our already work-addicted envi- Name Return this form to: quickly than advertising on radio Where is the dictionary? ronment, we are becoming slaves of 500-251 BANK ST. and television. Computerized technology affects our mechanical computing devices. Addresss OTTAWA, ON K2P 1X3 Even the names, terminology and our behaviour. It has a hypnotic ef- We end up living to work, not working acronyms of these innumerable de- fect on us. Social texting becomes to live. Computers rule our lives. M City Province Postal Code Or donate online at: vices are mysterious: iPad, iPhone, a substitute for direct, personal con- WWW.POLICYALTERNATIVES.CA smartphone, DSC, DVC, PND, PDA, tact. Two persons at a table in a res- Telephone (Required) Email 52 Yes, I prefer to receive my tax receipt Please do not trade my name with other and updates by email. organizations. REGISTERED CHARITY #124146473 RR0001 HELP US SHED LIGHT ON THE ISSUES THAT MATTER TO YOU. (we’ve got some bright ideas)

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Yes, I prefer to receive my tax receipt Please do not trade my name with other and updates by email. organizations. REGISTERED CHARITY #124146473 RR0001 A LOOK INSIDE THE TRANS-PACIFIC PARTNERSHIP Canadian Centre for Policy Alternatives, November/December 2016 November/December Alternatives, Policy for Canadian Centre