FTAs

China's rise threatened by 'de-globalization'?

The China Institute in New York City on Oct. 5 featured a discussion with Harvard scholar William C. Kirby, author of Can China Lead? Reaching the Limits of Power and Growth, on the question: "Can China Lead in the Age of De-Globalization?" Although he didn't state it explicitly, his answer appeared to be "no." Kirby began by echoing the prediction that as the 19th century saw Great Britain as the dominant world power, and the 20th saw the United States of America, the 21st could belong to China. But Kirby sees this succession as now threatened by the "destabilization of global norms" and the rise of "anti-globalist neo-authoritarian movements everywhere." He invoked the Brexit, the rise of Le Pen in France—and finally Donald Trump, who, Kirby noted, is rather obsessed with China.

Control of oil at issue in NAFTA re-negotiation

As "NAFTA 2.0" negotiations open, a provision that essentially locks in Canada's current levels of oil exports to the US is drawing opposition from unlikely allies across the Canadian political spectrum but winning staunch support in the "Oil Patch," as the country's petroleum industry is colloquially called.  The "proportionality clause" originally appeared in the US-Canada Free Trade Agreement of 1988 and became a major issue in that year's national election that returned Prime Minister Brian Mulroney to office. It was replicated six years later in the North American Free Trade Agreement—although Mexico won an exemption. The clause can be invoked if a government in Canada reduces US access to Canadian oil, natural gas, coal, electricity or refined petroleum products without a corresponding reduction in domestic access to those resources.

Colombia: popular power defeats mega-mining

Mining multinational AngloGold Ashanti announced April 27 that it will abandon its planned mega-project at La Colosa, in Colombia's central department of Tolima, following a popular vote by local residents to reject the project last month. Members of Cajamarca municipality held the vote or consulta March 26. Leader of the "No" campaign, Renzo García of the local Environmental Committee for Defense of Water and Life, called the company's decision to abide by the vote "a good sign for democracy." (El Espectador, April 27)

Colombia: top court deals blow to open-pit project

Colombia's Constitutional Court on Feb. 28 ruled that "prior consultation" with local Afro-descendent and indigenous communities must be carried out before an open-pit gold mine project can move ahead at Villonza, Marmato municipality, Caldas department. The ruling made reference to the indigenous community of Cartama and the Afro-Colombian community of Asojomar, both of which are largely sustained by small-scale artisanal mininng. Under a 2007 concession, Canada-based Gran Colombia Gold Corporation was to acquire these informal claims. In 2011, Father José Reinel Restrepo, the local parish priest, was murdered after returning from Bogotá, where he had registered his objection to the project with officials. Gran Colombia Gold is meanwhile is demanding Colombia pay $700 million under terms of the Canadian free trade agreement for failure to evict the artisanal miners. (TeleSur, Radio Caracol, March 2; El Tiempo, Feb. 28; Radio Caracol, Feb. 25)

Peru denied legal costs in FTA pollution case

An international arbitration body, having ruled for Peru in a case brought by a US mineral interest under terms of the Free Trade Agreement, is now denying Lima recovery of its legal costs. New York-based Renco Group Inc brought the case before the UN Commission on International Trade Law (UNCITRAL) in 2011, charging Lima with violating investment protection provisions of the FTA, formally known as the US-Peru Trade Promotion Agreement. At issue was Lima's demand that Renco's affiliate Doe Run Peru clean up decades of toxic pollution linked to lead and zinc smelting at its facilty in La Oroya, which Renco said forced the subsidiary into bankruptcy. Renco sought $800 million in compensation. UNCITRAL turned down Renco's claim on jurisdictional grounds in July 2016, but subsequently decided to waive its usual "loser pays" principle, forcing Peru to pay half the legal costs in the case, some $3.8 million. UNCITRAL cited Peru's delay in raising its objections to the tribunal's jurisdiction. Renco says it will file the case again "in a manner that cures the technical legal defect that was the basis for the dismissal." Peru's new President Pedro Pablo Kuczynski has pledged to re-open the idled Oroya complex, and says its auction to new owners willing to address its financial and environmental problems will take place in March. (Lexology, Jan. 24; Gestión, Jan. 12; Law360, Nov. 14; Bloomberg, July 18; VOA, July 6)

Trump approves pipelines, withdraws from TPP: contradiction?

President Trump on Jan. 24 signed orders giving the go-ahead for construction of the controversial Keystone XL and Dakota Access oil pipelines, which had been halted by the Obama administration. Obama's State Department rejected a permit for the Keystone XL pipeline, and the Army Corps of Engineers had ordered work halted on the Dakota pipeline after weeks of protests by Native American groups and their activist allies. In a signing statement, Trump said the Keystone XL project will mean "a lot of jobs, 28,000 construction jobs, great construction jobs." In its own statement, TransCanada, the company seeking to build Keystone XL, said it "appreciate[s] the President of the United States inviting us to re-apply for KXL. We are currently preparing the application and intend to do so."

'Gasolinazo' protests rock Mexico

Several states across Mexico have been shaken by days of angry protests in response to a jump in the price of gasoline sparked by a new deregulation policy. Protests, road blockades and civil strikes are reported from 12 states since the new policy was instated Jan. 1. Looting was reported in Hidalgo, Veracruz and México states, with over 350 stores sacked. Several federal police agents were briefly taken hostage by protesters when they tried to break up a roadblock in Ixmiquilpan, Hidalgo. Two protesters were killed in the Ixmiquilpan clash, while one Federal District police officer is reported dead in rioting on the outskirts of Mexico City. Police also fired in the air to scatter protesters in Ecatepec, México. Nearly 900 have been detained nationwide. (Sol de Mexico, Jan. 6; Animal Politico, Jan. 5; Apro, Jan. 4)

APEC summit: Peru moves closer to China

During the Asia-Pacific Cooperation Forum (APEC) summit in Lima, protesters took to the streets to oppose the US-led Trans-Pacific Partnership trade deal—just as it appears to be on the rocks with the election of Donald Trump. But as the summit closed, China's President Xi Jinping and his Peruvian counterpart Pedro Pablo Kuczynski signed a series of bilateral agreements to advance "free trade" between the two countries and cooperation in the mineral and resource sectors. Xi especially plugged the Chinese-backed mega-project to build a transcontinental railway through the Amazon basin, and praised Peru for its ground-breaking 2010 free trade agreement with China. "Peru was the first Latin American country to sign a comprehensive free trade agreement with China. It's leading the region on cooperation with China," Xi said through an interpreter in a speech before Peru's Congress. 

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