20 April, 2010Secret details released about Canada-European Union free trade talks show public procurement policies and the right to regulate in the public interest are under threat.
CANADA/EU: As the third round of Canada-European Union free trade negotiations begin, leaked draft details of the proposed Comprehensive Economic and Trade Agreement (CETA) were jointly released on April 19 by Public Services International and it's European arm, the European Federation of Public Service Unions, together with union affiliates and civil service organizations in the Canadian Trade Justice Network.
This new information raises serious questions about the impact of a free trade agreement on social policy, environmental sustainability, public services, culture, intellectual property rights, food sovereignty and other areas of vital concern to European and Canadian citizens.
PSI general secretary Peter Waldorff says, "Although free trade may sound promising, such deals largely benefit huge multinational corporations which have identified public services, such as health care, education, and public security, as the next frontier for making private profit. This agreement's draft text outlines an agenda focused on privatization, deregulation and domestic restructuring. Public procurement policies and the right to regulate in the public interest are under threat."
Provisions in the draft text would prevent municipal governments from applying local or ethical procurement strategies. A controversial dispute mechanism is also proposed, similar to the one used under the North American Free Trade Agreement that has allowed large multinationals to sue governments for compensation over public health and environmental policies that limit corporate profits.
Both PSI and EPSU register concerns that free trade negotiators will ignore lessons from the current financial and economic crises that demonstrate the danger of deregulation. Any deal, they say, must include strengthened financial regulation in Canada and the EU and support a financial transaction tax.
Subject to travel restrictions, the Canadian Trade Justice Network plans to host a panel of three speakers from Europe in three cities, Ottawa, Montreal and Toronto, to speak about Europe's international trade agenda and raise questions about a free trade and investment agreement with Canada this week.
The text of the CETA document, details of the planned events and analysis fact sheets can be found at: http://www.tradejustice.ca/tiki-index.php (English) and http://www.commercejuste.ca/tiki-index.php (French)