11 January 2017

Please Write to MEPs on the ENVI Committee About CETA *Today*

There's an important vote by MEPs on the ENVI committee tomorrow about CETA, the trade deal between the EU and Canada. Background on why CETA is so bad for the environment is available, as is a list of all MEPs on the ENVI committee.  If one of them is your MEP, please write to them *today* - the vote is tomorrow.  Here's what I've just sent to mine:

I am writing to you in connection with the ENVI vote on CETA tomorrow.  I would like to urge you to support the draft opinion of the ENVI committee, given by rapporteur, Bart Staes.

As a journalist, I have been writing about CETA since 2012 (https://www.techdirt.com/articles/20120709/07420719630/actas-back-european-commission-trying-to-sneak-worst-parts-using-canada-eu-trade-agreement-as-trojan-horse.shtml), and have followed its long and complicated history closely.  I noted in 2015 that CETA has already harmed the EU's environmental policies (http://arstechnica.co.uk/tech-policy/2015/05/eu-dropped-plans-for-safer-pesticides-because-of-ttip-and-pressure-from-us/):

"One of Canada's key negotiating aims was to promote the use of its tar sands in Europe. In 2012, the EU's Fuel Quality Directive (FQD) proposed that tar sands should be given a 20 percent higher carbon value than conventional oil. This reflected the greater pollution caused by its production and was designed to steer companies away from using this particular form of fuel in the EU. However, a few weeks after CETA was concluded, the final version of the FQD had been watered down and lacked the earlier requirement that companies needed to account for the higher emissions from tar sands, effectively neutering it—exactly as Canada had demanded."

Environmental policies will be under attack thanks to the little-known requirement in CETA that parties have to ensure "that licensing and qualification procedures are as simple as possible and do not unduly complicate or delay the supply of a service or the pursuit of any other economic activity."  It is easy to foresee company lawyers arguing that environmental requirements go beyond "as simple as possible", and that they "complicate or delay" the supply of a service.

However, the greatest threat to the EU's environment comes from the investor-state dispute settlement mechanism, now re-branded as the Investment Court System.  Despite the change of name, and some minor tweaking of the process, the problem remains the same: foreign investors are given unique powers, not available to domestic investors, that place them above national and European law.

That's problematic enough in itself, but even more troubling is the fact that the area where ISDS/ICS has been used most is against environmental legislation.  Also worth remembering is that CETA allows non-Canadian companies that have operations in Canada to take advantage of this supranational right: that will enable thousands of US companies that have subsidiaries in Canada to sue the EU.

Finally, it's worth noting that the EU's official economic modelling of CETA finds tiny benefits: €11.6 billion, representing 0.08 percent of EU GDP (http://trade.ec.europa.eu/doclib/docs/2008/october/tradoc_141032.pdf.)  That gain could easily be swamped by a flood of ISDS/ICS suits demanding "compensation" for stringent environmental regulations.

Because of these threats, and the vanishingly small benefit that CETA is expected to bring, I urge you to support the ENVI rapporteur's draft opinion, and to encourage your colleagues to do the same.

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