"[The crux of the matter is not] whether MMT poisons the air, destroys catalytic converters, is harmful to children, older people, and those suffering from respiratory ailments ... [rather] the Canadian government and Parliament, whether certain, uncertain, or indifferent, has the sovereign power to pass whatever law it wishes. At least that has been the case ... [however] a government bill approved by the Parliament of Canada has been vetoed by Ethyl Corporation of Virginia."In April 1997, the Canadian government introduced legislation the import and inter-provincial transport of MMT, a gasoline additive manufactured in Canada by US-based Ethyl Corporation. This additive was referred to by Prime Minister Jean Chretien as "a substance that threatens the helath of millions of Canadians, particularly our children."
Dalton Camp in the Toronto Star
July 29, 1998
Ethyl Corp. filed suit under the North American Free Trade Agreement, claiming that Ottawa's ban on MMT amounted to "expropriation of its property" (namely, its anticipated future profits). The corporation also claimed that damage had been done to its "good reputation" by the parliamentary debate on the matter. Ethyl was seeking $250 million (U.S.) in damages from the Canadian government.
Canada initially served notice that it would contest the suit. However, in late July of this year, our government capitulated. In spite of mounting evidence pointing to adverse environmental and health implications for those exposed to MMT, the government settled "out of court" with Ethyl.
Not only did Canada agree to pay Ethyl $13 million (U.S.) in compensation, but our government issued a statement announcing that "MMT poses no health risk."
Almost immediately following this settlement, another U.S. corporation launched suit against the Canadian government under NAFTA. Ohio based S.D. Myers, Inc. is demanding $10 million (U.S.) for "profits lost" during a 15-month period in which Canada banned the export of PCB-contaminated waste.
National Chair of the Council of Canadians, Maude Barlow, sums up the Myers case: "Myers used NAFTA to complain about Canada's PCB export ban imposed in 1995, so the ban was lifted. Now they are using NAFTA to demand payment for lost profits from when the law was in effect. NAFTA empowers a company to force our government to have to pay for trying to protect the environment."
The NAFTA provisions allowing corporations to undermine the rights of sovereign nations to carry out normal regulation in the interests of national citizens are the same provisions now being incorporated in the controversial Multilater Agreement on Investment (MAI). CUPE National President Judy Darcy is among a number of MAI Inquiry commissioners presiding at a series of public hearings taking place in cities across the country this fall. Local Chapters of the Council of Canadians throughout B.C. will be hosting inquiries in their communities. Watch for the MAI Inquiry in your community -- attent and join the efforts to stop further destructive impact of yet another "free trade" (in this instance, investment) agreement!
