Please Write to Your MEPs About Next Week's Critical - and Final - CETA Vote

Next Wednesday, the European Parliament will have its final vote on the Comprehensive Economic and Trade Agreement, or CETA. If you were hoping to influence your UK MP on this, it's too late: last week, the government sneaked through a vote on CETA without anyone noticing.  It passed, of course, but given the absence of real democracy - or an opposition party - in the UK, that's no surprise.

But there is still a chance to stop it in the European Parliament by writing to your MEP, and asking them to vote against ratification next week.  You can contact your MEP using the wonderful free service WriteToThem.  Here's what I've sent to mine:

I am writing to you to ask you to vote against CETA ratification next week, because it has minimal benefits, and a great many risks that have not been estimated, but are likely to be large.

Despite vague claims to the contrary, CETA offers almost no benefits for the EU.  According to the joint study commissioned by the EU and Canada  (http://trade.ec.europa.eu/doclib/docs/2008/october/tradoc_141032.pdf): "The annual real income gain by the year 2014, compared to the baseline scenario, would be approximately €11.6 billion for the EU (representing 0.08% of EU GDP)".

The study's title is "Assessing the costs and benefits of a closer EU-Canada economic partnership", but it offers no formal estimate of the costs associated with CETA.  This is an extraordinary deficiency: even the smallest business would carefully weigh up the costs and the benefits before agreeing a deal.  And yet the European Parliament is being asked to ratify CETA without being told the true costs.

These are likely to be high in many areas.  For example, the "new" Investment Court System (ICS) will open up the EU to being sued by thousands of US companies that have subsidiaries in Canada.  For most member states, this will be the first time that US companies are able to use investor-state dispute settlement (ISDS) tribunals to claim millions – or even billions – of euros over laws and regulations which they claim harms their investments.  ISDS claims alone could wipe out the tiny €11.6 billion GDP gain that CETA is predicted to produce according to the official study.

Despite the fact that ICS is supposed to address the avowed problems with the current ISDS system, it actually fails to do this because it still gives companies a means to put pressure on governments to rescind laws, even if it cannot force them to do so.  Faced with potentially huge fines – one ISDS award was for $50 billion (http://www.shearman.com/en/services/practices/international-arbitration/yukos-arbitral-award) – governments are very likely to choose to withdraw regulations rather than pay out such vast sums.

It is also worth bearing in mind that a 2014 EU consultation on ISDS drew an unprecedented 145,000 negative responses calling for the system to be dropped from trade agreements (http://trade.ec.europa.eu/doclib/press/index.cfm?id=1234&title=Report-presented-today-Consultation-on-investment-protection-in-EU-US-trade-talks).  Making a few cosmetic changes and re-branding ISDS as ICS rides roughshod over the public's views on this important matter.  Moreover, there is no reason to include ISDS/ICS at all.  Canada's legal system is one of the fairest in the world, and so providing companies with additional privileges not available to governments or the public is simply unjustified.

There are further, more subtle problems with CETA.  For example, the regulatory chapter stipulates 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" (Article 12.3).  It is easy to foresee companies challenging requirements for public input, environmental assessments and archaeological studies as not being "as simple as possible".  Rather than face costly legal challenges, local authorities are likely to drop these important aspects of regulatory approval, resulting in a general lowering of standards as "economic activity" is placed above all other considerations.

More generally, CETA does not protect the environment as is sometimes claimed.  CETA’s environmental provisions cannot be enforced through trade sanctions or financial penalties if they are violated.  Something that cannot be enforced may possess symbolic – or marketing – value, but is of little practical use when it comes to protecting the environment.  This is another way in which CETA's true costs are being masked by exaggerated claims about its benefits.

Taken together with the fact that even the official econometric study was able to find only vanishingly small economic benefits, these many hidden problems and their unquantified costs underline why CETA is a bad deal for the environment, a bad deal for the public and a bad deal for the EU.  Even if its supporters claim otherwise, without any justification, I urge you and your colleagues in the European Parliament to vote against its ratification.

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.