CETA a Cause For Concern
Jun 24, 2011
The Canadian government is well along the way towards negotiating a deal with the European Union on what is referred to as the Comprehensive Economic and Trade Agreement (CETA).
Larry Brown, National President of the Canadian Centre for Policy Alternatives, has authored a piece about the proposed agreement and argues that there is much to be concerned about.
Proponents of CETA argue that it has everything that the North American Free Trade Agreement (NAFTA) has (assuming that’s a good thing), and more. As argued by Brown, the main reason to be concerned about agreements like CETA is that they put limits on the ability of governments to control the actions of large corporations. These agreements aren’t as much about tariffs and borders as they are about listing “the things that governments can’t do if they interfere at all with the corporate sector’s unfettered right to make a profit.”
Unlike NAFTA, the CETA would be the first agreement to apply directly to provinces and municipalities. It would also extend to crown corporations, hospitals, and school boards. The EU wants access to “procurement” by all these levels of government. One consequence of this is that provincial and municipal governments would lose the right to use taxpayers’ money for the benefit of local citizens. Bids would have to be open to European companies and the only consideration allowed would be the cost of the bid.
This means that crown corporations – like provincial liquor boards or power companies – would be up for grabs. The CETA in this way would be a significant first step towards privatization, as the EU has indicated it does not like the way provincial liquor boards display and sell their products, for example.
Drug costs in Canada, which are already an area of significant concern given rising health care costs, would be likely to rise even higher if CETA is concluded. International pharma companies are trying to expand their patent rights and this would be a great way for them to do so.
It’s not too late to stop this deal from happening, but few people seem to be paying attention to this issue so far. But we should be incredibly wary of any agreement that has the potential for individual companies of the EU to challenge the decisions of our democratically elected governments, as would be allowed under CETA.
Click here to read the article.
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