Face the Facts! 8 - NAFTA Lawsuits Demonstrate Trade Agreements Favor Corporations Over the Environment
How the Global Economy Harms People and the Environment
#8, Wednesday April 28, 1999
NAFTA Lawsuits Demonstrate Trade
Agreements Favor Corporations
over the Environment
- NAFTA’s investment rules have been used by corporations to challenge a variety of government actions, including environmental protections. The public is shut out of the process, with no right to observe the cases or provide input, even though the challenges are to laws of interest to the public *1.
- Corporate investors have launched at least 7 cases in international arbitral courts. The majority of these cases involve challenges to environmental controls on toxic substances or natural resources (see chart below.)
- The monetary damages sought in these cases exceeds $1.8 billion in total.
- The only case to reach a conclusion so far, an environmental case called Ethyl, was settled out of court. Canada rolled back its environmental law and paid the company $14 million.
Major NAFTA Investment Cases *2
| CASE | TARGET OF CASE | DAMAGES SOUGHT |
| Ethyl v. Can. Canadian | restriction on toxic fuel additive | $251 million |
| Metalclad v. Mex. | Mexican state ecological zone blocking waste facility | $90 million |
| SD Myers v. Can. | Temporary Canadian ban on exports of PCBs | $20 million |
| Loewen v. U.S. | Civil Justice System of State of Mississippi | $725 million |
| Sunbelt v. Can. | Canadian ban on water exports | $220 million |
| Pope & Talbot v. Can | Canada-US agreement on lumber trade | $507 million |
*1 Procedural rules of the North American Free Trade Agreement, International Center for the Settlement of Investment Disputes, and United Nations Commission for International trade and Law.
*2 Information on cases obtained from Notices of Intent filed by corporate plaintiffs, press reports, and discussions with attorneys.
For more information contact:
(202) 783-7400, Mark Vallianatos ext. 231 or Andrea Durbin ext. 209
1025 Vermont Ave., NW, Suite 300, Washington, DC 20005
