Lawsuit by Canadian beef producers could cost U.S. hundreds of millions
by Pete Hisey on 2/24/05 for Meatingplace.com
Canadian ranchers and feedlot owners, under the name Canadian Cattlemen for Fair Trade (CCFT) filed suit last fall for damages under Chapter 11 of the North American Free Trade Agreement, which essentially holds that if one member country's actions cause harm to elements within a trading partner. The Canadians, about 500 of whom have signed on to the complaint, claim that the closing of the border to live cattle and some beef products in 2003 created just such harm, and estimate their damage has grown from $75 million in October of 2004 to $325 million today.
The Canadian government, which is not involved in the suit, estimates overall damage to the cattle industry at $7 billion (Canadian), so the suit could turn out to be very expensive indeed, were the entire industry to join CCFT's complaint.
That, says Public Citizen's director, Lori Wallach, is why the Bush administration is so adamant about reopening the border on March 7: The meter is ticking. "We wonder what role this secretive $300 million NAFTA challenge is playing in the Bush administration's irresponsible proposal to reopen the border to Canadian beef and cattle in March," Wallach told Canada's Financial Post.
Public Citizen, an advocacy group that opposes NAFTA and favors keeping the border closed, issued a wide-ranging condemnation of Chapter 11. The 138-page report, NAFTA Chapter 11 Investor-State Cases: Lessons for the Central American Free Trade Agreement, attacks the Canadian lawsuit and its contention that the Canadian and U.S. herds are essentially one integrated North American herd. It notes, however, that the U.S. has won several cases very similar to this one, simply because the language of Chapter 11 makes it possible. CAFTA, it notes, has changed Chapter 11 language to avoid just these kinds of cases.
Take care.
by Pete Hisey on 2/24/05 for Meatingplace.com
Canadian ranchers and feedlot owners, under the name Canadian Cattlemen for Fair Trade (CCFT) filed suit last fall for damages under Chapter 11 of the North American Free Trade Agreement, which essentially holds that if one member country's actions cause harm to elements within a trading partner. The Canadians, about 500 of whom have signed on to the complaint, claim that the closing of the border to live cattle and some beef products in 2003 created just such harm, and estimate their damage has grown from $75 million in October of 2004 to $325 million today.
The Canadian government, which is not involved in the suit, estimates overall damage to the cattle industry at $7 billion (Canadian), so the suit could turn out to be very expensive indeed, were the entire industry to join CCFT's complaint.
That, says Public Citizen's director, Lori Wallach, is why the Bush administration is so adamant about reopening the border on March 7: The meter is ticking. "We wonder what role this secretive $300 million NAFTA challenge is playing in the Bush administration's irresponsible proposal to reopen the border to Canadian beef and cattle in March," Wallach told Canada's Financial Post.
Public Citizen, an advocacy group that opposes NAFTA and favors keeping the border closed, issued a wide-ranging condemnation of Chapter 11. The 138-page report, NAFTA Chapter 11 Investor-State Cases: Lessons for the Central American Free Trade Agreement, attacks the Canadian lawsuit and its contention that the Canadian and U.S. herds are essentially one integrated North American herd. It notes, however, that the U.S. has won several cases very similar to this one, simply because the language of Chapter 11 makes it possible. CAFTA, it notes, has changed Chapter 11 language to avoid just these kinds of cases.
Take care.