Get rid of Investor State Dispute Settlement system

While much is being made about our prime minister’s visit to Washington to support the renewed NAFTA negotiations, another NAFTA story is getting little attention at all.

Under the existing Investor State Dispute Settlement (ISDS) rules Lone Pine Resources is attempting to sue Canada for $100 million because Quebec has placed a ban on fracking in the St. Lawrence River. Lone Pine’s position is that this ban will cut it off from potential fracking profits and under Chapter 11 of the current NAFTA agreement they can do so. And just in case you thought that no judge would ever rule against a Quebec government which appears to be acting in the best interests of its citizens, you should know that any trade agreement that has an ISDS clause in it, like NAFTA, the outcome is decided not by a Canadian court but in a closed session decided by a tribunal of appointed adjudicators.

This means that while governments may pass legislation protecting the environment, local business, labour regulations, etc., the ISDS clause gives corporations the right to recover those ‘potential lost profits’ from Canadian taxpayers.

Canadians expect our governments to protect us from over-reaching corporations whose primary goal is profit. If the well-being and prosperity of our citizens matter more than profits, then our NAFTA negotiators must demand the removal of the ISDS and allow Canadians, not corporations, to determine what matters most to us. It’s time to toss ISDS in the trash-bin of history.

Gary King Welland