BY SEAN HEALY

The provisions in a future agreement on investment allowing corporations to sue governments for measures which affect their revenues would likely be based on chapter 11 of the North American Free Trade Agreement.

Cases which have already been brought under these provisions include:

• Metalclad vs Mexico: On October 26, the government of Mexico paid US waste company Metalclad US$16.7 million in compensation for a decision which closed the company's toxic waste disposal dump in the state of San Luis Potosi. The local authorities believed the dump was causing fatal contamination of the states' water sources.

• Ethyl vs Canada: In July 1998, Canada was found to have infringed NAFTA stipulations when it banned the import and transport of the gasoline additive MMT, a known human neurotoxin. The panel ruled that the Canadian government had to pay US$13 million to the US Ethyl Corporation in compensation and proclaim MMT “safe”.

• Methanex vs United States: Canadian firm Methanex Corporation launched a suit against the US in December 1999, claiming that California's decision to phase out the gasoline additive MTBE, which is contaminating its drinking water, by the end of 2002 will cost the company hundreds of millions of dollars. A verdict is pending.

• UPS vs Canada: Giant parcel delivery company UPS launched a suit in April 1999, seeking US$160 million in damages, claiming that the Canadian post office's parcel delivery service had an unfair competitive advantage because it was a public service. A verdict is pending.

From Green Left Weekly, December 5, 2001.
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