G7 leaders fiddle while Earth burns

The G7 governments saying they will phase out fossil fuels by 2100 isn’t closing the barn door after the horse has left. It is declaring an intention to consider closing the barn door after waiting for the horse to disappear over the horizon. It is okay to be feel underwhelmed by this.

The Group of 7 summit held earlier this month in Germany, representing seven of the world’s largest economies, ended with a declaration that these governments would commit themselves to a 40 to 70 percent reduction in greenhouse-gas emissions and a complete phaseout in 2100, and an invitation for “all countries to join us in this endeavor.” A communiqué issued after the summit declared:

“We commit to doing our part to achieve a low-carbon global economy in the long-term including developing and deploying innovative technologies striving for a transformation of the energy sectors by 2050. … To this end we also commit to develop long-term national low-carbon strategies.” [page 17]

The G7 governments say they are acting under the impetus of last year’s Intergovernmental Panel on Climate Change report and in anticipation of next December’s Climate Change Conference in Paris. In the conception of the IPCC report, greenhouse-gas emissions should be 40 to 70 percent lower globally in 2050 than in 2010 and “near zero” in 2100 to achieve a goal of holding greenhouse-gas concentrations in the atmosphere to 450 parts per million in 2100. Even that level is a substantial increase above the current level of 404 parts per million, at which the Earth’s climate is already undergoing dramatic changes.

Retreating glacier in Greenland (photo by Bastique)

Retreating glacier in Greenland (photo by Bastique)

The IPCC report, prepared by scientists from around the world but apparently watered down by the world’s governments, promises that mitigating global warming will be virtually cost-free and require no fundamental change to the world’s economic structure. Alas, there are no free lunches — the IPCC report’s insistence that techno-fixes will magically take care of carbon buildup, allowing humanity to continue the path it has been on since the dawn of the Industrial Revolution, is dangerously unrealistic.

So what do the G7 governments have in mind? Their communiqué says they will increase the number of people in developing countries who have access to insurance, increase developing countries’ access to renewable energy and raise funds “from private investors, development finance institutions and multilateral development banks.” [pages 15-16] Try to contain your excitement when you read the G7 prescription for combating global warming:

“We will continue our efforts to provide and mobilize increased finance, from public and private sources. … We recognize the potential of multilateral development banks in delivering climate finance and helping countries transition to low carbon economies.” [page 15]

It may already be too late

Before we delve into the idea that the World Bank, funder of gigantic greenhouse-gas belching, polluting projects around the world, is the cure for global warming, and before we contemplate the idea that we can bind the policies of governments eight decades in the future, let us ask what actually needs to be done to prevent the climate from spiraling into a feedback loop that will accelerate species die-offs and dangerously disrupt agriculture and water supplies. The U.S. government’s climate agency, the National Oceanic and Atmospheric Administration, issued a study in 2009 that flatly concluded “there’s no going back.” The study, led by NOAA senior scientist Susan Solomon, found:

“[C]hanges in surface temperature, rainfall, and sea level are largely irreversible for more than 1,000 years after carbon dioxide (CO2) emissions are completely stopped. … ‘It has long been known that some of the carbon dioxide emitted by human activities stays in the atmosphere for thousands of years,” Solomon said. “But the new study advances the understanding of how this affects the climate system.’ ”

Carbon dioxide thrown into the air stays in the atmosphere for a long time, warming oceans will retain added heat and transfer that back to the atmosphere, and we have yet to experience the full effect of greenhouse gases that have already been emitted. Global sea-level rises and major disruption to rain patterns will effect billions of people. The NOAA study said:

“If CO2 is allowed to peak at 450-600 parts per million, the results would include persistent decreases in dry-season rainfall that are comparable to the 1930s North American Dust Bowl in zones including southern Europe, northern Africa, southwestern North America, southern Africa and western Australia.

The study notes that decreases in rainfall that last not just for a few decades but over centuries are expected to have a range of impacts that differ by region. Such regional impacts include decreasing human water supplies, increased fire frequency, ecosystem change and expanded deserts. Dry-season wheat and maize agriculture in regions of rain-fed farming, such as Africa, would also be affected.”

A Massachusetts Institute of Technology paper, lamenting the widespread conviction that global warming can be reversed quickly when and if it is decided to do so, notes such beliefs are in violation of basic physics. The paper’s abstract says:

“[W]ait-and-see policies erroneously presume climate change can be reversed quickly should harm become evident, underestimating substantial delays in the climate’s response to anthropogenic forcing. … [Greenhouse-gas] emissions are now about twice the rate of GHG removal from the atmosphere. GHG concentrations will therefore continue to rise even if emissions fall, stabilizing only when emissions equal removal. In contrast, results show most subjects [of an MIT study] believe atmospheric GHG concentrations can be stabilized while emissions into the atmosphere continuously exceed the removal of GHGs from it. These beliefs—analogous to arguing a bathtub filled faster than it drains will never overflow—support wait-and-see policies but violate conservation of matter.”

More heating even if we stopped today

A commentary published on RealClimate, a Web site published by working climate scientists, calculates that if greenhouse-gas concentrations were kept constant at today’s level, there would still be an increase in global temperatures of as much as 0.8 degrees Celsius — combined with the global warming already experienced, that is close to the 2-degree overall rise widely believed to be the outer limit to avoid catastrophic damage to Earth’s ecosystem. But to achieve even that equilibrium requires immediate, significant cuts to greenhouse-gas emissions. The commentary says:

“[C]onstant concentrations of CO2 imply a change in emissions — specifically an immediate cut of around 60 to 70% globally and continued further cuts over time.”

“Immediate” as in now, not decades in the future. The actual proposed cuts, in the near term, are far less than that range, and less than initially meets the eye. The baseline of measurement is being shifted, for example, so that the benchmark against which the reductions are measured are higher than previously set. Environmental Defence Canada calculates that the Harper government’s switch to using 2005 rather than 1990 as the baseline reduces the goal by more than half. In a report, the group writes:

“The U.N. Framework Convention on Climate Change (1992) and the Kyoto Protocol (1997) both used 1990 as the reference or base year. Most countries still use 1990 as the base year but some have started using more recent base years. Since the Copenhagen summit in 2009, Canada has been using 2005 as a base year. This makes comparison between targets more difficult. It also makes targets look stronger than they are since Canada’s carbon pollution increased significantly between 1990 and 2005. For example, the Canadian government’s pledge to reduce emissions by 30 per cent below 2005 by 2030 is actually less than half as strong … when expressed using 1990 as the base year.” [page 3]

Emissions from the Alberta tar sands have increased almost 80 percent since 2005 and the Harper government has every intention of boosting tar sands production as much as possible, including plans for multiple pipelines, while equating environmentalists with terrorists. Environmental Defence Canada notes that the Harper government has no intention of regulating tar sands oil and flatly declares Canada’s post-2020 target “the weakest in the G7 to date.”

The potential global warming just from the Alberta tar sands is so large that the U.S. environmental scientist James Hansen believes it will be impossible to stop runaway global warming should that oil be burned.

Assigning contributions isn’t straightforward

The point here isn’t to single out Canada. But its cumulative greenhouse-gas emissions since the dawn of the Industrial Revolution is the ninth highest in the world, a ranking likely to rise if plans of current oil and gas companies come to fruition. So the argument sometimes made that Canada isn’t a significant contributor to global warming because of its small population isn’t true. The United States, not surprisingly, is easily the biggest culprit, having emitted 29 percent of the world’s cumulative greenhouse gases, according to calculations by the World Resources Institute.

China ranks second, with nine percent of the world’s cumulative greenhouse-gas emissions, and the top 10 countries account for 72 percent. (Italy is the only G7 country not among the top 10.) But even here, it could be argued that China’s ranking deserves an asterisk. Western multi-national corporations have eagerly transferred production to China, particularly U.S. companies such as Wal-Mart and Apple. So much of those Chinese greenhouses gases are the responsibility of U.S. corporations. A paper led by Glen Peters of the Center for International Climate and Environmental Research in Oslo estimates that, in 2008 alone, the U.S. imported as much as 400 million tons of carbon dioxide in Chinese goods.

Regardless of source, global warming does not come without costs. The nonprofit organization DARA claims that global warming already causes 400,000 deaths per year, and that “the present carbon-intensive economy moreover is linked to 4.5 million deaths worldwide each year.”

Can the World Bank and International Monetary Fund realistically be part of the solution to global warming, as the G7 communiqué would have it? No! The World Bank has poured billions of dollars into dams, power plants and other projects that worsen global warming, and shows no sign of altering its indifference to environmental costs. The World Bank and IMF also promote neoliberalism and austerity programs around the world; immiserating people makes them more vulnerable, not less, to the stresses of global warming and pollution.

The amount of industrial carbon dioxide emissions thrown into the atmosphere from 1988 to 2014 is equal to all the emissions from 1751 to 1988, according to the Climate Accountability Institute. That continually rising rate of emissions is reflective of the ever more intensive pressures for growth capitalism imposes, and the continual movement of production to the places with the lowest wages and weakest environmental laws imposed by capitalist competition, stretching supply chains ever longer, is itself a contributor to global warming.

The G7 communiqué is nothing more than wishful thinking that no real change is necessary. There are no free lunches: The world has to drastically reduce its consumption. As this is an impossibility under capitalism, another world is not only possible, it is necessary in the long run for our descendants to even have a livable world.

Canada targets tar sands critics in new criminalization of dissent

Canada’s Harper régime has invented the new crime of being a member of an “anti-Canadian petroleum movement,” and equating such a stance with terrorism. Evidently believing it is in danger of losing the fight against pipeline projects intended to speed up Alberta tar sands production, its response is to place environmentalists under surveillance.

A secret report prepared by the Royal Canadian Mounted Police, the country’s national police agency, claims that public activism against the problems caused by oil and gas extraction is a growing and violent threat to Canada’s national security. The report goes so far as to challenge the very idea that human activity is causing global warming or that global warming is even a problem. At least 97 percent of environmental scientists agree that human activity is causing global warming. The basis on which a police force can declare otherwise is surely not clear.

The Alberta tar sands (photo by Howl Arts Collective, Montréal)

The Alberta tar sands (photo by Howl Arts Collective, Montréal)

Whether police officials truly believe they understand the global climate better than scientists who are expert in the field or are merely providing “intelligence” [sic] that the government of Prime Minister Stephen Harper wants to hear, I will leave to others more familiar than I with the Royal Canadian Mounted Police. Regardless, the RCMP report, leaked to Greenpeace, makes for amusing reading. For example:

“[T]here is an apparent growing international anti-Canadian petroleum movement. In their literature, representatives of the movement claim climate change is now the most serious global environmental threat, and that climate change is a direct consequence of elevated anthropogenic greenhouse gases which, reportedly, are directly linked to the continued use of fossil fuels.” [page 5]

And whom might the police rely on for that statement? No, not those pesky scientists who refuse to say what is demanded of them by oil and gas companies and the right-wing governments who love them. Instead, the RCMP quotes the Canadian Association of Petroleum Producers, cites a poll commissioned by a foundation connected to the oil industry, and a columnist at the Toronto Sun, a hard-right tabloid in the Murdoch mold. The Sun columnist, as quoted in the police report, said “environmental radicals” seek “to undermine the development of Canada’s oilsands — an insignificant contributor to global greenhouse gas emissions.”

Actual experts in the field would disagree. A Scientific America analysis that quotes several climate scientists reports that if all the bitumen in the Alberta tar sands were burned, 240 billion metric tons of carbon would be added to the atmosphere. The total amount of carbon that has been thrown into atmosphere by humanity in all of history is estimated at 588 billion tons.

Are going to believe the police or your lying eyes?

The Globe and Mail of Toronto quoted a Royal Canadian Mounted Police spokesman denying any intention of spying on peaceful protestors:

“There is no focus on environmental groups, but rather on the broader criminal threats to Canada’s critical infrastructure. The RCMP does not monitor any environmental protest group. Its mandate is to investigate individuals involved in criminality.”

But the newspaper’s report noted that the spokesman “would not comment on the tone” of the report, which even The Globe and Mail, a leading establishment publication, found difficult to accept as it earlier in the article noted the RCMP report’s “highly charged language.” Moreover, Canadian human rights organizations filed complaints earlier in February over spying on opponents of the proposed Northern Gateway pipeline, a project intended to move tar sands oil from Alberta to a port in northern British Columbia, passing through hundreds of miles of environmentally sensitive lands.

Environmentalists and Indigenous peoples have been subjected to spying by the RCMP and the Canadian Security Intelligence Service, according to a complaint filed by the British Columbia Civil Liberties Association. The association is also opposing a new measure, the Anti-terrorism Act 2015, or Bill C-51, intended to “dramatically expand the powers of Canada’s national security agencies.” The association reports:

“Bill C-51 makes massive changes to many aspects of Canada’s spying and security system. Any one of the changes – making it easier to lock people up without charge; criminalizing expression; vastly expanding the powers of Canada’s spies; gutting privacy protections – is significant, raises constitutional questions, and must be the subject of serious debate. Lumping them all together into one bill, and proposing to speed that bill through Parliament, virtually guarantees that democratic debate on these proposed measures will be insufficient.”

Such speed is consistent with the Harper government’s attitude toward activists. A previous environment minister, Peter Kent, called parliamentary opponents of tar sands “treacherous” and had a long history of dismantling every regulation he could. The current environment minister, Leona Aglukkaq, while less inclined to frontal attacks, nonetheless also doubts climate change.

From smoking is good for you to the weather is just fine

Global-warming denialism is well-funded, with oil and gas companies often the heaviest contributors to “think tanks” that specialize in doubting scientific evidence on behalf of their corporate benefactors. An excellent roundup of these deniers, written by physics professor John W. Farley for the May 2012 edition of Monthly Review, noted that Exxon Mobil Corporation, the Koch brothers and other special interests have spent tens of millions of dollars.

One of these corporate-funded “think tanks” is the Heartland Institute, which began life as a Big Tobacco outfit issuing reports denying links between smoking and cancer. Another global-warming denial outfit, The George C. Marshall Institute, originated as lobby group for Ronald Reagan’s crackpot Strategic Defense Initiative, more commonly known as the “Star Wars” program. Another was the now-defunct Global Climate Coalition, which included major oil companies, the U.S. Chamber of Commerce and automobile manufacturers; it actually operated from the offices of the National Association of Manufacturing.

A scientist who is often trotted out by global-warming deniers is Wei-Hock (“Willie”) Soon, who was recently revealed to have taken more than $1.2 million from the fossil-fuel industry. The New York Times reports that at least 11 papers Dr. Soon has published since 2008 omitted disclosures of this funding and at least eight violate the ethical guidelines of the journals that published him. The Times reports:

“[D]ocuments show that Dr. Soon, in correspondence with his corporate funders, described many of his scientific papers as “deliverables” that he completed in exchange for their money. He used the same term to describe testimony he prepared for Congress.”

The world is facing an environmental catastrophe as it is; increasing production from the Alberta tar sands will only hasten it. The capacity of railroads to ship oil is reaching its limit (and in itself is dangerous as a recent flurry of crashes demonstrate). Thus pipelines are critical for tar sands expansion. Not only the Keystone XL pipeline across the United States, but the Northern Gateway and other proposed pipelines that would cross Canada to eastern ports. U.S. President Barack Obama’s February 24 veto of a congressional bill designed to force Keystone construction by no means puts that issue to rest; the State Department’s inaccurate claim that the pipeline would not add to global warming and falsehoods that tens of thousands of jobs would result remain an official document.

Opposition to the Keystone XL pipelines has not slackened and strong resistance continues against the Northern Gateway, which would not only send oil through sensitive mountains and forests, but would require ocean tankers to travel more than 100 kilometers just to reach the Pacific Ocean from the pipeline terminus in northern British Columbia. From there, the oil would be shipped to Asia. First Nations peoples, who have the right to block projects from crossing their lands, are leading that fight, and vow physical resistance.

TransCanada Corporation, the same company that wants to build Keystone XL to the Gulf of Mexico, is also proposing an Energy East pipeline that would carry tar sands oil to terminals in Québec City and St. John, New Brunswick. This project, if it comes to fruition, would alone produce the same amount of carbon each year as seven million new cars on Canada’s roads, according to 350.org. Some of this project would use existing natural gas lines; these are not designed for oil, a heavier substance, elevating the risk of ruptures.

The RCMP reports asserts that “extremists pose a realistic criminal threat to Canada’s petroleum industry.” Advocating for clean air and water is a crime? The fight against one of these pipelines must be a fight against them all; increased oil profits surely won’t be compensation for drowned cities and farmlands turned to dust bowls.

Please make your comment after we make our decision

Taking a page from their United States counterparts, European Union trade negotiators apparently interpret the word “consultation” as a synonym for “ignore.” Fresh evidence for this attitude toward the public was provided thanks to a leak of the final text of the proposed “free trade” agreement between Canada and the EU.

Although the E.U. trade office, the European Commission Directorate General for Trade, promotes a process of public consultation on its web site, it isn’t the public who gets listened to. The final text of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) includes language mirroring corporate wish lists unchanged from previous drafts despite the fact that the E.U. trade office has not had time to analyze comments submitted by the public.

This farce of a “consultation” process mirrors the secretive negotiations in the better known Trans-Pacific and Transatlantic trade agreements. Corporate lobbyists are well represented in these talks, but the public, watchdog groups and even parliamentarians and legislators are barred from seeing the text. The CETA text is also secret, but was leaked by the German television news program Tagesschau, which published the entire 521-page document on its web site. Yep, 521 pages.

The Rideau Canal in Ottawa (photo by John Talbot)

The Rideau Canal in Ottawa (photo by John Talbot)

Critical to understanding the CETA text is Section 33, the portion simply labeled “dispute settlement.” Under that bland heading a reader finds the muscle — what is known as an “investor-state dispute mechanism.” These “mechanisms,” found in many bilateral and multilateral trade deals, are corporate-dominated secret tribunals that hand down one-sided decisions with no oversight, no public notice and no appeals. Governments that agree to these mechanisms legally bind themselves to mandatory arbitration with “investors” in these secret tribunals on which most of the judges are corporate lawyers who represent the “investors” in other legal proceedings.

Kenneth Haar, a spokesman for the watchdog group Corporate Europe Observatory, in an interview with the EurActiv news site, called the dispute mechanism “an outright danger to democracy,” and said:

“The Commission is not really serious about its own consultation. It’s more about image than substance. … I think those who chose to respond to the Commission’s consultation are being ridiculed.”

Decisions will be final and unaccountable

Employing the standard sweeping language, CETA’s Article 14.2 (the articles here are numbered “14” even though they are found in Section 33) states: “[T]his Chapter applies to any dispute concerning the interpretation or application of the provisions of this Agreement” [page 472]. Article 14.10 goes on to declare, “The ruling of the arbitration panel shall be binding on the Parties. … The panel shall interpret the provisions referred to in Article 14.2 in accordance with customary rules of interpretation of public international law” [page 476].

“Customary” international law is whatever one of these secret tribunals says it is. Environmental regulations, “buy local” laws or any other government action that a corporation claims will hurt its profits can be, and frequently are, ruled illegal by these tribunals when adjudicating disputes under existing trade agreements. Such rulings set precedents that become “customary” international law.

In case these “customary” laws are not clear, on page 480 of the CETA text is Article 14.16, which would supersede national law:

“No Party may provide for a right of action under its domestic law against the other Party on the ground that a measure of the other Party is inconsistent with this Agreement.”

Your law was passed in a democratic process? Too bad — it will be overruled if an “investor” doesn’t like it.

CETA’s proposed rules are consistent with what is being secretly negotiated in the Transatlantic Trade and Investment Partnership between the U.S. and E.U., and in the Trans-Pacific Partnership being negotiated among 12 Pacific Rim countries. A majority of the world’s economy would be removed from any possibility of democratic control should these three trade deals come into effect.

The watchdog group Council of Canadians warns:

“The Harper government has thrown Canadian municipalities under the bus, forever banning ‘buy local’ and other sustainable purchasing policies that help create jobs, protect the environment and support local farmers and businesses. The Harper government has also agreed to lengthen patents and give new monopoly protections to already profitable brand name drug companies, which will needlessly add hundreds of millions to the cost of prescription drugs in Canada.”

Not even water would be exempt. If a water system is privatized and a local government chooses to re-municipalize it because rates have risen while service declines (as has routinely occurred on both sides of the Atlantic), the investor would be able to hold out for an extra windfall under the terms of the trade deal.

Only corporate lobbyists need apply

Although the public, and public-interest groups, are not heard, corporate lobbyists are. For example, there are 605 “advisers” with access to the text of the Trans-Pacific Partnership and who shape U.S. negotiating positions. Virtually every one is an executive of a multi-national corporation or a corporate lobbyist working for an industry association.

It is little different in Europe. Corporate Europe Observatory reports that 92 percent of the closed-doors meetings of the E.U. trade office have been with corporate lobbyists, while only four percent have been with public-interest groups. The trade office has gone so far as to actively solicit the involvement of corporate lobbyists. That perspectives other than those of multi-national capital are not considered can be inferred from the very way public input is solicited, the Observatory said:

“How would the average citizen respond to questions such as: ‘If you are concerned by barriers to investment, what are the estimated additional costs for your business (in percentage of the investment) resulting from the barriers?’ So, clearly, the close involvement of business lobbyists in drawing up the EU’s position for the [Transatlantic Trade and Investment Partnership] talks is a result of the privileged access granted to them.”

It’s no different for CETA, and the same dynamic exists across the Atlantic. Former U.S. Trade Representative Ron Kirk once admitted that if people knew what was in the Trans-Pacific Partnership, it would never pass. It is important to remember that these massive “free trade” deals are not simply business as usual — they go well beyond even the draconian rules of the North American Free Trade Agreement.

So although the competitive pressures of each country attempting to give an advantage to its multi-national corporations does mean that maneuvering through differing interests requires lengthy negotiations — not to mention the sometimes conflicting interests of various industries — at bottom there is a unifying class interest in the overall project. It is true that the U.S. adopts the hardest line in the trade negotiations it participates in (before we even get to the military muscle it applies to force open Southern countries), yet the absence of the U.S. from a Canada-European Union trade deal has made no practical difference to its outcome.

That different countries, different administrations, reach similar one-sided “free trade” agreements in which “investors” are allowed to overrule national laws, and labor, safety and environmental regulations are “harmonized” at the lowest level, is a product of capitalist competition. The rigors of that structural competition mandate expansion and growth — as local markets mature, capital has no choice, if it is to survive relentless pressure from competitors, other than opening new markets and relentlessly cutting costs to maintain profit levels. “Free trade” agreements represent one of the most effective ways to accomplish that.

Popular revolts against these agreements must be continued, and strengthened, but there will be no end to them as long as economic and social decisions are allowed to be made by “markets,” which are not disembodied entities sitting dispassionately on an Olympian throne but rather are the aggregate interests of the most powerful industrialists and financiers.

The scorecard of NAFTA: Losses for all three countries

The North American Free Trade Agreement has been a lose-lose-lose proposition for working people in Canada, the United States and Mexico.

Let us count the ways: Lost jobs, reduced wages, more unemployment, higher food prices and reversals of environmental laws. NAFTA, a 20-year laboratory for mainstream economics, has been a bonanza for the executives of multi-national corporations, and that is all you need to know why the so-called “free trade” model continues to be promoted despite the immiseration and dislocation it spawns. Agreements like NAFTA, and proposed deals that would go further in handing power to corporate executives and financiers such as the Trans-Pacific Partnership, have little to do with trade and much with ensuring corporate wish lists are brought to life.

Not dissimilar to medieval doctors who insisted that having leeches bleed the patient was the only course of action, neoclassical economists, who dominate the field, won’t budge from their prescriptions of neoliberal austerity. But although the medical field has made enormous strides in recent centuries, there is no such progress among neoclassical economists. That is because said economists — most often under the banner of “Chicago School” but sometimes using other names — promote ideology on behalf of the powerful, not science for all humanity.

"Canada in fog" photo by Kat Spence

“Canada in fog” photo by Kat Spence

Thus the spectacularly wrong predictions made for NAFTA before it was went into force on January 1, 1994, have no effect on their predictions for new deals. To provide one example, in 1993 the Peterson Institute for International Economics predicted 170,000 jobs would be created in the U.S. alone by 1995, that the U.S. would enjoy an expanded trade surplus with Mexico and that the Mexican economy would grow by four to five percent annually under NAFTA.

As we will see presently, none of those rosy predictions came close to becoming reality. (True to neoliberal form, the institute is grandly predicting “gains of $1.9 trillion” for the Trans-Pacific Partnership.) The point here isn’t to pick on one particular institution — in fact, it is quite typical. The models developed to make these predictions and explain economics are mathematical constructs disconnected from the real world.

Sure it works better in a dream world

The Chicago School and other mainstream neoclassical schools of economics rest their models on the concept of “perfect competition,” which assumes that all prices automatically calibrate to optimum levels, and that there are so many buyers and sellers that none possess sufficient power to affect the market. This model assumes that employees are in their jobs due to personal choice, and wages are based only on individual achievement independent of race, gender and other differences. That this bears little resemblance to the real world is not your imagination.

From this, mainstream economists assume all trade will be beneficial because all economic activity quickly adjusts to create a new equilibrium following a disruption. As Martin Hart-Landsberg wrote in his 2013 book Capitalist Globalization: Consequences, Resistance and Alternatives:

“[T]his kind of modeling assumes a world in which liberalization cannot, by assumption, cause or worsen unemployment, capital flight or trade imbalances. Thanks to these assumptions, if a country drops its trade restrictions, market forces will quickly and effortlessly lead capital and labor to shift into new, more productive uses. And since trade always remains in balance, this restructuring will generate a dollar’s worth of new exports for every dollar of new imports. Given these assumptions, it is no wonder that mainstream economic studies always produce results supporting ratification of free trade agreements.” [page 104]

World Bank studies promoting “free trade” agreements, Professor Hart-Landsberg wrote, assumes that tariff reductions will have no effect on government deficits, governments will automatically be able to replace lost tariff revenue with revenue from other sources and that there is full employment. He writes:

“Although working people have been ill served by capitalist globalization, many are reluctant to challenge it because they have been intimidated by the ‘scholarly’ arguments of those who support it. However … these arguments are based on theories and highly artificial simulations that deliberately misrepresent the workings of capitalism. They can and should be challenged and rejected.” [page 80]

Mexican farmers forced off their lands

Mexico had annual per capita gross domestic product growth of 0.9 percent in the first 20 years of NAFTA — one-fifth of the per capita GDP growth of the preceding 20 years. The Center for Economic and Policy Research reports that Mexico’s growth during the past 20 years under NAFTA ranks the country 18th of 20 Latin American countries and is half of the average Latin American growth rate. Among other results, the center reports:

• 4.9 million family farmers have been been displaced — more than half the total number of Mexican farmers in 1991.
• More than 14 million more Mexicans live below the poverty line than in 1994. Just more than half of Mexicans are below the poverty line, nearly identical to the 1994 rate, but the population has increased.
• Inflation-adjusted wages have risen two percent over 18 years and are barely above the 1980 level.

Subsidized corn from the United States flooded Mexico, sold below the costs of small Mexican farmers. Corn imports from the U.S. increased fivefold and pork imports from the U.S. increased by more than 20 times, according to a Truthout report by David Bacon.

As a result, Mexican farmers forced off their land either became seasonal workers on growing agribusiness farms, sought work in the cities or migrated north. Seasonal agricultural workers (those working less than six months per year) grew by almost three million — more than doubling their ranks — during the same period that 4.9 million family farmers were displaced. The number of Mexicans emigrating to the U.S. rose by almost 80 percent from 1994 to 2000, before falling significantly afterword because of the post-9/11 increased border security.

Nor did Mexicans get cheaper food as a result of the flood of U.S. corn. Public Citizen, in its just released report on NAFTA, reports that the deregulated price of tortillas nearly tripled in the first 10 years of the agreement and that a Mexican minimum-wage earner can buy 38 percent less than he or she could when NAFTA went into effect.

The only countervailing effect, the increase in factory jobs as maquiladoras (factories near the U.S. border producing for export) increased for a time, but those low-wage jobs are now dwindling because China’s wages are far cheaper than Mexico’s. The same pitiless market competition that sent jobs south now sends them across the Pacific. China now accounts for 23 percent of U.S. imports as compared to Mexico’s 12 percent, according to International Monetary Fund statistics.

A 2011 paper issued by the Economic Policy Institute summarized the effects of NAFTA on Mexico:

“From the standpoint of the business community, NAFTA’s most important achievement was that it made Mexico a much safer and more attractive location to invest and outsource U.S. manufacturing production. NAFTA’s investment provisions created new and improved safeguards for foreign investors, including new dispute settlement tribunals providing a mechanism for settling disputes with foreign governments outside of the Mexican legal system. By eliminating Mexico’s developmental state and use of local content rules, and other demands and conditions on foreign investors, the trade agreement greatly reduced the cost of doing business in Mexico, and increased the security of those investments.” [page 6]

Mexico’s conversion into an export platform does not mean higher skills for its workforce. The biggest initiative in job creation came during the administration of Vicente Fox, which offered training in low-skill jobs for landscapers, construction workers, factory workers and maids.

Hundreds of thousands of jobs leave the United States

The United States has seen a net displacement of almost 700,000 jobs through 2010 directly attributable to NAFTA, according to Economic Policy Institute calculations. Moreover, the U.S. has had large annual trade deficits with Mexico since NAFTA was implemented; in earlier years, trade was roughly balanced between the two. In addition to the job losses, Public Citizen reports these negative impacts on U.S. workers:

• U.S. food prices have risen 67 percent since NAFTA took effect, despite an increase in food imported from Mexico and Canada.
• Purchasing power for U.S. workers without a college degree, adjusted for inflation and taking into account those consumer goods that have become cheaper, has declined 12 percent under NAFTA.
• Two-thirds of displaced manufacturing workers who were rehired in 2012 experienced a wage cut; the reduction in the majority of cases was at least 20 percent.
• U.S. manufacturing and services exports to Mexico and Canada grew slower after NAFTA took effect than it had been earlier.

By making it easier for capitalists to move production, NAFTA has directly contributed downward pressure on wages. With fewer well-paying manufacturing jobs, pressure on wages not only affects manufacturing but other industries as well as displaced workers seek employment elsewhere.

Capital mobility has been an irresistible hammer for holding down wages and worsening job conditions — a study by Cornell University Professor Kate Bronfenbrenner found that more than 50 percent of employers made threats to shut down and/or move their facilities in response to unionization activity during the three-year period of 1993 to 1995, and that the rate of actual shutdowns tripled from the pre-NAFTA rate. She wrote:

“NAFTA has created a climate that has emboldened employers to more aggressively threaten to close, or actually close their plants to avoid unionization. The only way to create the kind of climate envisioned by the original drafters of the [National Labor Relations Act], where workers can organize free from coercion, threats, and intimidation, would be through a significant expansion of both worker and union rights and employer penalties in the organizing process both through substantive reform to U.S. labor laws and by amendments to the North American Agreement on Labor Cooperation.” [page 3]

That would take massive organizing to achieve. The Obama administration is actively trying to use the rules of NAFTA as a starting point for further weakening of labor, safety, health and environmental laws in the ongoing Trans-Pacific Partnership negotiations, which would tighten corporate control should the ongoing TPP negotiations be successful. The White House undoubtedly has the same goals for the Transatlantic Trade and Investment Partnership talks with the European Union.

Canadian safety net shredded to ‘compete’ in markets

Spending on Canada’s social safety net has decreased while corporate revenue has doubled and manufacturing jobs disappeared. In addition, a Canadian Centre for Policy Alternatives researcher reports, the country’s growing trade surplus with the United States has translated to few jobs. The study found:

• After 12 years of NAFTA, government transfers to individuals have dropped from 11.5% of GDP to 7.8% of the country’s GDP.
• “[M]uch of the growth in gross exports over the last decade reflected the markedly elevated use by Canadian-based companies of imported inputs in their production, significantly overstating the employment impact of the growth of manufactured exports.”
• The length that Canadians could collect unemployment benefits was reduced, the amount of the benefits were cut and the criteria for those eligible were reduced, reducing the proportion of unemployed people who qualified for unemployment insurance to one-third from three-quarters.
• Composite revenues of 40 of Canada’s biggest businesses increased 105 percent from 1988 to 2002, while their workforces shrank by 15 percent.

These developments fueled rising inequality, the centre’s executive director, Bruce Campbell, wrote:

“The most striking feature of this growing inequality has been the massive gains of the richest 1% of income earners at the expense of most of the population. The growth of precarious employment, the undermining of unions as a countervailing power to transnational capital, the erosion of the Canadian social state, and heightened economic dependence on the United States are the hallmarks of the free trade era in Canada.” [page 53]

Pressing its advantage, Canadian big business interests demanded and received tax cuts on the ground that Canada could not be competitive otherwise. Those cuts resulted in loss of C$20 billion in federal revenue for 2005 alone, the study said, on top of provincial revenue losses of $30 billion. The tax cuts were primarily given to high-income individuals and corporations, who argued that these would create “a level field of competition” with the United States but also increase labor market “flexibility” — a code word meaning lower wages and reduced job security, always the goal of capitalists.

It’s always our turn to ‘cut back,’ never the bosses’ turn

The key NAFTA provision is Chapter 11, which codifies the “equal treatment” of business interests in accordance with international law and enables corporations to sue over any regulation or other government act that violates “investor rights,” which means any regulation or law that might prevent the corporation from extracting the maximum possible profit.

Under these provisions, taxation and regulation constitute “indirect expropriation” mandating compensation — a reduction in the value of an asset is sufficient to establish expropriation rather than a physical taking of property as required under U.S. law. Older decisions become precedents for further expansions of investor “rights” and thus constitute the “evolving standard of investor rights” required under “free trade” agreements.

Toothless “side agreements” on labor rights are meaningless window dressing; the arbitration bodies that decide these cases (in secret with no accountability or right of appeal) are governed by the main body of the text, such as Chapter 11. Corporations can sue governments over regulations or laws they don’t like, but working people and governments have no right to sue.

As Mr. Bacon put it in his Truthout report:

“The most any union or group of workers got from filing a case was ‘consultations’ between the governments and public hearings. There is no process in the agreement for penalties for violation of union rights. And although there are minor penalties for violating child labor or occupational health laws, they’ve never been implemented. Not a single contract was signed as a result of the side-agreement process, nor was a single worker rehired. Those unions that have filed cases have generally sought to use the process to gain public exposure of abuses and exert indirect pressure on employers.”

The neoliberalism that began gathering steam with the rise of Margaret Thatcher and Ronald Reagan, and which has intensified since, is not the handiwork of some secretive cabal, nor is it some tragic bad turn from an otherwise “rational” system. It is the natural evolution of modern capitalism and its relentless competition. “Free trade” agreements that have little to do with trade and much to do with imposing corporate wish lists in the service of ever more inequality and power imbalances is an inevitable component.

Implementing a “reform” of agreements designed to maximize corporate profits above all other considerations and shred the remnants of democracy is less than an illusion. Overturning the entire “free trade” apparatus is indispensable to any serious project of building a better world. Trade should conducted for the benefit of all, not only the one percent — unlike the current global system in which human beings are in the service of markets instead of the other way around.

Putting a gun to their own heads: Governments give themselves a ‘free trade’ offer they can’t refuse

A frequent criticism of “free trade” agreements is that corporations are elevated to the level of a country. It might be more accurate to say that corporations are elevated above countries.

The muscle in trade agreements like the North American Free Trade Agreement or the proposed Trans-Pacific Partnership is the mandatory use of “investor-state dispute mechanisms.” That bland-sounding bureaucratic phrase is anything but bland in its application — these “mechanisms” are the tools used to turn corporate wish lists into undemocratic reality.

Labor, environmental, social-justice and other groups rally on the steps of New York City Hall on January 14 to demand Congress vote against fast-track legislation.  (Photo courtesy of New York State AFL-CIO)

Labor, environmental, social-justice and other groups rally on the steps of New York City Hall during a January 14 snowstorm to demand Congress vote against fast-track legislation.
(Photo courtesy of New York State AFL-CIO)

The concrete form of these “mechanisms” are corporate-dominated secret tribunals that hand down one-sided decisions with no oversight, no public notice and no appeals. This is so is because governments that sign trade agreements legally bind themselves to mandatory arbitration in these secret tribunals despite (or because of) their one-sided nature. It is a virtually certainty that, should be they passed into law, the Trans-Pacific Partnership (TPP) and Transatlantic Trade and Investment Partnership (TTIP) will contain some of the most draconian language yet in this area.

Activists in the TPP countries, as well as those in the European Union, should pay particular attention to the experience of Canada under the North American Free Trade Agreement (NAFTA). Canada has been the principal target within NAFTA because of its superior environmental laws in comparison to the United States and Mexico, with U.S.-based multi-national corporations the primary suers. Environmental, safety, labor and “buy local” laws around the Pacific and in Europe will be targets should the TPP and TTIP be implemented.

The rules of NAFTA allow multi-national corporations to sue national governments because rules safeguarding the environment, for example, are interpreted to “unfairly” reduce profits. Decisions handed down in the secret tribunals — in which corporate lawyers who specialize in representing corporations in these kinds of cases sit as judges — further stretch the bases on which corporations can successfully sue governments. NAFTA, and tribunal judgements stretching it, constitutes the starting point from which the U.S. government, sometimes assisted by other governments, seeks to impose still more draconian rules.

Corporations can change laws to suit themselves

Decisions made under NAFTA rules are noteworthy because of their outrageousness, but also merit attention because they provide a preview of what is in store for other countries under the Trans-Pacific Partnership and Transatlantic Trade and Investment Partnership. Here are some “highlights”:

  • Eli Lilly and Company is suing Canada for $500 million because Canada would not grant it two patents, rulings upheld by the Supreme Court of Canada. Eli Lilly claims the denial is an illegal confiscation of profits — it is using NAFTA as a tool to dismantle Canada’s well-developed patent system. No tribunal ruling yet.
  • Ethyl Corporation sued Canada for $250 million because of a ban on a gasoline additive known as MMT, a chemical long believed to be dangerous to health. Ethyl claimed the Canadian ban was an “expropriation” of its “investment” and a violation of the principal of “equal treatment” even though, had a Canadian producer of MMT existed, it would have had the same standard applied. Canada settled to avoid a total defeat, paying Ethyl a smaller amount and reversing its ban.
  • A U.S. company, Metalclad, sued Mexico because a city government refused to grant it a permit for a waste dump (similarly denied to a Mexican company that previously wanted to use the site). Mexico lost, and had to grant the permit despite environmental concerns and pay $15.6 million to Metalclad.
  • Another U.S. company, S.D. Myers, sued Canada because of a ban on the transportation of PCBs that conformed with both a Canada-United States and a multi-lateral environmental treaty. A tribunal ordered Canada to pay $5.6 million and reverse the ban, negating the two environmental treaties and ignoring the fact that PCBs are known carcinogens banned since 1979 in the U.S. The tribunal ruled that, when formulating an environmental rule, a government “is obliged to adopt the alternative that is most consistent with open trade.” So much for democracy!

The above is merely the tip of the iceberg. How do such extraordinarily one-sided decisions get handed down? Because the corporations dominate the tribunals and play a heavy role in writing the trade agreements to begin with. There are 605 corporate lobbyists who have access to the Trans-Pacific Partnership text — officially known as “trade advisers” — but no members of any legislative body are allowed to see it, and the public is completely shut out. The “advisers” are eagerly working to make the TPP a repository for their wish lists.

The key to making corporate dreams come true is the “investor-state dispute mechanism.” Under these mechanisms, governments legally bind themselves to settle “disputes” with “investors” in the secret tribunals. By far the most used of these tribunals is the International Centre for Settlement of Investor Disputes (ICSID) — an arbitration board that is an arm of the World Bank. Cases that go before one of the Centre’s tribunals are decided by a panel of three judges that are selected from a roster. The judges are appointed by the national governments that have signed on to ICSID, which include most of the world’s countries.

Working to overturn Australian laws, but he’s ‘neutral’

These judges are not disinterested arbiters. For example, one of the judges appointed to the ICSID by New Zealand is David A.R. Williams, who is currently representing Philip Morris in its suit seeking to force Australia to overturn its tobacco regulations. Australia’s rules limiting tobacco advertising and packaging, enacted in the interests of public health, were found to be legal by Australia’s supreme court, the High Court.

Not willing to accept the Australian constitution, Philip Morris moved some of its assets to Hong Kong, so it could declare itself a Hong Kong company eligible to sue Australia under the Australia-Hong Kong bilateral investment treaty, which, unlike some Australian trade pacts, allows corporations to sue one or the other government. (This case is still pending.)

The ultimate arbiter of a constitution, or writer of laws, are not domestic bodies subject to democratic checks, but unaccountable corporate representatives acting in secret. Who are these mercenaries? As an example, each of the eight ICSID judges appointed by the United States has a long career dedicated to serving large corporations. Six are currently partners in some of the world’s most formidable corporate law firms, one is an academic who formerly was a corporate lawyer and one is a lobbyist for a business group that seeks to codify pro-corporate trade rules under law.

That is a common pattern. One of Australia’s appointees is Doug Jones, a lawyer with one of Australia’s largest corporate law firms, and one of Chile’s is Carlos Eugenio Jorquiera, a corporate lawyer and president of the country’s National Chamber of Commerce.

Further titling the scales are that only corporations, not governments nor public-interest groups, can sue under these treaties. Governments must pay expenses that can total tens of millions of dollars, regardless of outcome, with no provisions to block frivolous claims. The judges are paid by the hour, with no defined limits on costs, giving them an incentive to drag out proceedings, which in turn favors deep-pocketed “investors.”

In fact, the TPP would place no limits on who qualifies as an “investor”: Anyone who applies for a permit or license, or who “channels” resources or capital to set up a business, without placing any limits on what qualifies for such a status, would be eligible to sue.

‘Customary law’ is what a corporation says it is

Leaked article 12.7 of the TPP, for instance, provides a long list of prohibitions against government actions. Under it, laws imposing capital controls (even to ameliorate a crisis), rules governing domestic content of products or any protections of any domestic industry would be illegal. It then provides a generic exception allowing environmental or other measures “that are not inconsistent with the Agreement; necessary to protect human, animal, or plant life or health; or related to the conservation of living or non-living exhaustible natural resources.”

But that exception is rendered meaningless not only by other, superseding, rules but by the rulings of the corporate-lawyer judges in the secret tribunals. Leaked TPP language specifically requires that excepted rules must be “not inconsistent with the Agreement.” The key sentence opens Article 12.6: “Each Party shall accord to covered investments treatment in accordance with customary international law.” The “Party” here are national governments, and the “customary international law” is that already established by NAFTA and the decisions made by ICSID and similar tribunals concerning disputes under NAFTA and other trade agreements.

Last year’s change of government in Australia has left working peoples in the 12 TPP negotiating countries more vulnerable. Under the previous Labor governments, Australia had refused to agree to the insertion of an investor-state dispute mechanism in the TPP. The new Tony Abbott government, however, has shown worrisome signs of reversal on this critical issue, claiming that such mechanisms would provide “greater market access for Australian exporters.”

The world’s 99 percent can’t afford to lose any bulwark against substituting corporate-dominated secret tribunals for democracy because the Obama administration is pushing hard for the most draconian rules. Knowing that secrecy is the only way for the TPP to gain approval of the U.S. Congress, the White House is pushing for “fast-track authority” — under which, Congress could not change so much as a comma of an agreement, would be severely limited in its ability to debate and would be obligated to vote yes or no in a very short period of time.

An increasingly strong pushback by activists in the U.S. has led to more than 200 members of Congress publicly committing themselves to voting against fast-track, which only Congress can impose on itself. Many of the other 11 national governments negotiating the TPP are nervously watching this development, because if Congress votes against fast-track, it will be far more difficult for TPP to earn congressional approval, leaving those governments less willing to buck their own internal oppositions.

If you believe that democracy is preferable to corporate dictatorship, the time is now to join an international fight against the Trans-Pacific Partnership and its spawn, such as the Transatlantic Trade and Investment Partnership.

Finding the roots of addiction in the instability of ‘free markets’

Addiction is big business and obscuring its roots is its ideological handmaiden. Despite the incessant chanting that everything that happens to you is solely your fault, social ills do have social roots.

We need not lay this “personal responsibility” mantra solely at the feet of neoliberal ideologues, for such beliefs pervade capitalist society, even among those who are critical of capitalism’s excesses. New age philosophy, for example, routinely blames the individual for all manner of personal misfortunes and overemphasizes personalities at the expense of collective effort.

An episode of Oprah that featured Nelson Mandela saw Oprah Winfrey repeatedly tell the former president that he had accomplished so much by himself; she was oblivious to his protestations that he could not have brought an end to apartheid except as part of the collective movement of which he was a part. On the personal level, a friend still angrily recounts an incident many years ago when she was mugged, went into a nearby New Age establishment to seek some help and instead was asked, “What did you do to draw in that negative energy?”

Reducing everything to personal activity obliterates that movements animated by organized groups accomplish social change (not the solo efforts of charismatic leaders), and by conveniently laying all fault for social ills at the feet of the marginal such reductions obscure larger social conditions.

AlcoholThe common responses to alcohol and drug addiction very much fall within this pattern. It is true that different personalities have differing susceptibilities to addictive behavior; nonetheless, this can’t be and isn’t anything close to a full picture. Solutions to addiction based on correcting individual behavior are hopeless without analyzing the role of dislocation in capitalist society, argues Bruce K. Alexander in his paper The Roots of Addiction in a Free Market Society. Published by the Canadian Centre for Policy Alternatives, the paper demonstrates that free markets, and the massive dislocation that results from them, are the ultimate causes of addictive behaviors.

Failure to focus on root causes will lead to failure

Writing in the context of a new policy put forth by the city of Vancouver a decade ago that sought to treat addiction through a focus on “four pillars” — treatment, prevention, law enforcement and harm reduction — Dr. Alexander argues that, although an improvement on traditional initiatives that focus on policing, such a focus is woefully short of tackling the root causes. He writes:

“[D]islocation is the necessary precursor of addiction. … [F]ree markets inevitably produce widespread dislocation among the poor and the rich. As free market globalization speeds up, so does the spread of dislocation and addiction.

In order for ‘free markets’ to be ‘free,’ the exchange of labour, land, currency, and consumer goods must not be encumbered by elements of psychosocial integration such as clan loyalties, village responsibilities, guild or union rights, charity, family obligations, social roles, or religious values. Cultural traditions ‘distort’ the free play of the laws of supply and demand, and thus must be suppressed. In free market economies, for example, people are expected to move to where jobs can be found, and to adjust their work lives and cultural tastes to the demands of a global market.” [page 1]

Ignoring these larger forces, argues Dr. Alexander, who has more than four decades of experience researching addiction, is responsible for the ineffectiveness of efforts to contain addiction.

“Attempts to treat or prevent addiction that ignore the connection between free markets, dislocation, and addiction have proven to be little better than band-aids. Addressing the problem of addiction will require fundamental political and economic changes. … [S]ociety, as well as individuals, must change. It requires moves towards good government and away from policies that undermine our ability to care for one another and build sustainable, healthy communities.” [page 2]

Dr. Alexander defines addiction more expansively than is ordinary, arguing that a compulsion for money, power, work, food or material goods are as dangerous and resistant to treatment as is addiction to illegal drugs. These addictions are a “desperate substitute” in the wake of dislocation from intimate ties between people and groups. This pattern is repeated in disparate societies around the world; no corner has been spared penetration by global capitalism during the past two centuries. Continual reinforcement is needed to maintain the consumption that is the engine of free markets.

“[E]stablished ‘free’ market societies require the continuing presence of powerful control systems. Carefully engineered management, advertising, taxation, and mass media techniques keep people buying, selling, working, borrowing, lending, and consuming at optimal rates, deliberately undermining the countervailing influences of new social structures that spontaneously arise in modern families, offices, factories, etc. Thus, opportunities to re-establish new forms of psychosocial integration are suppressed.” [page 9]

A pattern found across societies and times

The high rates of poverty, economic disparity, divorce, children diagnosed with “attention deficit hyperactivity disorder” and many other indicators of dislocation within U.S. society are well known, but Dr. Alexander draws on the disparate examples of the Indigenous peoples of Pacific Canada, Scottish peasants and British subjects who lived in the Canadian North in the employ of the Hudson’s Bay Company to illustrate his thesis.

Photo of Vancouver by Andrew Raun

Photo of Vancouver by Andrew Raun

Force was frequently applied to dislocate Indigenous populations. The founding of Vancouver as a port and railroad terminal required the uprooting of almost 100 First Nations villages and systematic destruction of Indigenous culture. Dr. Alexander writes:

“The natives’ lands, which had for centuries been sites for food gathering, communal houses, huge wood carvings, ancestral burial grounds, and invisible spirits became the basis of a free market in real estate almost overnight. Many of their complex cultural practices were outlawed or mocked out of existence. Their famous ‘potlatches,’ elaborate ceremonies in which rich natives gave enormous amounts of food and goods to others according to complex traditional, clan, and personal obligations were the antitheses of free markets. They were prohibited by law from 1884 until 1951.” [page 6]

Even in cases where there was relatively little direct violence or enslavement, military force and other sources of violence were waiting in the wings.

“Of course British authorities always had the lash, the gallows, and the artillery of the royal navy close at hand, and these were called into service at the slightest indication of organized resistance.” [page 25, note 50]

This was true for resistance on the British Islands as well. England’s establishment of a free market society by the early 19th century was achieved through mass displacement and, in the case of Scotland, destruction of cultural institutions that, although far from ideal, did provide social safety nets for the poorest and helped keep starvation at bay during periods of crop failures. Independent peasants were forced off the land so that elites could convert farming from supplying local consumption to producing products for export. This required

“a massive, forced eviction of the rural poor from their farms, commons, and villages and the absorption of some of them into urban slums and a brutal, export-oriented manufacturing system. Those who resisted these new realities too strenuously were further dislocated from their families and communities, by forced apprenticeship of their children, destruction of their unions and other associations of working people, elimination of local charity to the ‘undeserving poor,’ and by confinement in ‘houses of correction’ where they were encouraged to accept their new responsibilities with whips and branding irons.” [pages 9-10]

Those who refused to pull down their houses and leave had their homes burned down by the local sheriff after clan chiefs, induced to join English society, or English landlords bought their formerly inalienable land in the “free market.”

Racial ‘explanations’ for addiction are nonsense

Although it can not be said that there were no social problems among Canadian First Nations peoples before European contact, Dr. Alexander reports in his paper that he has found no mention by anthropologists of any behavior that could be termed addictive, which he attributes to the high level of “psychosocial integration” in societies that had high levels of communality and shared resources. He writes that the popular explanation for widespread alcoholism among Canadian natives (this would also apply to native peoples in the United States) — a racial “inability” to control themselves — is refuted by the lack of addiction before the European drive to wipe out their cultures and languages.

“It was only during assimilation that alcoholism emerged as a pervasive, crippling problem for native people, along with suicide, domestic violence, sexual abuse, and so forth. … ‘Civilization,’ as it came to [eastern Canadian] natives, was administered by militant Jesuits in a century of fanatical religious zeal. This meant destruction of the robust Huron religion and, hence, Huron culture itself, with dislocation as the consequence. Eventually every tribal culture in Canada was engulfed by the overpowering European culture, and every tribe succumbed to the ravages of dislocation, including epidemic alcoholism. Massive dislocation produced massive addiction.” [page 15]

The same pattern was found among dislocated Europeans. Dr. Alexander cites the example of Hudson’s Bay Company employees from Scotland’s Orkney Islands, valued by the company because they were used to far Northern conditions and life at sea, and known for their sobriety. They nonetheless succumbed to widespread alcoholism in the Canadian north, a problem the company could not stamp out no matter how many prohibitions it issued.

Prohibition has not worked in modern times, either — the crack cocaine epidemic of the 1980s served as fodder to intensify the “war on drugs.” Pervasive propaganda at the time that crack is “instantaneously” addictive is a “fabrication,” Dr. Alexander writes, noting this was falsely claimed for alcohol, heroin and marijuana at various times in the 19th and early 20th centuries. He argues that dislocation, not crack itself, is the cause of crack addiction and that, similar to other substances, most use it without falling into addiction.

Stable communities as the solution to addiction

The solution to reversing addiction, Dr. Alexander writes, is to reverse dislocation and stabilize communities. Doing so, however, requires considerable pushback against pervasive messages that spotlight individuals rather than social causes.

“Changing the terms of this debate is a huge task, since the current manner of speaking of addiction as an individual drug-using disease is maintained by an media army that has been launching this message for decades. People endure this barrage of disinformation partly because it complements a deeply-rooted North American ‘temperance mentality,’ which makes it seem natural to blame social problems on drugs and alcohol and partly because it profits many institutions and professions that treat, police, prevent, and ‘harm reduce’ the putative disease. Those who launch the public information barrage prosper because the ‘War on Drugs,’ which has drawn its justification from it, serves vital commercial and geopolitical purposes for vested interests with very deep pockets.” [pages 19-20]

The “war on drugs” is, for example, a useful tool for the U.S. government to justify continual interference in Latin America, punishing governments that do not fully yield to U.S. dictates, and it also suppresses competition to legal drugs peddled by the highly profitable pharmaceutical industry.

People need to belong to their society, “not just trade in its markets,” Dr. Alexander argues. Imposing fair labor standards and preventing multi-national corporations from pressuring local governments to rescind labor, health, safety and environmental standards would be a better solution than mass migration, as would rebuilding a proper social safety net. He concludes:

“On a global level, substantially reducing the addiction problem requires nothing less than exercising sensible, humane controls over markets, corporations, environments, public institutions, and international agencies to reduce dislocation. This cannot be achieved without conflict, because it will inevitably impede the pursuit of ever-increasing wealth and ever-freer markets. Of course it would be naive to hope for a return to any real or imagined golden age. However, it is at least as naive to suppose that society can continue to hurtle forward, ideologically blinded to the crushing problems that free markets create.” [page 22]

In a rational society designed to meet human need rather than private profit at any cost, this conclusion would be obvious. That it seems a fantastic goal is a morbid manifestation of the cancer that is our economic system.

Corporate power grab of Trans-Pacific Partnership clearer, but opposition building

The usual boilerplate announcements that “significant progress” was achieved in the just concluded round of Trans-Pacific Partnership negotiations can’t mask that public opposition is growing and that the United States seems to be having difficulty bullying its negotiating partners.

That does not mean that the TPP is dead — far from it — but the continued insistence of the Obama administration that the text will be complete by the end of 2013 is no more than wishful thinking. That Congress might not play its assigned role of rubber-stamping was strongly signaled last week when 151 Democratic Party members of the House of Representatives and more than two dozen Republicans signed various letters opposing “fast-track” trade authority. Many did so due to sustained grassroots activism.

“Fast-track” is a mechanism whereby Congress waives its right to debate and amend, instead binding itself to a straight up-or-down yes or no vote in a limited time frame. The worst trade deals, such as the North American Free Trade Agreement, have become U.S. law through this mechanism. The Obama administration is widely expected to introduce such a bill, passage of which would greatly increase the chances of the Trans-Pacific Partnership getting approved by Congress.

Activists have anticipated since early October that a bill for fast-track authority — formally known as trade promotion authority — might be introduced at any moment. That such a bill has been delayed is a sign that mounting opposition to the TPP within the U.S. has introduced an element of caution into the Obama administration’s thinking.

Demonstration against TPP in Salt Lake City (Photo courtesy of Citizens Trade Campaign)

Demonstration against TPP in Salt Lake City (Photo courtesy of Citizens Trade Campaign)

Strong opposition to draconian U.S. proposals by several of the 11 other Pacific Rim countries negotiating the text of the TPP has certainly played a role in slowing down the negotiations. The divergence of the negotiating positions became clear earlier this month when WikiLeaks published the full text of the TPP chapter on intellectual property. Despite being billed as a “free trade” agreement, this chapter, like most of the TPP, has nothing to do with trade. Rather, it — and, in particular, the U.S. negotiating positions — are the dreams of the most powerful multi-national corporations.

The same is true for the Transatlantic Trade and Investment Partnership, another “free trade” agreement simultaneously being negotiated between the United States and the European Union. The TTIP also just concluded a negotiating round, with similar opaqueness. What the U.S. is attempting to impose on Canada, Mexico, Australia, New Zealand, Chile and the other TPP countries on behalf of its multi-national corporations is undoubtedly the basis for what it seeks to impose on Europe. Corporate lobbyists have access to the text, but legislators and parliamentarians do not.

Sustained and organized mass opposition is the only thing that will stop these two extraordinary power grabs that will fatally undermine any semblance of democracy. If the TPP were to be implemented, labor safeguards, safety rules, environmental regulations and measures to rein in financial speculation would be struck down because a multi-national corporation’s profits might be affected — corporations would be able to bypass national laws and courts when they are in a dispute with a government, and instead can have their dispute adjudicated by a closed tribunal controlled by their lawyers.

Huge giveaways to pharmaceutical industry

The TPP intellectual property chapter, published by WikiLeaks, is crammed with corporate giveaways in its 96 pages. (This is only one of about two dozen chapters.) Japan is the country, at least in this chapter, most often in alignment with U.S. negotiating position, although frequently the U.S. is opposed by all other countries.

There are several sections that broaden what is patentable subject matter — if implemented, the TPP would make patents:

  • “Available for any new uses or methods of using a known product.”
  • Require patents to be granted if the patent “involves an inventive step,” even if there is no new use for it.
  • Allowable for living organisms, including plants and animals.

What these proposals would mean, if implemented, is that a name-brand pharmaceutical company, for example, would be able to claim a new use for high-priced medicines just before the patent was due to expire, thereby extending the patent and blocking a far less expensive generic equivalent from becoming available.

Under the North American Free Trade Agreement, the U.S. pharmaceutical company Eli Lilly sued Canada for $500 million because the Supreme Court of Canada upheld the invalidation of an Eli Lilly patent. Canada’s ability to enforce its own laws would be undermined by the TPP, according to a Public Citizen analysis:

“Canada’s decisions are based in its ‘promise doctrine,’ a patent rule which requires patents claiming a future usefulness to demonstrate or soundly predict that usefulness at the time of filing. The United States has proposed a rule for the Trans-Pacific Partnership negotiations that could undermine Canada’s promise doctrine. Whether purposeful or not, this would support Big Pharma’s plans to transform Canadian practice and even, seemingly, some of the goals of Lilly’s outrageous suit.”

Stop TPPCompanies like Eli Lilly would be in a stronger position to overturn any law they don’t like. The TPP’s intellectual property chapter would also attack rules such as the Indian Patent Act that protect access to affordable medicines worldwide, and would require extensions of patents on the demand of a corporation if it deems the period of time required to approve its patent “unreasonable.” Doctors Without Borders/Médecins Sans Frontières reports:

“The leak confirms our worst fears—the US is continuing its attempts to impose an unprecedented package of new trade rules that would keep affordable generic medicines out of the hands of millions of people.”

The return of SOPA

The defeat of the Stop Online Piracy Act (SOPA) and the Anti-Counterfeiting Trade Agreement (ACTA) — thinly veiled attempts at Internet censorship stopped by popular pressure — would be reversed under the TPP. A proposal by the U.S. and Australia would require Internet service providers to police their users, with ISPs required to cut off Internet access, block content and actively monitor usage to avoid liability if a copyright holder claims one of its copyrights is being infringed.

Monica Horten, a visiting Fellow at the London School of Economics writing on her Iptegrity.com web site, summarizes the TPP’s dangers to the free flow of information:

“[T]t is a toxic potion that would force the Internet Service Providers (ISPs) to police their networks, and turns current law on its head. … Where it concerns the Internet and digital content, much of the TPP intellectual property chapter looks like a cut-and-paste from ACTA. Certainly, it brings in similar secondary liability and criminal measures that were in ACTA. However, there are specific new proposals that give more reasons for concern. … Within the Internet section, is a  USA/Australian proposal that contains the core desires of Hollywood and the Motion Picture Association.”

Canada, back by several countries, is seeking less onerous restrictions, University of Ottawa law professor Michael Geist writes:

“From a Canadian perspective, the U.S. demands would require an overhaul of Canadian copyright law and potential changes to privacy law. For many other TPP countries, the issue is creating a clear divide, with the U.S. conditioning ISP safe harbours on subscriber termination and content blocking, while the Canadian model favours greater flexibility in establishing systems that create incentives to address alleged infringements online.”

Will Canadian negotiators hold firm or capitulate? Given the harsh policies of Prime Minister Stephen Harper — the George W. Bush of the North — much activism will be required to avoid SOPA getting in through the back door.

You won’t be able to know what is in your food

At the behest of corporations like Monsanto, which seeks to control the world’s food supply, labeling of genetically modified organisms would be illegal. Specific Trans-Pacific Partnership language on GMOs and GMO labeling has not yet surfaced, but because the goal of Monsanto and other U.S. manufacturers of GMO foods is to remove European restrictions against GMOs, this is likely to be an area where U.S. negotiators are pushing hard.

The European Union’s chief trade negotiator Ignacio Garcia Bercero, said “We are not in the business of lowering standards” in response to concerns that food safety rules will be lowered if the Transatlantic Trade and Investment Partnership comes to fruition, and European Union justice and rights commissioner Viviane Reding threatened this week that the E.U. would “freeze crucial data-sharing arrangements with the U.S.” if the U.S. refuses to acquiesce to European privacy standards.

But despite huffing and puffing from various European leaders, the latest round of TTIP talks proceeded smoothly. A European Commission press release happily declared, “A good atmosphere and the active involvement of regulators from both sides meant significant progress was made.” But, as usual, no details were forthcoming. The Office of the U.S. Trade Representative similarly reported “a very successful and productive set of meetings” about the TTIP and “significant progress” in the just concluded Salt Lake City round of TPP negotiations.

This latest round of TPP talks was even more secret than usual, with negotiators not bothering this time with the pretense of meeting with civil-society groups; thus much caution is advised. A potential turn for the worse is possible with the recent election of the right-wing Tony Abbott government in Australia, which may reverse some of the previous positions Canberra had taken against certain U.S. proposals. For example, previous Australian governments opposed investor-state disputes being adjudicated by secret tribunals controlled by corporate lawyers. It is unknown if the Abbott government will reverse that position.

The Australian television program Lateline reports that Prime Minister Abbott is in favor of “fast-tracking” the TPP and other trade agreements. A worrisome sign, as the U.S. is pushing hard for anti-democratic provisions such as investor-state disputes to be adjudicated in the secret tribunals. These mechanisms are in force in the North America Free Trade Agreement and many bi-lateral trade agreements. NAFTA, for example, uses a tribunal that is an arm of the World Bank in which only two of the more than 200 cases it has heard have been open to the public.

Agreements like TPP and TTIP have little to do with trade and much to do with imposing a corporate dictatorship. There is no time to waste.