NAFTA: Kavanagh warns against bulk water exports

[Oscar]

Council Board member Kavanagh warns against bulk water exports in upcoming NAFTA talks

[ https://canadians.org/blog/council-boar ... afta-talks ]

May 3, 2017 - 7:41 am

Newfoundland and Labrador-based Council of Canadians Board member Ken Kavanagh warns that the Trudeau government must reject any discussion of bulk water exports during the upcoming renegotiation of the North American Free Trade Agreement (NAFTA). Those talks are expected to begin this August.

Yesterday, The Telegram editorial board stated, "If we are — as it seems — cruising towards renegotiation, let’s hope one thing stays well off the table, except in the drinking glasses of the negotiators themselves. And that’s water. Bulk sales of water, that is. ...One of the concerns about NAFTA has been the question of bulk water sales [given] there are more than a few entrepreneurs who have looked at that water and wondered if it couldn’t command a hefty price tag, especially in water-poor areas south of the border. (In some parts of the U.S., water is being pumped from underground aquifers eight times faster than the aquifers can naturally replenish themselves.)"

Their editorial adds, "The problem with the NAFTA arrangement is that water in lakes and aquifers is not in itself a commodity. But once we allow the sale of bulk water, the rules for the trans-border sale of commodities come into place. Many suggest that, once the taps are on, they can’t be shut off — that interfering with an established bulk water sales system would be considered an unreasonable interference in trade under NAFTA. ...If we end up back at the NAFTA negotiating table, let’s not get suckered into selling off one of our greatest assets. A new deal’s not worth that price."

Kavanagh notes, "I really appreciated this editorial. ...Some might recall how in the 1990s, there was an attempt to sell off bulk water from Gisborne Lake here in our province of NL. That plan touched of an intense national debate on the topic of 'commodifying' our precious water resources. The response from most Canadians was a resounding no."

Kavanagh then highlights, "We need to be vigilant now to ensure the trade-junkie Trudeau government hears a loud echo of that resounding no. Living in a world where huge lakes and aquifers are being rapidly depleted (look at the lesson of the 'Big Dry' Australia), there will be tremendous pressure to 'give up' its considerable water resources. And the biggest pressure won't come from needy governments but from greedy water-bottling companies. Water is the giver of life. Let's not 'commodify' it accessible to the rich."

We do need to be vigilant on this front.

Former Liberal prime minister Jean Chretien has provocatively commented, "We’re selling oil. It’s finite. We’re selling natural gas. It’s finite. Water, it’s raining and snowing in Canada every year. Water is something that is not finite."

Furthermore, the Montreal Economic Institute has argued that Quebec could make $65 billion a year by exporting 10 per cent of its renewable freshwater. The Frontier Centre for Public Policy has estimated that Manitoba could make $1.33 billion a year by exporting 1 per cent of the fresh water that flows into Hudson Bay via a pipeline to American markets. And former CIBC World Markets economist Jeff Rubin has stated, "Increasingly, states like California and Florida are turning to desalination to meet their freshwater needs. At around 65 cents per cubic meter, the going rate of desalinated water in the United States provides a very attractive pricing point for potential Canadian water exports."

In 1999, the federal and provincial governments entered into a voluntary agreement banning bulk water exports. But any province that chose to lift that voluntary ban and approve bulk water exports to the United States would put pressure on every other province because the NAFTA Chapter 11 investor-state dispute settlement (ISDS) provision could be used by a company denied permission to export water from any other province.

Council of Canadians chairperson Maude Barlow says, "Removing all references to water as a good from NAFTA would end the debate on whether the federal and provincial bans on water exports are sufficient, as it would remove any potential for a NAFTA challenge. Removing water as a service would help protect water as an essential public service. Removing it as an investment and excluding investor-state dispute settlement provisions would make it much harder for foreign corporations to use trade treaties to fight domestic or international rules that protect water."

The Council of Canadians calls on Trudeau not to make concessions to the United States on water. We demand that rather than allowing water to be taken out of watersheds in Canada, that he negotiate water out of NAFTA.


Brent Patterson's blog
Political Director of the Council of Canadians
[ https://canadians.org/blogs/brent-patterson ]