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DAM-L MAKING IT WORSE ON THE WATER/TRADE FRONT (fwd)
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From: Right to Water <right-to-water@iatp.org>
To: dianne@sandelman.ottawa.on.ca
Subject: MAKING IT WORSE ON THE WATER/TRADE FRONT
Date: Mon, 4 Jun 2001 01:59:43 -0500
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Message-ID: <20010604064943630.AAS356.360@[208.141.36.73]>
Right to Water (right-to-water@iatp.org) Posted: 06/03/2001 By mritchie@iatp.org
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X-Sender: holm@pinc.com (Unverified)
Date: Sun, 3 Jun 2001 08:34:50 -0700
To: holm@pinc.com
From: holm@pinc.com (Wendy Holm, P.Ag.)
Subject: WATER EXPORTS AND Bill C-6: MAKING IT WORSE ON THE WATER/TRADE FRONT
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Below is my June column in Country Life in BC, BC's independent farm
newspaper since 1915. This column is being circulated early this month
because of its focus on water export concerns. Two email lists were merged
for this distribution, I apologise for any duplication.
TOPIC: Bill C-6: MAKING IT WORSE ON THE WATER/TRADE FRONT
This column is an excerpt of my MAY 17 TESTIMONY before the HOUSE OF
COMMONS COMMITTEE ON FOREIGN AFFAIRS AND INTERNATIONAL TRADE on the subject
matter of Bill C-6, An Act to Amend the International Boundary Waters
Treaty Act. The text of my written submission is available upon request.
This column may be freely circulated and/or reprinted with attribution to
Country Life in BC.
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*************************
Bill C-6: Making it worse on the water/trade front...
JUNE 2001 COLUMN, COUNTRY LIFE IN BC
Wendy R. Holm, P.Ag.
(911 words)
In 1999, the House of Commons voted close to unanimously in favour of a
federal ban on water exports. In response, the Canadian government has
taken three actions:
a) participation with the US in a joint reference before the IJC, the
result of which was a report recommending further action;
b) encouragement to the provinces to take "collective" individual
action (failed "Voluntary Provincial Accord", November 1999; while some
provinces have imposed voluntary bans on water exports, such bans, if
challenged under NAFTA, would be struck down or trigger compensation, see
pending Sun Belt Chapter 11 case); and
c) Bill C-6, An Act to Amend the International Boundary Waters Treaty.
Several weeks ago, I was asked to travel to Ottawa to appear as a witness
before the House of Commons Committee on Foreign Affairs and International
Trade on Bill C-6, An Act to amend the International Boundary Waters Treaty
Act, then in First Reading.
As I told to the Honourable Committee, the legislation resembles the
Emperor's New Clothes: there's nothing there... In fact, Bill C-6 will
likely make things worse.
1. As the third "plank" - and sole legislative initiative - in the
Federal Government's strategy to protect Canada's water from the trade
threats imposed by NAFTA, Bill C-6 fails dramatically.
2. The Bill offers NO PROTECTION WHATSOEVER to Canadians west of the
Ontario border, in Quebec and much of the Maritimes. It only applies to
the Great Lakes and those very few bodies of water which are considered
"boundary waters" under the International Boundary Waters Treaty (Lake of
the Woods, portions of the St. Lawrence, Upper St. John and St. Criox
rivers). And, as noted below, even this limited "protection" is
ephemeral.
3. Clause 11 - the Bill's establishment of federal government
licensing system under the direction of the Minister of Foreign Affairs for
the "use, obstruction or diversion of boundary waters" - would clearly fall
under the investment and goods provisions of NAFTA, invoking rights
including national treatment, proportional sharing and the inability to
interrupt "normal channels of supply" (which water transfers quickly become
because there are no substitutes for water nor alternate suppliers).
4. In Article VIII of the International Boundary Waters Treaty, Canada
and the United States agreed upon an "order of precedence" - domestic and
sanitary, navigation, power and irrigation - governing any "use,
obstruction or diversion of boundary waters". Clause 11's exception for
water for "domestic, or sanitary purposes or [any] exceptions specified in
the regulations..." suggests licensing for navigation, power and
irrigation. With US interest in Canada's water for irrigation and power
generation (rural economics, global warming, oversubscribed river systems,
aquifer depletion, food security, continental power sharing agreements),
Clause 11 could be seen as setting up the licensing system for NAFTA
access.
5. Clause 12 of the Bill extends the proposed federal licensing scheme
beyond "boundary waters" to include all Canadian transboundary waters (all
north-south running rivers). The same concerns expressed with respect to
Clause 11 (points #3 and #4 above) apply to Clause 12.
6. Although Clause 13 of the Bill appears to prohibit the export of
water from boundary water drainage basins, the same clause explicitly
contemplates exceptions to this prohibition at the discretion of the
Minister of Foreign Affairs. Further, although Clause 12 extends licensing
to transboundary waters, Clause 13's export prohibition - such as it is -
does not extend to north-south running rivers.
7. The Bill also leaves to the Minister of Foreign Affairs the
definition of drainage basins. This allows for the definition of
macro-basins fully supportive of a North American water grid and a
continental water market. (The federal government's failed "Voluntary
Provincial Accord" noted that "Canada has five major drainage basins: the
Atlantic, the Pacific, the Hudson's Bay, the Arctic and the Gulf of
Mexico.")
8. Because the Bill is "binding on the Provinces" it raises the risk
of constitutional challenge. The issuance of licenses for resources is
clearly within provincial jurisdiction. While the feds can wade in under
federal treaty making powers, Bill C-6's imposition of licensing system is
not necessary to the purposes and operation of the 100 year old Boundary
Waters treaty.
The Committee asked for comments on amendments to the bill. I replied that
I did not see any way in which the above concerns could be addressed by
legislative amendment.
ENDNOTE
While it is true that water in its natural form - in free-flowing rivers
and lakes - is not the subject of NAFTA, it is correspondingly true that
each and every time water becomes the subject of a market transaction,
NAFTA provisions apply. What sort of market transaction? The issuance
of licenses (the right to withdraw). The building of dams and related
works for municipal use (residential and industry) and for irrigation. The
harnessing of water for hydro-electric power. Coastal outflows of water
exported by tankers from Giesborne Lake or other sources. Water is useless
when there is a surplus and priceless when there is a scarcity. Each and
every time we capture and release water in a timely manner to meet the
application/delivery needs not accommodated by nature, we invoke the goods,
services and investment provisions of NAFTA.
The government should be ashamed of themselves putting forward Bill C-6 as
an answer to anything. If anything, it makes things worse.
It's pretty plain and simple: Until water is explicitly exempted from the
goods, services and investment provisions of the NAFTA - of course this is
possible, see my July 2000 column - our water resources are up for grabs.
To the highest bidder.
How stupid can we get?
-30-
________________________
In April 2001, Wendy Holm was named AGROLOGIST OF THE YEAR by the BC
Institute of Agrologists, in part for her work on the water/trade issue.
WENDY HOLM, P.AG., is an Agrologist, resource economist, author and
journalist living and working on Bowen Island. In 1987, Holm was the
first Canadian professional to raise the public policy implications of the
inclusion of water in the FTA and has subsequently been an international
discussant on water's inclusion in the FTA and the NAFTA. Holm was past
president of the BC Institute of Agrologists, past BC Director of the
Agriculture Institute of Canada, past Director of Vancouver City Savings
Credit Union and past Chair of the Board of Trustees, Ethical Funds Inc.
In May 1993, Holm was presented the Queen's Commemorative Medal honouring
the 125th Anniversary of Canadian Confederation by the Governor General of
Canada for her "contribution to community". In 1992, Holm received the
B.C. Government Award for Excellence in Community Programming. Holm is the
editor/contributing author of the 1988 book WATER AND FREE TRADE (Lormier,
Toronto).
The above is excerpted from my written notes to the committee.
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
WENDY R. HOLM, P.AG. THE HOLM TEAM
Agriculture. Economics. Policy. International Co-operation
R.R. #1, L-25 Phone: (604) 947-2893
Bowen Island, B.C. Fax: (604) 947-2321
Canada V0N 1G0 e-mail: holm@pinc.com
Economist, Agrologist, Journalist, Author
CODE of ETHICS: The profession of Agrology demands integrity,
competence and objectivity in the conduct of its Members while
fulfilling their professional responsibilities to the Public, the Employer
or Client, the Profession and other Agrologists.
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
Mark Ritchie, President
Institute for Agriculture and Trade Policy
2105 First Ave. South
Minneapolis, Minnesota 55404 U.S.A.
mritchie@iatp.org www.iatp.org
www.wtowatch.org, www.farmbillwatch.org
www.gefoodalert.org, www.sustain.org/biotech
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