Globalization and Democracy: The Threat to Jobs and Citizens’ Rights in theTrans Pacific Partnership Prof. G. Lafer University of Oregon 2014 Prof. G. Lafer University of Oregon 2014

EU vs. NAFTA: Two Models for Trade

EU Social Charter  Minimum wages  Right to paid vacation and weekly rest.  Freedom to form union  Part-time workers’ protection  Support for unemployed and pensioners  Worker say over layoffs, reorganization or technological change  Mobility of workers across borders

A Treaty Between Countries? Former Mexican Foreign Minister Jorge Castenada

U.S. has lost 5 million manufacturing jobs since NAFTA Over 50,000 Oregon jobs have been certified by the federal government as eliminated due to “free trade.”

Under CAFTA, investors are protected against “indirect” expropriation. This includes government actions that reduce investors’ reasonable “expectation of gain or profit.” Investor Rights Under FTAs

Foreign Investor Complaint Procedure Central American Free Trade Agreement Step 1. Investor notifies a country of its intent to file an arbitration claim, providing an explanation of the case. Step 2. After 90 days, investor files claim and three- person arbitration panel is established. Step 3. Arbitrators hear the case and render a decision. Decisions are binding and final, with no possibility for appeal.

Sample Investor Claims Under NAFTA Forced Privatization (UPS versus Canada Post) Domestic Industry Undermined (U.S. Corn Producers attack Mexican sugar industry) Environmental Regulations Overturned Public Regulations