Good afternoon.
My name is Sujata Dey, and I am in charge of the international trade campaign at the Council of Canadians.
I will make my presentation in English, but I could answer your questions in French.
Today we are coming full circle. The Council of Canadians was founded to fight the Canada-United States Free Trade Agreement, which later became NAFTA. While there is much that has changed over the 30 years, many of our basic concerns about NAFTA have not.
While some say that NAFTA is a win-win for the three countries, in reality it's been more of a win-win for the corporations of the three countries. During NAFTA, inequality in the U.S. and Canada has risen. Mexico, which started in NAFTA with a 58% poverty rate, still has a 58% poverty rate. Environmental policies have been threatened by chapter 11 lawsuits and by energy proportionality clauses. It is impossible for the government to talk about progressive trade, we feel, when there are no plans to remove these clauses.
Today, there are many pundits who will say that NAFTA is now too big to fail—where have we heard that before?—and that we must live in fear and dread about NAFTA's possible demise. Unfortunately, this logic puts Canada at a severe negotiating disadvantage. It locks us into accepting any demand at the negotiation table.
Instead, NAFTA negotiation must set the course for a very different type of deal. If Canada does not achieve an ambitious deal that protects Canadians and the environment, we must simply walk away.
This is not just me saying that; it's the C.D. Howe Institute. There are many people who have been saying the same thing. We are not the only ones. An overwhelming majority of the people we polled agree. We commissioned a poll with EKOS Research, which we just launched today, and 76% agreed with this statement, “In the event that NAFTA negotiations result in a bad deal for Canadians and the environment, Canada should walk away from the deal.” This statement was supported regardless of political affiliation by 69% of Conservatives, 77% of Liberals, 80% of the Bloc Québécois, 81% of the NDP, and 90% of Greens.
In addition, we surveyed people on what they think of different prescriptions in NAFTA.
Eighty per cent said that clauses in NAFTA that make water vulnerable to export and privatization should be removed. Remember that NAFTA's annex lists water as a tradable good. If any province allowed water exports, we'd be obligated to export water. Furthermore, with a proportionality clause, we would be forced to meet water export quotas. Our honorary chairperson, Maude Barlow, former senior UN adviser on water, has devoted many decades of her life to this issue.
In our poll, 70% said that we must remove energy proportionality provisions that lock Canada into maintaining energy export quotas to the United States. These energy quotas make it hard for Canada to transition away from fossil fuels and the tar sands. It makes it harder for us to meet our Paris climate change commitments.
Lastly, we asked people what they thought about chapter 11, the clause that allows corporations to sue states over policy changes. They were clear that they did not want tweaks to chapter 11. They did not want the CETA investor court system. They wanted it eliminated. Sixty-three per cent said that chapter 11 provisions that allow corporations to sue states should be eliminated from the deal. Therefore, we think that the U.S. trade representative's proposal for an ISDS opt-in option looks promising, since they can effectively disarm chapter 11. It is one that Canada should welcome.
The results of our online poll are available on our website. As you will see, it's very consistent in terms of region, age group, and political leaning.
We should not live in the fear of a Trump tear-up, nor should we put up meek and unbinding projects that do not substantially change the deal. People are asking the government to make major changes in NAFTA, and they need to be heard.
You can find out more about our campaign fact sheets and videos on our website at canadians.org/nafta.
Thank you.