1. NAFTA and Environment: Effectiveness of NAFTA’s Side Agreement and Contextual Environmental Provisions IPOL 8507 Victoria Powell
2. Outline of Presentation Problem Background of NAFTA Description of Environmental Provisions Case: Mexico’s Environment Assessment Recommendation Final Words Questions?
3. Problem Free Trade Agreements (FTA) can cause pollution havens in areas with lower environmental standards.
4. NAFTA: Controversial Agreement Signed in 1992 Will it cause a race to the bottom? Will the environmental provisions be effective? Addition of Environmental Side Agreement NAAEC
5. Environmental Provisions Preamble: “undertake each of the preceding (provisions) in a manner consistent with environmental protection and conservation,” and “strengthen the development and enforcement of environmental laws and regulations.” Article 1114 Environment and Investment NAAEC/CEC
6. CEC Address regional environmental concerns Help prevent potential trade and environmental conflicts Promote the effective enforcement of environmental law Council: oversees and serves as a forum JPAC: advises Secretariat: support
7. Case: Mexico’s Environment (1985-99) 89% Increase in Rural Soil Erosion 108% Increase in Municipal Solid Waste 29% Increase in Water Pollution by and 97% Increase in Urban Air Pollution Financial Cost 10% of GDP ($36 billion annually) Economic Growth $14 billion annually
8. Assessment NAAEC $9 million annually NABCI and others Articles 14 and 15 Lack of power NAFTA Chapter 11 “tantamount to expropriation”
9. Recommendation Re-write NAFTA Modify Chapter 11 Add provisions for NAAEC in the text Next Steps Continue to become reputable source of information Improve citizen submission
10. Final Words Not all environmental problems were caused by NAFTA NAAEC not devised to address all problems