OPEN STATEMENT
Methanex Corp v. State of California
Methanex Corporation, a Vancouver-based company, is the world largest supplier of methanol. The company has argued to NAFTA trade tribunal that California ban on methanol gasoline additive is illegal under NAFTA rules. Therefore, Methanex is asking NAFTA tribunal to award the company $970 million in compensation for their potential lost market investment.
Metalclad v. San Luis Potos
In January 1997, Metalclad Corporation filed a law suit under NAFTA arguing that the Mexican state of San Luis Potos violated NAFTA rules when it refused to grant a permit to Metalclad to open its waste disposal plant. The company had acquired the facility, which had a history of contaminating local underground reservoir with the obligation that it would clean up the existing contamination. However, after the state of San Luis Potos completed a study of the area it concluded, "the site lie atop an ecologically sensitive underground stream, the Governor refused to allow Metalclad to reopen the facility. The company claims that this action was effectively an expropriation and won $16.7 million in damages." (www.Globalexchange.org)
When nations become members of an economy bloc, they are in reality giving up on their sovereignty, which is the right to protect their community and citizens. Therefore, it is extremely important that political leaders take in consideration the need to balance economical decisions with environmental and citizens' rights.
I. INTRODUCTION
The fast pace of globalization is creating serious issues and questions for many developing countries to deal with, such as should they join a free trade bloc or not? What will they gain by being a member and what will they los ...