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Preview of the Free Trade of the Americas by Pablo Rossell 02 September 2002 14:37 UTC |
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> > > > > >WASHINGTON - August 29 - More than three hundred > citizens groups from 41 > >countries presented a petition today to a World > Bank-affiliated court, > >demanding that it allow public participation in a > controversial case in > >which Bechtel Corporation is suing Bolivia for $25 > million. (Petition and > >support letter available at: > http://www.earthjustice.org/news/display.html? > >ID=435) > > > >Bechtel is suing South America's poorest country for > a portion of the > >profits it wasn't able to earn after a public > uprising in response to > >Bechtel's water rate hikes forced the company to > depart from the country in > >April 2000. Bechtel's legal action is being heard by > the International > >Centre for the Settlement of Investment Disputes > (ICSID), an international > >tribunal housed at the World Bank that holds all of > its meetings in secret. > > > >"Bechtel is demanding $25 million dollars from some > of the poorest families > >in the world," said Oscar Olivera, a leader of the > coalition of Bolivian > >peasants, workers and others that formed in > opposition to Bechtel. "The fact > >that a World Bank court is preparing to hear this > case behind closed doors, > >without any public scrutiny or participation, is a > clear example of how > >global economic rules are being rigged to benefit > large corporations at the > >expense of everyone else." > > > >A wide range of groups joined in the demand to open > up the process. They > >include trade union organizations (e. g., the 2.5 > million-member Canadian > >Labour Congress and Public Services International, > which represents services > >sector workers around the world); environmental > groups (e. g., Friends of > >the Earth); consumer organizations (e. g., consumers > associations of Canada, > >Japan and Zambia and U. S.-based Public Citizen); > research groups (e. g., > >Institute for Policy Studies in Washington, > Transnational Institute in > >Amsterdam, and the Integrated Social Development > Centre in Accra); and > >numerous religious institutions (e. g., Maryknoll > Fathers and Brothers in > >Peru and the American Friends Service Committee); as > well as noted authors > >Naomi Klein, Maude Barlow and Vandana Shiva. > > > >The groups called on the panel to make all of the > documents and meetings in > >the case public, to travel to Bolivia to receive > public testimony, and to > >allow Bolivian civic leaders to be an equal party to > the case. > > > >The citizen's letter will be accompanied by a formal > "petition to > >participate" by Olivera and other Bolivian civic > leaders to the ICSID > >tribunal hearing the case. The tribunal is comprised > of one member appointed > >by Bechtel, one appointed by the Bolivian government > and a third, its > >president, appointed directly by World Bank President > James Wolfensohn. The > >ICSID panel is scheduled to hold its first hearing > sometime in early > >September (though Bank officials say they are barred > from disclosing exactly > >when or where the hearing will take place). > > > >The legal team representing the Bolivian petitioners > includes Oakland, > >CA-based Earthjustice and the Washington, DC-based > Center for International > >Environmental Law, both of which have been involved > in attempts to intervene > >in similar investor-state lawsuits filed under the > North American Free Trade > >Agreement. > > > >AFTERMATH OF A REVOLT AGAINST WATER PRICE HIKES > > > >In the late 1990s the World Bank forced Bolivia to > privatize the public > >water system of its third-largest city, Cochabamba, > by threatening to > >withhold debt relief and other development > assistance. In 1999, in a process > >with just one bidder, Bechtel, the California-based > engineering giant, was > >granted a 40-year lease to take over Cochabamba's > water, through a > >subsidiary the corporation formed for just that > purpose ("Aguas del > >Tunari"). > > > >Within weeks of taking over the water system, Bechtel > imposed huge rate > >hikes on local water users. Families living on the > local minimum wage of $60 > >per month were given bills equal to as much as 25 > percent of their monthly > >income. The rate hikes sparked massive citywide > protests that the Bolivian > >government sought to end by declaring a state of > martial law and the > >deployment of thousands of soldiers and police. More > than a hundred people > >were injured and one 17-year-old boy was killed. In > April 2000, as > >anti-Bechtel protests continued to grow, the > company's managers abandoned > >the project. > > > >Bechtel filed the legal action against Bolivia last > November, demanding > >compensation of $25 million, a figure that represents > far more than > >Bechtel's investment in the few months it operated in > Bolivia. Bechtel's > >action also aims to recoup a portion of the company's > expected profits from > >the project. The company filed the case with ICSID > under a bilateral > >investment treaty between the Netherlands and > Bolivia. Although Bechtel is a > >U. S. corporation, it established a P. O. box > presence in the Netherlands in > >order to make use of the treaty. > > > >The rules in the Dutch-Bolivian treaty are similar to > those in NAFTA and the > >proposed Free Trade Area of the Americas. According > to Sarah Anderson, > >Director of the Global Economy Project at the > Institute for Policy Studies > >in Washington, DC, "There's been an outpouring of > international support for > >the Bolivian petitioners in this case. So many people > have become familiar > >with such investor-state lawsuits from the NAFTA > experience and they see > >them as one of the most extreme examples of excessive > power granted to > >corporations." According to Anderson, "The Bechtel v > Bolivia case could be a > >preview of what is to come if the FTAA is enacted. > That agreement would give > >foreign investors throughout the hemisphere the right > to sue governments > >directly over laws or regulations that might diminish > their profits." > > > >__________________________________________________ > > > >Corporate, World Bank and Bolivia contacts: > > > >Bechtel Corporation: Jock Covey External Affairs > Department Bechtel > >Headquarters San Francisco, CA > >(415) 768 5444 > > > >ICSID: Claudia Frutos-Peterson Counsel handling the > case World Bank > >Washington, DC > >(202) 458-7930 > > > >World Bank James Wolfensohn President Washington, DC > >(202) 473-1000 [note: This is the World Bank's > general #] > > > >Government of Bolivia Alberto Valdes Charges > d'Affaires in the Bolivian > >Embassy in Washington, DC > >(202) 483-4410 > > > >__________________ > __________________________________________________ Do You Yahoo!? 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