The Centre for Civic Governance has been tracking developments in the Canadian European Comprehensive Trade Agreement and in particular potential impacts on municipalities. Our latest Trade and Policy Update provides information on the likelihood of increased legal and administrative costs, the threats to local decision-making and the potential for the privatization of municipal water services.
A recent opinion piece highlights many of the serious and likely consequences from signing the Canadian European Trade Agreement (CETA). Unlike previous trade agreements CETA eliminates the right of a municipality to procure goods and services locally. It also opens up our water treatment industries to multinational corporations. Despite the potential for "serious, unanticipated consequences for municipalities," local leaders have not been invited to negotiations.
Stewart Trew of the Council of Canadians has written a report that outlines some specific impacts the proposed CETA (Canadian European Union Trade Agreement) will have on Hamilton's job sector as well as the social and environmental impacts. From banning buy local policies to privatizing public services, the agreement will limit the power of municipalities to create jobs, protect the environment and develop their own procurement policies. Unfortunately, many municipalities remain in the dark about CETA and its impacts.
French River, also known as Rivière-des-Français passed a resolution on September 21st to negotiate an exemption for municipalities from the CETA trade agreement. The municipality is concerned that the agreement will disrupt the flow of social services, local jobs, local procurement policies and control over waste and water facilities. The council was motivated to closely examine the trade agreement after a local area resident brought the issue to mayor and council.
Norwood Ontario has passed a resolution calling on the provinces and the federal government "to negotiate a clear, permanent exemption for local governments" from the Canada-European Union Comprehensive Economic and Trade Agreement.
BC municipalities are becoming increasingly concerned about CETA negotiations that are taking place behind closed doors. It appears that the trade agreement between Canada and the European Union would give limit the right to procure local goods and services and would give large multinationals access to local water contracts.
The Council of Canadians is warning the public and governing bodies to pay close attention to the CETA negotiations and to demand transparency. The agreement as it stands would have serious implications for local procurement policies, and public services like water, transit, energy and health care. The trade agreement is set to be finalized in 2012. Read more on Global Sakatoon.
Councillors in Grand Forks have voted to send a letter to their local MLA and MP expressing their opposition to the CETA agreement currently being negotiated. Council member Gene Robert explained,
The buy local movement is picking up steam in BC. Local procurement policies are viewed as a way to strengthen communities, both economically and socially. These policies could be undone, however by the negotiated CETA agreement, which seeks to give European companies the equal access to local economies. Despite the severe ramifications for local industries and workforces, BC’s premier has had little to say on the issue. Charley Beresford of the Centre for Civic Governance, find’s Premier Clark’s lack of position on the matter troubling, noting,
Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union
Canada has been negotiating a new trade agreement with the European Union, an agreement that could hurt local governments. The Comprehensive Economic and Trade Agreement (CETA) could take away your municipalities' right to have buy local & buy Canadian policies, increase your administrative costs through forced reporting, and threaten sovereignty over water.
