Representatives of both organizations and two experts on the subject: Carlos Correa, from Argentina and German Velazquez from Colombia, members of the South Center, will speak at the event. The South Center is an intergovernmental institution based in Geneva (Switzerland) focused on supporting developing countries. Prior to the event, REDES – Friends of the Earth will organize a workshop on the issue addressed to journalists.

Real World Radio interviewed Alberto Villarreal, of REDES – Friends of the Earth Uruguay, to know more about what made the environmentalist federation organize the public event.

Frente Amplio’s first administration in Uruguay (2005-2009), led by oncologist Tabare Vazquez, implemented several health policies aiming to reduce the consumption of tobacco in the country, for instance by banning smoking in closed spaces and work areas. Other measures were banning tobacco companies from selling different presentations for the same cigarette brand (Health Public Ministry resolution 514/09) and forcing companies to include warnings on the packaging occupying 80 per cent of them (Decree 287/09).

Philip Morris, based in the US, argued that the policies implemented by the Uruguayan government were detrimental to their interests and violated their intellectual property rights. He explained, for instance, that the inclusion of warnings covering 80 per cent of the surface of the packaging does not allow the brand to be seen, and this, according to the company, would mean indirectly expropriating the investment, without compensation.

This is why Philip Morris filed, in March 2010, a lawsuit against the Uruguayan State before the International Center for Settlement of Investment Disputes (ICSID), a dispute resolution tribunal of the World Bank. The company based their demands on the Investment Protection Treaty signed between Uruguay and Switzerland, where the company’s headquarters are located. The trial is ongoing.

“This is the first time that intellectual property rights or patents of a transnational corporation are referred to in an Investment Protection Treaty, in this case between Uruguay and Switzerland, to sue a government and demand compensation for economic damages”, said
Villarreal to Real World Radio. It was reported that Philip Morris is demanding Uruguay the payment of 2 billion dollars. In addition, the company, which announced it will leave the country last October, is demanding all laws against smoking to be repealed.

Villarreal stated that Philip Morris’ profits amount to 90 billion dollars anually, doubling Uruguay’s GDP. REDES – FoE believes the case filed by the company shows how intellectual property provisions can be an obstacle for the development policies of the countries.

Villarreal also said that it is possible that the Uruguyan government won’t be able to reverse the investment treaties already signed, but he said that it was necessary to be careful from now on. "We don’t need to sign investment treties in order to attract investment", he added.

The chapters on investments in Free Trade Agreements (FTAs) are similar to those in Investment Protection Treaties. But maybe the most dangerous thing is “the possibility given to a private company to file a complaint against a country before foreign tribunals”, said the member of REDES-FoE. “It is outrageous that investors are given this possibility. These conditions should be revised”, he claimed.

The Uruguayan activist regretted that there is “a new generation” of agreements which is even “more neoliberal”. These are the “direct contracts” between transnational corporations ans governments. This is the case, for instance, of the investment agreement signed by Uruguay and Montes del Plata (a consortium of forestry companies Arauco, of Chile, and Stora Enso, of Sweden-Finland), for the establishment of a second cellulose plant in the country. “The conditions included are extremely unfair”.

Villarreal also made reference to the company’s threats to file international complaints as a way to force governments to revise their policies. Sometimes, it’s not even the companies the ones that threaten, but the law firms that obtain millions and millions of dollars with this, he explained. These lawyers can be hired as arbitrators or counsels for the cases before the ICSID.

The member of REDES-FoE said that the ICSID tribunals are a “joke” and made reference to the influence of the World Bank when choosing arbitrators for the trials. He also said that in general the decisions favor companies and cannot be appealed. The activist also highlighted the secrecy within the ICSID and the subsequent difficulties to access detailed information about the cases.

REDES-FoE will organize some activities on Thursday to warn about the consequences of the investment treaties and the need to revise these “concessions” and “blank checks” granted to investors.
According to Villarreal, the current Latin American development model is based on extractivism and the loss of sovereignty in favor of investors. We need to change this if we want sustainable and fair development policies from a social and environmental point of view, he said, and highlighted the work of social movements that want this change. "If we can’t pressure the goverenment so that it acts in favor of the population, we don’t stand a chance against transnational corporations", said the activist.

Photo: http://blogs.periodistadigital.com