A good example of downsizing democracy is the Free Trade Agreement with the US, even though serious concerns have been raised about the deal.
The negotiations for this agreement have taken place behind closed doors and will be legally binding on all levels of government with little amendments being made to the enabling legislation for the FTA, which is currently being passed in the Australian parliament. It is all been rushed through in due haste with little by way of due process
This agreement grants transnational corporations an investment agreement with a complaints mechanism which would enable foreign investors to challenge laws which harm their investments and to sue governments for damages. The model preferred by corporations is the infamous disputes process of the North American Free Trade Agreement (NAFTA) between the US, Canada and Mexico. Corporations have used this process to sue governments for millions of dollars on the grounds that environment or health and safety legislation has harmed their investments.
Most of the new environmental regulations in the Murray-Darling Basin are designed to claw back water for environmental flows and protect the regions biodiversity. These regulations harm the profits of agribusiness hence compensation needs to be paid for the restrictions on trade.
Australian citizens have no say in this even though it impacts on their attempts to repair the ecological damage wrought by past economic growth.
Posted by Gary Sauer-Thompson at August 3, 2004 07:19 PM | TrackBack