One result of neoliberalism, writes Mark Bittman in the New York Times, is that “some corporations are more powerful than governments.” This message was a theme of many of the signs and chants at the People’s Climate March, where more than 400,000 participants came together in New York City, many denouncing corporate greed at the expense of a sustainable planet. And nowhere is that power divergence more apparent than in free trade pacts, where a provision called “investor state dispute settlement” (ISDS) empowers corporations to sue governments over nearly any policy that a corporation alleges would reduce its expected future profits.
The Dominican Republic, for example, faces two new corporate challenges to its environmental policies. Instead of supporting the Dominican Republic’s right to implement environmental safeguards, the U.S. is pushing to expand these “investor” rights in new trade agreements currently under negotiation—the 12-nation Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership between the U.S. and the European Union.
Under the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA), Corona, a Florida-based construction materials company (not to be confused with the beer), has announced a case against the Dominican Republic for $100 million because the Dominican Republic denied Corona an environmental license to mine for construction materials after citing concerns about the proposed project’s risks to waterways. Separately, three U.S. investors are threatening to bring a case against the Dominican Republic for not allowing them to “extend” a resort—which already includes luxury homes, a restaurant with a rotating floor and tennis courts— into a neighboring national park. The coveted “extension” would allow the developers to construct a second restaurant, spa, and “world-class boutique hotel.