The EU-Mercosur free trade agreement: a critical analysis and an alternative

The decision of Minister for Climate and Energy Rob Jetten to withdraw from the Energy Charter Treaty (ECT) is good news for the energy transition in the Netherlands and beyond. Governments of countries that are party to this treaty can therefore shape the transition to sustainable energy without having to fear claims by Dutch-based businesses.

Indigenous communities in Paraguay saw their attempts to regain their ancestral lands thwarted by German investors. This is the level of impact that investment treaties can have on social, environmental and economic development and rights. Why? Because of the ‘Investor-to-State Dispute Settlement’ (ISDS) clauses that are included in many such treaties.

Today, more than 340 organisations from both South America and Europe, including Both ENDS, have sent a joint open letter to European Union leaders calling for the EU to cease negotiations on the EU-Mercosur Free Trade Agreement. The organisations and their constituencies are seriously concerned about increasing violations of indigenous human rights and damage to nature and the environment in Brazil.

Germany must use its influence as president of the EU in the second half of this year to ensure that the controversial EU-Mercosur free trade agreement is not signed. This is the message in a letter presented to German chancellor Angela Merkel today by 265 civil society and environmental organisations from the EU and Mercosur countries. The deal between the EU and Argentina, Brazil, Uruguay and Paraguay will stimulate destruction of the natural environment and the violation of human rights in vulnerable areas in South America. The agreement will also give European farmers an unfair competitive advantage. Dutch signatories to the letter include Greenpeace and Both ENDS and various organisations united in the Handel Anders! coalition.

The EU-Mercosur trade agreement leads to environmental destruction, violation of the land rights of farmers and indigenous people and the loss of industrial jobs in the Mercosur countries. It also creates unfair competition for European farmers. The Handel Anders! coalition is calling for an alternative agreement to improve the political cooperation between the EU and the Mercosur countries and is making proposals for just and sustainable international trade rules. That is the core message of new publication presented today in the Nieuwspoort in The Hague.

On 23 May, the Netherlands celebrates 60 years of bilateral investment treaties (BITs). The first BIT was signed with Tunisia in 1963. These treaties were intended to make an important contribution to protecting foreign investments by Dutch companies. A study by SOMO, Both ENDS and the Transnational Institute (TNI), however, shows that in practice they mainly give multinationals a powerful instrument that has far-reaching consequences people and the environment worldwide.

SEATINI Uganda is engaging women working in the palm oil sector in a campaign to improve their work situation. Around International Women's Day, March 8, they are organizing various actions to gain awareness for the situation and the rights of these women workers.

Joint CSO call to all WTO Trade Ministers to not accept the current draft of Ministerial Decision on the TRIPS Agreement and demand a real Waiver

Countries could be facing a wave of cases from transnational corporations suing governments over actions taken to respond to the Covid pandemic using a system known as investor-state dispute settlement, or ISDS. Cases could arise from actions that many governments have taken to save lives, stem the pandemic, protect jobs, counter economic disaster and ensure peoples' basic needs are met. Threats of cases have already been made in Peru over the suspension of charging on toll roads, and law firms are actively advising corporations of the options open to them. 630 organisations from across the world, representing hundreds of millions of people, are calling on governments in an open letter to urgently take action to shut down this threat. The letter below is published today.

89 NGOs and farmers' organisations from Indonesia, the EU and around the world sent open letters to the EU Commission and the Indonesian government today, calling on them to refrain from any clause that restrict farmers' rights in a future free trade agreement.