In 1997, Canada restricted import and transfer of the gasoline additive MMT because it was a suspected neurotoxin that had already been banned in Europe. Ethyl Corp., the U.S. multinational that supplied the chemical, sued the government for $350 million under the North American Free Trade Agreement and won! Canada was forced to repeal the ban, apologize to the company and pay an out-of-court settlement of US$13 million.
Subscribe to Science Matters
The free trade agreement between Canada, the U.S. and Mexico was never designed to raise labour and environmental standards to the highest level. In fact, NAFTA and other trade agreements Canada has signed — including the recent Foreign Investment Promotion and Protection Agreement with China — often take labour standards to the lowest denominator while increasing environmental risk. The agreements are more about facilitating corporate flexibility and profit than creating good working conditions and protecting the air, water, land and diverse ecosystems that keep us alive and healthy.