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No to “Pay Polluter” in TPPA

  • Publication Date | July 4, 2014
  • Document Type | Media Statement
  • Programmes | Development & Planning
  • Issues | Trade & Investment
  • Tags | ISDS, Pay Polluter, TPP, Trans-Pacific Partnership Agreement
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SAM supports the following press statement released by the Consumers’ Association of Penang

The latest round of Trans-Pacific Partnership Agreement (TPPA) negotiations involving Malaysia and 11 other countries including the United States began on 3 July and will continue until 12 July 2014 in Ottawa, Canada.

According to news reports, the chapters that will be negotiated there include: investment, services, intellectual property, tariffs on goods and exceptions such as for health including tobacco control and the environment.

The Consumers’ Association of Penang (CAP) is deeply concerned by the provisions that have been agreed to in the leaked TPPA investment chapter. Foreign investors have successfully challenged laws on health, environment and other crucial public interest areas in other countries that have signed similar treaty provisions. Those cases have even shown that when the foreign investor breaks the law of the country it is operating in and it is punished as allowed by the host country’s law, the foreign investor can still sue the host government under these treaties and win. 

This is what happened to Ecuador when an American oil company broke the law in Ecuador so Ecuador cancelled the contract, as it is allowed to do under Ecuadorian law. The oil company sued Ecuador at an international tribunal under an investment treaty with provisions similar to those that have been agreed to by all countries, including Malaysia, in the leaked TPPA investment chapter. The oil company won and Ecuador was required to pay it US$2.4 billion, even though the tribunal agreed that the oil company broke Ecuador’s law.

To avoid this happening to Malaysia under the TPPA (for example if a foreign investor in Malaysia pollutes the environment and the government takes action against the investor), the government needs to at least be able to bring a counterclaim to reduce the amount of damages the foreign investor can win by the amount of its wrongdoing (for example the cost of cleaning up its pollution). 

Unfortunately, our new research shows that with the wording in the leaked TPPA investment chapter as of 2012, it is unlikely that counterclaims would be allowed. Unless this is changed, this means that Malaysia is likely to end up paying the polluter, not making the polluter pay.

In addition to all the other problematic provisions in the TPPA that harm Malaysian consumers, patients, students, workers and the environment, this new research shows that the supposed “safeguards” in the leaked TPPA investment chapter are still grossly insufficient. Even if better safeguards can be obtained, experiences of other countries show that more often than not, foreign investors are effectively able to violate national laws with impunity and get paid for it as well.

Therefore we once again call on the Malaysian government to immediately withdraw from the TPPA negotiations and not sign the TPPA. 

S.M. MOHAMED IDRIS
President

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Testimonials

Sahabat Alam Malaysia adalah satu badan bukan kerajaan (NGO) yang telah sekian lama berjuang mempertahan kelestarian alam. Ia juga mendidik masyarakat tentang pentingnya kebersamaan dalam pemikiran dan tindakan agar alam ini dapat kita wariskan kepada generasi hadapan dalam keadaan yang elok dan terpelihara. Dalam pada itu juga SAM giat membantu golongan nelayan pantai dalam memperjuangkan hak-hak mereka sehinggalah tertubuhnya Persatuan Pendidikan dan Kebajikan Nelayan Pantai Malaysia (JARING). Nelayan pantai sepenuh masa ini dididik oleh SAM sehingga mereka mampu memainkan peranan sebagai pemimpin nelayan yang meneruskan kesinambungan memperjuangkan hak-hak nelayan pantai lainnya. Sebagai contoh SAM telah berjaya menyedarkan masyarakat nelayan keperluan menjaga hutan paya bakau untuk kebaikan hasil tangkapan nelayan itu sendiri.
Jamaluddin Mohamad Bualik
Jamaluddin Mohamad BualikPersatuan Pendidikan dan Kebajikan Jaringan Nelayan Pantai Malaysia (JARING)
During the 1980s, I used to read about the Consumers’ Association of Penang (CAP) in the news. After retirement, some time in 2001, while lazing around, I read news about the construction of a carbon in leach plant using sodium cyanide to extract gold in Bukit Koman. My friends and I visited CAP and we were introduced to SAM and her legal team. We discussed the details of filing a case against the gold mining company and the department of environment with Ms Meenakshi Raman and her legal team. That was the beginning of a beautiful friendship between lawyers from SAM and many of us from Bukit Koman. We had many ups and downs in our struggle to shut down the gold mine that was causing a nuisance in our village. But, as a community we never gave up because SAM had our backs.
Hue Fui How
Hue Fui HowSecretary, Bukit Koman Ban Cyanide in Goldmining Action Committee (BCAC)
Sahabat Alam Malaysia adalah sebuah NGO yang memperjuangkan nasib masyarakat luar bandar khasnya. SAM menerima aduan-aduan masyarakat dan menyelesaikan masalah yang dihadapi. SAM telah mewujudkan ramai aktivis-aktivis sosial dan alam sekitar. Pada era 1980 dan 90an SAM sangat dihormati oleh masyarakat dan agensi kerajaan. Apabila media sosial menguasai maklumat maka SAM pun terkesan dan masalah masyarakat terus disalurkan dengan pelbagai cara. SAM perlu mewujudkan aktivis-aktivis pelapis yang muda untuk terus membantu masyarakat. SAM juga perlu membuat perubahan supaya banyak turun kelapangan dan jangan mengharapkan laporan media sahaja. Tingkatkan prestasi sebagaimana pada zaman kegemilangan SAM di era 80-90an.
Che Ani Mt Zain
Che Ani Mt Zain
SAM taught me the importance of social activism and the role it plays in upholding the rights of people and the protection of the environment. In my experience, SAM has never hesitated to speak up in defence of people and their environment, and has gone the extra mile to champion their rights, by helping communities take their battles to the higher ups and even to the courts.
Jessica Binwani
Jessica BinwaniPublic/Private Interest Lawyer
Semenjak kami kenal SAM, banyak pengalaman dan pengetahuan yg kami dapat. Kami telah belajar cara membuat baja asli daripada SAM. Semenjak itu, bermulalah minat kami dalam aktiviti pertanian. Dengan memperolehi kemahiran dalam membuat baja asli dan penanaman lestari, kami juga telah dapat menambahkan pendapatan sampingan kami. Ini lebih baik daripada tanah kami terbiar dan tidak diusahakan. Terima kasih SAM kerana sudi memberi bantuan dan tunjuk ajar kepada Persatuan kami.
Chedo Anak Nyuwen
Chedo Anak NyuwenPersatuan Penduduk Sg Buri, Bakong, Marudi
My journey with SAM started when her community organisers took me to the meet the paddy farmers of Kedah, connecting my growing interest in environmental law with our people who struggle to work the land in the face of pollution, replacement of traditional seeds with commercial hybrids and their accompanying chemical package of fertilisers and weedicides. I then had the honour to work with SAM in the struggle for the rights of the native communities of Sarawak, in defence of their forests from massive logging and destructive mega-projects. In every issue that SAM takes up, she combines rigorous research with the realities and voices of the communities to advocate for policies and laws that care for people and nature. From the courts to the elected legislators to policy makers and implementers and to the United Nations, SAM walks side by side with the communities in Malaysia. How can I not be inspired by the vision and passion of the generations of women and men who coalesce to form SAM?
Chee Yoke Ling
Chee Yoke Lingstudent of SAM, Executive Director of Third World Network, SAM’s sister organisation

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Sahabat Alam Malaysia (Headquarters)
No. 1, Jalan Joki, 11400 Penang,
Malaysia
Tel: +604 827 6930
Fax: +604 827 6932

Sahabat Alam Malaysia (Marudi Office)
129A, First Floor,
Jalan Tuanku Taha,
P.O.Box 216,
98058 Marudi, Baram, Sarawak,
Malaysia
Tel & Fax: +6085 758 973

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