Latest Developments, May 2

In the latest news and analysis…

Subsidiary immunity
The Associated Press reports that a Canadian judge has dismissed an attempt by Ecuadorian plaintiffs to have a $19 billion judgment enforced against US oil giant Chevron:

“Justice David Brown ruled Wednesday that the Canadian courts have no jurisdiction to enforce the controversial award handed down by an Ecuadorian court against Chevron.
The award to the villagers was made in Ecuador for black sludge contamination of a rainforest between 1972 and 1990 by Texaco, which Chevron Corp. bought in 2001.

Brown concluded the judgment was levied against Chevron Corp., and not Chevron Canada, therefore the subsidiary’s assets do not belong to the U.S. parent company

Alan Lenczner, the Toronto lawyer for the Ecuadorians, said they would appeal.
‘It cannot be right that a multinational company that operates entirely through subsidiaries is immune from the enforcement of a judgment in Canada, particularly where the subsidiary is 100% owned,’ Lenczner said in a statement.”

Unwanted aid
Al Jazeera reports that Bolivia has expelled the US Agency for International Development over “alleged political interference”:

“ ‘Never again, never again USAID, who manipulate and use our leaders, our colleagues with hand-outs,’ [Bolivian president Evo] Morales said in announcing the expulsion.

In an interview with Al Jazeera, Philip Brenner, an international relations professor at the American University in Washington DC, said USAID became a target after its suspected role in encouraging secession in Santa Cruz, ‘a very wealthy part’ of Bolivia.”

Timber laundering
Global Witness reports that “shadow permits” are keeping the illicit logging trade flowing from Africa to the EU which imported up to to €12.4 billion worth of illegal timber in 2011:

Meanwhile, the EU has been developing Voluntary Partnership Agreements (VPAs) with timber-exporting countries, which involve comprehensive forest governance reforms aimed at stamping out the illegal trade. Neither the EU Timber Regulation nor the VPAs take account of the widespread use of shadow permits, however. This means they could end up laundering the type of wood products they were designed to exclude.
‘Unless European and African policy-makers take urgent action, shadow permits could become the Trojan horse by which illegal timber is brought into the EU and passed off as legitimate. Timber importers must do proper checks right the way along their supply chains to make sure they know exactly where their timber came from and whether the permit used to get it was legal,’ said [Global Witness’s Alexandra] Pardal.

Illegal resource extraction
Reuters reports that nearly all of Liberia’s resource deals since 2009 have violated national laws:

“Liberian law sets rules for foreign investment projects including on competitive tendering, tax rates and equity stakes to be held by the government.
While some failures to comply with the law are relatively minor, the Moore Stephens draft shows the government granted vast swathes of land to firms including Golden Agri’s Golden Veroleum and Sime Darby without competitive bidding, and otherwise skipped contract steps meant to ensure a fair deal for Liberians.
Other companies with contracts found to be flawed include U.S. oil firm Chevron Petroleum and mining giant BHP, according to the report, which also accused Liberian authorities of having tried to stonewall the audit process since late last year by failing to hand over information promptly.”

No more executions
The Associated Press reports that Maryland has become the 18th US state and the first south of the Mason-Dixon line to abolish the death penalty:

“[National Association for the Advancement of Colored People] President and CEO Ben Jealous, who worked to get the repeal bill passed, noted the significance of a Democratic governor south of the Mason-Dixon line with presidential aspirations leading an effort to ban capital punishment. Jealous noted that in 1992, then-Arkansas Gov. Bill Clinton left the presidential campaign trail to oversee the execution of a man who had killed a police officer, a move widely viewed as an effort to shed the Democratic Party’s image as soft on crime.
‘Our governor has also just redefined what it means to have a political future in this country,’ Jealous said”

Fighting biopiracy
EurActiv reports that the EU is debating new measures that would require companies to compensate indigenous people for the commercial use of their knowledge:

“Under the law – based on the international convention on access to biodiversity, the Nagoya protocol – the pharmaceuticals industry would need the written consent of local or indigenous people before exploring their region’s genetic resources or making use of their traditional knowhow.
Relevant authorities would have the power to sanction companies that fail to comply, protecting local interests from the predatory attitude of big European companies.

But obstacles remain due to vested interests, particularly in the European pharmaceuticals industry. ‘90% of genetic resources are in the south and 90% of the patents are in the north,’ [Green MEP Sandrine] Bélier told EurActiv.”

Free trade racket
The Center for Economic and Policy Research’s Dean Baker argues that international trade agreements, such as the proposed Trans-Pacific Partnership, have more to do with “securing regulatory gains for major corporate interests” than free trade:

“All the arguments that trade economists make against tariffs and quotas apply to patent and copyright protection. The main difference is the order of magnitude. Tariffs and quotas might raise the price of various items by 20 or 30 percent. By contrast, patent and copyright protection is likely to raise the price of protected items 2,000 percent or even 20,000 percent above the free market price. Drugs that would sell for a few dollars per prescription in a free market would sell for hundreds or even thousands of dollars when the government gives a drug company a patent monopoly.
In the case of drug patents, the costs go beyond just dollars and cents. Higher drug prices will have a direct impact on the public’s health, especially in some of the poorer countries that might end up being parties to these agreements.”

Pharma power
This is Africa’s Adam Robert Green discusses concerns that pharmaceutical companies may be “shaping the public health agenda” in poor countries:

“One example is the HPV vaccination programme for cervical cancer in Rwanda, enabled by a donation from Merck. After three years, the freebies expire, but Merck promised to provide Rwanda with a discounted access price to the vaccine. Assuming donors and governments pick up the bill, the donations could be interpreted as market-priming – creating the conditions for adoption – rather than corporate citizenship.”

Latest Developments, March 7

In the latest news and analysis…

Drone filibuster
The Washington Post reports that US Senator Rand Paul has ended a nearly 13-hour speech aimed at raising questions about American policy on extrajudicial killings:

“Paul said he was ‘alarmed’ by a lack of definition for who can be targeted by drone strikes. He suggested that many colleges in the 1960s were full of people who may have been considered enemies of the state.
‘Are you going to drop . . . a Hellfire missile on Jane Fonda?’ he asked at one point.
Repeatedly, Paul suggested that his cause was not partisan and not meant as a personal attack on the president — only on his drone policy.

‘I would be here if it were a Republican president doing this,’ Paul added. ‘Really, the great irony of this is that President Obama’s opinion on this is an extension of George Bush’s opinion.’ ”

New timetable
The BBC reports that France’s president, François Hollande, has said some of the 4,000 French troops currently in Mali will pull out next month:

“France had initially said that troop numbers would decrease from March if all went according to plan.
On Wednesday, Mr Hollande said that the ‘final phase’ of the French intervention ‘will last through March and from April there will be a decrease in the number of French soldiers in Mali as African forces will take over, supported by the Europeans’.”

See no evil
The Guardian reports on new evidence suggesting ex-CIA boss David Petraeus had extensive knowledge of torture being committed during his time as top commander in Iraq:

“[Special police commando] detention centres bought video cameras, funded by the US military, which they used to film detainees for the show [called ‘Terrorism In The Hands of Justice’]. When the show began to outrage the Iraqi public, [General Muntadher al-Samari] remembers being in the home of General Adnan Thabit – head of the special commandos – when a call came from Petraeus’s office demanding that they stop showing tortured men on TV.

Thabit is dismissive of the idea that the Americans he dealt with were unaware of what the commandos were doing. ‘Until I left, the Americans knew about everything I did; they knew what was going on in the interrogations and they knew the detainees. Even some of the intelligence about the detainees came to us from them – they are lying.’”

The grapes of graft
Reuters reports that an Italian vineyard may be key for an investigation into bribes allegedly paid by energy firm Eni to obtain oil and gas contracts in Algeria:

“[Farid Noureddine] Bedjaoui is suspected of channeling nearly 198 million euros in bribes to officials in Algeria via a company called Pearl Partners Limited for eight contracts totaling $11 billion awarded to [Eni subsidiary] Saipem, Europe’s biggest oil services company, between 2007-9, the warrant says.

The Feb 6 warrant alleges [Pietro Varone, former chief operating officer of Saipem’s engineering arm] recommended Pearl Partners to the Saipem board to advise on Saipem’s business activities in Algeria and the Middle East.
Varone was one of several senior managers at Saipem and Eni to resign in December as a result of the investigation. Eni and Saipem have denied wrongdoing.
Eni, Italy’s largest company in terms of market value, is the biggest foreign energy operator in Africa. It has operated in Algeria since 1981 and has extensive gas interests there.”

Fighting words
The Council of Canadians provides a transcript of comments made by a Greek mayor to the Canadian ambassador over a mining project planned by Vancouver-based Eldorado Gold:

“ ‘We have studies that establish the utter devastation and we don’t want to discuss it any further. We are tired. What we want from you is to leave us alone so that we can develop here our agriculture, our stock farming, our fishery, our tourism, our forests, so that we can manage, through what we know, to keep the purity of our country, to advance,’ [said Alexandroupolis mayor Evangelos Labakis].

“You will get the gold, the 450 tons and we will keep the cyanide? Why should we do that when we have the opportunity to develop and we will do it?’ ”

Mining’s shadow
An Ottawa Citizen editorial calls on Ottawa to hold to account Canadian mining companies that behave badly abroad:

“Canada has many reasons to take a lead role in addressing unethical and illegal behaviour of mining companies around the world. A compelling one is that Canada is a major player on the world stage and companies that get into trouble are, therefore, frequently Canadian.
And, although the mining industry and the federal government have both been behind a major push to encourage corporate social responsibility, the federal government must do more, especially now that the giant mining industry is also at the centre of a shift in Canadian foreign aid toward more partnerships with private companies operating overseas.
With so much riding on our mining industry, Canada must move to remove the shadow that bad corporate citizens cast on it.”

Dirty City
TrustLaw reports that Transparency International’s new UK head has said London is “a clearing house for international corruption”:

“[TI-UK’s Robert] Barrington was one of a group of experts who drafted the official guidance to the UK Bribery Act, Britain’s strict new anti-bribery law. Since the Act came into force in July 2011, it has generated just two prosecutions, both for relatively minor bribery offences.

One reason for the small number of prosecutions under the Bribery Act is that Britain’s main anti-corruption prosecutor, the Serious Fraud Office (SFO), has had its funding slashed in the last five years, Barrington said.”

Sharing benefits
Intellectual Property Watch reports that one expert has described the Nagoya Protocol, a proposed UN text on cultural diversity and traditional knowledge, as a “masterpiece of erratic treaty drafting”:

“In correspondence with Intellectual Property Watch, [the University of Sienna’s Riccardo] Pavoni said: ‘The Nagoya Protocol is absolutely neutral in relation to the issue of patentability of genetic material. The principle of sovereign rights over genetic resources may only allow states to ban the exploration and/or exportation of genetic resources found in their territories, but may not prevent a company from seeking patent protection in its home state or in other countries where such patents are granted.’
The core issue, he said, ‘is that of securing that genetic material has been accessed pursuant to the prior informed consent of the source country and that some form of benefit-sharing has been agreed upon with the same country.’ ”