The Huge Paradox at Biden’s Summit of Latin American Leaders

President Biden Convenes Latin American Leaders for Inaugural Summit

President Joe Biden recently convened Latin American leaders in Washington for the inaugural summit of the Americas Partnership for Economic Prosperity, a forum the administration claims will help boost “high-standard” investment in the hemisphere. 

What is “High Standard” Investment?

In their final declaration, the leaders committed to encouraging “private sector investment that meets environment, social, and governance criteria.” 

A Missed Opportunity to Dismantle Existing Investment Rules

Unfortunately, the assembled leaders missed a big opportunity to dismantle existing investment rules that paradoxically allow foreign investors to sue governments when they try to pass regulations that would enforce these exact criteria. 

This was particularly disappointing, given the growing calls from members of the U.S. Congress and civil society organizations demanding that Biden take action to dismantle the deeply flawed neoliberal approach to international investment rules that the U.S. government has pushed for several decades. 

The Impact of Investor-State Dispute Settlement System (ISDS)

A web of existing bilateral and regional trade and investment treaties locks most countries in the region into a system that elevates the narrow interests of corporations and wealthy investors above the interests of people and the environment. Under this investor-state dispute settlement system (ISDS), private investors can file claims before supranational arbitration bodies, demanding compensation for environmental and other government actions that might reduce their expected profits.   

Two decades ago, the U.S. government drove a process to further entrench these anti-democratic rules through a proposed pact called the Free Trade Area of the Americas. Those negotiations, involving 34 countries, collapsed in 2005. 

The Participants and Potential for Expansion

The Americas Partnership for Economic Prosperity appears to be a weak attempt to revive this failed project. The participating countries include two that are seeking  trade agreements with the United States (Uruguay and Ecuador) and nine that already have such pacts (Mexico, Peru, Chile, Colombia, Costa Rica, Canada, the Dominican Republic, Panama, and Barbados).

Mexico’s representative, Secretary of Foreign Affairs Alicia Bárcena Ibarra, did call for the process to be opened up to all Latin American and Caribbean countries, but it’s unlikely that many other countries will be interested. Brazil for instance, has not ratified any agreements with ISDS provisions and others like Venezuela and Bolivia have exited the World Bank court that handles most investor-state cases, the International Centre for the Settlement of Investment Disputes. 

The Response to China and the EU

The whole process is a response to the loss of U.S. hegemony in the hemisphere in light of China’s growing economic influence and the EU’s new so-called “Global Gateway” initiative, through which it seeks to secure natural resources from the region.

The Risk of Undermining Sovereignty

If the summit process leads to yet another investment deal that fails to challenge transnational corporations’ excessive powers, these leaders will further undermine their own sovereignty. According to a recent report, the 12 countries involved in the summit are facing more than 73 pending investor lawsuits, with claims totaling $47 billion. Almost a quarter of these are claims against Mexico, totaling more than $11 billion. The actual figure may be higher since some lawsuits are not public. 

This total also includes a $15 billion lawsuit filed by the Canadian company TC Energy against the United States. The claim is in retaliation for the canceling of the Keystone Pipeline, given opposition from indigenous peoples and communities over the project’s environmental threats. 

Calls for Change from U.S. Organizations

On the eve of the summit, Senator Elizabeth Warren and 40 other members of Congress sent a letter to the Biden administration urging them to remove investor-state dispute settlement provisions from all existing U.S. trade deals. More than 200 U.S. civil society organizations, including the AFL-CIO and many other labor, human rights, consumer protection, rural, Latin American solidarity, and environmental organizations sent Biden a letter reinforcing this demand. 

AFL-CIO international director Cathy Feingold said in a statement that the current investment regime “creates an unfair playing field that prioritizes the needs of corporations over those of workers, their families and the environment.” She called for an alternative framework that actually promotes “good jobs, strong communities and a sustainable environment.”

The Influence of Latin American Organizations

The letter from U.S. organizations was inspired, to a large extent, by the demands of Latin American organizations that have struggled for decades to break the shack

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities
• SDG 16: Peace, Justice, and Strong Institutions

The issues highlighted in the article are related to investment rules, economic prosperity, sovereignty, and the impact on people and the environment. These issues align with the goals of SDG 8, which focuses on promoting sustainable economic growth and decent work, SDG 10, which aims to reduce inequalities, and SDG 16, which emphasizes the importance of peace, justice, and strong institutions.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 8.9: By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products (SDG 8)
• Target 10.7: Facilitate orderly, safe, regular, and responsible migration and mobility of people, including through the implementation of planned and well-managed migration policies (SDG 10)
• Target 16.3: Promote the rule of law at the national and international levels and ensure equal access to justice for all (SDG 16)

Based on the article’s content, the targets mentioned above can be identified. The article discusses the need for policies that promote sustainable investment and job creation (Target 8.9), the impact of investment rules on migration and mobility (Target 10.7), and the importance of promoting justice and equal access to justice in the context of investment disputes (Target 16.3).

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

No specific indicators are mentioned or implied in the article that can be used to measure progress towards the identified targets.

The article focuses more on discussing the issues and missed opportunities related to investment rules rather than providing specific indicators to measure progress towards the targets.

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: inequality.org

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