Posted on 12/13/2002 4:30:14 PM PST by heyhey
NAFTA could trump water regulation
ANALYSTS SAY INTERNATIONAL TRADE LAWS COULD DICTATE CONTROL OF KAWC ASSOCIATED PRESS
CHARLESTON, W.Va. - International trade laws could undermine state efforts to regulate water distribution by the German conglomerate hoping to buy Kentucky-American Water Co, some legal and water-policy analysts argue.
Last week, the West Virginia state attorney general's office asked its Public Service Commission to temporarily vacate an order permitting West Virginia-American Water Co.'s New Jersey-based parent to be sold for $4.6 billion to Thames Water. Lexington-based Kentucky-American is included in the deal.
Thames is a British subsidiary of the German firm RWE Aktiengesellschaft.
The West Virginia attorney general's office said the PSC should at least consider the possible impact of international trade treaties on the sale, and some policy experts concur.
Thames officials say the North American Free Trade Agreement and the General Agreement on Trade in Services would have no bearing on their rates or other management decisions in West Virginia and Kentucky.
Regulatory approvals by all the states in which American Water operates are required before the sale is approved.
Asked at a Kentucky hearing whether Thames would give up its right to challenge state regulators under GATS and NAFTA, a company official protested that the question was too vague.
"That's such a general and unspecific request, I really don't know what I'm agreeing to," said James McGivern, managing director of Thames Water. "I don't know what international laws you're talking about. I don't know what they say."
Thames pointed out that the United States has not agreed to let GATS govern water services.
The European Commission has asked other governments, including the United States, to include water services under GATS. Those governments must respond by March 31.
Steven Shrybman, an Ottawa lawyer who specializes in international trade, said any state that would allow a foreign company to take over a water utility without examining the possible impacts of international treaties would be guilty of "negligence."
A foreign company could invoke NAFTA rules to sue the U.S. government if state regulations -- say, a ceiling on water rates -- hurt its ability to make profits, said Kristin Dawkins, vice president at the Institute for Agriculture and Trade Policy.
Under such circumstances the federal government could pressure Kentucky or West Virginia to bring their laws into conformance with NAFTA guidelines, analysts said.
In effect, NAFTA "gives foreign investors in Canada and Mexico the right to bypass the U.S. domestic court system and laws," Jim Grieshaber-Otto, former senior trade policy adviser for British Columbia, said.
Check out, "The Coming Collision - Global Law vs. U.S. Liberties", by James L. Hirsen, Ph.D. (ISBN 1-56384-157-6) for a more detailed summary of the history of how treaties were introduced as a method to deliberately circumvent the Constitution.
I would also recommend browsing through Larry BeCraft's website which details the legalistic shenanigans on how the federal government has used treaties to steal municipal power.
I forgot to add, or so they would like us to believe.
Super-seed is right. LOL! We REALLY got screwed bigtime.
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