Corporate accountability
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Corporate accountability. “Hard law” offers limited tools “Soft law” includes CSR, voluntary codes and initiatives, consumer awareness campaigns, certification schemes Upsides:

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Corporate accountability

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Corporate accountability

Corporate accountability

  • “Hard law” offers limited tools

  • “Soft law” includes CSR, voluntary codes and initiatives, consumer awareness campaigns, certification schemes

    • Upsides:

      • Codes of conduct are useful, but require action by NGOs, consumers to hold them to codes (Rodriguez-Garavito 2006)

    • Downsides:

      • Fox tending the henhouse

      • Whose information is credible?

      • Vast power differences


Corporate accountability1

Corporate accountability

  • Many soft law initiatives today rely on market-based campaigning: new possibilities, but also new questions for human rights

  • http://walmartstores.com/Video/?id=1417

  • Possibility: direct consumer action

  • Concerns

    • How does this change role of human rights organization: product promoters?

    • Independence

    • Credibility of information


Trade agreements and human rights

Trade Agreements and Human Rights


Trade and human rights

Trade and Human Rights

  • Why is trade a human rights issue?

  • At the heart of the debate= visions of development

  • Human rights concerns in trade agreements

    4. Case study of IP in CAFTA


1 why is trade a human rights issue

1. Why is trade a human rights issue?

  • Trade sanctions can (arguably) be a means of enforcing human rights

  • Trade and investment flows affect the economy, can provide solutions for human rights challenges

  • Structure of trade relations determines who benefits: how is trade conducted?

  • Often the debates about trade center around FTA’s, but in fact FTA’s are just one piece of the puzzle


International commercial law

International Commercial Law

  • Overlapping legal orders

    • National legislation, sometimes passed as condition of foreign aid or loans

    • WTO

    • International commercial treaties


2 at the heart of the trade debate

2. At the heart of the trade debate

  • Development model based on market-driven growth

    • Benefits some sectors (there are winners and losers in LatAm)

  • Limits national decisionmaking about economy

    • Leads to concerns about sovereignty

    • Challenge to alternate development models


Guadalupe urbina a hundred free birds

Guadalupe Urbina, “A Hundred Free Birds”

The donkey tied up

And the tiger loose

The wife married

And the husband single

The country offers cheap labor

To whatever foreign industry that wants to buy it

The donkey’s tied up

And the tiger is loose

I’m tilling the earth

Combing the seas

I turn on the machines, I cure the bodies,

I turn on the country and the tiger is loose

El burro amarrado, y el tigre suelto

La esposa casada, el marido soltero

La patria ofrece mano de obra barata

A industria extranjera que quiera comprarla

El burro amarrado

Y el tigre suelto

Yo haciendo la tierra

Arañando los mares

Enciendo las maquinas, curo los cuerpos,

Yo enciendo la patria y el tigre anda suelto


Corporate accountability

Better a hundred free birds, flying in these skies

Even though the skies sometimes cloud up with storms, they’re ours

A hundred free birds are worth more than one tied up by the foot

Locked in a cage without water, without light, without sky

There are things that aren’t going well at home

We need oxygen in here

But the maquiladoras don’t clean the air

Their tiger is loose and my house is falling down

Más valen 100 pájaros libres volando bajo este cielo

Que a veces tiene tormentas, nubarrones, pero es nuestro

Más vale 100 pájaros libres que uno atado de la pata

Apagado en una jaula sin agua, sin luz, sin cielo

Hay cosas que en casa

No caminan bien

Aquí adentro hace falta oxígeno

Pero las maquilas no limpian mi aire

Su tigre anda suelto y mi casa se cae


Corporate accountability

My country may be small, but it’s taken work to construct

For her I’ve paid taxes, done duties

Her electric energy, her water systems, and her health systems belong to me.

Better a hundred free birds, flying in these skies

Even though the skies sometimes cloud up with storms, they’re ours

A hundred free birds are worth more than one tied up by the foot

Locked in a cage without water, without light, without sky

Mi patria es pequeña, pero me ha costado

Por ella he pagado impuestos y carreras

A mi me pertenece su energia electrica, su sistemas de agua
y los de la salud.

Más valen cien pajaros libres


Volando bajo este cielo


Que a veces tiene tormentas, nubarrones, pero es nuestro


Más valen cien pajaros libres


Que uno atado de una pata


O apagado o en una jaula sin agua, sin luz sin cielo.


Corporate accountability

There are rules I keep

And weapons I don’t buy

Wars I don’t finance

And that I can’t invent

Everything I eat, I plant in my garden

It’s not easy to keep this peace

And if we’re talking about treaties,

I decide for myself what I want to give up

There are no real negotiations with such disadvantages

David may not be Goliath, but he knows how to think

Hay reglas que guardo 


y armas que no compro


Guerras que no pago

y no puedo inventar


Todo lo que como lo siembro en mi patio


Me cuesta muy caro conservar mi paz



Y si de tratados se trata decido


Por mi propia cuenta lo que quiero dar


No hay negocioaciones cuando hay desventajas


David no es Goliat pero sabe pensar


Corporate accountability

Who’d ever think of

Abandoning the home you own,

Leaving it for others and going to rent elsewhere?

…. The tiger is loose

But even the donkey knows how to sit down and refuse to move.

Who’d ever think of a river without a watershed

Grains without a plain on which to flourish?

Who’d ever think of pretending to be someone else

Instead of being what you really are?

A quien se le ocurre abandonar la casa,


Dejar que entren otros e irse a alquilar
.... el tigre anda suelto


Pero no hay burro tonto que no se sepa sentar



A quien se le ocurre un río sin cauce


Un grano sin campo para florecer


A quien se le ocurre intentar ser otro


En lugar de ser lo que realmente es?


Corporate accountability

Better a hundred free birds, flying in these skies

Even though the skies sometimes cloud up with storms, they’re ours

A hundred free birds are worth more than one tied up by the foot

Locked in a cage without water, without light, without sky…

Más valen cien pajaros libres


Volando bajo este cielo


Que a veces tiene tormentas, nubarrones, pero es nuestro


Más valen cien pajaros libres


Que uno atado de una pata


O apagado o en una jaula sin agua, sin luz, sin cielo…


S al tlc

Sí al TLC

  • http://youtube.com/watch?v=EPRpYZKEPiw


3 human rights concerns in free trade agreements

3. Human Rights concerns in free trade agreements

Free trade = removal of tariffs and barriers and other “market distortions”

In theory, this should produce:

  • Reduced prices

  • Wider consumer choices

    How does this mesh with human rights reality?

  • In practice, a lot of what gets called free trade is not

    • Bottom line: look beyond the label “free trade” to actual policies

  • Should everything be a commodity?


  • Trade agreements in the americas

    Trade Agreements in the Americas

    Human rights concerns:

    • Lack of parity (e.g., agricultural subsidies) => dumping

    • Establish institutions that circumvent democratic checks and balances

      • Investor-state arbitration (Chapter 11 of NAFTA, Chapter 10 of CAFTA)

  • In some cases, limit state’s ability to provide services in ways that may threaten soc/ec rights

  • Labor, environmental chapters weak


  • Trade agreements in the americas1

    Trade Agreements in the Americas

    Growing controversy around “free” trade model in Americas

    Model currently stalled:

    • NAFTA 1994

    • US- Chile 2003

    • CAFTA 2005

    • US- Peru 2007

    • Agreements with Colombia, Panama (yet to be ratified)

    • FTAA originally scheduled for January 1, 2005; stalled


    Intellectual property medicines and the right to health a cafta case study

    Intellectual Property, Medicines, and the Right to Health: A CAFTA Case Study


    Intellectual property

    Intellectual property

    • Why is this a human rights issue?

    • History of IP

      • WTO TRIPS Agreement 1994

      • Doha Declaration 2001

      • “TRIPS-plus provisions” in free trade agreements began after Doha


    Intellectual property in central america

    Intellectual property in Central America

    CAFTA negotiations conclude

    WTO TRIPS

    Doha declaration

    2001

    2003

    1994

    1995

    2000

    Central America joins WTO, adopts TRIPS

    Deadline for Central American countries to become TRIPS-compliant

    Central American countries begin to adopt reforms to comply with CAFTA


    Corporate accountability

    HIV/AIDS in CAFTA countries

    • Prior to CAFTA: 1 in 6 people who need antiretrovirals received them

    • Generic treatment: $230 per patient, per year

    • Brand-name drugs: $2,000-2,500 per patient, per year


    Under trips

    Under TRIPS

    Patent requested

    Product enters market

    Patent granted

    Patent expires

    -3 -2 -1

    0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23…

    Synthesis

    Preclinical

    phase

    Clinical

    Phase

    I

    Clinical

    Phase

    II

    Clinical

    Phase

    III

    Health

    registry.

    Monopoly


    Under trips plus

    Under TRIPS-plus

    Product enters market

    Patent requested

    Patent granted

    Test data protection

    (5 years)

    Patent extension

    -3 -2 -1

    0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23…

    Synthesis

    Preclinical

    Phase

    Clinical

    Phase

    I

    Clinical

    Phase

    II

    Clinical

    Phase

    III

    Health

    registry

    1 2 3 4 5 6 7 8

    9 10 11…

    Monopoly


    Who opposes ip rights in fta s

    Who opposes IP rights in FTA’s?

    • Amnesty International

    • Oxfam

    • Doctors without Borders

    • World Health Organization

    • 11 members of US Congress in January 2005 “The test data secrecy/market exclusivity rules will slow the introduction of generic drugs, decrease competition, raise prices, and hinder access to life-saving medicines in the DR-CAFTA countries.”

    • 13 members of US Congress in November 2005

    • Ministers of health in 10 South American countries in May 2006


    What do defenders of trips plus say to such critiques

    What do defenders of TRIPS-plus say to such critiques?

    USTR: “CAFTA expressly states that nothing in the agreement will affect a country’s ability to take measures necessary to protect public health.”

    Argument that CAFTA/AFTA increase access by encouraging major pharmaceuticals to register drugs in small markets


    What s at stake

    What’s at stake?


    Corporate accountability

    Their lives are not for sale


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