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For Immediate Release
November, 12 2010, 10:25am EDT
Contact:
In Milwaukee, contact Babette Grunow atÂ
(414) 447-8369
In Washington, DC,
contact Lisa Fuller at (202) 521-2510
In La Crosse, contact Al Gedicks at (608)
785-6782
In El Salvador, contact (in Spanish)
David Pereira at 011 503 2225-1906 Ext. 106
In
El Salvador
( in English), contact Sarah Bishop at 011 503 785-727-2252
Community Organizations Call on Commerce Group to Drop its $100 Million Lawsuit Against El Salvador
Milwaukee-based firm suing over decision to block its mining operations after evidence of massive water contamination
MILWAUKEE, WI
A coalition of Milwaukee and national organizations called on Commerce Group, a Milwaukee-based mining corporation to drop its controversial $100 million legal case against the government of El Salvador. In 2006 the Salvadoran government revoked the company's mining permits, following evidence that its operations were dumping highly toxic poisons into local water. In retaliation, Commerce Group filed a demand before a World Bank trade court (the International Center for Settlement of Investment Disputes, ICSID) demanding not only payment for its investments but also for tens of millions of dollars in what it claims are "lost profits." The demand is being filed under the foreign investor "protections" of the U.S.-Dominican Republic-Central America Free Trade Agreement (DR-CAFTA). The first hearing in the case will take place on November 15 in Washington, D.C.
Miguel Rivera, an environmental organizer with the Association for Economic and Social Development (ADES) in El Salvador, warned that the case and the international trade rules that allow it "limit the government's ability to defend the lives of the residents" and "put economic rights above the people's right to life."
Commerce Group's mining activity in El Salvador over the past 40 years has resulted in severe environmental and public health problems in the municipality of Santa Rosa de Lima, where the mine is located. The Salvadoran government revoked Commerce Group's mining permit on September 13, 2006, citing devastating environmental damage that can't be prevented with any existing modern technology.
A 2006 study by Dr. Flaviano Bianchini found that the San Sebastian River, which runs through the town contains 100,000 times more acid than uncontaminated bodies of water in the same region. The study also found levels of poisonous cyanide more than 10 times higher than the maximum allowed by the World Health Organization. The Investment and Trade Research Center in El Salvador has recently filed a lawsuit against Commerce Group with the Salvadoran Attorney General to investigate the connection between mining activities and disproportionate rates of death due to kidney failure in nearby communities, likely related to elevated levels of heavy metals in the San Sebastian River.
According to Al Gedicks, professor of sociology at the University of Wisconsin-La Crosse and author of Resource Rebels, commenting on the case, said "If anything, it is Commerce Group who should be paying for the toxic legacy they have left behind." Gedicks is one of several scholars who have joined an international coalition of environmental organizations, policy advocates and churches to halt the lawsuit and stop metallic mining in El Salvador. The group, the Midwest Coalition Against Lethal Mining (MCALM), includes several national organizations such as Sister Cities and CISPES, the Committee in Solidarity with the people of El Salvador.
According to Babette Grunow of MCALM, "This lawsuit is a cynical attempt by an unsuccessful company to exploit international trade agreements to make money that they have been unable to make by legitimate means." Grunow points to Commerce Group's own filings with the U.S. Securities and Exchange Commission, which shows no earnings since 2002, four years before their permit was revoked. "This lawsuit is nothing but a dishonest 'get rich quick' scheme at the expense of an entire nation," said Grunow.
Chapter 11 of DR-CAFTA, under which Commerce Group has filed its suit, remains one of the most controversial aspects of U.S. trade policy. The equivalent chapter in NAFTA, Chapter 10, has come under fire in recent years, including from President Obama. During his presidential campaign, Obama promised to "strictly limit" foreign investor protections in a renegotiation of NAFTA and to fully exempt any regulation protecting public safety.
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The Biden White House late Friday accused Republicans of attempting to "take food out of the mouths of hungry Americans" by imposing new work requirements on recipients of federal nutrition assistance, a public rebuke of the GOP that came as negotiators worked to finalize a debt ceiling agreement.
Additional work requirements appear to be among the final sticking points in the time-sensitive talks, with the GOP insisting on their inclusion in any agreement to raise the debt limit.
In a statement Friday night, White House spokesperson Andrew Bates said the GOP's proposed work requirements for the Supplemental Nutrition Assistance Program (SNAP) are "designed to tie the most vulnerable up in bureaucratic paperwork" and "have shown no benefit for bringing more people into the workforce."
"The GOP claims doing so is necessary in the interest of $11 billion in deficit reduction," said Bates. "But at the same time, they have doubled down on tax cuts skewed to the rich and special interests that would add $3.5 trillion to our debt."
House Republicans have demanded new work requirements for recipients of SNAP, Medicaid, and Temporary Assistance for Needy Families (TANF)—many of whom already work.
Asked Friday whether the GOP would be willing to drop its push for work requirements, Rep. Garret Graves (R-La.)—the party's lead negotiator—said, "Hell no."
"Hell no," he repeated. "Not a chance."
The White House has spoken out against new work requirements for SNAP and Medicaid, but it's unclear whether it opposes fresh work mandates for TANF, which replaced the more generous Aid to Families With Dependent Children program under the Clinton welfare reform law that Biden supported as a senator.
Rep. Pramila Jayapal (D-Wash.), chair of the Congressional Progressive Caucus, welcomed the White House's statement against SNAP work requirements, which analysts say could strip food aid from millions of people amid a worsening hunger crisis.
"The president is calling out MAGA GOP hypocrisy of refusing to raise the debt ceiling so the economy doesn't crash simply to take food from hungry people," Jayapal tweeted Saturday. "When you count admin[istrative] costs of bureaucratic red tape, this would produce ZERO savings. Isn't and has never been about saving money."
The White House issued its statement amid growing progressive concerns over the concessions the Biden administration has reportedly granted to GOP hostage-takers.
On Friday, watchdogs, Democratic lawmakers, and policy analysts responded with outrage to reports that the Biden White House is leaning toward accepting Republicans' demand for IRS funding cuts—a giveaway to rich tax cheats.
Progressives have also voiced alarm over reports that the emerging debt ceiling deal includes a two-year cap on non-military federal spending, which would result in cuts to key domestic programs.
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More than a dozen states, including Florida and other Republican-led states that have refused to expand Medicaid under the Affordable Care Act, have begun removing people from Medicaid as part of the "unwinding" of a pandemic-era federal policy that temporarily barred governments from kicking people off the program.
In a bipartisan deal late last year, Congress agreed to cut off the pandemic protections, giving states 12 months to redetermine who is eligible for the healthcare program that covers tens of millions of Americans.
The process differs in each state, but Medicaid enrollees are typically required to complete paperwork verifying their income, address, disability status, and other factors used to determine eligibility for the program.
While some states have undertaken public outreach campaigns to ensure Medicaid recipients understand what they need to do to continue receiving benefits, most enrollees across the country "were not aware that states are now permitted to resume disenrolling people from the Medicaid program," according to new survey data from the Kaiser Family Foundation (KFF).
As a result, The New York Timesreported Friday, "many people lost coverage for procedural reasons, such as when Medicaid recipients did not return paperwork to verify their eligibility or could not be located."
"The large number of terminations on procedural grounds suggests that many people may be losing their coverage even though they are still qualified for it," the newspaper added. "Many of those who have been dropped have been children."
Early data released by the state of Florida, for example, shows that more than 205,000 people in the state lost coverage for procedural reasons after April eligibility checks.
"We knew this was coming. But we still treat these burdens like they're unavoidable natural disasters," said Pamela Herd, a professor of public policy at Georgetown University. "We need to be much more explicit about these failures because we're making a choice to allow this."
Joan Alker, executive director of the Georgetown Center for Children and Families, said she is "very worried about Florida."
"We've heard the call center's overwhelmed, the notices are very confusing in Florida—they're very hard to understand," said Alker.
In a recent letter to Republican Gov. Ron DeSantis, a 2024 presidential candidate, more than 50 advocacy groups demanded a Medicaid redetermination pause, pointing to "reports of Floridians being disenrolled from Medicaid without having received notice" from the state's Department of Children and Families (DCF).
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"We are deeply concerned about those with serious, acute, and chronic conditions who will continue to lose access to their lifesaving treatments during this time, along with people who risk substantial medical debt, or even bankruptcy, as a result of coverage loss," the groups added.
\u201cWhat if instead we just gave everyone health insurance coverage??!! \nhttps://t.co/hSOQKYU7JY\u201d— Ady Barkan (@Ady Barkan) 1685130002
The Times highlighted the situation in Arkansas, which is led by Republican Gov. Sarah Huckabee Sanders—a supporter of Medicaid work requirements and other attacks on the program. (Work requirements were briefly tried in Arkansas in 2018 and 2019, with disastrous consequences.)
"In Arkansas, more than 1.1 million people—over a third of the state's residents—were on Medicaid at the end of March [2023]," the Times noted Friday. "In April, the first month that states could begin removing people from the program, about 73,000 people lost coverage, including about 27,000 children 17 and under."
An Arkansas law requires the state to complete its Medicaid eligibility reviews in six months instead of 12.
In a Wall Street Journalop-ed earlier this month, Sanders wrote that her state is booting people from Medicaid at "the fastest pace in the nation" and claimed those being removed are "ineligible participants"—ignoring evidence that many being stripped of coverage were technically still eligible.
The U.S. Health and Human Services Department has estimated that upwards of 15 million people nationwide could lose Medicaid coverage during the redetermination process.
"This is such an enormous policy failure—profoundly cruel and will contribute to furthering inequities," Dr. CecÃlia Tomori, a public health scholar at Johns Hopkins University, wrote Friday.
While some who lose Medicaid will be able to access insurance through an employer or the Affordable Care Act marketplaces, KFF found that more than four in ten people with Medicaid as their only source of healthcare "say they wouldn't know where to look for other coverage or would be uninsured" if they were removed from the program.
"This is about to happen to a lot of people," warned Larry Levitt, KFF's executive vice president for health policy.
The Times pointed to the case of 54-year-old Arizona resident Debra Miller, who "lost Medicaid coverage in April after her roughly $25,000 annual salary as a Burger King cook left her ineligible."
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Miller told the newspaper that the new plan is a "struggle" both because of the new monthly payment and because it doesn't include the vision coverage she needs and now may not be able to afford.
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While House Speaker Kevin McCarthy's (R-Calif.) office has reportedly not met with representatives of the U.S. Chamber of Commerce during the debt ceiling standoff, a representative of the powerful business group said earlier this week that such a meeting would be pointless given that the Chamber and the GOP are so closely aligned.
Neil Bradley, the Chamber's chief policy officer, toldPolitico earlier this week that a meeting with McCarthy would be a "cheerleading session."
"I see the relationship as respectful, so I'm not worried about wasting his time to come in and say, 'Look how much I agree with you,'" said Bradley, who previously served as McCarthy's deputy chief of staff.
In a letter to the Chamber's chief executive on Friday, a trio of Democratic senators led by Sen. Elizabeth Warren (D-Mass.) slammed Bradley's remarks and demanded to know "how the Chamber justifies supporting the Republican agenda of continued tax cuts for the wealthy, while cheerleading for threats to impose a default and austerity for everyone else."
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Warren, joined by Sens. Sheldon Whitehouse (D-R.I.) and Ed Markey (D-Mass.), accused the Chamber of fully backing the GOP's "shameless hypocrisy" by lobbying for tax breaks that Republicans are expected to include in a tax cut package coming sometime next month.
"The American people deserve to understand why you are supporting even more deficit-busting tax giveaways for giant corporations, while also cheerleading Republican demands to inflict painful, job-killing austerity on everyone else in a pretense of 'fiscal responsibility,'" the senators wrote, demanding to know how much the Chamber has spent on tax-related lobbying this year and what discussions the group has had with Republicans on the House's tax-writing committee.
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The Democratic senators' letter came as Treasury Secretary Janet Yellen warned that the federal government will run out of money to meet its obligations by June 5 if Congress does not raise the debt ceiling.
The Washington Postreported Friday that White House and GOP negotiators are "closing in on an agreement that would raise the debt ceiling by two years—a key priority of the Biden administration—while also essentially freezing government spending on domestic programs and slightly increasing funding for the military and veterans affairs."
When accounting for inflation, keeping non-military spending flat would mean potentially significant real-term cuts to key aid programs, from nutrition assistance to housing.
The Chamber has openly endorsed the GOP push for spending caps and warned President Joe Biden against using his 14th Amendment authority to unilaterally prevent a default, claiming such a move would be "as economically calamitous as a default."
On Friday, a top Treasury Department official said the White House will not invoke its 14th Amendment authority to continue paying the nation's bills if talks with the GOP collapse.
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