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An Air Force soldier votes in a referendum proposed by President Daniel Noboa to endorse new security measures aimed at cracking down on criminal gangs fueling escalating violence, in Quito, Ecuador, April 21, 2024.
(Photo: Morning Star)
Why People of Ecuador Were Right to Keep the Corporate Courts Out
In a referendum, Ecuador voted to keep its constitutional ban on using international arbitration and investor-state dispute settlement mechanisms.
Apr 27, 2024
The people of Ecuador have given a resounding NO to the return of secretive, foreign corporate courts suing the Ecuadorian state for democratic decisions.
In a referendum held last week, Ecuador voted to keep its constitutional ban on using international arbitration and investor-state dispute settlement mechanisms (ISDS) to settle disputes between foreign corporations and the state.
This was the second time that the Ecuadorian people have voted No to ISDS and its international arbitration courts by means of a direct vote at the ballot box. The first time was in the 2008 constitutional referendum when a new constitution, including article 422 banning ISDS, was submitted to a popular vote. Then came the task of exiting ISDS commitments which the government and legislators managed to do, taking 8 years to fully achieve, in the face of powerful lobby groups doing their utmost to uphold ISDS. Ecuador first withdrew from ICSID (the ISDS court within the World Bank) and then terminated 24 bilateral investment treaties which contained ISDS provisions.
Congratulations to Ecuador, who voted No to the primacy of capital over human beings.
Ecuador has been on the receiving end of several costly compensation awards by ISDS tribunals in favour of investors. For example, in 2012, a tribunal ordered Ecuador to pay the US oil company Occidental over USD 1.5 billion, one of the largest amounts a state had ever been ordered to pay.
Remarkably, Ecuador's right-wing government tried to overturn the constitutional prohibition and reintroduce these anti-democratic courts. Companies owned by Ecuadorians but registered abroad and large transnational corporations were eager to return to a system which allowed them to evade Ecuadorian laws—and dodge Ecuadorian tax liabilities.
But 63% of voters said No: a hard blow to the ISDS system, which will have important repercussions for the global struggle to dismantle the ISDS system. And reinforcing the importance of Honduras' recent decision to withdraw from ICSID.
Congratulations to Ecuador, who voted No to the primacy of capital over human beings. And Yes to people, the environment, sovereignty, and democracy.
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This country and this world are at a monumental crossroads. US voters have an opportunity to beat back the forces of fascism and confront the billionaires who are rigging the economy, our media system, and our democracy, making it increasingly impossible for ordinary people to get by. We’re not just talking about the election. We’re talking about what must be done once these fascist elements are vanquished from power. We need a bolder set of solutions than what either major party has so far been willing to offer and a working-class movement ready to fight like hell for it. Trump didn't emerge from nowhere. The conditions that fueled MAGA authoritarianism were created by decades of radical neoliberal economic policies and a corrupt political system dominated by corporate interests. They slashed taxes on the super-rich, promising that the benefits would trickle down. They said giveaways to the corporate titans would make life more affordable for the rest of us. It was all bullshit. And when a bitter, betrayed populace searches for someone to blame, right-wing demagogues have little trouble finding scapegoats. People know when they're being lied to, but you won't hear any of this from the corporate media. Only independent journalism—powered and funded by people who believe in building a better world—can deliver truly trustworthy daily news. If you share our vision, please contribute whatever you can to sustain our work. |
The people of Ecuador have given a resounding NO to the return of secretive, foreign corporate courts suing the Ecuadorian state for democratic decisions.
In a referendum held last week, Ecuador voted to keep its constitutional ban on using international arbitration and investor-state dispute settlement mechanisms (ISDS) to settle disputes between foreign corporations and the state.
This was the second time that the Ecuadorian people have voted No to ISDS and its international arbitration courts by means of a direct vote at the ballot box. The first time was in the 2008 constitutional referendum when a new constitution, including article 422 banning ISDS, was submitted to a popular vote. Then came the task of exiting ISDS commitments which the government and legislators managed to do, taking 8 years to fully achieve, in the face of powerful lobby groups doing their utmost to uphold ISDS. Ecuador first withdrew from ICSID (the ISDS court within the World Bank) and then terminated 24 bilateral investment treaties which contained ISDS provisions.
Congratulations to Ecuador, who voted No to the primacy of capital over human beings.
Ecuador has been on the receiving end of several costly compensation awards by ISDS tribunals in favour of investors. For example, in 2012, a tribunal ordered Ecuador to pay the US oil company Occidental over USD 1.5 billion, one of the largest amounts a state had ever been ordered to pay.
Remarkably, Ecuador's right-wing government tried to overturn the constitutional prohibition and reintroduce these anti-democratic courts. Companies owned by Ecuadorians but registered abroad and large transnational corporations were eager to return to a system which allowed them to evade Ecuadorian laws—and dodge Ecuadorian tax liabilities.
But 63% of voters said No: a hard blow to the ISDS system, which will have important repercussions for the global struggle to dismantle the ISDS system. And reinforcing the importance of Honduras' recent decision to withdraw from ICSID.
Congratulations to Ecuador, who voted No to the primacy of capital over human beings. And Yes to people, the environment, sovereignty, and democracy.
The people of Ecuador have given a resounding NO to the return of secretive, foreign corporate courts suing the Ecuadorian state for democratic decisions.
In a referendum held last week, Ecuador voted to keep its constitutional ban on using international arbitration and investor-state dispute settlement mechanisms (ISDS) to settle disputes between foreign corporations and the state.
This was the second time that the Ecuadorian people have voted No to ISDS and its international arbitration courts by means of a direct vote at the ballot box. The first time was in the 2008 constitutional referendum when a new constitution, including article 422 banning ISDS, was submitted to a popular vote. Then came the task of exiting ISDS commitments which the government and legislators managed to do, taking 8 years to fully achieve, in the face of powerful lobby groups doing their utmost to uphold ISDS. Ecuador first withdrew from ICSID (the ISDS court within the World Bank) and then terminated 24 bilateral investment treaties which contained ISDS provisions.
Congratulations to Ecuador, who voted No to the primacy of capital over human beings.
Ecuador has been on the receiving end of several costly compensation awards by ISDS tribunals in favour of investors. For example, in 2012, a tribunal ordered Ecuador to pay the US oil company Occidental over USD 1.5 billion, one of the largest amounts a state had ever been ordered to pay.
Remarkably, Ecuador's right-wing government tried to overturn the constitutional prohibition and reintroduce these anti-democratic courts. Companies owned by Ecuadorians but registered abroad and large transnational corporations were eager to return to a system which allowed them to evade Ecuadorian laws—and dodge Ecuadorian tax liabilities.
But 63% of voters said No: a hard blow to the ISDS system, which will have important repercussions for the global struggle to dismantle the ISDS system. And reinforcing the importance of Honduras' recent decision to withdraw from ICSID.
Congratulations to Ecuador, who voted No to the primacy of capital over human beings. And Yes to people, the environment, sovereignty, and democracy.
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