We expect that the laws that govern us in Ireland are made for the public good, by the people we elect. But a new trade deal would give unprecedented power to overseas corporations – allowing them to sue us over laws they don’t like.
The government is trying to sign Ireland up to a toxic trade deal between the EU and Canada, called CETA. The problem isn’t trading with Canada. It’s a sneaky condition in the agreement that allows for secret investor courts called ISDS (investor state dispute settlements). [1]
These are one-way, closed door tribunals that give big international corporations the power to sue Ireland over laws they think could impact their profits. And it’s ordinary people that would foot the bill – often billions of dollars. [2] Even the threat of these expensive lawsuits can stop governments pursuing policies that would make life better for the public, an effect known as ‘regulatory chill’. Laws to cap energy bills, to stop people being evicted from their homes, or to protect our seaweed forests from being pillaged are all at risk.
These investor courts have caused serious harm in other countries. [3] But it’s not too late to stop this from happening in Ireland.
Here’s 6 times big corporations have used these secret courts to attack workers’ rights, environmental protection and human health. More information on case studies can be found in this report from Public Citizen.
- Egypt forced to pay for raising the minimum wage
In 2012, French multinational corporation Veolia Proprete demanded €174 million from the Egyptian government after it raised the minimum wage for workers.
The case was eventually dismissed 6 years later. But even though the Egyptian government “won” they still had to spend years defending the case and pay millions of dollars in legal costs (the exact amount has not been made public).
- Greenland sued for protecting drinking water from uranium pollution
In 2021, the Greenland Government passed a law to ban uranium mining, due to the risk of radioactive waste contaminating drinking water, and damaging the sensitive marine environment that Inuit communities depend on for their livelihood. This followed an election, dubbed “the mining election,” where citizens overwhelmingly voted in support of this ban
As a result, Australian-listed company Energy Transition Minerals’ (ETM) application to mine on the mountain range of Kuannersuit was rejected. Now, the company is suing Greenland, demanding they allow the project to go ahead or pay compensation of up to $11.5 billion – nearly 10x the country’s annual budget. The case is ongoing.
- Canada forced to pay for allowing people to access more affordable medicine
Canadian courts made a decision to curb the monopoly that US pharmaceutical giant Eli Lilly had on ADHD medication, allowing people to access more affordable options.
Eli Lilly launched a $500 million ISDS claim in response. The case was eventually dismissed in 2016, but even though Canada technically “won”, it still had to pay a portion of its legal fees which cost the Canadian public $1.5 million CAD.
- Colombia sued for creating a national park
In 2009, the Colombian government established the Yaigojé Apaporis national park, protecting hugely important cultural and ecological sites in the Amazon rainforest and stopping them being destroyed by mining.
In response, an American and Canadian mining company joined forces to sue the Colombian government, demanding they allow them to mine on the land or pay $16.5 billion in damages. This is over a quarter of Colombia’s national budget and 1,500x what the mining companies had spent preparing for the mines. This case is ongoing.
- Germany forced to roll-back environmental protections
To comply with national and EU laws, the German Government issued clear environmental requirements for a coal-fired power plant. This included requirements to protect the local Elbe River from pollution.
Rather than comply, Vattenfall, the Swedish company behind the coal plant, launched a $1.9 billion ISDS case. This was enough to force the government to settle the case with Vattenfall out of court (for an undisclosed amount) with additional conditions that the company would not have to comply with the environmental requirements. It also waived a prior commitment from Vattenfall that they would mitigate the coal plant’s impacts on the Elbe River.
- Canada sued for banning cancer-causing chemical
In 1997, Canada banned a toxic gasoline additive called MMT that was found to have serious health and environmental risks. Because of these impacts, it had already been banned in the US.
US chemical company Ethyl launched an ISDS case in response. It not only forced the government to pay $13 million, but also meant Canada had to reverse the ban and issue advertising stating that MMT was safe. Thanks to this lawsuit, Canada has still not been able to implement a ban on the toxic chemical nearly 30 years later.
Take action
Until now, Ireland has been protected from this dangerous system of investor courts.
By signing us up to CETA, the Irish government would open the floodgates for big corporations.
In the case of CETA, it opens up the risk of us being sued by the Canadian corporations who want to strip our coastline of its beautiful seaweed forests. The country’s largest landlord, Ires Reit, could take legal action to stop rents becoming more affordable or it becoming more difficult to evict people. [4]
We can’t allow corporations to have a veto over our laws.
Senators still have a chance to stop this toxic trade deal, by stopping the crucial piece of legislation that enables secret corporate courts. We know many Senators aren’t fully aware of the risks. Will you email or call them now, sharing why it’s so important to vote no to the Arbitration Amendment Act?
NOTES
- Draft Irish legislation to ratify EU-Canada trade deal approved | RTE & Investor-State dispute settlements have catastrophic consequences for the environment and human rights: UN expert
- Secretive court system has awarded over $100bn public money to corporations, finds new analysis | Guardian
- Egregious ISDS Cases | Public Citizen’s Global Trade Watch
- Ireland’s biggest landlord tells investors new rent rules will be major boost for shareholders | Journal & ‘Corporate takeover of livelihoods’: The seaweed-harvesting battle on Ireland’s west coast | Irish Times


