-Caveat Lector-

   NAFTA's Chapter 11 tribunals violates Canadians' rights
   to freedom of the press and freedom of expression.

NAFTA rules violate press freedom guarantees

Tuesday, May 29, 2001

OTTAWA - A coalition is attacking the secrecy of NAFTA's Chapter 11
tribunals, arguing it violates Canadians' rights to freedom of the press
and freedom of expression.

The coalition filed a legal challenge today in the Ontario Superior Court
of Justice. The Sierra Legal Defence Fund filed the challenge on behalf of
the Canadian Union of Public Employees (CUPE) and Democracy Watch. The
challenge defends rights guaranteed in the Canadian Charter of Rights and
Freedoms.

"The secrecy of these tribunals flies in the face of long-established
principles that the judicial system must operate under the penetrating
light of public scrutiny. We believe Canada's agreement to NAFTA is
unconstitutional, because it incorporates this secret process," said
Raymond MacCallum, lawyer with the Sierra Legal Defence Fund.

NAFTA's Chapter 11 gives foreign corporations the power to sue governments
for infringing on their investments. Claims are heard by tribunals behind
closed doors.  The secrecy of the tribunals calls into question the
legitimacy of the entire Chapter 11 process, argue the groups.

"Corporations are using Chapter 11 to launch a wholesale attack on the
power of our governments to govern, to protect the environment and provide
public services. Under NAFTA's rules, they can do this with impunity. This
case confirms the government approaches trade without any regard for
democratic rights. We will defend these rights - and our public services,"
said Judy Darcy, CUPE National President.

The coalition believes Canadians need access to information and the
decision-making process to hold public institutions to account -
particularly on environmental issues, given the poor environmental track
record of international trade tribunals.

"NAFTA tribunals make decisions that have a greater impact on the lives of
Canadians than many courts. Canadians and the media can walk into any
court in Canada and watch what's going on, and NAFTA tribunals should face
the same scrutiny," said Duff Conacher, Coordinator of Democracy Watch.

The Canadian government has the discretion to release a tribunal's final
ruling, but is under no obligation to do so. The only way citizens or the
press can attend a tribunal hearing is if all parties agree - which has
not happened to date.

A win in the courts, leading to a declaration that Canada's agreement to
NAFTA in its present form is unconstitutional, will force Canada to
negotiate with the United States and Mexico to amend the secrecy rules of
Chapter 11. Any new provisions will have to uphold Canadians'
Charter-guaranteed rights. The case is particularly pressing, given that a
leaked draft of the investment chapter of the Free Trade Area of the
Americas includes a similar secretive process.

A backgrounder outlining the case is set out below and available on the
web sites of all three organizations, listed below.

                                   - 30 -

FOR MORE INFORMATION, CONTACT:

- Duff Conacher, Coordinator, Democracy Watch, Tel: (613) 241-5179,
  [EMAIL PROTECTED]

- Catherine Louli, CUPE Communications: 613-237-1590 ext. 268

- Raymond MacCallum, staff lawyer, Sierra Legal Defence Fund:
  416-368-7533 ext. 22

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