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Working Paper 98-4
Tables

NAFTA Supplemental Agreements: Four Year Review

© Institute for International Economics. All rights reserved.

 

Table 1: CEC Article 14 Submissions on Enforcement Matters, January 1, 1994-May 1, 1998
Submission
I.D.
Filed
Claimant
Defendant
Claim
Status
SEM-97-001 4/2/97 B.C. Aboriginal Fisheries Commission, et al. Canada Failure to enforce the Canadian Fisheries Act and to use its powers pursuant to the National Energy Board Act to ensure the protection of fish and fish habitat in B.C. rivers from ongoing and repeated environmental damage caused by hydro-electric dams. Secretariat is reviewing the submission in light of the response from Canada.
SEM-97-002 3/15/97 Comite Pro Limpieza del Rio Magdalena Mexico Failure to enforce Mexican environmental laws governing disposal of wastewater. Alleging that wastewater from Imuris, Magdalena de Kino, and Santa Ana is being discharged into the Magdalena River without prior treatment. Secretariat is reviewing submission.
SEM-97-003 4/9/97 Centre quebecois du droit de l'environnement, et al. Canada Failure to enforce several environmental protection standards regarding agriculture pollution originating from animal production facilities in Quebec. Secretariat is reviewing the submission in light of the response from Canada.
SEM-97-004 5/26/97 Canadian Environmental Defence Fund Canada Failure to enforce law requiring environmental assessment of federal initiatives, policies and programs. In particular, failure to conduct an environmental assessment of the Atlantic Groundfish Strategy, as required by Canadian Law, jeoporadizing the future of Canada's east coast fisheries. Secretariat determined that submission criteria was not met. Lack of evidence that the Party is failing to effectively enforce its environmental law. Specifically, there was a significant delay between the time of the alleged failure to enforce and the filing of the submission, and there was no indication that the Party's failure was continuing. Moreover, the law had been superseded and is no longer in force, and nothing indicates that local remedies were diligently pursued. Process terminated.
SEM-97-005 7/21/97 Animal Alliance of Canada, et al. Canada Failure to pass endangered species legislation or regulations as required by the Biodiversity Convention to which Canada is a signatory. Secretariat is reviewing submission.
SEM-95-001 6/30/95 Biodiversity Legal Foundation, et al. USA Failure to effectively enforce some provisions of the Endangered Species Act of 1973 due to enactment of the Rescissions Act of 1995. Process terminated. Determined that "enactment of legislation which specifically alters the operation of pre-existing environmental law in essence becomes a part of the greater body of laws and statutes on the books. "The Sectretariat" cannot characterize the application of a new legal regime as a failure to enforce an old one."
SEM-95-002 8/30/95 Sierra Club, et al. USA Failure to effectively enforce all applicable Federal environmental laws by eliminating private remedies for salvage timber sales due to "Logging Rider" clause of the Rescissions Act of 1995. Process terminated for the same reason as stated in submission SEM-95-001. The Secretariat also concluded that the submission lacked a factual basis supporting the assertion of failure to effectively enforce.
SEM-96-001 1/18/96 Comite para la Proteccion de los Recursos Naturales, et al. Mexico Failure to effectively enforce environmental laws during the evaluation process of a project involving construction and operation of a port terminal and related works in Cozumel. Factual record released Oct. 24, 1997.
SEM-96-002 3/20/96 Aage Tottrup, P. Eng Canada Failure to effectively enforce environmental laws resulting in the pollution of specified wetland areas impacting on the habitat of fish and migratory birds. Process terminated because submission currently pending before Canadian Court of Law.
SEM-96-003
SEM-97-006		 9/9/96
10/4/97		 The Friends of the Old Man River Canada Failure to effectively enforce the habitat protection sections of the Fisheries Act and the Canadian Environmental Assessment Act. Process terminated because a similar legal issue is currently pending before Canadian Court of Law. The submission was re-filed (as SEM-97-006) on October 4, 1997, following conclusion of Canadian legal proceedings.
SEM-96-004 11/14/96 The Southwest Center for Biological Diversity and Dr. Robin Silver USA Failure to effectively enforce the National Policy Act with respect to the U.S. Army's operation at Fort Huachuca. Specifically, expansion of the base will drain local water supply and destroy the ecosystem dependent on it. Submission withdrawn. Matter is currently being examined by the Secretariat under Article 13.
SEM-97-007 10/10/97 Instituto de Derecho Ambiental Mexico Failure to effectively enforce the applicable environmental laws with respect to a citizens' complaint filed on 23 September 1996 in regard to the Hydrological Basin of the Lerma Santiago River-Lake Chapala. The citizen's complaint was submitted "with the view to declaring a state of environmental emergency in the Lake Chapala ecosystem, following administrative proceedings." Specifically, the submitters allege failure to carry out the formalities the case required and the administrative procedures provided by the LGEEPA. Secretariat is reviewing submission.
SEM-98-002 10/14/97 Hector Gregorio Ortiz Martinez Mexico Failure to effectively enforce the applicable environmental legislation in relation to a citizen's complaint regarding lumbering operations at the "El Taray" site in the state of Jalisco. Specifically, the submitter alleges that the technical audit and inspection visit which were performed was an inadequate response to the citizen submission and that the relevant authority failed to issue the appropriate ruling regarding damages and losses as provided by section 194 of the LGEEPA that was in force at the time of the submission. Secretariat is reviewing submission.
SEM-98-001 1/9/98 Instituto de Derecho Ambiental Mexico Failure of the Federal Attorny General and Federal Judiciary to effectively enforce the LGEEPA in relation to the April 22, 1992 explosions in the Reforma area of the city of Guadalajara, state of Jalisco. Secretariat is reviewing submission.

Source: Commission for Environmental Cooperation. 1998. Submissions on Enforcement Matters. http://www.cec.org/English/citizen/index.cfm?format=1 ( May 8).

Table 2. BECC Certified Projects and BECC/NADBank Participation, January 1, 1994-April 22, 1998

Location Project Certified BECC/NADBank Participation
Brawley, California, USA Water Treatment Plant (US$24.8 million) 9/28/95
  • NADBank served as advisor and lead investor.
  • Advisory work included working with the community developing an affordable project, beginning a credit rating process, and participating in public rate hearings.
  • NADBank purchased US$1 million in bonds. US$18 million non-rated bond issue was a success, attracting sophisticated institutional investors.
  • Received IDP grant for a wastewater rate analysis for potential wastewater treatment plant expansion and rehabilitation project.
    • Ensenada, Baja California, Mexico Wastewater Treatment Plant (US$8.2 million) 9/28/95
  • Waiting for new project design which would lower cost and include a pre-treatment plant for industrial wastewater.
  • During formulation of new proposal, NADBank offered to act as investment banker and direct lender.
  • Project is seeking funds for current stage of project execution from other sources. NADBank may provide financial assistance at a later stage.
    • El Paso, Texas, USA Wastewater Reuse Project (US$11.7 million) 11/15/95
  • Project did not seek NADBank assistance.
  • City presented project for BECC certification in an effort to attract funding from public sources.
    • Nogales, Sonora, Mexico Water Supply and Distribution Project (US$39 million) 1/18/96
  • NADBank is acting as investment banker and is a potential direct lender.
  • Potential loan amount for first phase is US$9 million. Contractor equity participation will be 10% of project cost.
  • Received BECC technical assistance grant.
  • Received IDP grant for a waterline survey & equipment.
    • Matamoros, Tamaulipas, Mexico Wastewater Treatment Plant for the FINSA Industrial Park (US$1.1 million) 1/18/96
  • US$550,000 NADBank commercial loan guarantee approved. Loan closing pending contractual issues between Bimexsa and industrial park.
  • Will receive IDP assistance for administrative, legal, and mangerial studies as well as training.
    • Naco, Sonora, Mexico Water Supply and Wastewater Treatment Project (US$1.02 million) 4/30/96
  • NADBank is acting as investment banker and direct lender.
  • Project will receive approximately US$424,000 from the NADBank's BEIF (The Mexican government gave the project a grant for US$420,000.)
  • US$180,000 NADBank loan approved. Further analysis indicated a lower debt capacity so loan will likely be reduced to US$128,000.
  • Received BECC technical assistance grant.
  • Received IDP grant for managerial studies and information systems.
    • El Paso, Texas, USA On-Site Self-Help Wastewater Treatment System Project (i.e. Project to provide no-interest loans to help 180 colonia families properly install septic tanks and treat household sewage.) (US$155,000) 7/18/96
  • BECC will assist project in seeking grant funding from various agencies and foundations to complete project.
  • No additional assistance is requested from the NADBank.
    • Somerton, Arizona, USA Wastewater Treatment Project (US$2.7 million) 11/9/96
  • NADBank is acting as investment banker.
  • Helped coordinate funding efforts for the project with the US EPA, the Department of Agriculture, and others.
  • NADBank helped revise project for potential savings.
  • A technical evaluation of the system's operation and maintanance is currently under way.
  • Received BECC technical assistance grant.
  • Will receive IDP grant for a water and wastewater rate study.
    • Agua Prieta, Sonora, Mexico Sanitary Landfill Project (US$2.0 million) 11/9/96
  • NADBank is acting as investment banker and direct lender.
  • Working with the city to develop a financial plan and bring together funding from other souces.
  • The Mexican federal government provided US$250,000 in 1997 and has agreed to provde US$250,000 in 1998.
  • NADBank may provide funds for the purchase of equipment.
  • Received BECC technical assistance grant.
  • Received IDP grant to develop administrative, legal and mangerial organization.
    • Mercedes, Texas, USA Water Supply and Sewage Collection Project (US$4.1 million) 11/9/96
  • NADBank is acting as investment banker and direct lender.
  • NADBank lent US$1.87 million in interim finance. Permanent financing will be provided by the Texas Water Development Board.
  • Received BECC technical assistance grant.
  • Bank will provide IDP grant for an inventory of the system assets, an infiltration and inflow study and a waterlines and water loss survey.
    • Puerto Penasco, Sonora, Mexico Sanitary Landfill Project (US$2.2 million) 11/9/96
  • NADBank is acting as investment banker and is a potential direct lender.
  • Municipal revenue from a nearby toll bridge will partially finance the project.
  • Potential NADBank loan amount is US$1.13 million.
  • Received BECC technical assistance grant.
  • Received IDP grant for administrative, legal and mangerial organization and a solid waste collection and transportation study.
    • Douglas, Arizona, USA Upgrade of Water and Wastewater Treatment Facilities (US$2.0 million) 1/18/97
  • NADBank will act as investment banker.
  • Project did not seek NADBank funding.
  • BECC certification helped the project receive funding from other sources.
  • Received IDP grant for a water and wastewater rate study.
    • Tijuana, Baja California, Mexico Parallel Conveyance System and Rehabilitation of the San Antonio de los Buenos Plant (US$18.2million) 6/18/97
  • NADBank is acting as investment banker and will be a direct lender.
  • Will receive US$16 million grant from NADBank's BEIF.
  • NADBank is negotiating a loan for US$2.2 million with Tijuana's local water utility.
  • Received BECC technical assistance grant.
  • Will request IDP assistance for a waterline survey and equipment.
    • Alton, Texas, USA Wastewater Treatment System (US$14.8 million) 6/18/97
  • Will receive funds from the NADBank's BEIF for construction and transition assistance. Extimated assistance is approximately US$115,000.
  • Permanent financing will be provided by the Texas Water Development Board.
    • San Diego, California, USA Expansion of South Bay Reclamation Plant (US$99.3 million) 6/18/97
  • NADBank is reviewing project.
  • Requested BEIF assistance. NADBank recommended to the EPA US$981,000 in construction assistance.
    • Tijuana, Baja California, Mexico Ecoparque (i.e. project set up to treat wastewater to secondary standards for reuse as irrigation to green areas.) (US$177,000) 6/18/97
  • Project is not seeking NADBank financial participation.
  • Project is seeking funds from other sources.
    • Cuidad Juarez, Chihuahua, Mexico Wastewater Treatment Plants and Supplemental Wastewater Collection Projects (US$31.2 million) 9/30/97
  • NADBank is acting as investment banker and potential direct lender.
  • Received US$11.08 million in BEIF funds. Final negoatiations are currently taking place for NADBank loan of up to US$11 million.
  • Will receive IDP loan for a water loss and repairs study.
    • Mexicali, Baja California, Mexico New River Sanitation Program (US$50.4 million) 1/7/98
  • NADBank is acting as investment banker and is a potential direct lender.
  • NADBank is performing a financial analysis to determine the potential amount of loan and of BEIF participation.
  • Seeking IDP assistance for a waterline survey and equipment. NADBank is currently reviewing the request.
    • El Paso, Texas, USA Jonathan Rogers Water Treatment Plant Expansion (US$37.8 million) 1/7/98
  • Project will be financed primarily with municipal bonds.
  • Authorization from the EPA being sought for US$9.54 million in BEIF funds.
    • Del Rio, Texas, USA Water Treatment Plant and Improvements
    (US$40.3 million)    		 3/31/98
  • Project will be financed primarily with municipal bonds.
  • Requested BEIF assistance.
  • Seeking IDP funds for a rate study.
    • Reynosa, Tamaulipas, Mexico Sanitation System (US$80 million) 3/31/98
  • NADBank is acting as investment banker and potential direct lender.
  • The NADBank, jointly with the BECC, CNA and EPA has been developing a financial package for the project.
  • Will provide IDP funds for a water loss and repairs study.

    • Source: NADBank, NADBank News, Vol. II, Issue No. 9, April 22, 1998; Certification dates are from the BECC, Project Certification. http:cocef.interjuarez.com/ing53.htm.

     

    Table 3. U.S. NAO Submissions on Enforcement Matters, January 1, 1994-April 10, 1998
    Submission Filed Claimant Defendant Claim Status
    940001 and 940002 2/14/94 International Brotherhood of Teamsters and United Electrical, Radio and Machine Workers of America, respectively Honeywell Corporation and General Electric Coorporation in Mexico Workers deprived of their freedom of association and the right to organize into unions of their our choice. Process terminated at NAO review stage due to insufficient evidence. U.S. NAO recommended the development of trilateral programs addressing freedom of association and the right to organize and for public information and education regarding the NAALC.
    940003 8/16/94 International Labor Rights Education and Research Fund Corporation, the National Association of Democratic Lawyers of Mexico, the Coalition for Justice in the Maquiladoras, and the American Friends Service Committee. Sony Corporation in Mexico Workers deprived of their freedom of association and the right to organize and minimum employment standards relating to hours of work and holiday work. Ministerial consultations held. Resulted in a two year program of activities including seminars, workshops, meetings and studies to address union registration and its implications. The U.S. NAO issued a report in December 1996 based on a follow-up review of the issues and a related Mexican Supreme Court decision. (Allegations concerning minimum employment standards were not accepted for review because appropriate measures had not been taken under the laws of Mexico.)
    940004 9/12/94 United Electrical, Radio, & Machine Workers General Electric Corporation in Mexico Workers deprived of their freedom of association and the right to organize. Withdrawn before completion of review process.
    9601 6/13/96 International Labor Rights Fund, Human Rights Watch/Americas and the National Association of Democratic Lawyers of Mexico. Mexican Government Federal workers denied freedom of association and the right to organize resulting from, among other reasons, Mexican government failure to comply with international labor organization conventions to which it is a signatory. Also, questioned whether labor tribunals reviewing these issues are impartial. Ministerial consultations held on the status of international treaties, constitutional provisions and protecting freedom of association. Resulted in NAFTA members agreeing to exchange information to permit a full examination of the issues raised. A seminar, open to the public, was held in Baltimore on December 4, 1997 regarding these issues. The allegation of imparitality of labor tribunals for the federal sector were found to be ungrounded. The NAO is currently considering a request by the submitters on December 3, 1997 to reopen the submission on grounds that some of the issues raised in the original submission were not adequately addressed.
    9602 10/11/96 Communications Workers of America, Union of Telephone Workers of Mexico, and Federation of Unions in Goods and Services Companies of Mexico. Maxi-Switch in Mexico Workers denied freedom of association and the right to organize. Submitters withdrew the submission after the federal government instructed the local authorities to certify the independent union. The local authorities have not complied and the dispute has been taken to the Mexican courts.
    9701 5/16/97 Human Rights Watch, the International Labor Rights Fund, and the National Association of Democratic Lawyers of Mexico. Mexican Government Failure to enforce Mexican labor law prohibitions on discrimination against pregnant women. Also, allege that Mexico denies victims of sex discrimination access to impartial tribunals. In January 1998, the U.S. NAO requested ministerial consultations on the effectiveness of Mexican laws and law enforcement in protecting against pregnancy-based gender discrimination.
    9702 10/30/97 Support Committee for Maquiladora Workers (SCMW),the International labor Rights Fund, the National Association of Democratic Lawyers of Mexico, and the Union of Metal, Steel, Iron, and Allied Workers Union of Mexico. Han Young factory in Mexico and Mexican Government Workers denied freedom of association and the right to organize. Also, raises issues of failure by Mexico to enforce its laws on safety and health, wages, dismissal from employment, and profit sharing. Mexican government recognized the results of a second election (secret ballot election held on December 12, 1997) which was won by the independent union. However, Han Young has subsequently refused to negotiate with the new union and the responsible labor tribunal has permited another election at the plant to challenge the representation by the independent union. The Mexican government levied a US$9,000 fine against Han Young for health and safety violation.
    9703 12/15/97 Echlin Workers Alliance, the Teamsters, the Canadian Auto Workers, UNITE, the United Elecrical, radio and Machine Workers of America, the Paperworkers, and the Steelworkers, et al. ITAPSA export processing plant in Mexico Workers denied freedom of association and the right to organize. The U.S. NAO is currently reviewing the submission.

    Source: NAO, U.S. Department of Labor, "Status of Submissions Under the North American Agreement on Labor Cooperation (NAALC)", April 10, 1998; Various Public Report of Reviews by the U.S. NAO, Bureau of International Labor Affairs, U.S. Department of Labor, and by the Mexican NAO, Secretariat of Labor and Social Welfare.

     

    Table 4. Mexican NAO Submissions on Enforcement Matters, January 1, 1994-April 10, 1998
    Submission Filed Claimant Defendant Claim Status
    9501 2/9/95 Mexican Telephone Workers Union Sprint Corporation in U.S. Workers deprived of their freedom of association and the right to organize due to closure of Sprint subsidiary in San Francisco shortly before a union representation election. Ministerial Consultations held.
    Resulted in:
    1. a public forum held in San Francisco.
    2. initiation of Secretariat special study on "Plant Closings and Labor Rights" The Communications Workers of America filed an unfair labor practice case with the National Labor Review Board (NLRB). On Dec. 27, 1996, the NLRB ordered Sprint to reinstate the dismissed workers and awarded backpay. Sprint filed an appeal with the U.S. federal courts. In November 1997, the US federal courts reversed the NLRB ruling and ruled that Sprint closed its plant because the it was losing money, not because the company feared the workers would vote to join a union.

    Source: NAO, U.S. Department of Labor, "Status of Submissions Under the North American Agreement on Labor Cooperation (NAALC)", April 10, 1998; Report on Review of Public Submission: NAO Submission #9501, NAO, Secretariat of Labor and Social Welfare, Mexico, Federal District, May 31, 1995.

     

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