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The Wall Street Publication > Blog > World > Good for mining however dangerous for democracy? Why Indigenous teams in Ecuador oppose free commerce cope with Canada
World

Good for mining however dangerous for democracy? Why Indigenous teams in Ecuador oppose free commerce cope with Canada

Editorial Board Published February 11, 2025
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Good for mining however dangerous for democracy? Why Indigenous teams in Ecuador oppose free commerce cope with Canada
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Ecuador’s largest Indigenous group is vowing to battle a now-concluded free commerce settlement with Canada, warning it may encourage human rights abuses within the ecologically and culturally various South American nation.

“We’ve not been consulted as Indigenous Peoples, and we believe that this process is a violation of our rights,” she advised CBC Indigenous in Spanish.

Canada and Ecuador introduced the tip of negotiations final week. Amid threats of crushing tariffs from the US, International Affairs Canada is touting the elimination of commerce obstacles on $1.4 billion in bilateral merchandise and the diversification of partnerships.

Opponents, nevertheless, say that rationalization is opportunistic, arguing the association would primarily profit Canada’s mining sector, the primary supply of $4.4 billion in direct Canadian funding in Ecuador in 2023.

“This trade agreement is, in our view, focused on expanding mining activity in Ecuador, and this will have many destructive impacts,” mentioned Yasacama, who belongs to the Kichwa folks of Pakayaku within the Ecuadorian Amazon.

Prime Minister Justin Trudeau, proper, meets with the President of Ecuador Daniel Noboa on March 5, 2024, in Ottawa. (Adrian Wyld/The Canadian Press)

“This is our huge concern and this is why we will resist, as we have for more than 500 years. We believe that there will be more assassinations and criminalization as we engage in resistance.”

The deal nonetheless must be ratified. 

In Ecuador, basic elections had been held on Sunday however didn’t ship a transparent winner, prompting a runoff vote slated for April. CONAIE has opposed what it calls “extractive and neoliberal policies” from the conservative-leaning incumbent, Daniel Noboa.

Noboa, the son of a rich banana exporting magnate, has sought to entice overseas funding shore up safety, declaring an inner armed battle in opposition to organized crime teams, prompting reviews of great human rights violations.

“It’s very sad and it’s lamentable, in fact, that this agreement has been negotiated,” mentioned Hortencia Zhagüi by Zoom from her dwelling within the Azuay province in southern Ecuador.

“Our rights have been violated, our rights under our own constitution. The president has gone over our heads, behind our backs, negotiated secretly, in a hidden way.”

Zhagüi is a consultant of the Board of Potable Water Directors of Victoria del Portete and Tarqui. The group is worried about mining operations probably leaching arsenic into groundwater within the high-altitude wetland space in Azuay province.

“It’s very sad to say that Canada is respecting Indigenous rights, Indigenous peoples and human rights. It’s false because we are living another reality,” mentioned Zhagüi.

Yasacama and Zhagüi had been a part of an Ecuadorian ladies’s delegation that toured Canada final fall, although they continue to be unsure whether or not Canadian leaders acted on their considerations. A spokesperson for Commerce Minister Mary Ng didn’t reply to requests for remark.

In an announcement, International Affairs mentioned the settlement features a chapter on Indigenous Peoples and commerce “that aims to uphold and advance the rights of Indigenous Peoples under applicable law.”

The deal additionally contains clauses committing Canada and Ecuador to not weaken or scale back the rights of staff, ladies or Indigenous folks, the assertion mentioned.

Issues with arbitration

Civil society teams are additionally elevating crimson flags concerning the inclusion of a controversial system of worldwide arbitration used prior to now by Canadian companies, even some accused of human rights abuses.

“We are outraged,” mentioned Viviana Herrera, Latin American program co-ordinator at Mining Watch Canada.

“What is reflected in the document that they published is very clear: that this agreement is about protecting investment and not protecting people.”

Often known as investor-state dispute settlement, or ISDS, the arbitration system would permit Canadian firms to sue Ecuador at personal tribunals reasonably than within the home courts. 

Ecuador banned this technique in 2008 and rejected it once more in a 2024 in style referendum. The system is seen as biased and unjust in Ecuador following a string of dangerous experiences, mentioned Stuart Trew, a commerce researcher on the Canadian Centre for Coverage Alternate options.

“It really is an anti-democratic, very unaccountable system and it needs to go,” he mentioned in an interview, calling it disappointing that Canada would conform to it.

“It puts a thumb on the scales on behalf of the companies in the event that there is resistance — which of course there is in Ecuador. There’s massive resistance to mining. This can only go badly. This can only go badly for the states. It’s going to result in massive, massive lawsuits.”

People are seated at a press conference with Canadian flags behind them.From left, Indigenous ladies leaders from Ecuador Zenaida Yasacama, Fanny Kaekat, Hortencia Zhagüi, adopted by Bloc Québécois MP Simon-Pierre Savard-Tremblay and Ivonne Ramos of Acción Ecológica (Ecological Motion) at a information convention in Ottawa final fall. (Brett Forester/CBC)

Within the late 2000s, as an example, the Ecuadorian authorities revoked Vancouver-headquartered Copper Mesa Mining’s licence, after it was accused of making an attempt to advance a venture by intimidation, violence and subterfuge.

Copper Mesa then sued Ecuador by the arbitration system. Regardless of concluding senior personnel in Quito had been responsible of directing an organized marketing campaign of prison violence in opposition to anti-mining teams, a tribunal awarded the corporate $24 million USD  in compensation in 2016.

In one other case, Ecuador cancelled a contract with U.S-based Occidental Petroleum Corp., alleging it had illegally bought a big stake within the venture to a Canadian firm. Occidental sued for arbitration, securing $1.77 billion USD in 2012.

Trew mentioned the specter of these monumental, damaging lawsuits would give Canadian firms nice leverage when tasks don’t go their manner.

TAGGED:badCanadadealDemocracyEcuadorFreeGoodgroupsindigenousminingOpposetrade
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