Programme OS2a Trade and globalisation abstract 286
Water and Free Trade Agreements
Author(s): Pablo Solón, Miguel
Solanes, Denisse Rodríguez, Rene Orellana, Howard Mann
Juan Carlos Alurralde is a water resources engineer with an MSc in irrigation. He is currently the
executive director of Agua Sustentable (Sustainable Water), an NGO active in participatory water legislation
development in Bolivia. IDRC is supporting Alur
Keyword(s): water, free trade agreements, Bilateral Investment Agreements, FTA, BIT, Trade,
arbitration
Article:
Poster:
Session: OS2a Trade and globalisation
Abstract Very few water experts are aware that water resources
and water services may be subjected to the terms of investment and trade agreements, the circumstances and
conditions of trade accords change perceptions about national jurisdiction and control of water resources and public
utilities in ways that are often not anticipated and can have negative social and economic impacts.
Yet,
Argentina, Bolivia, and Peru are currently being sued under the terms of investment and trade agreements, for
conflicts resulting from water utilities and control of water resources. These cases are not heard by national courts
but by arbitration tribunals, which apply international investment law and procedure, but with many outcomes that
occur locally.
The objective of the paper is to discuss the links and impacts between integrated water
management and Free Trade Agreements, Bilateral Investment Agreements, and the international dispute systems
established under such agreements. Discussion topics included local level impacts in terms of environmental
protection, access to water supply and sanitation, protection of local and indigenous rights, affordability of water
services, income distribution and the regulatory systems addressing these issues. The paper aims to create awareness
about the relation between FTAs, BITs and integrated water resources management, to identify provisions and
principles that would balance the contents of FTA’s and Bit’s in relation to human, environmental and social
concerns and to Identify and suggest criteria to be applied by arbitration courts to balance economic, social and
environmental concerns.