the story of corporate water privatization janet m eaton & ruth caplan released april, 2003...

The Story of Corporate The Story of Corporate

Water Privatization Water Privatization

Janet M Eaton & Ruth Caplan Janet M Eaton & Ruth Caplan

Released April, 2003Released April, 2003

Technical Assistance: Technical Assistance: Samara T EatonSamara T Eaton

Water For People and Nature:Water For People and Nature:

We Hope This Presentation Will:We Hope This Presentation Will:

Create greater awareness of the issues Create greater awareness of the issues surrounding corporate privatization of water & surrounding corporate privatization of water & water services water services

Provide background documentation and Provide background documentation and resources for campaigns in the USA resources for campaigns in the USA

Strengthen campaigns through public education Strengthen campaigns through public education Demonstrate how global governance by IMF, Demonstrate how global governance by IMF,

World BankWorld Bank, , NAFTA, & GATS/GATT under the NAFTA, & GATS/GATT under the WTO promoteWTO promote corporate privatization of water & corporate privatization of water & water serviceswater services

Water for People and Nature Water for People and Nature

Outline of Presentation Outline of Presentation

Threat of Bulk Water Sales in California, TexasThreat of Bulk Water Sales in California, Texas

Bottled Water Impact on Springs & GroundwaterBottled Water Impact on Springs & Groundwater

Global Water Corporations & Public Water ServicesGlobal Water Corporations & Public Water Services

World Wide CrisisWorld Wide Crisis

Privatization in the Developing World Privatization in the Developing World

Global Rules and GovernanceGlobal Rules and Governance

Taking Action Taking Action

ResourcesResources

Corporate Water Corporate Water PrivatizationPrivatization

Bulk Water SalesBulk Water Sales Bottled Water Bottled Water Privatization of Public Privatization of Public Water Systems Water Systems

ThreatensThreatens People & Nature Worldwide People & Nature Worldwide

Photo National Park Service

Bulk Water Sales Bulk Water Sales Mojave DesertMojave Desert Albion/Gualala RiversAlbion/Gualala Rivers

Bottled WaterBottled Water Florida Florida MichiganMichigan Texas Texas

Public Water SystemsPublic Water Systems Atlanta, GAAtlanta, GA New Orleans, LANew Orleans, LA Stockton, CAStockton, CA

Photo National Park Service

Water PrivatizationWater PrivatizationCampaigns USACampaigns USA

Bulk Water Sales Bulk Water Sales Threaten Mojave Desert Threaten Mojave Desert

Photos National Park Service

Cadiz ThreatCadiz Threat

The beauty of the Mojave Desert was threatened by a The beauty of the Mojave Desert was threatened by a proposal from Cadiz , an agribusiness corporation, to pump proposal from Cadiz , an agribusiness corporation, to pump water from the aquifer beneath the desert. water from the aquifer beneath the desert.

Cadiz proposed to store water from the Colorado River in Cadiz proposed to store water from the Colorado River in the aquifer for the Los Angles Water District in years of the aquifer for the Los Angles Water District in years of excess water and pump it out for LA during dry years.excess water and pump it out for LA during dry years.

Cadiz also proposed to pump water originating in the Cadiz also proposed to pump water originating in the aquifer which is when water activists stepped in and aquifer which is when water activists stepped in and mobilized to stop the project.mobilized to stop the project.

Cadiz Environmental ThreatCadiz Environmental Threat

"Environmentalists contend that the existing underground water "Environmentalists contend that the existing underground water would be pumped out faster than it could be replenished. If that would be pumped out faster than it could be replenished. If that happens, they argue, springs in the region may dry up, killing wildlife happens, they argue, springs in the region may dry up, killing wildlife like bighorn sheep and coyotes.....The problems this is going to like bighorn sheep and coyotes.....The problems this is going to create are going to be very expensive to fix, more expensive than any create are going to be very expensive to fix, more expensive than any benefits.” benefits.” -- -- Elden Hughes, Chair Sierra ClubElden Hughes, Chair Sierra Club Desert CommitteeDesert Committee

“ “The project …..could drain the aquifer, sap natural springs, create The project …..could drain the aquifer, sap natural springs, create dust bowls, and further imperil the desert tortoise and other dust bowls, and further imperil the desert tortoise and other threatened species.” threatened species.” - Public Citizen- Public Citizen

Source: http://www.polizeros.com/stories/2002/08/12/water.htmlSource: http://www.polizeros.com/stories/2002/08/12/water.html

Cadiz ThreatCadiz Threat SummarySummary

CorporationCorporation: : Cadiz, an agribusiness corporation, was losing money Cadiz, an agribusiness corporation, was losing money growing fruit trees in the Mojave Desert and saw “Blue Gold” in the growing fruit trees in the Mojave Desert and saw “Blue Gold” in the aquifer. aquifer.

ProposalProposal:: Cadiz proposed to sell up to 47 billion gallons of water a Cadiz proposed to sell up to 47 billion gallons of water a year toyear to the Los Angeles Metropolitan Water Board. Cadiz stood to the Los Angeles Metropolitan Water Board. Cadiz stood to earn $500 million to $1 billion over 50 years by investing just $75 earn $500 million to $1 billion over 50 years by investing just $75 million in the project. This would introduce a new level of market million in the project. This would introduce a new level of market influence over municipal water supplies in Southern California. influence over municipal water supplies in Southern California.

StatusStatus:: Thanks to intense work by Sierra Club and other activists, the Thanks to intense work by Sierra Club and other activists, the LA Water Board voted down the proposal on Oct. 8, 2002. LA Water Board voted down the proposal on Oct. 8, 2002.

Bulk Water Exports ThreatenBulk Water Exports ThreatenAlbion & Gualala Rivers, CAAlbion & Gualala Rivers, CA

Gualala EstuaryGualala EstuaryAlbion EstuaryAlbion Estuary

Bulk Water BladderBulk Water Bladder Bulk Water TugBulk Water Tug Photo By: Nick Wilson Photo Courtesy of: Sierra Club

Photo Courtesy Of: Nordic Water SupplyPhoto Courtesy Of: Nordic Water Supply

Alaska Water Exports Inc.Alaska Water Exports Inc.Threatens CA CoastlineThreatens CA Coastline

Alaska Water Exports, a division of Arctic Ice and Water Alaska Water Exports, a division of Arctic Ice and Water Exports Inc., proposed toExports Inc., proposed to extract and transport water extract and transport water from Albion & Gualala Rivers. California Coastal from Albion & Gualala Rivers. California Coastal Commission reviewed proposal and determined --Commission reviewed proposal and determined --

Two endangered species of salmon threatenedTwo endangered species of salmon threatened Kelp & eel grass in sensitive estuary destroyedKelp & eel grass in sensitive estuary destroyed Food chain in critical fresh/salt water interface disruptedFood chain in critical fresh/salt water interface disrupted Migration paths for grey whales & other marine Migration paths for grey whales & other marine

mammals disruptedmammals disrupted Adverse visual and scenic impacts Adverse visual and scenic impacts

Alaska Water Exports Threat SummaryAlaska Water Exports Threat Summary

CorporationCorporation: : Alaska Water Exports, a division of Arctic Ice and Alaska Water Exports, a division of Arctic Ice and Water Exports, a domestic company with ties to Saudi financiers and Water Exports, a domestic company with ties to Saudi financiers and with Norwegian and Japanese shippers. President Ric Davidge. with Norwegian and Japanese shippers. President Ric Davidge.

ProposalProposal:: Withdraw water from the Albion and Gualala Rivers along Withdraw water from the Albion and Gualala Rivers along northern California coast, pump offshore and load into bladders the size northern California coast, pump offshore and load into bladders the size of football fields to be pulled by tugboats for use by San Diego. of football fields to be pulled by tugboats for use by San Diego.

StatusStatus:: ANOTHER VICTORY ANOTHER VICTORY ! After the California Coastal ! After the California Coastal Commission voted unanimously on December 13, 2002, to oppose the Commission voted unanimously on December 13, 2002, to oppose the

projects, Ric Davidge withdrew his applications. projects, Ric Davidge withdrew his applications.

But the fight continuesBut the fight continues: Ric Davidge, now operating AqueousRic Davidge, now operating Aqueous International, proposes to withdraw 20,000 acre feet annually from theInternational, proposes to withdraw 20,000 acre feet annually from the Mad River for delivery by water bagsMad River for delivery by water bags to Monterey or...San Diego!to Monterey or...San Diego!

T. Boone Pickens Threatens T. Boone Pickens Threatens Ogallala AquiferOgallala Aquifer

Speculator: Junk bond dealer T. Boone Pickens has found "Blue Gold" Speculator: Junk bond dealer T. Boone Pickens has found "Blue Gold" in the Ogallala Aquifer under his ranch in the Texas Panhandle.in the Ogallala Aquifer under his ranch in the Texas Panhandle.

Proposal: Pickens formed a consortium of ranchers, Mesa Water Inc., Proposal: Pickens formed a consortium of ranchers, Mesa Water Inc., to pump large quantities of water from the aquifer and sell to thirsty to pump large quantities of water from the aquifer and sell to thirsty cities in Texas and possibly New Mexico.cities in Texas and possibly New Mexico.

Environmental Impact: Ogallala runs through America's breadbasket Environmental Impact: Ogallala runs through America's breadbasket which is already under threat. Annual withdrawal from the Ogallala is which is already under threat. Annual withdrawal from the Ogallala is three times the recharge rate. Locally, withdrawals could deplete three times the recharge rate. Locally, withdrawals could deplete Canadian River, home to endangered species like Arkansas River Canadian River, home to endangered species like Arkansas River shiner, and cause slow death of the high plains.shiner, and cause slow death of the high plains.

Status: Panhandle Groundwater Conservation District approved project Status: Panhandle Groundwater Conservation District approved project May 2002, but environmental concerns are unresolved.May 2002, but environmental concerns are unresolved.

Sources: New York Times, April 16, 2001; The Dallas Morning News, 05/21/2002;

Country World, 4/25/02

Bulk Water as a CommodityBulk Water as a Commodity

Bulk water sales treat water as a commodity to be Bulk water sales treat water as a commodity to be bought and sold in the marketplace based on ability & bought and sold in the marketplace based on ability & willingness to pay.willingness to pay.

State laws governing use of surface & groundwater were State laws governing use of surface & groundwater were written when water was viewed as plentiful.written when water was viewed as plentiful.

Groundwater laws are often weak & sometimes non-Groundwater laws are often weak & sometimes non-existent.existent.

In general, state laws set out the right to use water, but In general, state laws set out the right to use water, but do not address the right to sell water as a commodity.do not address the right to sell water as a commodity.

Commodification of water means water itself is being Commodification of water means water itself is being privatized.privatized.

European transnational water European transnational water

corporations are seeking big profits in corporations are seeking big profits in the USA market the USA market

Buying up natural springs and aquifers for Buying up natural springs and aquifers for bottled water bottled water

Taking over operation of municipal water Taking over operation of municipal water and sewer systemsand sewer systems

Global Water Corporations Global Water Corporations

Global Water CorporationsGlobal Water Corporations

Perrier - Profile Perrier - Profile CorporationCorporation:: Known originally for its bottled water from Known originally for its bottled water from

Switzerland, Perrier is now a subsidiary of Nestle, the world's Switzerland, Perrier is now a subsidiary of Nestle, the world's largest food corporation. With yearly sales of US $1.7 billion, largest food corporation. With yearly sales of US $1.7 billion,

Nestle controls one-third of the US bottled water market. Nestle Nestle controls one-third of the US bottled water market. Nestle has just dropped Perrier name, preferring "Nestle's Waters of has just dropped Perrier name, preferring "Nestle's Waters of America.“America.“

ProfileProfile:: After arsenic contamination was found in its bottled After arsenic contamination was found in its bottled water, Perrier changed its marketing strategy, buying up local water, Perrier changed its marketing strategy, buying up local spring water companies and marketing under their labels. spring water companies and marketing under their labels.

Perrier owns 75 springs throughout the U.S. and is actively Perrier owns 75 springs throughout the U.S. and is actively developing new sites such as Red Boiling Springs TN.developing new sites such as Red Boiling Springs TN.


Perrier Brands:Perrier Brands: ArrowheadArrowhead -Dates from 1894 San Bernadino Mountains, CA Springs-Dates from 1894 San Bernadino Mountains, CA Springs

CalistogaCalistoga - - Dates from 1924 in Napa Valley, CA Dates from 1924 in Napa Valley, CA

Deer ParkDeer Park - Dates from 1873 in Allegheny Mountains - Dates from 1873 in Allegheny Mountains

Great BearGreat Bear - - Dates from 1888 in undisclosed East Coast location Dates from 1888 in undisclosed East Coast location

Ice MountainIce Mountain - - Dates from 1987 in “Midwest”, primary location is Dates from 1987 in “Midwest”, primary location is Mecosta County, Michigan. One of Perrier’s “hottest Mecosta County, Michigan. One of Perrier’s “hottest

brands” brands”

Oasis Oasis -- Dates from 1946 in Texas. Uses legend Butch Cassidy Dates from 1946 in Texas. Uses legend Butch Cassidy

OzarkaOzarka - Dates from 1905 in Ozarka, Texas and other locations - Dates from 1905 in Ozarka, Texas and other locations

Poland SpringPoland Spring - Dates from1845. Marketed as embodiment of Maine - Dates from1845. Marketed as embodiment of Maine

ZephyrhillsZephyrhills - Dates from 1960 and drawn from Crystal Springs, FL - Dates from 1960 and drawn from Crystal Springs, FL

Source: http://www.perriergroup.com/water/usSource: http://www.perriergroup.com/water/us

Perrier/Nestle Subsidiary Destroyed Perrier/Nestle Subsidiary Destroyed Environment of Crystal Springs, FLEnvironment of Crystal Springs, FL

Before Perrier / NestleBefore Perrier / Nestle

Under Perrier / NestleUnder Perrier / NestleCare & ManagementCare & Management

Photos Courtesy Teri Wolfe http://www.saveourspringsinc.org/

Perrier/Nestle Subsidiary Destroyed Perrier/Nestle Subsidiary Destroyed Environment of Crystal Springs, FLEnvironment of Crystal Springs, FL

Victor Eikeland remembers paddling a canoe up the Victor Eikeland remembers paddling a canoe up the Hillsborough River in the early 1920s, cruising slowly Hillsborough River in the early 1920s, cruising slowly past the ancient cypress and oak trees that guarded past the ancient cypress and oak trees that guarded Crystal Springs. Dorothy Pricher said she did the same, Crystal Springs. Dorothy Pricher said she did the same, rowing right up to the springs' bubbling mouth before it rowing right up to the springs' bubbling mouth before it was blasted with dynamite and dammed in the 1950s. was blasted with dynamite and dammed in the 1950s. "You could take a canoe and go all the way from the "You could take a canoe and go all the way from the springs to the river," said Pricher, now an 81 year-old springs to the river," said Pricher, now an 81 year-old Tampa resident.Tampa resident.

Source: http://www.saveourspringsinc.org/news/3stateclaim.htm

Perrier Threatens Crystal SpringsPerrier Threatens Crystal Springs

CorporationCorporation: : Perrier subsidiary, Three Sisters Springs Water Company,Perrier subsidiary, Three Sisters Springs Water Company,

ProposalProposal:: Expand pumping from Crystal Springs near Tampa 10 fold from Expand pumping from Crystal Springs near Tampa 10 fold from 3.5 gallons to 30 gallons every second.3.5 gallons to 30 gallons every second.

Status:Status: After Perrier lost court cases, the city agreed to more pumping if After Perrier lost court cases, the city agreed to more pumping if Perrier could replace the water, angering environmentalists and water activists. Perrier could replace the water, angering environmentalists and water activists.

But the Fight Continues:But the Fight Continues: Replacement water has been found. "Tanker Replacement water has been found. "Tanker trucks carrying thousands of gallons of well water are rumbling from Dade City trucks carrying thousands of gallons of well water are rumbling from Dade City to Crystal Springs and dumping it into the headwaters of the Hillsboroughto Crystal Springs and dumping it into the headwaters of the Hillsborough

River." -- Detroit News 5/20/01River." -- Detroit News 5/20/01

Source: http://www.saveourspringsinc.org/news/2profit.htm

http://www.saveamericaswater.com/fl/bw031801.html

Local Activists March Against Perrier Local Activists March Against Perrier in Mecosta County, Michiganin Mecosta County, Michigan

Following a blue banner more than 200 students, farmers, tribal members, Following a blue banner more than 200 students, farmers, tribal members, citizens and local activists marched the mile or so to the Ice Mountain citizens and local activists marched the mile or so to the Ice Mountain water bottling facility. water bottling facility.

Photo by Eartha Melzer

Perrier Seen as Threat in Perrier Seen as Threat in Mecosta County,Mecosta County, MichiganMichigan

CorporationCorporation:: Ice Mountain, owned by Perrier Ice Mountain, owned by Perrier

ProposalProposal:: Perrier plans to pump over 700,000 gallons of water per day in rural Perrier plans to pump over 700,000 gallons of water per day in rural farming community of Big Rapids in Mecosta County. Bottling facility will cost farming community of Big Rapids in Mecosta County. Bottling facility will cost $100 million and could become one of Perrier's biggest operations in the U.S. $100 million and could become one of Perrier's biggest operations in the U.S.

Environmental Impact:Environmental Impact: “ “Mecosta County is suddenly the epicenter of a new Mecosta County is suddenly the epicenter of a new public reckoning over the security of the Great Lakes, where 20 percent of the public reckoning over the security of the Great Lakes, where 20 percent of the world's surface freshwater is stored, and the underground aquifers that supply world's surface freshwater is stored, and the underground aquifers that supply them. .... the fate of Perrier in Mecosta County will have legal, political and them. .... the fate of Perrier in Mecosta County will have legal, political and environmental ramifications for every Great Lakes state and far beyond." environmental ramifications for every Great Lakes state and far beyond." “Perrier vs. the People,” by Keith Schneider, “Perrier vs. the People,” by Keith Schneider, GristGrist October 30, 2002 October 30, 2002

But the Fight continues!But the Fight continues! Newly-elected Michigan Governor Jennifer Newly-elected Michigan Governor Jennifer Granholm stated during her campaign that pumping is a diversion ofGranholm stated during her campaign that pumping is a diversion of Great Lakes water which is illegal under federal law. Activists are callingGreat Lakes water which is illegal under federal law. Activists are calling for her to shut down Ice Mountain.for her to shut down Ice Mountain.

Sources: http://www.alternet.org/story.html?StoryID=14413Sources: http://www.alternet.org/story.html?StoryID=14413

Perrier in the Texas PanhandlePerrier in the Texas Panhandle

CorporationCorporation: Perrier subsidiary Ozarka: Perrier subsidiary Ozarka

ProposalProposal:: Ozarka had an employee pose as college student doing Ozarka had an employee pose as college student doing research to study spring on land owned by Bart Sipriano. Employee research to study spring on land owned by Bart Sipriano. Employee then returned and offered to buy spring. When Sipriano refused to sell, then returned and offered to buy spring. When Sipriano refused to sell, Perrier bought the property next door and started pumping.Perrier bought the property next door and started pumping.

StatusStatus: : Bart Sipriano's well dried up four days after OzarkaBart Sipriano's well dried up four days after Ozarka started pumping water nearby. Under the state's 1903 'rule of capture’started pumping water nearby. Under the state's 1903 'rule of capture’ law, he has no right to complain. But the fight continues.law, he has no right to complain. But the fight continues.

Source: http://www.saveourspringsinc.org/news/eustance.htmSource: http://www.saveourspringsinc.org/news/eustance.htm

Corporate Privatization of Corporate Privatization of Public Water SystemsPublic Water Systems

Across the USA and around the world public water and sewage Across the USA and around the world public water and sewage systems are under threat from the world’s largest water corporations.systems are under threat from the world’s largest water corporations.

The two largest water corporations - French based Suez and Vivendi The two largest water corporations - French based Suez and Vivendi Universal manage water for 230 million people, mostly in Europe and Universal manage water for 230 million people, mostly in Europe and the developing world.the developing world.

Now they are seeking access to a vast, untapped market in the USA Now they are seeking access to a vast, untapped market in the USA where 85% of people get water from public utilities. where 85% of people get water from public utilities.

Source: Source: Mother JonesMother Jones, “Water for Profit,” Nov. 2002, “Water for Profit,” Nov. 2002

Corporate Privatization of Corporate Privatization of Public SystemsPublic Systems

In the USA local private companies have provided drinking water to In the USA local private companies have provided drinking water to some localities for many years.some localities for many years.

Many of these companies are being bought up by multinational Many of these companies are being bought up by multinational conglomerates like Vivendi and Suez.conglomerates like Vivendi and Suez.

These same mega-corporations have been lobbying mayors to These same mega-corporations have been lobbying mayors to contract out their water/sewer services, arguing that this will result in contract out their water/sewer services, arguing that this will result in better services at lower cost. better services at lower cost.

While the municipality still owns the system, the contract can turn While the municipality still owns the system, the contract can turn over important public functions to the private sector.over important public functions to the private sector.

If the public is not informed and alert, this kind of privatization can If the public is not informed and alert, this kind of privatization can happen without any opportunity for a public vote.happen without any opportunity for a public vote.


Vivendi Universal/ US FilterVivendi Universal/ US Filter Operated as water/sewer services company until became Operated as water/sewer services company until became

media/publishing conglomerate in 2001media/publishing conglomerate in 2001

Bought US Filter in May 1999 for $8 billionBought US Filter in May 1999 for $8 billion

US Filter, largest US water services company, grossed US Filter, largest US water services company, grossed $4.2 billion in 2001$4.2 billion in 2001

Vivendi’s stock plummeted in 2002. Resulting debt was shifted to Vivendi’s stock plummeted in 2002. Resulting debt was shifted to high-earning water/sewer division. Debt was equivalent to 4% high-earning water/sewer division. Debt was equivalent to 4% surcharge on all Vivendi water/sewage bills around the world. surcharge on all Vivendi water/sewage bills around the world.

Source: "Profiles of Public Service Privatizers: Suez, Vivendi, Wackenhut” Source: "Profiles of Public Service Privatizers: Suez, Vivendi, Wackenhut” Polaris Institute, Canada, August 2002 Polaris Institute, Canada, August 2002

Global Water CorporationsGlobal Water Corporations Vivendi's Environmental Record Vivendi's Environmental Record

Great Britain's environmental agency rated Vivendi one of top 5 Great Britain's environmental agency rated Vivendi one of top 5 polluters.polluters.

Puerto Rico Office of Comptroller found i) deficiencies in Puerto Rico Office of Comptroller found i) deficiencies in maintenance, repair and operation of PR's water and wastewater maintenance, repair and operation of PR's water and wastewater systems; ii) failure to provide running water in many areas; iii) billing systems; ii) failure to provide running water in many areas; iii) billing customers when water was not provided.customers when water was not provided.

Argentina faulted Vivendi for poor performance and poor water Argentina faulted Vivendi for poor performance and poor water quality in Tucuman. Vivendi took Argentina to international dispute quality in Tucuman. Vivendi took Argentina to international dispute center under bilateral agreement with France claiming Argentina had center under bilateral agreement with France claiming Argentina had not fulfilled its obligations.not fulfilled its obligations.

In New Orleans, US Filter subsidiary PSG had contract with city. In In New Orleans, US Filter subsidiary PSG had contract with city. In July 2001 PSG diverted raw sewage into Mississippi River for two July 2001 PSG diverted raw sewage into Mississippi River for two hours after electrical fire. hours after electrical fire.

Sources: Sources: The Big GreedyThe Big Greedy. Public Citizen, 2001; Polaris . Public Citizen, 2001; Polaris IbidIbid

Global Water CorporationsGlobal Water Corporations Suez / United WaterSuez / United Water

Suez bought United Water in August 2000 for $1.02 billion Suez bought United Water in August 2000 for $1.02 billion

Water division now operates under the name ONDEOWater division now operates under the name ONDEO

ONDEO has more than 3000 water management contracts around world, ONDEO has more than 3000 water management contracts around world, serving 110 million people in 30 countries serving 110 million people in 30 countries

Contracts for water services are not made public so citizens cannot hold Contracts for water services are not made public so citizens cannot hold

Suez accountable, a major problem in South Africa Suez accountable, a major problem in South Africa Senior Suez executive was sentenced to prison for bribing government Senior Suez executive was sentenced to prison for bribing government

officials in Grenoble Franceofficials in Grenoble France

Sources:Sources:

PSIRU 1999. "Privatization, Multinationals, and Corruption”: PSIRU 1999. "Privatization, Multinationals, and Corruption”: http://www.psiru.org/reportsindex.asphttp://www.psiru.org/reportsindex.asp Polaris Institute Corporate Profiles Suez http://www.polarisinstitute.org/corp_profiles/public_service_gats/Polaris Institute Corporate Profiles Suez http://www.polarisinstitute.org/corp_profiles/public_service_gats/

corp_profile_ps_suez.htmlcorp_profile_ps_suez.html


Suez Environmental Record Suez Environmental Record

La Paz, BoliviaLa Paz, Bolivia -- Suez violated contract with city to extend water Suez violated contract with city to extend water connections to poor households, arguing service should be based on connections to poor households, arguing service should be based on ability to pay. ability to pay.

Sao Paulo, BrazilSao Paulo, Brazil -- When Suez failed to build sewage treatment plant -- When Suez failed to build sewage treatment plant

required under contract, over 95% of raw sewage flowed directly into required under contract, over 95% of raw sewage flowed directly into

LaPlata River, onto streets and open fields. LaPlata River, onto streets and open fields. United KingdomUnited Kingdom -- Despite 110% rate increase and 800% increase in -- Despite 110% rate increase and 800% increase in

profits, Suez subsidiary, Northumbrian Water, claimed they could not profits, Suez subsidiary, Northumbrian Water, claimed they could not cut rates and meet EU environmental standards.cut rates and meet EU environmental standards.

Sources: PSIRU Report - Water in Public Hands, June 2001; http://www.psiru.org/reportsindex.aspSources: PSIRU Report - Water in Public Hands, June 2001; http://www.psiru.org/reportsindex.asp

Polaris Institute IbidPolaris Institute Ibid

How About Public Systems?How About Public Systems?

Pollution of water sources by industry & agribusiness, Pollution of water sources by industry & agribusiness, degrading of watersheds by urban sprawl, loss of wetlands, degrading of watersheds by urban sprawl, loss of wetlands, lack of adequate funding to upgrade water and sewage lack of adequate funding to upgrade water and sewage treatment facilities have taken a severe toll on public systems.treatment facilities have taken a severe toll on public systems.

US PIRG reported that in half the states, one-third or more of US PIRG reported that in half the states, one-third or more of the municipal systems were in significant non-compliance with the municipal systems were in significant non-compliance with the Clean Water Act during 1997-98.the Clean Water Act during 1997-98.

It is critical to ensure that municipal systems are brought into It is critical to ensure that municipal systems are brought into compliance. This means adequate funding and strict compliance. This means adequate funding and strict enforcement of the Clean Water Act.enforcement of the Clean Water Act.

Source:http://www.pirg.org/reports/enviro/poison/waterb.pdfSource:http://www.pirg.org/reports/enviro/poison/waterb.pdf

Privatization of Public Water Systems: Privatization of Public Water Systems: Can Democracy Survive? Stockton, CACan Democracy Survive? Stockton, CA

CorporationsCorporations: United Water/Suez , US : United Water/Suez , US Filter/ Vivendi and OMI-Thames with local Filter/ Vivendi and OMI-Thames with local partners.partners.

ProposalProposal: Stockton, California Mayor : Stockton, California Mayor Gary Podesto has proposed a 20 year Gary Podesto has proposed a 20 year contract with a private corporation to contract with a private corporation to provide water, sewer and storm water provide water, sewer and storm water services. services.

StatusStatus: Citizens have gathered over : Citizens have gathered over 18,000 signatures to qualify for a March, 18,000 signatures to qualify for a March, 2003, special election. Mayor & Council 2003, special election. Mayor & Council did end run in Feb. and Council voted 4 to did end run in Feb. and Council voted 4 to 3 to contract with Omi / Thames. Citizens 3 to contract with Omi / Thames. Citizens now circulating a referendum petition to now circulating a referendum petition to force City Council to rescind privatization force City Council to rescind privatization or put it to a vote of the people. or put it to a vote of the people.

Source http://privatization.home.attbi.comSource http://privatization.home.attbi.com

Utility workers join protest rally on steps of City Hall

Photo by Juliet Chi, Public Citizen

Privatization of Public Water Systems: Privatization of Public Water Systems: Broken Promises / Atlanta, GABroken Promises / Atlanta, GA

Atlanta learned the hard way that privatization isn’t what it Atlanta learned the hard way that privatization isn’t what it proclaims to be when United Water/ Suez took over the proclaims to be when United Water/ Suez took over the city’s water/sewer system in 1999.city’s water/sewer system in 1999.

Residents were hit with five 5 ‘boil water’ alerts due to unsafe tap Residents were hit with five 5 ‘boil water’ alerts due to unsafe tap water in 2002.water in 2002.

Some residents waited months for basic repairs.Some residents waited months for basic repairs.

United Water failed to complete more than half of scheduled repairsUnited Water failed to complete more than half of scheduled repairs

in 2001.in 2001. Rust and debris were allowed to build up in pipes. When pipes were Rust and debris were allowed to build up in pipes. When pipes were

flushed, brown water flowed from taps.flushed, brown water flowed from taps.

Source: Source: Mother JonesMother Jones Nov/Dec 2002 Nov/Dec 2002

Privatization of Public Water Systems: Privatization of Public Water Systems: Broken Promises / Atlanta, GABroken Promises / Atlanta, GA

In mid-August 2002, Atlanta Mayor Shirley Franklin In mid-August 2002, Atlanta Mayor Shirley Franklin announced that United Water had not lived up to its announced that United Water had not lived up to its responsibility and formally notified the company that it had responsibility and formally notified the company that it had 90 days to fix the problems or the city would terminate its 90 days to fix the problems or the city would terminate its contract. contract. Source: Source: Mother Jones,Mother Jones, Nov/Dec 2002 Nov/Dec 2002

And terminate the contract they did ! On January 24And terminate the contract they did ! On January 24thth, , 2003, Mayor Franklin announced the termination of the 2003, Mayor Franklin announced the termination of the contract. contract. Source: Source: New York TimesNew York Times, 2/10/03, 2/10/03

Now it is up to local officials and citizens of Atlanta to Now it is up to local officials and citizens of Atlanta to make sure their public system is well run, adequately make sure their public system is well run, adequately funded, and in compliance with water quality laws.funded, and in compliance with water quality laws.

Privatization of Public Water Systems: Privatization of Public Water Systems:

Fight Back / New Orleans Fight Back / New Orleans

Suez/ United Water, Vivendi/ US Filter, RWE/Thames (the German/ Suez/ United Water, Vivendi/ US Filter, RWE/Thames (the German/ British conglomerate) were major contenders to take over New Orleans British conglomerate) were major contenders to take over New Orleans

water system. water system.

New Orleans spent three years and $4 million preparing for bids.New Orleans spent three years and $4 million preparing for bids.

Consumer, church and environmental groups argued corporate suitors can’t Consumer, church and environmental groups argued corporate suitors can’t be trusted with fundamental public services.be trusted with fundamental public services.

The City Council rejected all three bids in October 2002. Citizens are now The City Council rejected all three bids in October 2002. Citizens are now

mobilizing for the next round.mobilizing for the next round.

SourceSource: : Sacramento BeeSacramento Bee, Nov. 9, 2002, Nov. 9, 2002

Privatization of Public Water Systems: Privatization of Public Water Systems: Take Back/ Reclaim Public AssetsTake Back/ Reclaim Public Assets

Washington Court House, OhioWashington Court House, Ohio

Unhappy with rate hikes & poor service by Ohio Water Service, city Unhappy with rate hikes & poor service by Ohio Water Service, city residents voted for municipal control.residents voted for municipal control.

After 2 years settlement was reached setting a sale price.After 2 years settlement was reached setting a sale price. City sold bonds to buy the system.City sold bonds to buy the system. City built new water storage tank and reservoir, and still gave 3 -year City built new water storage tank and reservoir, and still gave 3 -year

10% rate cut to customers. 10% rate cut to customers.

Lesson LearnedLesson Learned:: It is possible for public systems to be run more It is possible for public systems to be run more efficiently than private systems. efficiently than private systems.

Source: “Reclaiming Public Assets,” Public Citizen Sept 2002, pp 8-9 Source: “Reclaiming Public Assets,” Public Citizen Sept 2002, pp 8-9

Privatization of Public Water Systems: Privatization of Public Water Systems: Take Back/ Reclaim Public AssetsTake Back/ Reclaim Public Assets

Duval, Nassau, St. Johns Counties, FLDuval, Nassau, St. Johns Counties, FL successful - rates lowered successful - rates lowered

Peoria, ILPeoria, IL in processin process

Lexington, KYLexington, KY

under consideration under consideration

Source: “Reclaiming Public Assets,” Public Citizen Sept 2002, pp8-9 ; “Water Privatization: Source: “Reclaiming Public Assets,” Public Citizen Sept 2002, pp8-9 ; “Water Privatization: A Broken Promise - Case Histories Throughout the United States,” Public Citizen. 2001A Broken Promise - Case Histories Throughout the United States,” Public Citizen. 2001

http://www.citizen.org/publications/release.cfm?ID=7099http://www.citizen.org/publications/release.cfm?ID=7099

What are the Advantages of a Well-run What are the Advantages of a Well-run

Public System?Public System?

Funding and bonds are available at lower interest rates. Funding and bonds are available at lower interest rates.

Executives do not receive outlandish salaries. Executives do not receive outlandish salaries.

No dividends have to be paid to shareholders.No dividends have to be paid to shareholders.

Essential jobs are not cut in order to increase profits.Essential jobs are not cut in order to increase profits.

Ratepayers money stays in community.Ratepayers money stays in community.

Citizens can hold their public officials directly accountable for Citizens can hold their public officials directly accountable for

providing good quality water to all residents.providing good quality water to all residents.

Water, the basis for all life, is treated an essential public service.Water, the basis for all life, is treated an essential public service.

SourceSource: : http://www.polizeros.com/stories/2002/08/12/water.htmlhttp://www.polizeros.com/stories/2002/08/12/water.html

World Water Crisis: Scarcity World Water Crisis: Scarcity

Charts by Janet M Eaton & Samara T Eaton

World Wide Water CrisisWorld Wide Water Crisis Pollution, Depletion, Drought Pollution, Depletion, Drought Exacerbated byExacerbated by … …

Corporate agribusiness Corporate agribusiness

Industrial facilitiesIndustrial facilities

Mining Mining

Burning of fossil fuels Burning of fossil fuels

Corporate -friendly Corporate -friendly

“ “free trade” rulesfree trade” rulesScarce fresh water, polluted Scarce fresh water, polluted

by mining industryby mining industry

Photo Courtesy Mining Watch Canada

"The World Health "The World Health Organization estimates that a Organization estimates that a total of more than five million total of more than five million people die each year just people die each year just from diseases caused by from diseases caused by unsafe drinking water, and a unsafe drinking water, and a lack of sanitation and water lack of sanitation and water for hygiene.”for hygiene.”

What is the Best Solution to What is the Best Solution to the Public Health Crisis?the Public Health Crisis?

Source: Executive Summary, Comprehensive Source: Executive Summary, Comprehensive Assessment of the Freshwater Resources of Assessment of the Freshwater Resources of the World Report of the Secretary-Generalthe World Report of the Secretary-Generalhttp://www.un.org/esa/sustdev/freshwat.htmhttp://www.un.org/esa/sustdev/freshwat.htm

Photo Courtesy Greenpeace

World Wide Water CrisisWorld Wide Water Crisis

“ “There is no resource that is more essential to biodiversity, social and There is no resource that is more essential to biodiversity, social and economic development - and indeed , civilization itself - than water. economic development - and indeed , civilization itself - than water. Growing scarcity and widespread misuse of water pose a serious Growing scarcity and widespread misuse of water pose a serious and growing threat to sustainable development and all aspects of and growing threat to sustainable development and all aspects of human health and welfare, food security, industrial development and human health and welfare, food security, industrial development and the ecosystems on which these all depend.” the ecosystems on which these all depend.”

-- Steven Schrybman, 2000. “The Citizen’s Guide to the WTO.”-- Steven Schrybman, 2000. “The Citizen’s Guide to the WTO.”

Toronto:CCPA/LorimerToronto:CCPA/Lorimer

“ “The result could be a series of local and regional water crises with The result could be a series of local and regional water crises with global implications. ”global implications. ”

-- Executive Summary, “Comprehensive Assessment of the Freshwater -- Executive Summary, “Comprehensive Assessment of the Freshwater Resources of the World,” Report of the UN Secretary-General Resources of the World,” Report of the UN Secretary-General

http://www.un.org/esa/sustdev/freshwat.htmhttp://www.un.org/esa/sustdev/freshwat.htm

Global Corporations See Global Corporations See $Blue Gold$ in the Water Crisis $Blue Gold$ in the Water Crisis

““Global corporations are pressuring governments around the world Global corporations are pressuring governments around the world to privatize water as the solution to the water crisis.”to privatize water as the solution to the water crisis.”

-- Maude Barlow, “Blue Gold”

"Water promises to be to the 21st century what oil was to the 20"Water promises to be to the 21st century what oil was to the 20 thth - - the precious commodity that determines the wealth of nations."the precious commodity that determines the wealth of nations."

-- Fortune magazine, May 2000

The World Bank projects the private water management business The World Bank projects the private water management business could reach $1 trillion by 2021could reach $1 trillion by 2021

Water Privatization in theWater Privatization in the Developing World Developing World

Water privatization is being pushed by the World Bank & Water privatization is being pushed by the World Bank & IMF in the developing world. Research shows that it is not IMF in the developing world. Research shows that it is not working for the world’s poorest people in many parts of the working for the world’s poorest people in many parts of the world.world.

GhanaGhana BoliviaBolivia South Africa South Africa

Water Privatization in theWater Privatization in the Developing World Developing World / Ghana/ Ghana

The World Bank and IMF have promoted privatization of water services The World Bank and IMF have promoted privatization of water services in Ghana. in Ghana.

Cities no longer have sewer services. The water corporations have no Cities no longer have sewer services. The water corporations have no interest in providing this low-profit service.interest in providing this low-profit service.

Rural communities which had gotten national assistance in providing Rural communities which had gotten national assistance in providing safe drinking water when there were health threats are now to be safe drinking water when there were health threats are now to be served by municipalities under a policy of "full cost recovery." These served by municipalities under a policy of "full cost recovery." These rural areas cannot afford the resulting costs imposed.rural areas cannot afford the resulting costs imposed.

Water Privatization in theWater Privatization in the Developing World / Ghana Developing World / Ghana

Who Wins? Who Wins?

Corporate bidders such asCorporate bidders such as Vivendi and Suez Vivendi and Suez Can borrow funds at just 1% interest under World Bank termsCan borrow funds at just 1% interest under World Bank terms Contribute only $140 million out of the $400 million contractContribute only $140 million out of the $400 million contract Serve only the most lucrative market - urban drinking waterServe only the most lucrative market - urban drinking water

Who Loses? Who Loses?

The people of Ghana, especially the poor whoThe people of Ghana, especially the poor who suffer from cholera, typhoid and other water-born diseases suffer from cholera, typhoid and other water-born diseases

already increasing in the citiesalready increasing in the cities now have second highest incidence of Guinea worm in the world, now have second highest incidence of Guinea worm in the world,

second only to war-torn Sudansecond only to war-torn Sudan

Source: Rudolf Amenga-Etego, National Coordinator, Ghana National Coalition Source: Rudolf Amenga-Etego, National Coordinator, Ghana National Coalition Against Privatization of Water. [personal communication] Against Privatization of Water. [personal communication]

Ghana - the Fight Goes On !Ghana - the Fight Goes On !

Through mass mobilization & Through mass mobilization & alerting the international alerting the international community, activists like community, activists like Rudolph Amenga-Etego, Rudolph Amenga-Etego, National Coordinator of the National Coordinator of the Ghana National Coalition Ghana National Coalition Against Privatization of Water, Against Privatization of Water, are fighting the World Bank and are fighting the World Bank and corporate water profiteers in corporate water profiteers in order to keep water in the hands order to keep water in the hands of the people of Ghana of the people of Ghana

Photo by Sierra Club

Water Privatization in theWater Privatization in the Developing World / Cochabamba Developing World / Cochabamba

The People of Bolivia vs. Bechtel and World BankThe People of Bolivia vs. Bechtel and World Bank Bechtel subsidiary, Aquas del Tunari - given 40-year lease to run the water system Bechtel subsidiary, Aquas del Tunari - given 40-year lease to run the water system

in Cochabamba, Bolivia's 3rd largest city, after the World Bank forced privatization in Cochabamba, Bolivia's 3rd largest city, after the World Bank forced privatization policies on Bolivia.policies on Bolivia.

Within weeks of taking over in 1999, Bechtel imposed huge rate hikes on local Within weeks of taking over in 1999, Bechtel imposed huge rate hikes on local water users -- up to 25% of families' monthly income.water users -- up to 25% of families' monthly income.

Peasants, workers and community activists joined in city - wide protests under an Peasants, workers and community activists joined in city - wide protests under an alliance known as "La Coordinadora'' . The city declared martial law, deploying alliance known as "La Coordinadora'' . The city declared martial law, deploying thousands of soldiers and police.thousands of soldiers and police.

The people shut down the city and prevailed. Bechtel pulled out.The people shut down the city and prevailed. Bechtel pulled out.

Now Bechtel, through a Dutch subsidiary, is using a bilateral trade agreement to Now Bechtel, through a Dutch subsidiary, is using a bilateral trade agreement to sue Bolivia for a portion of its lost profits. "Bechtel is demanding $25 million from sue Bolivia for a portion of its lost profits. "Bechtel is demanding $25 million from some of the poorest families in the world," said Oscar Olivera, leader of La some of the poorest families in the world," said Oscar Olivera, leader of La Coordinadora.Coordinadora.

Source: Earth Justice at http://www.earthjustice.org/news; Public Citizen: http://www.citizen.org/documents/Bolivia_(PDF).PDF

Cochabamba - BoliviaCochabamba - Bolivia

Mass Protest Against Water Privatization“El pueblo unido jamas sera vencido” !!

Photo by Tom Kruse

Bolivia-Chile Bulk Water Sales Bolivia-Chile Bulk Water Sales Linked to Mining Industry Linked to Mining Industry

Pablo Solon is Pablo Solon is fighting the export of fighting the export of bulk water from the bulk water from the Bolivian high desert to Bolivian high desert to Chile for expansion of Chile for expansion of mines operated by mines operated by Canadian & other Canadian & other companies. companies.

““Mining is mostly about water” Mining is mostly about water” Joan Kuyek, MiningWatch.CanadaJoan Kuyek, MiningWatch.Canada

Photo by Barbara Arisi

Bolivia-Chile Bulk Water Sales Bolivia-Chile Bulk Water Sales Linked to Mining IndustryLinked to Mining Industry

CORPORATIONS:CORPORATIONS: Falconbridge, Canadian nickel and copper mining Falconbridge, Canadian nickel and copper mining corporation, has 8 copper mines in Chile. It operates the Collahuasicorporation, has 8 copper mines in Chile. It operates the Collahuasi mine in the high desert of northern Chile as part of consortium Donamine in the high desert of northern Chile as part of consortium Dona Ines de Collahuasi . Ines de Collahuasi .

ENVIRONMENTAL IMPACTENVIRONMENTAL IMPACT: The copper mines have depleted and polluted: The copper mines have depleted and polluted local water resources in northern Chile and now are pressuring Bolivialocal water resources in northern Chile and now are pressuring Bolivia to export non-renewable fossil water to export non-renewable fossil water in aquifers in aquifers beneath their high desertbeneath their high desert where evaporation rates exceed annual rainfall.where evaporation rates exceed annual rainfall.

THE STRUGGLE CONTINUESTHE STRUGGLE CONTINUES: Pablo Salon and other Bolivian activists have: Pablo Salon and other Bolivian activists have prevented the Bolivian Congress from passing a law allowing the exportprevented the Bolivian Congress from passing a law allowing the export of of water to Chile. Now activists are again taking on the miningwater to Chile. Now activists are again taking on the mining interests which interests which are pressing for a bilateral trade agreement betweenare pressing for a bilateral trade agreement between Chile and Bolivia to allow Chile and Bolivia to allow the export of water.the export of water.

Source: Pablo Solon (Personal Communication) Source: Pablo Solon (Personal Communication) http://www.aguabolivia.org/

Mining Watch Canada (Personal Communication) Mining Watch Canada (Personal Communication)

The South Africa People’s StoryThe South Africa People’s StoryActivists attending the World Summit on Sustainable Activists attending the World Summit on Sustainable

Development (WSSD) learned what it means for water to be Development (WSSD) learned what it means for water to be privatized and denied as a human right!privatized and denied as a human right!

The official story told by South Africa and The official story told by South Africa and Suez corporation officials was about:Suez corporation officials was about:

“ “Greater economic efficiency”Greater economic efficiency”

“ “Better service”Better service”

“ “Water for all”Water for all”

“ “Repairs to crumbling infrastructureRepairs to crumbling infrastructure””

The folks we met told their story…The folks we met told their story…

The South African People’s StoryThe South African People’s Story

Photo by Maj Fiil-Flynn

The South African People’s StoryThe South African People’s StoryWhile highway billboards promised water for allWhile highway billboards promised water for all


The South African People’s StoryThe South African People’s StorySuez officials promote pre-paid water meters as just what

people in Orange Township need. Activists disagree.


The South African The South African People’s StoryPeople’s Story

Prepaid water meters deny Prepaid water meters deny South Africa’s poor their right South Africa’s poor their right to water guaranteed by their to water guaranteed by their

constitutionconstitution

Photo by Maj Fill-Flynn

The South Africa StoryThe South Africa StoryFamilies in Townships with final Families in Townships with final water cutoff noticeswater cutoff notices


“ “This formal notice serves to remind you that if the This formal notice serves to remind you that if the amounts shown below are not paid by 31-08 2002 your amounts shown below are not paid by 31-08 2002 your water supply will be disconnected…” water supply will be disconnected…”


““Let them drink coke” is not the answer !! Let them drink coke” is not the answer !!



The South African The South African People’s StoryPeople’s Story

The right to water is about environmental justice.The right to water is about environmental justice.

Photo by Sierra Club

On November 27, 2002 The United Nations Committee on On November 27, 2002 The United Nations Committee on Economic, Social and Cultural Rights adopted the ‘General Economic, Social and Cultural Rights adopted the ‘General

Comment’ on the right to water and described the State’s legal Comment’ on the right to water and described the State’s legal responsibility in fulfilling that right.responsibility in fulfilling that right.

Water is a Human RightWater is a Human Right

““The human right to drinking water The human right to drinking water is fundamental to life and health. is fundamental to life and health. Sufficient and safe drinking water Sufficient and safe drinking water is a precondition for the realization is a precondition for the realization of human rights.”of human rights.”

Global Rules & Institutions Global Rules & Institutions Promote Water Privatization Promote Water Privatization

IMFIMF - International Monetary Fund - International Monetary Fund WB WB - World Bank - World Bank GATTGATT - General Agreement on Tariffs & Trade - General Agreement on Tariffs & Trade WTOWTO--GATS GATS - General Agreement on Trade in Services- General Agreement on Trade in Services NAFTANAFTA - North American Free Trade Agreement - North American Free Trade Agreement FTAAFTAA - Free Trade Area of the Americas - Free Trade Area of the Americas

IMF Imposes Market-based Pricing IMF Imposes Market-based Pricing As Condition for LoansAs Condition for Loans

In the USA, the federal Clean Water Act and the Safe Drinking In the USA, the federal Clean Water Act and the Safe Drinking Water Act mandate subsidies for water and sanitation services.Water Act mandate subsidies for water and sanitation services.

But the IMF promotes "full cost recovery" of water and sewer But the IMF promotes "full cost recovery" of water and sewer services in developing countries, without allowing any subsidies for services in developing countries, without allowing any subsidies for these essential services.these essential services.

During 2000, IMF loan agreements with 12 borrowing countries During 2000, IMF loan agreements with 12 borrowing countries included conditions imposing water privatization or full cost recoveryincluded conditions imposing water privatization or full cost recovery

Recent examples include:Recent examples include: - In Nicaragua, a 30 percent increase in consumer water fees was - In Nicaragua, a 30 percent increase in consumer water fees was

enacted in 2001 as a result of IMF and Inter-American Development enacted in 2001 as a result of IMF and Inter-American Development Bank policies.Bank policies.

- In Ghana, a 95% increase in consumer water fees was mandated in 2001 - In Ghana, a 95% increase in consumer water fees was mandated in 2001 by the IMF and World Bank. by the IMF and World Bank.

Source: Nancy Alexander. Citizen's Network for Essential Services. (Personal Communication) http://www.challengeglobalization.org/

World Bank & Regional World Bank & Regional Development Banks are…Development Banks are…

Promoting policies to privatize infrastructure including waterPromoting policies to privatize infrastructure including water

Refusing to fund public water systemsRefusing to fund public water systems

Promoting allocation of water to "high profit uses” such as industry and Promoting allocation of water to "high profit uses” such as industry and agribusiness agribusiness

Helping water corporations in their "cherry picking" by separating profit-making Helping water corporations in their "cherry picking" by separating profit-making from loss-making sectors of the water marketfrom loss-making sectors of the water market

Linking developing country institutions with more "mature" entities. Result is big Linking developing country institutions with more "mature" entities. Result is big profits for corporations in industrialized countries which provide the equipment profits for corporations in industrialized countries which provide the equipment and service.and service.

Source: Nancy Alexander. Citizen's Network for Essential Services. (Personal Communication)

http://www.challengeglobalization.org/

GATT Protects Bulk Water Exports GATT Protects Bulk Water Exports

General Agreement on Tariffs and Trade (GATT), General Agreement on Tariffs and Trade (GATT), the first global trade agreement, covers goods and commodities. trade agreement, covers goods and commodities.

GATT provides basic legal structure for 146 member countries in GATT provides basic legal structure for 146 member countries in

the World Trade Organization (WTO). the World Trade Organization (WTO).

Bulk water exports are governed by GATT.Bulk water exports are governed by GATT.

GATT rules prohibit ANY MEASURES which restrict quantity of a GATT rules prohibit ANY MEASURES which restrict quantity of a good being exported except for “duties, taxes or other charges.”good being exported except for “duties, taxes or other charges.”

Most water is categorized as renewable so exception forMost water is categorized as renewable so exception for conservation of non-renewable resources does not apply.conservation of non-renewable resources does not apply.

NAFTA Article 309 states that constraints on exports of any NAFTA Article 309 states that constraints on exports of any good must be shared proportionally across the signatory good must be shared proportionally across the signatory countries --Mexico, Canada, USA.countries --Mexico, Canada, USA.

This means if corporations in the USA started exporting water to This means if corporations in the USA started exporting water to Mexico and then the USA suffered a drought, it could not simply stop Mexico and then the USA suffered a drought, it could not simply stop exporting. The USA would have to reduce its consumption of water in exporting. The USA would have to reduce its consumption of water in proportion to the reduction in the export to Mexico.proportion to the reduction in the export to Mexico.

NAFTA Chapter 11 allows corporations in one member NAFTA Chapter 11 allows corporations in one member country to sue other member countries over any regulation country to sue other member countries over any regulation or law that can be considered "tantamount to or law that can be considered "tantamount to nationalization or expropriation" without compensation.nationalization or expropriation" without compensation.

When British Columbia banned the export of bulk water in 1998, Sun When British Columbia banned the export of bulk water in 1998, Sun Belt Water in Santa Barbara CA sued Canada because it had a Belt Water in Santa Barbara CA sued Canada because it had a contract to export water from British Columbia.contract to export water from British Columbia.

NAFTA Makes Matters WorseNAFTA Makes Matters Worse

Great Lakes CompactGreat Lakes Compact

Great Lakes governors hope to trump GATT Great Lakes governors hope to trump GATT and NAFTA by drafting interstate compact to and NAFTA by drafting interstate compact to prohibit exports of Great Lakes water except prohibit exports of Great Lakes water except under conditions that provide net ecological under conditions that provide net ecological benefit to the Great Lakes.benefit to the Great Lakes.

General Agreement on Trade in Services General Agreement on Trade in Services (GATS) (GATS)

GATS applies to all levels of government.GATS applies to all levels of government.

GATS covers all services from banking to fast foods to environmental services.GATS covers all services from banking to fast foods to environmental services.

GATS commits member countries to "progressive liberalization" which comes GATS commits member countries to "progressive liberalization" which comes down to more privatization and deregulation of their services.down to more privatization and deregulation of their services.

Under GATS, countries can decide what services they want covered by Market Under GATS, countries can decide what services they want covered by Market Access and National Treatment rules, but other rules like Most Favored Access and National Treatment rules, but other rules like Most Favored National apply to all services.National apply to all services.

GATS says domestic regulations must not be “more burdensome than GATS says domestic regulations must not be “more burdensome than necessary to ensure the quality of the service.” What about the burden on the necessary to ensure the quality of the service.” What about the burden on the environment, workers, consumers? This rule may apply to all services.environment, workers, consumers? This rule may apply to all services.

GATS Negotiations on Water: GATS Negotiations on Water: Victory in USAVictory in USA

RIGHT NOW trade negotiators are engaged in SECRET bilateral negotiations RIGHT NOW trade negotiators are engaged in SECRET bilateral negotiations called “requests” and “offers” in order to have more of their countries’ services called “requests” and “offers” in order to have more of their countries’ services covered by GATS rules.covered by GATS rules.

The European Union listed collection, distribution and treatment of water for The European Union listed collection, distribution and treatment of water for human use as an environmental service. The USA did not contest this. Water human use as an environmental service. The USA did not contest this. Water activists objected strenuously.activists objected strenuously.

Thanks to leaked documents, activists learned that the European Commission Thanks to leaked documents, activists learned that the European Commission wants the USA and many other countries to open up their public water/sewer wants the USA and many other countries to open up their public water/sewer services to foreign competition.services to foreign competition.

In response to mounting public pressure, the USA made its GATS offers public In response to mounting public pressure, the USA made its GATS offers public on March 31, 2003.on March 31, 2003.

The USA refused the EC’s request to include water/sewer services for human The USA refused the EC’s request to include water/sewer services for human use. This is a major victory!!!use. This is a major victory!!!

Have other countries stood up to Europe and refused to put water Have other countries stood up to Europe and refused to put water into GATS? Will the USA hold firm on its refusal? We’ve had a into GATS? Will the USA hold firm on its refusal? We’ve had a victory but the organizing must continue!victory but the organizing must continue!

Activists Call for Water Out of Activists Call for Water Out of Trade & Investment AgreementsTrade & Investment Agreements

Bulk water should be governed by federal and Bulk water should be governed by federal and state laws and by river basin agreements and state laws and by river basin agreements and interstate compacts, not by trade & investment interstate compacts, not by trade & investment agreements promoting commercial interests.agreements promoting commercial interests.

Access to safe and affordable drinking water is a Access to safe and affordable drinking water is a human right and should not be subject to GATS human right and should not be subject to GATS rules or other services agreements which rules or other services agreements which promote the rights of foreign corporations.promote the rights of foreign corporations.

Taking Action - TipsTaking Action - Tips

We can all take action personally to We can all take action personally to preserve water for people and nature.preserve water for people and nature.

When you are thirsty, do you turn on the tap or reach for a When you are thirsty, do you turn on the tap or reach for a

bottle of water? bottle of water?

When you travel, do you bring an empty bottle to fill along When you travel, do you bring an empty bottle to fill along the way or reach for a bottle of Perrier's spring water?the way or reach for a bottle of Perrier's spring water?

When you are concerned about local water quality, do you When you are concerned about local water quality, do you make sure your local water authority is doing its job to make sure your local water authority is doing its job to provide good quality water, or do you buy bottled water?provide good quality water, or do you buy bottled water?

If you have an immediate problem with water quality at If you have an immediate problem with water quality at your tap, do you get the best filter available or do you buy your tap, do you get the best filter available or do you buy 5-gallon drums of water?5-gallon drums of water?

Thinking Twice About Bottled WaterThinking Twice About Bottled Water

Taking Action in Our CommunitiesTaking Action in Our Communities Be on the lookoutBe on the lookout

- Monitor city agencies/mayor's office for first warning of water privatization - Monitor city agencies/mayor's office for first warning of water privatization initiativesinitiatives

- Map aquifers and watersheds in order to monitor unusual land purchases- Map aquifers and watersheds in order to monitor unusual land purchases

Research your lawsResearch your laws- Research local and state water laws. Are they adequate to protect - Research local and state water laws. Are they adequate to protect

watersheds and aquifers?watersheds and aquifers?

Research your rights Research your rights - Research local and state public participation regulations- Research local and state public participation regulations

* Do they provide for public participation at every stage?* Do they provide for public participation at every stage?* Do they assure the public is fully informed?* Do they assure the public is fully informed?

Require public votesRequire public votes - Get local and/or state referendum requiring public vote regarding any - Get local and/or state referendum requiring public vote regarding any

privatization of water/sewer services privatization of water/sewer services

Environmental Justice Environmental Justice

Habitat Protection Habitat Protection

Human Rights Human Rights

Citizen Action to Protect the Citizen Action to Protect the Commons Commons

Public Trust not Corporate Control Public Trust not Corporate Control

Access to Water is About: Access to Water is About:

Water Privatization Resources - ReferencesWater Privatization Resources - References The New Economy of Water, The Risks and Benefits of Globalization The New Economy of Water, The Risks and Benefits of Globalization

and Privatization of Fresh Water. and Privatization of Fresh Water. PPeter Gleick eter Gleick et alet al., Pacific Institute, February 2002., Pacific Institute, February 2002

Who Owns Water?Who Owns Water? Maude Barlow and Tony Clarke, The Nation, September 2002Maude Barlow and Tony Clarke, The Nation, September 2002

Letter from Bolivia, Leasing the RainLetter from Bolivia, Leasing the Rain William Finnegan, The New Yorker, April 8, 2002William Finnegan, The New Yorker, April 8, 2002

A Price On Every DropA Price On Every Drop Mother Jones, Nov/Dec 2002Mother Jones, Nov/Dec 2002 Blue Gold, Special ReportBlue Gold, Special Report

Maude Barlow, IFG, June 1999Maude Barlow, IFG, June 1999 The Water Manifesto, Arguments for a World Water ContractThe Water Manifesto, Arguments for a World Water Contract

RiccardoRiccardo Petrella, Zed BooksPetrella, Zed Books Water in Public HandsWater in Public Hands

David Hall, PSIRU University of Greenwich, England, June 2001David Hall, PSIRU University of Greenwich, England, June 2001 Profiles of Public Service Privatizers: Suez, Vivendi, WackenhutProfiles of Public Service Privatizers: Suez, Vivendi, Wackenhut

Polaris Institute, Canada, August 2002Polaris Institute, Canada, August 2002 Thirst For Control New Rules in the Gobal Water Grab Thirst For Control New Rules in the Gobal Water Grab Steven Shrybman for the Council of Canadians, 2002Steven Shrybman for the Council of Canadians, 2002

Water Privatization Resources - Websites Water Privatization Resources - Websites International & National Websites:International & National Websites: Public Services International (excellent research): http://www.psiru.org/reportsindex.aspPublic Services International (excellent research): http://www.psiru.org/reportsindex.asp

GATS Watch (has the leaked “requests” and “offers”):GATS Watch (has the leaked “requests” and “offers”): http://www.gatswatch.orghttp://www.gatswatch.org

USGS Water Watch (with US water data): http://water.usgs.gov/waterwatch/USGS Water Watch (with US water data): http://water.usgs.gov/waterwatch/

Council of Canadians: http://www.canadians.orgCouncil of Canadians: http://www.canadians.org

Polaris Institute, Canada: http://www.polarisinstitute.orgPolaris Institute, Canada: http://www.polarisinstitute.org

Public Citizen's Critical Mass Energy and Environment Program: Public Citizen's Critical Mass Energy and Environment Program: http://www.citizen.org/cmep/Water/http://www.citizen.org/cmep/Water/

Citizens Network on Essential Services (CNES): http://www.ServicesForAll.orgCitizens Network on Essential Services (CNES): http://www.ServicesForAll.org

Water Privatization Resources - Websites Water Privatization Resources - Websites

Local - USA Websites:Local - USA Websites:

Michigan / Ice Water / Perrier: Michigan / Ice Water / Perrier: http://www.waterissweet.org/ http://www.waterissweet.org/

Wisconsin/Perrier: Wisconsin/Perrier: http://www.saveamericaswater.com/wi/http://www.saveamericaswater.com/wi/

Great Lakes: Great Lakes: http://www.greatlakesdirectory.org/http://www.greatlakesdirectory.org/

Friends of the Gualala River, Mendocino CA:Friends of the Gualala River, Mendocino CA: http://www.gualalariver.org/ http://www.gualalariver.org/

Save Our Springs, Cyrstal Springs, Florida: Save Our Springs, Cyrstal Springs, Florida: http://www.saveourspringsinc.org/http://www.saveourspringsinc.org/

Concerned Citizens Coalition, Stockton CA: Concerned Citizens Coalition, Stockton CA: http://www.cfac.orghttp://www.cfac.org

the story of corporate water privatization janet m eaton & ruth caplan released april, 2003...

Documents