Quito, May 21 (Prensa Latina) Ecuadorian President Rafael Correa is insisting that Latin America must act in a united way to impose conditions on capital and prevent countries from being individually subjected to corporate whims. During a meeting with journalists in Guayaquil, Correa described the consequences of Bilateral Investment Treaties (BITs) as institutionalized theft, used by transnational companies to demand multi-billion settlements from sovereign nations. Correa also said that Latin America is the region facing the greatest number of such lawsuits from transnational corporations, and reiterated that a new alternative system must be created that allows for fair resolutions to disputes between states and companies.
“It has been a fierce battle. There was a misinformation campaign meant to damage the government,” he said.
Correa also stressed that this issue was denounced from the earliest days of his administration and independent legal analysis has already revealed how arbitration centers are manipulating the process for financial advantage.
He also celebrated the fact that more and more people and social groups in different countries in the world are becoming aware of the problem, in which the main beneficiaries are transnational corporations and legal centers.
Correa said that he expects that at the level of Community of Latin American and Caribbean States (CELAC) and the Union of South American Nations (UNASUR), members will sponsor a project to create a Regional Arbitration Center.
Correa reiterated that within the legislative agenda this year in Ecuador, a new Financial Institutions Act has been drafted, because the existing system is based on the same legal standard that led the Ecuadorians to a banking crisis in 1999.
“We also need a new monetary system law, due to the neoliberal law having made the Central Bank a sounding board for the interests of banking and financial capital,” added the Ecuadorian president.
sus/sa/cgm/tgj/prl Modificado el ( martes, 21 de mayo de 2013 )
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