EU's Secret Trade Deals Have ‘Zero Democratic Legitimacy:' UN

The United Nations issued a strongly worded statement on Friday warning that any attempt by the European Union to bypass national parliaments to push through controversial trade deals would violate international human rights norms and standards.

“Trade deals prepared and negotiated in secret, excluding key stakeholders such as labor unions, consumer associations, health professionals and environmental experts and now parliaments, have zero democratic legitimacy,” said the UN Independent Expert on the promotion of a democratic and equitable international order.

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The call from de Zayas comes as the European Commission is reportedly preparing to treat the Comprehensive Economic and Trade Agreement, or CETA, deal with Canada as an "EU only" matter which, if adopted, will exclude ratification by every national parliament in the EU, according to leaked documents and recent media reports that the Independent Expert discussed with various EU stakeholders.

“In view of the increasing vocal opposition by civil society organizations, a thorough open discussion should be carried out by national parliaments and referenda should be organized in all countries concerned,” de Zayas said. 

An earlier consultation conducted by the European Commission in 2014 resulted in 97 percent of respondents from across Europe expressing opposition to the inclusion of asymmetrical investment protection in the Transatlantic Trade and Investment Partnership, or TTIP, with the USA. “The same would apply to CETA, but no consultation was ever held,” he noted.

“Disfranchising the public from participating in this important debate is undemocratic and manifests a profound disregard to peoples’ voice," he added.

The secrecy around the deal and the negotiating process, which gives access to large corporations but largely excludes civil society, has been criticized as an assault on democracy.

“In case of conflict between trade agreements and human rights treaties, it is the latter that prevail,” stressed de Zayas, referring to controversial investment protection measures contained in the CETA text, which would undermine Canadian and the European Parliament’s regulatory sovereignty, in terms of legislative rule-making authority.

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Under a system called investor-state dispute settlement, or ISDS, foreign investors would be allowed to use private tribunals to demand compensation for government actions that affect corporate profits.

Additionally, the ISDS mediation takes place in “unaccountable legal tribunals”—which lack judicial safeguards and transparency measures—that are decided by lawyers outside the Canadian and EU judicial system.

The Independent Expert noted that it is not for the State to guarantee profits to investors or transnational enterprises, but to legislate and regulate in the public interest.