Is Ecuador Feeling Chevron's Pressure?

On Wednesday, Reuters reported that "Ecuador is willing to mediate a settlement between Chevron Corp and 30,000 Amazon jungle dwellers suing the oil company for up to $16 billion in environmental damages," according to the country's top attorney.

On the face of it, an innocuous and wholesome development. Who could be against mediation? "We will only step in as a facilitator if both sides want us to," said Inspector General Diego Garcia.

But the background to this story is that Chevron has been lobbying the U.S. government to pressure Ecuador to intervene. As Newsweek reported on July 26,

Chevron is pushing the Bush administration to take the extraordinary step of yanking special trade preferences for Ecuador if the country's leftist government doesn't quash the case. A spokesman for U.S. Trade Representative Susan Schwab confirmed that her office is considering the request. Attorney Steven Donziger, who is coordinating the D.C. opposition to Chevron, says the firm is "trying to get the country to cry uncle." He adds: "It's the crudest form of power politics."

On the merits, this issue should be a no-brainer for most Democratic Members of Congress. Big Oil vs. the environment, a bunch of indigenous peasants, and the rule of law. Chevron's lobbying team includes former Senate majority leader Trent Lott and Wayne Berman, a top fund-raiser for McCain. Moreover, as Newsweek reported, the Democratic party's standard-bearer, Senator Obama, has a good position on the issue. In 2006 Senators Obama and Leahy wrote a letter to U.S. Trade Representative Rob Portman urging the administration to permit the Ecuadoran peasants to have "their day in court."

An Obama spokesman said recently that Senator Obama "stands by his position" that the case is a "matter for the Ecuadoran judicial system."

Representative DeFazio has given House Democrats an opportunity to weigh in. He is circulating a letter to USTR asking the Bush Administration to stay out of the case and respect the rule of law in Ecuador. The letter closes today. So far Representatives McGovern, Grijalva, Doggett, Kucinich, Hinchey, Kaptur, Lee, Linda Sanchez, and Blumenauer have signed on. Ask your Representative to join them.

UPDATE: Rep. Pastor has signed the letter.

Here is the text of DeFazio's letter:

Susan Schwab U.S. Trade Representative

Dear Ms. Schwab:

We are writing to express our concern over a recent news report that Chevron is lobbying your office to withhold U.S. trade preferences from Ecuador. Chevron apparently hopes to pressure the Government of Ecuador to interfere in a lawsuit brought by peasants in Ecuador seeking redress for the dumping of toxic oil waste in the Amazon. We are very concerned by the Newsweek account that your office confirmed that you are considering Chevron's request. We urge you to reject Chevron's request, and to affirm that access to the U.S. market will not be used as leverage to interfere in Ecuador's legal process.

While we are not prejudging the outcome of the case, we do believe that the thousands of indigenous residents of Ecuador who have brought suit against Chevron deserve their day in court.

Newsweek reports (Jul 26, 2008; http://www.newsweek.com/id/149090):

Chevron is pushing the Bush administration to take the extraordinary step of yanking special trade preferences for Ecuador if the country's leftist government doesn't quash the case. A spokesman for U.S. Trade Representative Susan Schwab confirmed that her office is considering the request.

The apparent attitude of Chevron towards democracy and the rule of law in Ecuador is summed up by a Chevron lobbyist:

"We can't let little countries screw around with big companies like this--companies that have made big investments around the world."

The report that your office is considering Chevron's request lends credence to the notion that the United States government might, acting on the request of a corporation defending itself against a lawsuit for environmental damage, use the power of access to the U.S. market to attempt to interfere in another country's legal process.

We urge you to publicly reject Chevron's request and affirm that the United States Government supports the rule of law in Ecuador.

Comments

[GerryS]

Chevron should pay and pay bigtime for this lawsuit. I have been to Ecuador and seen some of the mess they created in the Oriente. It is one of the 30 worst polluted places on the planet! Notice below, 18.5 BILLION gallons of toxic waste.

"After three decades of activity by Texaco (now Chevron), the company left behind 600 open waste pits and allegedly dumped 18.5 billion gallons of toxic waste into Ecuador's rainforest. This toxic dumping is reported to affect not only an indigenous population of 30,000 people but also 2.5 million acres of rain forest." quoted from website below-

http://www.worstpolluted.org/reports/map

[castlerider]

Years ago, Chevron was given the opportunity to take this case from America to Ecuador, where they felt they could get a better outcome on this case. Then the election happened and the country voted in President Corea, who is not so easy bought out as past elected officials, thank God. Because of this, of course, he is called a "leftist" politician, when in all actuality, he is simply very pro-Ecuador, as he should be.
America has been recently denied an opportunity to open a new military base in Ecuador, which came as a shock to the US government. Corea's logic was simple, and heartening. He stated, "I will permit the USA to open a new base in Ecuador if the USA allows Ecuador to open a Military base somewhere, like... Florida." ... You can't make stuff like this up.

Now Chevron wants this case moved back to the US, which is not happening.

After all the record profits they have enjoyed for more then a few years now, you'd think Chevron would think in terms of humanity and own up to their responsibilities, which could actually be a winning campaign for them. Instead they think they can lean on the USA to protect their greedy bottom line.

They're disgusting excuses of human beings, and deserve to lose, and allow justice for these people and their homeland to reign.

[andyg]

You mean anti-american, he can't have his cake and eat it, if he wants special trade preferences , he should stop the law-suit, it his choice.

[castlerider]

Why shouldn't he expect special preferences when a separate, independent and supposedly responsible entity in the US government has blatantly raped and destroyed his country's land, water table, and endangered his own people with it?
I don't know what cake you're talking about, and it sure doesn't show you know what you're talking about. Just sounds like brainwashed mumbo jumbo.
Get a clue-
Chevron is NOT America.

[castlerider]

Years ago, Chevron was given the opportunity to take this case from America to Ecuador, where they felt they could get a better outcome on this case. Then the election happened and the country voted in President Corea, who is not so easy bought out as past elected officials, thank God. Because of this, of course, he is called a "leftist" politician, when in all actuality, he is simply very pro-Ecuador, as he should be.
America has been recently denied an opportunity to open a new military base in Ecuador, which came as a shock to the US government. Corea's logic was simple, and heartening. He stated, "I will permit the USA to open a new base in Ecuador if the USA allows Ecuador to open a Military base somewhere, like... Florida."

Now Chevron wants this case moved back to the US, which is not happening.

After all the record profits they have enjoyed for more then a few years now, you'd think Chevron would think in terms of humanity and own up to their responsibilities, which could actually be a winning campaign for them. Instead they think they can lean on the USA to protect their greedy bottom line.

They're disgusting excuses of human beings, and deserve to lose, and lose badly.

[castlerider]

The irresponsible workmanship of these oil companies have been a textbook example of indifference and outright irresponsible and criminal behavior upon the Ecuadorean and Amazonian environment.

These polluted waters have been found to have caused over 480 deaths over the years, not counting hundreds of people who never reported these ills, or went to the doctor, if there even was a doctor they could see. Hundreds more suffered cancer, horrible stomach and internal organ ailments, and even blindness.
Chevron deserves to be seen as the criminals they are oin this case, and absolutely full restitution should be made.

It would absolutely be criminal for the US government to even think of involving itself.

[PublicAdvocate]

Chevron must make good on its rhetoric of being environmentally responsible and pay for the severe abuses and damages to Ecuador and her people. The Amazon river must not continue to be a private toilet for Chevron's wasteful and inefficient management of Ecuadoran oil reserves. Chevron must offer full apologies for its egregious and continual sins, and be held to comply with International law in both worker and environmental safety standards for drilling/mining oil.
Most of the other oil companies are operating within the law. Chevron should not be given a free pass for renegade behavior being rewarded and profitting from criminal behavior at public and environmental expense.

[Chevron]

Chevron desires a fair resolution to the Ecuador case. In 2004, we requested that Petroecuador engage in arbitration. The Republic and Petroecuador have sued to prevent such a conversation. Chevron remains open to an amicable solution, but such a dialogue would need to include discussion of Petroecuador's unfulfilled contractual obligations and a commitment from the Ecuadorian state to stop interfering in the trial.
Interference by the Ecuadorian state is undeniable. The International Bar Association (http://www.ibanet.org/iba/article.cfm?article=49) has concluded that "there is a serious politicization of the judiciary" in Ecuador and "that in many cases no effective independence exists."
Arturo Torres, an editor at El Comercio, an Ecuadorian newspaper, told Dow Jones Newswires that, "Judges fear ruling in any way that could be seen as going against Correa." He also said, "They know they can lose their position and that they can be called traitor to the country."
Examples of interference include:
March 20, 2007 - Dow Jones Newswire: "The support from the government will translate into help in gathering proof and support for the population directly affected by the contamination Texaco produced," Correa said in a press release.
January 19, 2008 " President"s radio program: "We continued with our regular office activities and then received representatives of the Amazon Defense Front who have been fighting for decades against ChevronTexaco; they have all the support of the National Government."

[PublicAdvocate]

Chevron (which is the owner of Texaco) is in criminal violation not only International law regarding drilling and environmental safety standards, but is violating its own rhetoric on being responsible and efficient. Chevron spilled and wasted billion of gallons of crude (thanks to sloppy management and inefficient operations and lack of regulation) driving up the cost of oil and gas on the world market for everyone while polluting the environment.

Chevron has created a Chernobyl-sized area of wasteland in Ecuador filled with pools of sludge and waste fouling the air and leaching into groundwater. It has also poured over 18 billion gallons of toxic waste into the once pristine Amazon to save money poisoning fish, animals, plants and th people who rely on the water for drinking and washing.

NPR had an interesting program about these gross abuses with Tom Ashbrook's show "On Point" detailing Chevron's tactics to evade responsibility and run a public disinformation campaign to. You can listen to here:
http://www.onpointradio.org/shows/2008/08/chevron/

[RobertNaiman]

UDPATE: Rep. Pastor has signed the letter.