Corporate Courts vs. Global Justice: Why Fair Trade Campaigners Should Care
Imagine a world where corporations can sue governments for protecting people and the planet. Sound dystopian? Unfortunately, it’s happening right now through Investor-State Dispute Settlements (ISDS), often called ‘corporate courts’. These secretive tribunals allow multinational companies to challenge laws that safeguard human rights, workers, and the environment—all while blocking efforts to address the climate crisis.
Fair Trade campaigners call for justice, equity, and sustainable trade. But as Colombia’s experience shows, ISDS is actively undermining these principles, putting profits before people.
Scottish Fair Trade’s newest members, Global Justice Now, held a webinar explaining why we need to act.
Colombia’s Struggle: The Cost of Defending Water and Land
Sebastian from environmental defenders, AIDA explained that Colombia has been working to strengthen environmental and human rights protections, especially in its fragile páramos—high-altitude ecosystems that provide water for millions. But multinational corporations, backed by ISDS, are standing in the way.
Canadian mining giant Eco Oro has operated in Colombia since the 1990s, but when the government introduced stronger environmental laws, the company turned to ISDS, claiming it would lose millions. As a result, Colombia is now being forced to compensate the company—placing the burden on Colombian taxpayers.
Juan Tavares, a grassroots campaigner fighting to defend mountainous wetlands from metal mining by multinationals, emphasised that the páramos are under severe threat. Mining pollutes water sources with toxic minerals and radioactivity, and local communities are left powerless. As Juan explained, the courts are rigged: “It’s like a football game where one team is paying for the referee.”
Communities are resisting. Activists have successfully stopped some mining projects, proving that grassroots movements can challenge corporate exploitation. But ISDS remains a dangerous tool used by corporations to intimidate governments and silence local voices.
Ecuador’s Solution: Breaking Free from Corporate Courts
Ecuador offers hope. Former foreign minister, Guillaume Long, told us how Ecuador managed to withdraw from ISDS treaties after legal and economic analysis showed they brought no real benefits—only corporate power grabs. Other countries, including South Africa, India, and Indonesia, have also exited these unfair treaties.
In 2012, Ecuador was ordered to pay $2.3 billion to a US oil company after terminating a contract deemed illegal—an amount equivalent to 5% of its GDP.
Now, Ecuador faces another challenge: Canada is pushing for a free trade agreement that would reintroduce ISDS, despite 65% of the public vote against it. The fight continues.
What Can the UK Do?
The UK-Colombia investment treaty, which includes ISDS, is now a decade old—meaning it can be renegotiated. This is our chance to push for change. Global Justice Now (GJN) is leading the charge to remove ISDS from UK trade deals, and they need our help.
Take Action!
- Sign the petition: Demand that the UK stops corporations from exploiting Colombia: UK: Stop Corporations Exploiting Colombia | Global Justice Now
- Meet your MP: GJN has a briefing to help you push for fairer trade policies—get in touch with them to arrange a meeting.
- Join local activism: The UK Trade Minister, Douglas Alexander, is based in North Berwick, where local campaigners are already taking action. If you’re in that area then get involved!
ISDS is corporate power at its worst—undermining democracy, environmental protection, and workers’ rights. Fair Trade campaigners have always fought for a fairer world. Now, we must stand up against corporate courts and demand trade justice for all.
Louise Davies, 28 February 2025
