Pacific Rim vs. El Salvador: The Conflict Comes to Washington D.C.

May 31^st is the first day of hearings of Pacific Rim’s case against the government of El Salvador through the International Center for Settlement of Investment Disputes (ICSID). We hope that you can join us and other Salvadoran solidarity organizations in protesting the hearing in Washington DC. This is a great way to learn more about the struggle against mining and support the right of the Salvadoran people to control their land and natural resources. We will be sending out more information about the exact location and time of the two-day hearing in the coming weeks. If you would like to get a jump start and start coordinating with us, just shoot us an email.

The ICSID is an institution of the World Bank that arbitrates disputes between governments and transnational corporations. Pacific Rim argues that the Salvadoran government is violating their rights as investors by denying the company permission to mine in El Salvador, and is demanding 77 million dollars in reparations. The company says that Chapter 11 of CAFTA guarantees these rights. Though the company’s country of origin, Canada, is not a participant in CAFTA, Pacific Rim set up a subsidiary in Nevada in order to take advantage of the agreement’s highly company friendly mandates. The Salvadoran government, on the other hand, argues that the company has not fulfilled the requirements needed to be given the necessary exploitation permits. Meanwhile, the stance of the Salvadoran social movement, which may be introduced in the form of an Amicus brief, is that the government should be able to stop Pacific Rim and even outlaw mining because it is the will of the people of El Salvador. At stake is not only the 77 million dollars of reparations, but also the question of who has control over the country’s natural resources – its citizens or foreign corporations.

On May 31^st, the first stage of the trial will begin as the Salvadoran government presents its preliminary objections in an attempt prove that the case is frivolous. In the ICSID, the Salvadoran government and Pacific Rim have each selected one arbitrator and a big worry is whether or not this three arbitrator panel will indeed be a neutral judge.

As the Salvadoran government prepares its case, the National Roundtable Against Mining, an alliance of social and environment justice groups that includes CRIPDES, has been continuing to educate the public about the dangers of mining and advocate for a law that prohibits mining in the country. On Wednesday April 14^th, the Roundtable held a forum called Mining Companies in Mesoamerica; Sustainable Development or Threat to National Sovereignty. The forum was standing room only with participants from around the world. Speakers from Mexico, Honduras, Guatemala and Canada spoke about the devastating effects mining has had on their countries and strategies that have worked to stem the tide.
To read background about the struggle against mining in El Salvador, click here.

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