Trade Agreements vs. Democracy


by Conrado Olivera and Jed Koball

This article appeared in the June 2012 issue of Sojourners magazine

THE ANONYMOUS DEATH threats phoned to Archbishop Pedro Barreto and others in March told them to stop speaking out about the foreign-owned metals smelting plant in La Oroya, Peru.

Barreto, a Catholic archbishop of the Andean region that includes La Oroya, has been a leading advocate for the health of the 35,000-person town, which the plant has made one of the world’s most contaminated places: 99 percent of children there have dangerous levels of lead in their blood.

However, in an unconscionable move made possible by the 2009 U.S.-Peru trade agreement, it is the polluter who claims to be the victim. The massive New York-based holding company Renco Group Inc., whose subsidiary Doe Run Peru owns the smelter, last year filed an $800 million trade-tribunal lawsuit against the Peruvian government, claiming it violated the company’s rights by enforcing environmental regulations in La Oroya.