Good for mining but bad for democracy? Why Indigenous groups in Ecuador oppose free trade deal with Canada

Ecuador’s largest Indigenous organization, the Confederation of Indigenous Nationalities of Ecuador (CONAIE), is vehemently opposing a free trade agreement with Canada, citing concerns about potential human rights abuses and environmental degradation in their ecologically and culturally diverse country.

Zenaida Yasacama, acting president of CONAIE, expressed her worry about the lack of consultation with Indigenous Peoples regarding the trade deal, stating that it violates their rights. She believes that the agreement is primarily focused on expanding mining activities in Ecuador, which could have devastating impacts on Indigenous communities.

The trade agreement, which has now concluded negotiations, is being promoted by Global Affairs Canada as a way to eliminate trade barriers and diversify partnerships. However, opponents argue that it will primarily benefit Canada’s mining sector, which has been a major source of Canadian investment in Ecuador.

Yasacama, who hails from the Kichwa people of Pakayaku in the Ecuadorian Amazon, emphasized that Indigenous Peoples will resist the agreement and continue their long history of resistance against extractive and neoliberal policies. She expressed concerns about potential violence and criminalization of Indigenous activists who oppose mining projects.

Hortencia Zhagüi, a representative of the Board of Potable Water Administrators of Victoria del Portete and Tarqui, raised concerns about the potential contamination of groundwater due to mining operations in the Azuay province. She criticized the lack of transparency in the negotiations and accused President Daniel Noboa of violating Indigenous rights and the country’s constitution.

Civil society groups, including Mining Watch Canada, are also alarmed by the inclusion of investor-state dispute settlement (ISDS) in the agreement. This system allows Canadian companies to sue Ecuador at private tribunals, bypassing domestic courts. Ecuador had previously banned ISDS in 2008 and rejected it again in a 2024 referendum.

Stuart Trew, a trade researcher at the Canadian Centre for Policy Alternatives, criticized Canada for agreeing to ISDS, calling it anti-democratic and unjust. He warned that the system would give Canadian companies leverage to sue Ecuador for massive compensation in case of project disputes, potentially leading to devastating lawsuits.

The Indigenous women leaders from Ecuador, including Yasacama and Zhagüi, who visited Canada last fall, remain uncertain about whether their concerns were addressed by Canadian leaders. Despite the inclusion of a chapter on Indigenous Peoples and trade in the agreement, they believe that it prioritizes protecting investments over safeguarding human rights and environmental protections.

As the trade agreement awaits ratification, CONAIE and other Indigenous groups in Ecuador are gearing up to resist the deal and continue their fight against mining projects that threaten their communities and territories. The ongoing struggle highlights the importance of respecting Indigenous rights and environmental sustainability in international trade agreements.