TESTIMONY

The Center for International Environmental Law (CIEL) testifies that environmental provisions in the NAFTA package are essential for Chilean accession to prevent trade distortions and establish a template for broader hemispheric integration. CIEL proposes a three-tiered 'readiness criteria' system: a 'Starting Line' requiring democratic rights, adherence to international agreements, environmental impact reviews, and basic institutional capacity; a five-year milestone for passing necessary legislation and establishing regulatory frameworks; and a ten-year milestone for effective enforcement of domestic environmental laws. The testimony emphasizes that the current Chilean environmental agency, CONAMA, is severely understaffed and relies too heavily on outside funding. To ensure compliance, CIEL suggests linking trade liberalization progress to environmental milestones through sanctions such as tariff freezes or snapbacks, and proposes an expanded funding mechanism, potentially funded by a tax on short-term international capital flows, to support environmental restoration and protection.

• CIEL argues that the NAFTA environmental provisions are applicable to Chile despite the lack of a common border because the agreements focus on controlling "potential distortions to trade flows that can be caused by disparate levels of environmental law enforcement" rather than transborder issues.
• The accession of Chile is viewed as a critical template for future hemispheric integration intended to include other nations such as Brazil, Argentina, Columbia, Bolivia, Paraguay, Uruguay, and Peru by 2005.
• CIEL proposes a three-tiered 'readiness criteria' approach for NAFTA accession: Tier 1 (the Starting Line) requires democratic rights, party status to multilateral environmental agreements, environmental reviews of the liberalization process, and basic institutional capacity; Tier 2 (the First Five Year Milestone) requires the passage of legislation and a full regulatory framework; and Tier 3 (the Second Five Year Milestone) requires the effective enforcement of domestic environmental laws.
• While Chile has established legal structures through the Framework Environmental Law of 1994 and the agency CONAMA, the testimony notes that implementation capacity is lacking because regional offices (COREMAs) are severely understaffed, often with only "two representatives and a secretary."
• The document highlights a risk that the NAFTA package may not adequately protect natural resources because certain provisions may "prevent citizens from submitting article 14 petitions to challenge a failure to enforce laws regulating natural resource exploitation."
• To ensure the credibility of the tiered approach, CIEL suggests sanction mechanisms linked to trade liberalization, such as a "deceleration or freeze in the tariff phase-outs" for minor breaches, and "tariff snapbacks" or expulsion from NAFTA for substantial breaches.
• CIEL suggests funding environmental restoration and protection through an expanded North American Development Bank (NADBank), potentially funded by a "small tax on short-term international capital flows" as proposed by James Tobin.

APA

Housman, R., Van Dyke, B., & Hunter, D. (1995). TESTIMONY. Center for International Environmental Law. https://www.ciel.org/wp-content/uploads/2015/07/Chile_NAFTA_21Jun1995.pdf

Chicago

Housman, Robert, Brennan Van Dyke, and David Hunter. TESTIMONY. Center for International Environmental Law, 1995. https://www.ciel.org/wp-content/uploads/2015/07/Chile_NAFTA_21Jun1995.pdf.

Wikipedia

{{cite report |last1=Housman |first1=Robert |last2=Van Dyke |first2=Brennan |last3=Hunter |first3=David |title=TESTIMONY |publisher=Center for International Environmental Law |date=21 June 1995 |url=https://www.ciel.org/wp-content/uploads/2015/07/Chile_NAFTA_21Jun1995.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{housman1995testimony, author = {Housman, Robert and Van Dyke, Brennan and Hunter, David}, title = {{TESTIMONY}}, institution = {Center for International Environmental Law}, year = {1995}, month = jun, url = {https://www.ciel.org/wp-content/uploads/2015/07/Chile_NAFTA_21Jun1995.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }