Trade and the environment.

"Pollution does not recognize national borders, it does not respect political differences, and it does not worry about who is affected. Environmental protection is one of those issues where we're all in it together. For these simple reasons, our three countries are working together to solve our common environmental problems," U.S. Ambassador Tony Garza said at the 12th International Environmental Congress.

Ambassador Garza was speaking at a reception recognizing the accomplishments of Nafta in the environmental arena. Also present were Mexico's Environment Secretary Alberto Cardenas and Canadian Ambassador to Mexico Gaetan Lavertu. The U.S. ambassador addressed the impact of the environment on trade and Nafta.

"Presidents Bush and Fox have established an initiative called the Partnership for Prosperity that harnesses corporate stewardship and economic growth with social development in a way that grows business and puts people to work while protecting the environment," Garza said.

CALIFORNIA TO IMPORT LNG 

On Sept. 2, the California Public Utilities Commission approved, among other items, the importation of liquefied natural gas (LNG) from Mexico to California and took the following three major actions:

1) Authorized the utilities to purchase natural gas from a wider range of supply basins. Until now, the utilities were locked into specific interstate pipelines. The decision allows the utilities to diversify their supply.

2) Put in place up-front standards for capacity acquisition. By giving utilities up-front standards for contract approval, the commission streamlined the contract approval process, eliminating months of waiting time.

3) Established receipt points for LNG and ordered the utilities to interconnect with LNG facilities when they are built. LNG is not expected to come on-line until 2006-2007, but the contracts for those supplies are being negotiated now. By establishing the receipt points now, the commission sent the signal that LNG suppliers will be able to deliver their gas to California.

TEXAS FARMERS FILE COMPLAINT

The Associated Press reported that a group of Rio Grande Valley irrigators and farmers is seeking US$500 million from Mexico for crop loss and other damages the complainants say were caused by Mexico's failure to comply with a water-sharing treaty.

Seventeen irrigation districts, a water supply company and 29 individual farmers notified Mexican officials of the claim under Nafta.

A 1944 water-sharing treaty requires Mexico to send the United States an average of 350,000 acre-feet of water annually from six Rio Grande tributaries. The United States in return must send Mexico 1.5 million acre-feet from the Colorado River.

The farmers want up to US$500 million for damages of lost crops and revenues from lost sales incurred from 1992 to 2002. The claim was calculated by a Texas A & M University economist.

"I've seen the abandoned fields and the reduced crop yields," said Jo Jo White, a spokesman for the farmers and water districts. "This was man-made, not an act of Mother Nature."

Attorneys for the group said they sent paperwork on Aug. 27 to Mexican officials, giving them 90 days to pay the claim or submit to arbitration. The Mexican government sharply criticized the claim, saying it could cause problems for bilateral cooperation on the issue.

Abundant rains in 2003 and 2004 largely replenished South Texas' two Rio Grande reservoirs and allowed Mexico to reduce its water debt from 1.5 million acre-feet to less than 800,000 acre-feet.

Nancie Marzulla, an attorney representing the Rio Grande Valley water interests, said the claim falls under a Nafta provision requiring countries to compensate for annexed property and forbids discriminatory treatment of foreign investors.

She said the same Nafta provision has been used for damage claims two dozen times in the history of the trade agreement, with claims against Mexico, the United States and Canada.

Edward M. Ranger is the only U.S. environmental lawyer licensed in Mexico and may be contacted at [e-mail].