Big companies < small countries?

Posted By Patrick Fitzgerald Tuesday, July 29, 2008 - 3:36 PM Share

MARTIN BERNETTI/AFP/Getty Images

This should be easy fodder for the anti-globalization crowd. A lobbyist for oil giant Chevron, which is embroiled in a potentially costly lawsuit with Ecuador over the dumping of toxic oil waste in the Ecuadorian Amazon, is complaining of mistreatment at the hands of the big bad South American nation:

"The ultimate issue here is Ecuador has mistreated a U.S. company," said one Chevron lobbyist who asked not to be identified talking about the firm's arguments to U.S. officials. "We can't let little countries screw around with big companies like this—companies that have made big investments around the world."

Chevron is playing hardball, asking the Bush administration to revoke special trade preferences with Ecuador if the case isn't dismissed. But the plaintiffs have the backing of Ecuadorian president Rafael Correa, a Hugo Chávez ally, and two years ago secured the support of one Barack Obama, who wrote a letter arguing that the Ecuadorian peasants pressing the case should have "their day in court."

If the Bush administration doesn't act, and Obama wins in November, I wouldn't bet on Chevron in this rumble in the jungle.

EXPLORE:LATIN AMERICA, BUSINESS, DECISION '08, LAW, OIL
 
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ANGELAE8654

2:43 PM ET

July 29, 2008

Big Companies>Small Countries

I wonder just how much "pull" the President actually has in these types of matters. I guess we'll see if Obama becomes president. Angela from Aberdeen
 

CINDY

3:16 PM ET

July 29, 2008

Not so fast there...

Who knows what might be worked out if Obama's VP running mate is on the Chevron Board, eh?
 

PAPICEK

5:54 PM ET

July 29, 2008

Americans and US firms who

Americans and US firms who invest overseas think they can do so without some risk? Here's a scenario Chevron won't like much: Bush listens to Chevron's lawyers and revokes Ecuador's favored trading status. Ecuador then siezes Chevron's assests and kicks them out and invites Petrobras in to take over. Bush makes noises, but what can he do? Invade? Ecuador? For Chevron? C'mon....
 

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