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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsMonsanto Wants to Move to Switzerland....
5/21/2015
"Monsanto, in seeking a tax inversion, shows that it has no loyalty to the United States.
So, why is the U.S. government showing so much loyalty to it?"
The longstanding principal goal of U.S. trade policy is to advance U.S. economic interests.
So, why is the Obama administration fighting so hard to help Monsanto a company that is openly trying to slash its taxes by moving its headquarters from St. Louis to Switzerland?
Earlier this month, Monsanto made an initial offer to purchase the Swiss-based Syngenta. The deal, if completed, would allow Monsanto to move its headquarters from outside St. Louis to Switzerland, thereby reducing U.S. corporate tax payments. According to financial analysts at the investment firm Piper Jaffray, Monsanto would gain and U.S. taxpayers would lose about $500 million per year in tax revenues.
It would also create the largest seed and crop chemical company in the world.
At this moment, the Obama administration is undertaking a high profile effort to knock down global resistance to genetically engineered (GE) food and crops. It is advancing trade treaties both for Europe (TTIP) and Asia (TPP) to accomplish this goal.
Monsanto is the worlds largest producer of seeds, many of which are genetically engineered. It would be a major beneficiary of these treaties.
Monsanto, in fact, can attribute much of its growth over the last decade to past trade deals. Most other countries around the world, including key markets in the European Union, have taken a more precautionary approach to genetically engineered crops than in the U.S. both in approvals for agricultural production, and in requiring clear labeling for consumers. In collaboration with the U.S. Trade Representative, Monsanto and the agrichemical industry have aggressively used trade rules in bilateral agreements as well as at the World Trade Organization (successfully challenging Europes biotech regulatory regime) to try to strike down higher-standard public health and environmental requirements for GE foods in other countries.
Senator Richard Durbin, in a letter this month to Monsanto urging the company to stay in the U.S., pointed out that the companys growth is in large part due to U.S. taxpayer-funded programs and services. He points out how the company has benefited from government research, the U.S. patent and regulatory system. In its peculiar way of saying thanks, Monsanto wants to take the money and run.
There seems to be no limit to the lengths to which the Obama administration will go to support Monsanto and the biotech industry. Earlier this month, USDA Secretary Tom Vilsack accused the European Union of undermining efforts to address global hunger, because of a new EU proposal to allow its member countries greater power in regulating GE crops. Vilsack threatened that the EUs decision raises serious issues about the future of TTIP, and officials in Washington have threatened another WTO challenge. The EUs regulatory approach is troubling to Vilsack and Monsanto because their collective goal is to eliminate what they call sub-federal regulations. In the case of Europe, it is country-level regulations. In the U.S., it is state-level mandatory GMO labeling laws.
Both TPP and TTIP include intellectual property rules that protect Monsantos patented GE crops. They also include special corporate rights provisions, known as investor-state rules. These provisions would grant corporations legal rights to potentially challenge new laws, like state-level labeling of genetically engineered foods, that inhibit investors expectations.
Why is the Obama administration doing such huge favors on trade for a company that is trying to cheat U.S. taxpayers by moving its tax headquarters to Switzerland?
http://www.commondreams.org/views/2015/05/21/monsanto-wants-move-switzerland-why-obama-doing-it-favors
FYI~
http://action.fooddemocracynow.org/sign/stop_tpp_fast_track_Monsantos_secret_trade_deal_now/?ak_proof=1&t=2&akid=.1008783.rY0qyR#take-action
Recursion
(56,582 posts)Syngenta isn't just a tiny company they would pick up as a tax dodge, but Europe's biggest seed supplier. Oy.
RiverLover
(7,830 posts)nt
djean111
(14,255 posts)labeling of GMOs. Plus, maybe, sue the United States if farmers start refusing to use their seed or insecticides/herbicides. And Switzerland is a low corporate tax haven.
Switzerland is not a part of the EU, so if Monsanto is based there, it can more easily sue the United States AND the EU for profit barriers, um, trade barriers. I believe that some EU countries ban GMOs right now.
In addition, the EU has been angry with Switzerland because of its low taxes, and considers that an unfair advantage. Ha, looks like all the corporations and countries may be suing each other, which will benefit lawyers and corporations, but not people. There is concern in the EU that laws and regulations will be overturned by corporations, too. Not just us angry about the TPP/TTIP.
What a corporate coup!
newfie11
(8,159 posts)This is absolutely horrible. Greed tops all.
RiverLover
(7,830 posts)You should write one up & submit at Hufffpo or Nation of Change. For real. This is what people should know.
djean111
(14,255 posts)And, yeah, as soon as I read "Switzerland" I thought well, let's see - are they part of the EU? What are the ramifications? What does Monsanto stand to gain?
Just Googling stuff like "can the Swiss sue the EU" and "Is Switzerland part of the EU" gives a lot of very illuminating information.
Here is a little preview of what I think we (and the EU) are in for - stopped in at the Dollar Tree yesterday, I love the Dollar Tree. The other Dollar-type stores, not at all. Where the grocery aisle used to be - the entire shelving unit was gone, big empty space. I asked the cashier if they were expanding the food section (there are lots of very poor people in my section of Hillsborough County). She said no, Winn-Dixie had successfully sued to stop any other stores in shopping areas where it had stores from selling food. I have shopped at Winn-Dixie since 1987. I have watched their prices go up, and the quality (IMO) of some departments go down. They are, actually, more expensive than Publix. Some items regularly cost a dollar more, not talking about sale items. Anyway, Winn-Dixie says it is losing profits because people can buy food at the Dollar Tree. I have to say that not so long ago, I depended on the cheap pasta and closeouts of things that I could not afford at a grocery store. No, I could not put together organic meals or whatever, but I could feed my family. The only bargain at Winn-Dixie was their store brand ramen noodles. Recently, Dollar Trees have been getting whatever bread that grocery stores did not have room for when delivered - Cobblestone Mill, same sell-by date as in the grocery store, for a dollar. There were times I only had about as much money as that loaf of bread cost at a grocery store, to feel my family of three.
I don't think Winn-Dixie understands or cares that the poorer people just cannot afford much of their groceries. My Dollar Tree is looking to relocate. What if they go somewhere not as accessible for people without much in the way of transportation?
Anyway, sorry for rambling, but this really pisses me off. And seems like it is in the spirit of what we will experience on many areas.
Enthusiast
(50,983 posts)Sample Fascism. Don't like it? Too bad. Apparently.
CoffeeCat
(24,411 posts)...dictate what other stores sell? How on the hell is that even possible?
Why doesn't Dollar Tree tell Winn Dixie to get bent?
Our Dollar Tree sells SAra Lee Bread/Bagels/buns--and other brands of bread, hamburger buns--for $1.
I figure that's at least a $250 annual savings for our family. The Dollar Tree rocks.
djean111
(14,255 posts)The Dollar Tree cashier had the official communique from headquarters about this, but the lady in front of me in line kinda walked out the door with it, before I could see it.
This only affects Dollar Trees in the same shopping center with a Winn-Dixie, and no other grocery stores are doing this, at this time. And the Dollar Tree cannot tell Winn-Dixie to get bent, this has dragged through the courts for a while now, and I think getting bent would involve a ruinous fine.
Yes! on the bread. The Dollar Tree does not sell anything that needs to be refrigerated or frozen, either.
Funny thing - I think I understand a little bit why my relatives who lived through the Depression were so tight with their money. Not only do I not trust that I will always get my Social Security, but once I got used to being able to get toilet paper, bleach, detergent (laundry and dish), black beans, rice, pasta, and spices, and only have to spend $10 - I can't bring myself to pay more for some of that stuff, seems a waste of money.
Anyway, veered off the subject, but this is, IMO, the kind of thing corporations will be doing.
enough
(13,256 posts)jeff47
(26,549 posts)100% Organic seedless watermelon is genetically modified. We manipulate the chromosomes of "normal" watermelons using chemical mutagens so that it has 4 copies of its genes instead of two. Then we breed that with a "regular" watermelon. The resulting watermelon has 3 copies of its genes, and the odd number of copies messes up seed production.
But because it was a chemical mutagen instead of an enzyme or other modern DNA manipulation, it doesn't get the proposed GMO label.
Btw, seedless watermelon was also not tested for safety before being sold to consumers. At least, not to the level being demanded of GMO crops.
There's also crops we produced via bombarding plants with radiation and seeing what grew from the mutations. The most common being red grapefruit. Again, not tested, and again, can have a 100% organic label and no GMO label. Also a perfect opening against GMO labels.
I'd argue what we actually need is something like a "RoundUp Ready" label instead of a GMO label. It actually gives you the information you are looking for. It has a slightly stronger chance of surviving such a pseduo-lawsuit.
Dustlawyer
(10,495 posts)Publicly Funded Elections are what we must demand! Also, no more revolving door and starved regulatory agencies. Lastly, bust up the big banking and media oligarchies!
RiverLover
(7,830 posts)I can't tell you how much I agree.
This is getting ridiculous. Unless we just want to give up on being a Democracy.
raouldukelives
(5,178 posts)Many people fund the attackers against us while claiming to be on our side. For them, money for themselves trumps democracy for all.
MBS
(9,688 posts)TexasMommaWithAHat
(3,212 posts)Yeah. Like that would ever happen.
Laughing Mirror
(4,185 posts)Rejected, that is.
05/08/2015 | 04:16am US/Eastern
BERLIN (AP) Swiss biotechnology company Syngenta said Friday that it has rejected a takeover offer from Monsanto Co., a bid that it said greatly undervalued its prospects. Syngenta's shares jumped 17 percent on the interest, however.
...
Directors at Syngenta unanimously rejected the offer because it "fundamentally undervalues Syngenta's prospects" and underestimates "significant" risks to a deal including regulatory and public scrutiny in many countries, the company said in a statement.
Chairman Michel Demare said the proposal doesn't reflect "the significant future value potential of the company's crop-focused innovation" and market-leading positions.
...
Syngenta's shares leapt 17.1 percent to 389.60 francs in Zurich trading.
http://www.4-traders.com/MONSANTO-COMPANY-13589/news/Monsanto--Switzerlands-Syngenta-rejects-Monsanto-takeover-offer-20340842/
RiverLover
(7,830 posts)WSJ 5/20/15
Mr. Begemann said that Monsanto remains committed to striking a deal with Syngenta and that the companies continue to talk. He didnt say whether Monsanto would raise its initial bid, but he did say it would consider increasing its leverage ratio to seal a transaction.
The commitment to divest itself of Syngentas portfolio of seeds and crop geneticssuch as traits developed to give plants attributes like resistance to bugsis intended to alleviate potential antitrust challenges to combining the worlds No. 1 and No. 3 seed companies by sales. Their businesses overlap in seeds for corn, vegetables and other crops.
http://www.wsj.com/articles/scotts-miracle-gro-extends-deal-to-sell-monsantos-roundup-1432123867
erronis
(15,222 posts)So Monsanto would much rather everyone used only its own brand of GMOs.
They (Monsanto) would divest themselves of Syngenta's products by selling them to a shell company that sit on the patents therefore giving more exclusivity to Monsanto's.
I wonder when Monsanto will try to close public seed libraries and seedbanks - you know, patent protection, etc.
FlatBaroque
(3,160 posts)that large corporations generally have no allegiance to any nation. They see their domain as the entire planet. So when we expect them to pay taxes and behave like good citizens we are being naive. And corporate politicians understand this and cater to their needs. To me, that's a large part of what TPP, et al is about.
Enthusiast
(50,983 posts)Too bad so few recognize it. It's hiding in plain sight.
FlatBaroque
(3,160 posts)if it were not for the propagandists and disinformation agents within our ranks.
Enthusiast
(50,983 posts)BrotherIvan
(9,126 posts)They think they are helping their favourite politician with pretzel logic to support these policies, but are in fact just adding to the problem. That's why the idea of a left-seeming, liberal sounding administration works so well for corporations: it neuters the only opposition.
gregcrawford
(2,382 posts)Let these greedy psychopaths leave; just tell 'em, "Sorry, but you can no longer do business in the United States, in any capacity, under any circumstances. You've lied, cheated, robbed and murdered, and contributed nothing but misery. We're glad to be rid of you."
djean111
(14,255 posts)continue to lie, cheat, rob and murder, and contribute nothing but misery. They would be able to sue the US and the EU, under the TPP/TTIP or other agreements. Tell them they cannot do business here? Not gonna happen. The fix is in. I wouldn't be surprised if we still gave them whatever subsidies they might be getting now.
Recursion
(56,582 posts)So, no.
djean111
(14,255 posts)The TPP and TTIP are just the doubled-down versions of agreements that let corporations sue.
http://www.seco.admin.ch/themen/00513/00594/04450/?lang=en
Investment Promotion and Protection Agreements (BITs)
Switzerland has signed over 120 BITs. After Germany (135) and China (125), Switzerland has the world's third largest network of such agreements (status: end of 2010). With each BIT, Switzerland improves the general conditions and hence its appeal as a location for international investments.
The purpose of BITs is to afford international law protection from non-commercial risks associated with investments made by Swiss nationals and Swiss-based companies in partner countries - and, inversely, investments made by the nationals and companies of partner countries in Switzerland. Such risks include state discrimination against foreign investors in favour of local ones, unlawful expropriation or unjustified restrictions on payments and capital flows. To these provisions have been added obligations on the part of the contracting country to treat investments made by investors in the other signatory country fairly and equitably. In addition, contracting countries are required to respect state commitments made to specific investors in relation to corresponding investments.
Gamecock Lefty
(700 posts)How about the thousands of everyday folks that work for Monsanto and take pride in the work Monsanto is doing? Are they greedy psychopaths, too? Is General Electric? Coca-Cola?
If MON buys Syngenta they are not moving their HQ to Switzerland. That issue was put to rest a long time ago, yet those who hate MON wont let it go because its big bad Monsanto. Let it go, folks.
djean111
(14,255 posts)Other jobs lost due to H-1B visas and companies moving out of the US are okay to lose? Hey, I understand that we will be taking money out of Medicare in order to re-train those who lose their jobs! Sweet deal all around. For corporations.
So, no, we will not be letting it go. And last time I looked, we don't tell other people what to do. We express opinions.
Dont call me Shirley
(10,998 posts)and their lawyers and lobbyists.
Some of the regular folk who work for monsatan must know what the company is all about, some not so aware. They refuse to serve their garbage food in their own company cafeterias, wth!
This is a company who makes toxic and genocidal chemicals don't forget. And then refuses to clean up their mess. This is a company who bullies family farmers, causes them to commit suicide, infects our organic fields.
Exterminate the company, it's vile products and never allow such a monster to live.
gregcrawford
(2,382 posts)raindaddy
(1,370 posts)So it's the almighty job creator argument? Monsanto creates jobs so we all need to become Roundup ready...
RiverLover
(7,830 posts)And yes, now that you mention it, GE (& Jack Welsh) is the posterchild of Greedy Psychopathic Corporations.
Just curious, given your screen name, do you like gamecock fighting as well?
lonestarnot
(77,097 posts)BrotherIvan
(9,126 posts)A new member, running around every GMO thread with some kind of vested interest? That smells like troll.
Ilsa
(61,692 posts)Of a single world government. I think we should all be afraid of a handful of international conglomerates controlling our food production, energy, medicines, healthcare, etc..
L0oniX
(31,493 posts)bvar22
(39,909 posts)DFW
(54,335 posts)I suspect there will be more of this.
It seems to me that a few evil empires are seeking safe haven before the storm.
If they make the move, I say treat them immediately as a hostile foreign organization and fine them for offenses against the USA, past and future, as if they were UBS. The offenses Monsanto has committed against Americans physically (from Agent Orange to Roundup) makes the UBS affair seem like a UN diplomat trying to get out of paying a parking ticket in Manhattan in comparison.
Rex
(65,616 posts)Consolidate and control.
djean111
(14,255 posts)haven for corporations who want to use the ISDS - the ISDS is not limited to the TPP/TTIP.
Rex
(65,616 posts)Thank you for the information!
RiverLover
(7,830 posts)Which is djean's point. Along with the tax advantages...
cascadiance
(19,537 posts)Once she finally decides to register as a "Swiss Miss" citizen and move their family money they got from the likes of Monsanto there.
http://world.time.com/2012/05/11/why-did-michele-bachmann-flip-flop-on-being-a-swiss-citizen/
KamaAina
(78,249 posts)Italian is one of the three official languages of Switzerland, along with German and French. Italian is spoken mainly in a few small southern cantons (states).
Buh-bye! Don't let the doorknob hit ya where the good Lord split ya!
pa28
(6,145 posts)Right now we're giving unfettered access to companies like Monsanto who don't want to pay taxes or invest in American jobs for free.
Yet, at the same time they want immunity from taxes and they want Congress working overtime to protect their patents and enforce their intellectual property in foreign markets as you've noted with the TPP.
If the US government insisted on corporations like Monsanto contributing their share in order for the right to do business in this, the world's biggest market, I think you'd find they would suddenly change their tune.