Results tagged “Asahi” from PlanetGreen.org

Bayer-Monsanto Buyout: Dangerous Waste of $66B

|
finalsign.jpgPost the premerger notice and let the bells ring. German pharmaceutical and pesticide titan Bayer and controversial seed giant Monsanto have finally tied the knot for $66 billion, in a deal complete with a $2 billion breakup fee owed to Monsanto if the deal is disallowed by the authorities. Not only is this deal a blatant attempt to monopolize the agricultural industry; upon closer scrutiny, Bayer may have dramatically overestimated the value of their newest purchase.

This buyout will be highly advantageous for Monsanto, which has routinely defrauded the growers of its genetically modified seeds for decades by vastly overstating its protections under U.S. patent law. The corporation speciously claims that patents on its asexually created plants forbid farmers from saving and replanting second-generation seed produced by a GMO plant, an assertion that clearly contradicts the unequivocal text of 35 U.S.C., Chapter 15. By using this deception to force farmers to repurchase seed every year, Monsanto has collected millions of dollars in unlawful profits - but, however lucrative that practice may prove at present, there remains the distinct possibility that regulators could at some point curtail such cozenage. By walking away with a cushion of some $66 billion dollars and handing Bayer the responsibility for this precarious operation, Monsanto's executives have ensured that they are never held accountable for their illegal restraint of trade.

Because of those legal uncertainties, this acquisition could prove to be a mixed bag for Bayer. The recently passed "Dark Act" overruled more comprehensive state-by-state GMO labeling laws that required notices to be placed physically on grocery packages, instead allowing manufacturers to obscure this information by posting it on websites or providing phone numbers consumers must call to learn the truth about their foods. This poorly veiled boost to the agribusiness industry is expected to increase the prevalence of GMO crops by making avoidance nearly impossible, and therefore would render Monsanto a desirable purchase. However, Monsanto's duplicity regarding its patents could prove to be more of a burden than a boon to Bayer if its claims are ever disputed. In addition, in an entirely separate controversy, an ongoing Justice Department suit against both Monsanto and John Deere over a partial merger of their machinery divisions (orchestrated prior to this buyout) could result in substantial penalties. Taking all these things into consideration, it is unlikely that Monsanto's products are worth the massive investment Bayer has just made in the company.

No matter what the outcome for the entities involved, one thing is clear: this merger will have a decidedly negative effect on American farmers and consumers. The two largest GMO seed companies are now both foreign-based: the Monsanto brand will now be German-held, and primary competitor Syngenta was recently purchased by ChemChina, a state-owned Chinese chemical developer. This could complicate an eventual challenge to Monsanto's interpretation of the patent laws by embrangling regulators or a class of growers in a drawn-out fight over the legitimacy of US jurisdiction; see World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286 (1980), Asahi Metal Industry, Co., Ltd. v. Superior Court of California, 480 U.S. 102 (1987). In addition, the merger gives the new conglomerate unprecedented market power over the price of seed and the herbicides most GMO plants have been specifically engineered to withstand, costs that will further repress small farmers and will be passed on to the consumer through increases in the prices of basic necessities.

The premerger notification will soon be available for public comment, and it is imperative that anyone ever having grown staple crops, eaten corn, soy or sugar, or worn cotton clothing unite to stand up against this plainly wrongful attempt to restrain the free market. So speak now or forever hold your peace.

Say No To TPP

|
It's another average American evening, and there I am again, wandering the aisles of German-based grocery store Aldi. I begin to examine a package of bright red tomatoes, and intrigued by their unseasonable freshness, I begin to read the label. The vegetables, I discover, were grown in Mexico -- but distributed by a company headquartered in Ontario. Somewhat alarmed by this corporation's deliberate avoidance of the USA, I start examining other products around the store and the town, and discover the omnipresence of foreign goods. Walmart candy: the cherry balls were made in Canada and the peppermints originated south of the border. Canned fruit: the consumer is offered the comforting choice between Chinese and Mexican regulators. Apple juice: Argentina, China, and Turkey make their appearance frequently, but it seems unlikely Johnny Appleseed could find a buyer anytime soon. Silverware: It takes thirty minutes of reading the small print on the backs of tablespoons even to find tableware from Vietnam, and even longer to debate whether that's any safer than China or not. Tinfoil: "Made in America," but the generic brand admits using metal from Russia and the Reynolds Wrap package conveniently doesn't mention it. Even merchandise proudly sporting miniature American flags and other patriotic decorations is more often than not crafted from "imported materials."

Cheap, imported goods are commonplace and unavoidable, thanks to two factors -- international agreements such as NAFTA , which legalized and effectively sanctioned outsourcing, and common law decisions such as Asahi Metal Industry Co. v. Superior Court, 480 U.S. 102 (1987), which placed foreign companies completely out of the reach of US courts and regulators. Yet it still does not appear the U.S. government has learned its lesson.

Hence the proposed Trans-Pacific Partnership.

According to its official website, the TPP "levels the playing field for American workers and American businesses, leading to more Made-in-America exports and more higher-paying American jobs here at home." But in reality, it opens the door to even more state-sanctioned outsourcing while providing no protections for sweatshop workers or enforceable environmental requirements. Therefore, we at PlanetGreen.org take a firm stand against it, and, in our "Say No to TPP" series," will explore the terms of the agreement not as they are conveniently summarized by the government but as they will affect our everyday lives and our collective strength and growth as a nation.

Tags

Find recent content on the main index or look in the archives to find all content.