However, environmentalists have argued if the door is opened to gold mining, the country will suffer severe social and environmental impacts from acid drainage, water pollution and the use of cyanide. Concerns have been expressed by some that it could exacerbate water shortages in several areas.
It is believed by some that the PacRim case could set a precedent that may include the entire region. Under the Central American Free Trade Agreement, the state must grant compensation to foreign investors in the case of expropriation or nationalization of resources. For mining companies this could also mean if a government revokes or withholds a permit.
However, the agreement also states government may block mining projects to protect public health, safety and the environment.
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