Finally
the issue of the TPPA has had some airing on public radio with news
of leaked papers showing that the NZ government has agreed to the
foreign right to sue the government (where the Australians have
refused to sign up to such an agreement)
By
the time I reached this item it had become “the Minsiter of Treaty
Negotiations has rubished claims...” However the issue was covered
and did feature an interview with Prof Jane Kelsey
Foreign
investors able to sue NZ Govt overseas
Leaked
documents from trade talks show New Zealand has agreed to give
foreign investors the right to sue the Government in overseas courts
for policies which cause them financial losses
14
June, 2012
A
draft text of the TransPacific Partnership shows Australia refused to
sign up to the same investor rights.
It
shows New Zealand has agreed companies from the eight other TPP
countries should have the right to sue the Government in an overseas
tribunal if its policies cause them to lose money.
Former
trade minister Jim Sutton says similar provisions were in the trade
deal with China and can help protect New Zealand investments
overseas.
But
Green Party co-leader Russel Norman says New Zealand should join
Australia and not back them.
Trade
Negotiations Minister Tim Groser told Morning
Report the
Government would not sign any deal that cuts its rights to legislate
on social or environmental issues.
This
is the original report which came after the 6 am news
In
this segment the Minister of Treaty Negotiations Tim Grosser is
interviewed and claims that as Minister he has not seen the (leaked)
documents so can't comment – which allows him to mislead the public
This
item includes an interview with Jane Kelsey and someone representing
US-NZ business interests
This has been known about for some months. Here is a press release put out by Jane Kelsey in February
Key backtracks, says foreign firms can sue NZ government under TPPA
Media Release: Jane Kelsey. Monday, 7 February 2011
TPPA Watch
In November last year, Prime Minister John Key described as “far-fetched” the idea that investors could sue the New Zealand government directly in a secret international tribunal to enforce rules in the proposed Trans-Pacific Partnership Agreement (TPPA).
This week, US trade negotiator Barbara Wiesel said that was no longer New Zealand’s position, according to TPPA critic Professor Jane Kelsey.
In response to questions about New Zealand and Australian positions during a briefing to civil society in Washington on 31st January Ms Wiesel said “New Zealand had retracted the Prime Minister’s statement. It is not their position.”
Under standard US terms for such agreements, investors can claim millions in compensation from governments on the grounds that new regulation has adversely affect their investment. Under a TPPA that would apply to investors from all participating countries, including our largest sources of investment, the US and Australia, Jane Kelsey said.
“In other words, the Key government is happy for pharmaceutical firms in the US, Australian banks or Singapore-based Brierley Investments to sue the New Zealand government for millions in compensation if they think new laws or policies are unfair or unreasonable or erode their profitability”, said Professor Kelsey.
“We saw with the Hobbit, just a threat from a foreign investor is often enough to see a government cave. The leverage of Warners over our labour laws and taxpayer subsidies will pale into insignificance with a TPPA.”
Professor Kelsey speculates on three explanations for the flip-flop.
“Either John Key did not know what his negotiators were proposing to do when he described investor-state enforcement as “far-fetched”; or he was lying to the New Zealand public; or he has buckled to pressure from the US, and possibly his own Minister and officials, to agree.”
“This proposed bill of rights for foreign investors is even more frightening when government has announced assets sales and privatisation of ACC, policies which failed in the past and required the government to step back in.”
“The Prime Minister needs to be upfront about the government’s real position before the next round of negotiations begins in Chile on 14 February and explain why he is prepared to give foreign firms the legal power to override New Zealand’s sovereignty and extract settlements of hundreds of millions of taxpayer dollars”.
~~~~~~~~~~~~~~~~~~
Listen to the audio of John Key at his press conference of 15 November, describing ‘investor state disputes’ provisions that could allow for private companies to sue sovereign nations as “far-fetched”. Open the mp3 file here
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