Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Implications Of Singapore Agreement

Policy And Constitutional Implications Of The Singapore Agreement

There are vital constitutional and policy implications in the controversy over the Sin-gapore free trade agreement (officially called a “Closer Economic Partnership” be-cause the words “free trade” have had a bad press lately).

Yet the public is being given only nine days by the Select Committee hearing submis-sions, to obtain, read, understand, analyse and make submissions on the complex 192 page document, which was secret until 11 September.

There has been much comment on the agreement’s Treaty of Waitangi provision.

Article 74 of the agreement allows “more favourable treatment to Maori”, including measures “in fulfilment of [New Zealand’s] obligations under the Treaty of Wai-tangi”.

There have been vehement arguments for and against the Article. Labour says it is necessary to allow for social policy to “close the gaps”. The opposition say it is divi-sive.

What is important is that both sides of the argument acknowledge that the agreement will have long term effects that bind future governments. That is why the debate is taking place.

Whatever your views of the agreement itself, this constitutional aspect sounds loud warning sirens. How can today’s government bind future governments?

Actually it is worse than that. Currently, Cabinet has the power to ratify international agreements, with only token reference to Parliament. Cabinets can bind future Parlia-ments.

Surely Cabinet is accountable to Parliament and shouldn’t be able to tell the current Parliament what to do, let alone Parliaments yet to be elected? That is a basic consti-tutional convention.

Admittedly in this case, Helen Clark has magnanimously assured us that Cabinet will abide by Parliament’s vote – though uninformed by a proper Select Committee proc-ess. But if things don’t go her way, and the Singapore agreement does not get ap-proved by Parliamentary vote, she can still go back and get Cabinet to ratify it.

Future, less charitable, governments can, without a word to the public, return to giv-ing Parliament only a token role by exercising Cabinet’s extraordinary power.

Ratification would force changes in a number of pieces of legislation. The most im-portant is one which reverses Labour/Alliance policy on freezing tariffs with respect to trade with Singapore.

More importantly, it would prevent future Parliaments from changing many current policies without first getting the agreement of Singapore. For example, we must

 Accept tariff-free imports designed, checked and packed in Singapore with 60% of the value potentially created in appalling, low wage conditions, in an Indone-sian free trade zone, perhaps putting people here out of work
 Accept tariff-free seafood caught anywhere in the world by vessels “registered or recorded” (not necessarily owned) in Singapore
 Retain the higher threshold of $50 million for proposals from Singapore-based investors which require approval by the Overseas Investment Commission, rather than the previous $10 million
 Leave the fast money from Singapore’s financial dealing rooms, which may de-stabilise our currency or balance of payments, uncontrolled except after a crisis has hit
 Avoid favouring local over Singaporean suppliers in local and central government contracts worth more than $125,000.

Yet Singapore retains the right to considerably stronger measures, such as controls on foreign investment, various types of incentive payments, and a very powerful collec-tion of government-controlled companies, which own some of the $1.2 billion of Sin-gaporean investment in New Zealand.

This agreement is designed to be a precedent-setter for New Zealand and the rest of APEC – a “Trojan Horse” in the words of Asia 2000’s head, Tim Groser. If this one is ratified, the government hopes to apply it to a more ambitious programme of nego-tiations with the rest of Southeast Asia, South Korea, Chile, Canada and the United States.

That means these issues will only grow in importance. They will remove further op-tions that this and future governments have for managing our economy, our social di-vides, and our relationship with the rest of the world.

At a time when the wisdom of purist free trade and investment policies is being ques-tioned in the streets, in United Nations human rights reports, by World Bank econo-mists, and in many developing countries, the fervour with which these agreements are being pushed seems strange.

It is particularly strange for a government elected to turn around the excesses of the free market and favour local development.

More appropriate would be a thoughtful review of the economic and social effects of such policies, and development of a proper constitutional process.

That process should acknowledge that international agreements are like entrenched legislation. Almost constitution-like, they are difficult to change and bind future Par-liaments.

The process must be based on careful scrutiny in open and consultative procedures like those used for often less important legislation.

The Singapore agreement must be subject to such a process too.

Bill Rosenberg researches and writes on foreign investment and New Zealand’s eco-nomic relationship with the world.

[794 words]

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>

ALSO:

Corrections Corrected: Supreme Court Rules On Release Dates

Corrections has always followed the lawful rulings of the Court in its calculation of sentence release dates. On four previous occasions, the Court of Appeal had upheld Corrections’ practices in calculating pre-sentence detention. More>>

ALSO:

Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>

ALSO:

General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Gordon Campbell: On Our Posturing At The UN

In New York, Key basically took an old May 2 Washington Post article written by Barack Obama, recycled it back to the Americans, and still scored headlines here at home… We’ve had a double serving of this kind of comfort food. More>>

ALSO:

Treaty Settlements: Bills Delayed As NZ First Pulls Support

Ngāruahine, Te Atiawa and Taranaki are reeling today as they learnt that the third and final readings of each Iwi’s Historical Treaty Settlement Bills scheduled for this Friday, have been put in jeopardy by the actions of NZ First. More>>

ALSO:

Gordon Campbell: On The Damage De-Regulation Is Doing To Fisheries And Education, Plus Kate Tempest

Our faith in the benign workings of the market – and of the light-handed regulation that goes with it – has had a body count. Back in 1992, the free market friendly Health Safety and Employment Act gutted the labour inspectorate and turned forestry, mining and other workplace sites into death traps, long before the Pike River disaster. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news