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

 


China Could Have Sued Under FTA If Crafar Farm Sale Declined

Monday 30 January 2012

If the New Zealand government had declined the Shanghai Pengxin purchase of the Crafar farm it could have faced an international law suit for breaching its free trade agreement with China, says University of Auckland law professor Jane Kelsey.

‘When China’s politicians warned New Zealand politicians last year that the agreement was a two way street it is clear they were referring to their rights as foreign investors under the so-called “trade” treaty.’

That view was reiterated in Shanghai Pengxin’s application to the Overseas Investment Office (OIO).

The New Zealand China Free Trade Agreement was signed in 2008.

The government cannot treat applications from Chinese investors differently from similar applications from other countries’ investors under what is known as the ‘most-favoured-nation’ or MFN rule.

Shanghai Pengxin’s application pointed to numerous purchases of farmland by investors of other nationalities, and claimed that rejection of its otherwise well-founded application would amount to anti-Chinese discrimination.

Prime Minister John Key admitted on Campbell Live on Friday night that the FTA ‘has in it the most-favoured-nation status that means we can’t discriminate’.

That contradicts paragraph 62 of the OIO advice to ministers that there was no problem under the China FTA in a paragraph that does not address the MFN rule.

‘Presumably the Prime Minister got alternative advice from elsewhere’, Professor Kelsey said. She urged the government to release those documents.

‘The government would have pulled out all the stops to avoid a Chinese investor supported by the Chinese State taking it to international arbitration for breaching the FTA, even if it felt it was on strong legal ground.’

‘Such a dispute would have huge ramifications for New Zealand’s diplomatic and economic relationship with China.’

‘It would also cast a spotlight on the even greater risks of the more extensive foreign investor rights proposed for the Trans-Pacific Partnership Agreement (TPPA), a debate that the government is desperate to avoid.’

According to Professor Kelsey ‘the US is demanding much stronger protections for its would-be investors in the TPPA than China secured and the Key government has apparently rolled over and agreed to them, unlike Australia’.

‘The popular angst being channelled towards the Chinese needs to become a more principled opposition to deals that sign the sovereignty of our resources over to foreign corporations and who can sue the government in offshore courts if they don’t get their way.’

*****

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Anzac Issue Out Now: Werewolf 47

Alison McCulloch: Lest We Remember

Local iwi have plans to spruce up the Te Ranga site as part of the 150th commemorations this year of key battles in the “New Zealand Wars”, but not a lot of money to do it with.

Information gathered from numerous government agencies shows that while more than $25 million is being spent on monuments and commemorations relating to foreign wars, primarily World War I and its centenary, only around $250,000 has been set aside for those fought on our own soil. More>>

Anne Russell: Anzac Day - Identity Politics, With Guns

Even cursory research into media reports from the past forty years reveals a cultural shift in the commemoration of Anzac Day. Among other things, turnout at Dawn services has increased significantly in recent decades.

Contemporary numbers are estimated at 3,000-4,000 in Wellington, and 10,000-15,000 in Auckland. Newspaper reports from the 1970s and 80s estimated Wellington turnouts at 300-800, and Auckland at anywhere from 600 to 4,000. More>>

 
 

Parliament Today:

Spookwatch: New Inspector-General Of Intelligence And Security Appointed

Prime Minister John Key hasannounced the appointment of Cheryl Gwyn as Inspector-General of Intelligence and Security. The appointment was made by the Administrator of the Government on behalf of the Governor General and is for a term of three years. More>>

Crowdsourcing: Green Party Launches Internet Rights And Freedoms Bill

The Green Party has today launched the Internet Rights and Freedoms Bill, New Zealand’s first ever Bill crowdsourced by a political party. More>>

ALSO:

Gordon Campbell: On The Shane Jones Departure

Shane Jones has left Parliament in the manner to which we have become accustomed, with self interest coming in first and second, and with the interests of the Labour Party (under whose banner he served) way, way back down the track. More>>

COMMENT:

Multimedia: PM Post-Cabinet Press Conference - April 22 2014

The Prime Minister met with reporters to discuss: • The recent improvement in the economy with a growing job market • Income and wealth inequality • Easter trading laws • The New Zealander killed in a drone strike in Yemen... More>>

ALSO:

Easter Trading: Workers 'Can Kiss Goodbye To Easter Sunday Off'

The Government’s decision to “reprioritise” scarce labour inspector resources by abandoning the enforcement of Easter Sunday Shop Trading laws means workers can kiss goodbye to a guaranteed day off, says Labour’s Associate Labour Issues spokesperson Darien Fenton. More>>

ALSO:

ACT Don't Go For Maximum Penalty: Three Strikes For Burglary, Three Years Jail

Three strikes for burglary was introduced to England and Wales in 1999. As in New Zealand, burglary was out of control and given a low priority by the police and the courts. A Labour government passed a three strikes law whereby a third conviction for burglaries earned a mandatory three years in prison... More>>

ALSO:

Gordon Campbell: On Drone Strikes And Judith Collins‘ Last Stand

The news that a New Zealand citizen was killed last November in a US drone attack in Yemen brings the drones controversy closer to home. More>>

ALSO:

Elections: New Electorate Boundaries Finalised

New boundaries for the country’s 64 General and seven Māori electorates have been finalised – with an additional electorate created in Auckland. More>>

ALSO:

Policies: Labour’s Economic Upgrade For Manufacturing

Labour Leader David Cunliffe has today announced his Economic Upgrade for the manufacturing sector – a plan that will create better jobs and higher wages. More>>

ALSO:

Gordon Campbell: On The Life And ACC Work Of Sir Owen Woodhouse

With the death of Sir Owen Woodhouse, the founding father of the Accident Compensation Scheme, New Zealand has lost one of the titans of its post-war social policy. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news