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

 

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>

ALSO:

Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>

ALSO:

More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news