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


TISA trade talks will lock NZ into finance rules behind GFC

20 June 2014

Wikileaks: Secret TISA trade talks will lock NZ into finance rules behind the GFC

‘While our eyes have been focused on the Trans-Pacific Partnership Agreement (TPPA), the New Zealand government has been negotiating an equally secretive deal with 22 other, largely rich parties, with the EU representing 28 member states’, said Auckland University law professor Jane Kelsey.

Today, Wikileaks posted the first major leak from the Trade in Services Agreement (TISA) negotiations, which were launched in the shadows of the World Trade Organization (WTO) several years ago.

The leaked document and Professor Kelsey’s analysis are at wikileaks.org/tisa-financial

TISA aims to bypass resistance in the WTO to a radical extension of the General Agreement on Trade in Services (GATS), an agreement that ties countries to a neoliberal regime for services. The next round of TISA negotiations starts in Geneva next week.

‘The leaked chapter on financial services shows the US and EU are driving the TISA process. It was their lax rules that allowed the Global Financial Crisis to happen. Now they are using TISA to extend those rules even further, at the bidding of their finance industry’, said Professor Kelsey.

‘Worse, they want to impose a standstill on new regulation. That means the parties to TISA would have to bind their current hands-off approach to financial regulation, so they can’t tighten it in the future.’

‘That is both scary and reckless for a country like New Zealand, which is positioned at the extremes of the so-called “risk-tolerant approach” to financial regulation’, Professor Kelsey warned.

The US and EU, which are the main promoters of the leaked text, have repeatedly blocked moves to debate how the WTO’s rules contributed to the GFC and possible reforms.

Professor Kelsey observed that the IMF’s researchers have repeatedly criticised affluent countries at the centre of the latest crisis for failing to lean from the crisis, and that they remain in a ‘state of denial.’

‘These governments propose to lock the world into a system of financial rules that have failed, and set the scene for future financial crises. But they want to protect themselves from accountability for what they have done’.

The cover sheet of the leaked text shows an unprecedented level of secrecy surrounding TISA. Background documents cannot be released for five years after the Agreement comes into force. The super-secret TPPA protects the documents for four years.

The US seems likely to be pushing similar rules through the financial services chapter of the TPPA. If so, the TPPA’s investment chapter would provide a platform for the finance industry to use the power of investors to sue a New Zealand government that sought to tighten the finance rules.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Wellington.Scoop: Serco – First The Prisons, And Now It Wants To Run The Trains

As the government continues its inquiry into Serco’s discredited administration of Mt Eden prison in Auckland, here in Wellington there’s further scrutiny of the British outsourcing company – because it’s competing to take over the running of our commuter trains. More>>


Gordon Campbell: On The TPP Countdown, And Mary Margaret O’Hara

To date, the Key government has been unwilling to share any information about this TPP deal until it is too late for outraged public opinion to affect the outcome... the disclosure process is likely to consist of a similarly skewed and careful exercise in spin. More>>


Australia Deportations: English Relaxed On Immigration Centre Conditions

Labour's Annette King: “There have been numerous reports from inside these detention centres on just how bad conditions are... If they were being held in any other foreign jail, I imagine Mr English would be somewhat concerned. More>>


Schools: Achievement-Based Funding Would Be A Disaster

The Education Minister’s speech to the PPTA Conference raising the spectre of achievement data driving a new funding system would be disastrous, says NZEI Te Riu Roa. More>>

  • Video Out-Link - PPTA Annual Conference 2015 on Livestream (Q+A dicussion suggests funding would be directed to less successful schools.)

  • ALSO:

    ECE Report:

    Key In NY: Prime Minister Addresses United Nations

    Prime Minister John Key has addressed the United Nations General Assembly in New York, focusing on a call for action in Syria and on other conflicts, reform of the veto process and on the UN’s Sustainable Development Goals. More>>.


    Gordon Campbell: On The Lack Of Accountability Over Philip Smith

    In New Zealand, accountability is an exotic creature rarely glimpsed at ministerial level, or among senior management. The flight to Rio by the paedophile /murderer Philip John Smith/Traynor is no exception. More>>


    More On Corrections

    Get More From Scoop



    Search Scoop  
    Powered by Vodafone
    NZ independent news