Trans-Pacific Partnership Agreement

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

Radio New Zealand,

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”.


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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

UPDATE:  The leaked document is available HERE