New Zealand is currently negotiating a Trans-Pacific Partnership Agreement (TPPA) with Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, Singapore, US and Vietnam. Although called, ‘Trade’ and ‘Free Trade,’ this is a speedway for multinational big boys in the US to establish a ‘Bill of Rights’ to control the government and intervene in our policy-making process.
TPPA is an unalterable agreement between member countries, guaranteeing special rights for foreign investors. If the current negotiations succeed, it will open doors for the US-based multinationals to meddle with the laws and policies of sovereign nations. The financial market, mining, intellectual property, digital media rights, labelling of genetically modified food and price of medicines would all come under their control.
Our businesses will suffer, investment laws would be severely compromised and those with vested interests would significantly influence any future legislation. Multinational investors would sue the government for billions of dollars for breaching their rights. Tobacco giant Philip Morris has already invoked its rights of suing the Australian Federal Government over its decision to plain-package cigarette packets and the case is being heard in the international tribunals.
The danger of TPPA negotiations is that they are secretive. The final draft does not need Parliament approval but seen by the Select Committee after the Agreement is signed with no authority to make changes.
The scariest thing is that all documents would remain a secret for four years after the Agreement is signed and the media will not have an opportunity to bring up the issue for public debate and comment.
The Agreement would remain in force forever, until a party withdraws totally. But that would never be an option because of a number of legal and diplomatic reasons. Besides, such action could also trigger economic turbulences.
The Hobbit and Warner Bros saga in New Zealand has proved how a single corporate body could exert pressure on a government to alter its labour laws and grab massive tax subsidies.
What is the justification for the New Zealand government for a deal such as the TPPA? Former World Bank President and US economist Joseph Stiglitz has said that most Free Trade Agreements work to the advantage of the US, since it has the political and economic clout.
I cannot think of any benefit that New Zealand would ever obtain in the markets of the TPPA countries, including a better and freer access for Fonterra.
This is a call to the New Zealand Government to bring the negotiations to public scrutiny and explain why it secretly pledged our right to make our own decisions and laws supporting public health and safety, clean green environment and our future, sovereignty and prosperity as a free nation.
Dr George Abraham is our South Island Correspondent based in Christchurch. Guest Editorials do not necessarily reflect the views of this newspaper.
