Green party warns government on TPP with US: Watch investment rules, dispute mechanisms

The Green Party is warning New Zealand’s overseas investment regime will be on the United States’ hit list during the Trans Pacific Partnership (TPP) talks in Auckland this week.

This follows another warning in a leaked by officials that New Zealand needed to be careful of intellectual property provisions in any TPP agreement involving the United States.

Visiting New Zealand last month, US Secretary of State Hillary Clinton said the TPP was top of the agenda for the US in terms of free trade agreements with New Zealand.

See here for Bernard Hickey's interview with Lori Wallach and Jane Kelsey, who warn about provisions in US trade agreements.

Here is the release from the Green Party:

New Zealand’s overseas investment regime will be on the United States’ hit list during the Trans Pacific Partnership talks this week, Green Party Co-Leader Dr Russel Norman said today.

The Office of the United States Trade Representative (USTR), the US agency responsible for developing trade policy, highlights in its latest report on NZ the fact New Zealand screens overseas investment of sensitive land.  This is seen as a barrier by the USTR.

“New Zealanders are concerned about losing control of our land and our economic sovereignty,” said Dr Norman.

“The US Government has now specifically identified the rules we place on overseas investment as a barrier to New Zealand’s involvement in Free Trade agreements with it.

“Our own Ministry of Foreign Affairs and Trade acknowledge this in their Factsheet on the TPP negotiations.

“Foreign investment screening is seen as a likely issue to come up in the Trans-Pacific negotiations.

“Our concerns are heightened by the fact that the Australians, as part of the Australia-US Free Trade Agreement negotiations, were forced to remove all screening of US foreign investment into Australia for any investment under A$800 million. The Australian Government no longer has the right to regulate almost all US foreign investment into Australia as a result.

“It’s time for John Key and Tim Groser to come out and publicly state that New Zealand will not weaken our overseas investment rules for the sake of getting the United States on board for the Trans Pacific-Partnership,” said Dr Norman.

Meanwhile, the Greens also called on the government not to allow investor-state disputes mechanisms in the TPP agreements:

The Green Party is calling on the Government to reject attempts to introduce investor-state disputes mechanisms into the Trans-Pacific Partnership (TPP) trade negotiations in light of evidence that the Philip Morris tobacco company is planning to use the TPP to block anti-smoking laws.

“Most New Zealanders will be shocked to learn that the huge multinational tobacco company Philip Morris is using trade agreements to try to stop governments from introducing anti-smoking measures. But it is true," Green Party Co-leader Dr Russel Norman said today.

Philip Morris is currently taking action against Uruguay’s proposed anti-smoking laws under the investor-state disputes mechanism of the trade agreement between Uruguay and Switzerland (1). Uruguay is proposing to introduce new measures requiring 80 percent of cigarette packaging to carry graphic warnings against smoking. The company argues such measures effectively expropriate their investments. Under the investor-state disputes mechanism a World Bank panel will decide if Uruguay must pay Philip Morris for this ‘expropriation’.

Philip Morris is also targeting New Zealand’s TPP negotiations to ensure there are investor-state disputes mechanisms so Philip Morris will be able to sue governments that attempt to introduce similar anti-smoking laws.

Philip Morris’ submission (2) on the TPP to the United States Government specifically identifies proposals to introduce plain packaging of cigarette packages. They argue that such plain packaging of cigarettes is “tantamount to expropriation on the use of long-held and extremely valuable property rights”.

Philip Morris argues that investor-state disputes mechanisms in the TPP are essential so that companies can “submit disputes to independent international tribunals, a vital part of protecting its foreign investments”.

Dr Norman said the measures recently announced in the Māori Affairs Select Committee report on tobacco—such as plain packaging—would clearly fall foul of Philip Morris’ view of their investment rights.

“Our Government should not be so stupid as to sign up to investor-states disputes mechanisms that allow foreign corporations to challenge our democratic laws in undemocratic World Bank tribunals.

“Philip Morris wants investor-state disputes mechanisms in the TPP so it can stop countries introducing measures to reduce harm from smoking. We should say no,” Dr Norman said.

References 
(1) International media coverage of Philip Morris case against Uruguay - http://latino.foxnews.com/latino/health/2010/11/22/uruguay-takes-tobacco-giant-philip-morris/

 (2) Link to Philip Morris submission on TPP - http://www.regulations.gov/search/Regs/contentStreamer?objectId=0900006480a81299&disposition=attachment&contentType=pdf