Canada-China Investment Deal

Fri, 2012-10-26 17:20Franke James

The Scary Canada-China Trade Deal That Will Haunt Us for 31 Years

Illustration FIPA Harper by Franke James

hat's the scariest thing happening just after Halloween? Is it the stomachaches our children will have from eating too many sweet treats? No, it’s the Canada-China Foreign Investment Promotion and Protection Agreement (FIPA), which will automatically come into force on November 2nd, binding Canada for 31 years to come.

Shockingly, the most significant trade agreement since NAFTA is set to automatically go into effect – without a single debate or vote in Parliament. Our political representatives have not even had the chance to say “Boo”.
 
The deal was signed in secret by the Harper Government on September 9th, and quietly tabled in the House of Commons on Sept.26th. No press release to the Canadian media. No briefing to our MPs to announce the details. Just a clock ticking off the 21 sitting days until FIPA comes into force on Nov.2.
 
But surely the Harper Government has protected Canada’s interests? Unfortunately, no.
 
Tue, 2012-10-23 20:00Guest
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Suzuki: Short-Term Thinking On Display in Canada-China Deal and Budget

By David Suzuki
 
Why, when so many people oppose the Enbridge Northern Gateway pipeline project, would government and industry resort to such extreme measures to push it through?
 
The problems with the plan to run pipelines from the Alberta tar sands across northern B.C. to load unrefined, diluted bitumen onto supertankers for export to China and elsewhere are well-known: threats to streams, rivers, lakes and land from pipeline leaks; the danger of contaminated ocean ecosystems from tanker spills; rapid expansion of the tar sands; and the climate change implications of continued wasteful use of fossil fuels.
 
The benefits aren’t as apparent. Some short-term and fewer long-term jobs, possibly for foreign workers, and increased profits for the oil industry – including state-owned Chinese companies – are all we’re being offered in exchange for giving up our resources, interests and future, putting ecosystems at risk, and forfeiting due democratic process.

Wed, 2012-10-17 14:23Carol Linnitt
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China Investment Treaty "a Straitjacket" for Canada: Exclusive Interview with Trade Investment Expert Gus Van Harten

This post is the first of a series on the Canada-China Investment “Straitjacket:” Exclusive Interview with Gus Van Harten.

I recently picked up a copy of Francis Fukuyama's 2011 book, The Origins of Political Order. Sitting on the bedside table at the house I was staying at, the book made for some 'light' bedtime reading. I heaved the enormous tome onto my lap and, opening it to a random page, read this alarming passage: 

There is no rule of law in China today: the Chinese Communist Party does not accept the authority of any other institution in China as superior to it or able to overturn its decisions. Although the People's Republic of China has a constitution, the party makes the constitution rather than the reverse. If the current Chinese government wanted to nationalize all existing foreign investments, or renationalize the holdings of private individuals and return the country to Maoism, there is no legal framework preventing it from doing so (Pg 248)

My concerns with China's treatment of foreign investments arose in light of China's recent bid for Nexen, a Canadian company with large holdings in the Alberta tar sands. Since Canada is having trouble with the management of the tar sands now, what would it look like if we had Chinese state-owned enterprises like the Chinese National Offshore Oil Company (CNOOC) in the mix?

It turns out the problem is of magnitudes greater than I had originally conceived, and concerns not only Canada's management of its resources, but its sovereignty, its democracy, and the protection of the rights and values of its citizens.

Perhaps most strikingly, Canada is embracing this threat, showing telltale signs the real culprit in this dangerous deal isn't China at all.

In order to untangle the web of an international trade deal as complex as the China-Canada Investment Treaty, which establishes the terms of the Nexen deal - the biggest overseas takeover by a Chinese company -  I spoke with Professor Gus Van Harten of Osgoode Law School, an expert on foreign investment deals of this sort.

Below is Part 1 of our interview:

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