Democracy under threat from secret trade deal
Behind the scenes, the New Zealand Trade Minister, Tim Groser, and his counterparts from USA, Japan, Australia and eight other countries have been negotiating a hugely important agreement that will affect us all. This is called a trade agreement but only 5 out of 29 chapters are about what we would recognise as trade. Most of the agreement specifies the rights given to foreign investors over the laws and policies of sovereign powers of governments, now and in the future. The agreement is called the Trans-Pacific Partnership (TPPA) and governments are trying to finish it by early next year.
Trade is important for the economy of New Zealand and many developing countries. But it needs to have fair rules. In the past, the rules have been distorted to the advantage of the richer countries. India, China and other emerging nations have pressed for reform of the rules, but the US, European Union and Japan have resisted, and negotiations in the World Trade Organisations have stalled. Now, the rich nations are trying to get their way through regional deals like the TPPA.
At the core of the TPPA are commitments to ensure that governments will not impede multinational companies from being able to operate wherever they choose with minimal restrictions. The idea is that freedom for companies will be good for business. But governments put rules in place for a reason. For example, New Zealand’s PHARMAC agency buys generic (non-patented) medicines that are far cheaper than patented drugs (often around 5% of the cost). In the TPPA, the US government, supported by its pharmaceutical companies, is proposing to extend patent terms and create additional rights for patent holders. This would mean our medicines become far more expensive.
The TPPA gives companies the right to take governments to an international tribunal if they think that laws or policies are not consistent with the agreement. Under similar agreements, these have been used to overturn government regulation on activities like toxic waste emissions, oil drilling, hydraulic fracking and mining. These cases would not be decided in the New Zealand legal system but in unaccountable international tribunals that are blighted by conflicts of interest.
Such a far-reaching agreement would presumably be subject to extensive public debate and scrutiny? Wrong. The negotiations have been kept secret, except to multinational companies who act as advisers to their governments. The only reason that we know some of the details is because two chapters have been leaked.
The government argues that New Zealand will gain from more exports of dairy and other products, but many of the barriers to trade used by the US and Japan, such as subsidies and anti-dumping laws are not up for negotiation. The US is pushing hard for advantages for their multinationals and if we want an agreement, it will cost us. There will be trade-offs.
Shamefully, the government has said there will be no opportunity for informed public debate or Parliamentary scrutiny prior to signing. There was no discussion about the TPPA during the election and the government cannot claim a mandate for signing it.
This is the time that the voices of all New Zealanders are heard. The Green Party has led questioning of the TPPA in Parliament and the movement of people who are concerned about the TPPA is growing, including lawyers, health professionals, small businesses, economists, and many others. Visit www.itsourfuture.org.nz, write to your MP and join the marches across New Zealand on Saturday 8th September.
Barry Coates was a Green Party candidate for Mt Roskill and narrowly missed out on becoming an MP. He was formerly the Executive Director of Oxfam New Zealand and has experience of international negotiations on trade. He has a Masters degree in management from Yale University.
Behind the scenes, the New Zealand Trade Minister, Tim Groser, and his counterparts from USA, Japan, Australia and eight other countries have been negotiating a hugely important agreement that will affect us all. This is called a trade agreement but only 5 out of 29 chapters are about what we...
Behind the scenes, the New Zealand Trade Minister, Tim Groser, and his counterparts from USA, Japan, Australia and eight other countries have been negotiating a hugely important agreement that will affect us all. This is called a trade agreement but only 5 out of 29 chapters are about what we would recognise as trade. Most of the agreement specifies the rights given to foreign investors over the laws and policies of sovereign powers of governments, now and in the future. The agreement is called the Trans-Pacific Partnership (TPPA) and governments are trying to finish it by early next year.
Trade is important for the economy of New Zealand and many developing countries. But it needs to have fair rules. In the past, the rules have been distorted to the advantage of the richer countries. India, China and other emerging nations have pressed for reform of the rules, but the US, European Union and Japan have resisted, and negotiations in the World Trade Organisations have stalled. Now, the rich nations are trying to get their way through regional deals like the TPPA.
At the core of the TPPA are commitments to ensure that governments will not impede multinational companies from being able to operate wherever they choose with minimal restrictions. The idea is that freedom for companies will be good for business. But governments put rules in place for a reason. For example, New Zealand’s PHARMAC agency buys generic (non-patented) medicines that are far cheaper than patented drugs (often around 5% of the cost). In the TPPA, the US government, supported by its pharmaceutical companies, is proposing to extend patent terms and create additional rights for patent holders. This would mean our medicines become far more expensive.
The TPPA gives companies the right to take governments to an international tribunal if they think that laws or policies are not consistent with the agreement. Under similar agreements, these have been used to overturn government regulation on activities like toxic waste emissions, oil drilling, hydraulic fracking and mining. These cases would not be decided in the New Zealand legal system but in unaccountable international tribunals that are blighted by conflicts of interest.
Such a far-reaching agreement would presumably be subject to extensive public debate and scrutiny? Wrong. The negotiations have been kept secret, except to multinational companies who act as advisers to their governments. The only reason that we know some of the details is because two chapters have been leaked.
The government argues that New Zealand will gain from more exports of dairy and other products, but many of the barriers to trade used by the US and Japan, such as subsidies and anti-dumping laws are not up for negotiation. The US is pushing hard for advantages for their multinationals and if we want an agreement, it will cost us. There will be trade-offs.
Shamefully, the government has said there will be no opportunity for informed public debate or Parliamentary scrutiny prior to signing. There was no discussion about the TPPA during the election and the government cannot claim a mandate for signing it.
This is the time that the voices of all New Zealanders are heard. The Green Party has led questioning of the TPPA in Parliament and the movement of people who are concerned about the TPPA is growing, including lawyers, health professionals, small businesses, economists, and many others. Visit www.itsourfuture.org.nz, write to your MP and join the marches across New Zealand on Saturday 8th September.
Barry Coates was a Green Party candidate for Mt Roskill and narrowly missed out on becoming an MP. He was formerly the Executive Director of Oxfam New Zealand and has experience of international negotiations on trade. He has a Masters degree in management from Yale University.
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