This weeks column for 24Hrs Vancouver: Who’s Harper working for?
by Laila Yuile
Is the China-Canada investment agreement a sell-out for Canada?
When an agreement is conducted with so much secrecy and lack of consultation with Canadians that Rick Mercer dedicates an entire rant to the subject, you know something is up. Two years ago, Prime Minister Stephen Harper and then-president Hu Jintao quietly witnessed the signing of the Foreign Investment Promotion and Protection Agreement so many Canadians are up in arms about this week.
China went onto ratify the agreement not long thereafter, however Canada did not. Two years after the initial signing, a quiet press release issued on Friday afternoon dictated the deal was ratified, eliciting outrage from the public and politicians alike.
Let me make something clear. The many criticisms and concerns of this particular FIPA are not based on anti-business or anti-trade rhetoric, nor are they xenophobia – all tiresome accusations used by those in favour of this deal. In fact, even members of Harper’s own government expressed concerns over this agreement.
This particular FIPA stands out from the many others Canada has with trade and investment partners around the world for a few reasons.
It holds Canada legally bound for up to 31 years, not only with the current government, but subsequent ones as well.
Read Brent Stafford’s column here.
Green Party Leader Elizabeth May stated: “Unlike NAFTA, with an exit clause of six-months’ notice, this agreement cannot be exited for the first 15 years. After 15 years, either country can exit on one-year’s notice, but any existing investments are further protected for another 15 years.”
And here’s where the “sell-out” begins. Any exit by Canada from this FIPA would rely on the Chinese government’s agreement, which is highly unlikely. Canada holds a wealth of investment and business opportunities for China both in resource and technology sectors.
The deal is said to be largely one-sided and offers little protection to Canadian investors in China. Here in Canada, it opens the door for legal actions from Chinese and state-owned investors against federal, provincial or municipal policies or actions that might interfere or impede with their business. The implications are staggering and open the door to large liabilities for Canadian taxpayers
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