To the Editor:
We really have to question the wisdom of our current relations with China, especially the Canada-China Foreign Investment Promotion and Protection Agreement.
Stephen Harper and the Chinese President signed off in Vladivostok Sept. 8, no press release, it has been tabled quietly in Parliament and 21 sitting days later, Oct.31, 2012 comes into force.
No debate in public, Parliament or with other levels of government. Governments can sign treaties without Parliamentary approval, but it is unusual for something of this magnitude to not have debate. Remember the big NAFTA debates? The House has been debating the Canada- Panama trade deal -trade volume $213 million- since last spring and the Canada- Jordan trade deal-trade volume $90 million- for 6 days. The Canada- China deal- trade volume $64 Billion- no debate whatever. Why no debate?
What is in this investment deal? It sets out a series of obligations for Canada, new rights for Chinese state owned enterprises and fails to deliver on reciprocity for Canadian companies operating in China. We are bound to the terms for the next 15 years minimum. A future government that wants out has to give 1 years notice- and even when cancelled, any existing Chinese operations in Canada are guaranteed another 15 years of benefits. Canada must promote and encourage Chinese investment in Canada. Chinese government controlled companies operating in Canada must be treated exactly the same as Canadian companies.
Now the really nasty parts. The deal allows Chinese companies to sue Canada over decisions that can reduce or diminish their expectations of profit. China can claim damages against Canada for decisions at the municipal, provincial or federal level- even decisions of our courts. Belgium is dealing with a $3 billion claim with China under a similar treaty regarding a failed bank. Chinese investors need only a minority position in a Canadian company to be covered. Claims go to arbitration behind closed doors and are secret. No other level of government is allowed to intervene or attend. We are essentially delegating a judicial component of Canadian sovereignty to international arbitrators. The arbitrators are not subject to review in any court. The arbitrators are not judges, often being corporate lawyers, moonlighting academics or members of corporate boards. They can awards billions of dollars of public funds to Chinese government corporations for our governments enacting legislation that protects our energy security, environment, jobs or public health. The mere threat of a lawsuit can be used in the early part of a dispute to get a government to change or deter certain decisions. This treaty requires that if, in the future, Canada wants to conserve its natural resources-all including water-we are only allowed to reduce Chinese access to the extent that we limit our own use. Australia, South Africa and India have wisely refused this type of investment treaty.
The government claim is that Canadian companies doing business in China will be protected. However, Canadian companies cannot demand Canadian jobs or materials be used in China. China can- and is- using Chinese labour and materials in Canada. China has the upper hand with its huge investments here. Canadian companies will not be buying Chinese state owned enterprises or investing in China to the same extent..
Is this deal just to push through the Northern Gateway pipeline? Chinese backers of this pipeline and tanker project would have the right to sue the British Columbia government if it tried to block the project. In turn, the Chinese national company could demand that only Chinese labour and materials be used, and that it be protected from public opposition.
Note that up to 2,000 Chinese workers could soon be given temporary work permits to work in 4 largely Chinese owned coal mines in B.C. Temporary foreign workers in Canada have increased from 101,000 in 2002 to 300,000 in 2011. The $15 billion takeover of oil company Nexen by CNOOC,the corrupt organ of the Chinese Communist Party, is pending.
This investment deal gives China's national oil companies more power to shape Canada's energy markets and challenge the politics of this country than Canadians themselves.
We are reduced to hewers of bitumen and drawers of water by our Prime Minister. A request was made for an emergency debate in the House of Commons. Speaker Andrew Scheer decided that this deal did not warrant an emergency debate. What do you think?
Mike Bray, Indian Head, SK.
