What is the "Agreement Between the Government of Canada and the Government of the People's Republic of China for the Promotion and Reciprocal Protection of Investments" (FIPPA) and what does it mean for Canadian-Chinese relations?

It is very likely that most Canadians are completely unaware of this agreement that was signed by Stephen Harper and the Chinese authorities on September 9th and tabled in Parliament on September 26th .  Gus van Harten, a professor at Osgoode Hall Law School and an expert in international trade law wrote a terrifying piece in the Toronto Star (Sept 29/12) in which he decries the deal that for the first time will allow confidential lawsuits against Canada by Chinese "companies".  Most of these companies are state run and interested in the resource bounty of Canada.  As Professor Harten sums it up:

"Confidentiality is fine in commercial arbitration where the disputes do not affect the public. It is noxious in investor-state arbitration, which often

involves matters of public importance. Incidentally, the secrecy has little to do with encouraging settlements; investors can and often do pursue

confidential settlements before bringing a claim.

The turn to secrecy is an about-face for the government. Canada was until now a champion of openness in investor-state arbitration. As countries

like Australia, India, and South Africa pull away from investor-state arbitration, we are embracing it in a virulent form.

The Canada-China deal undermines basic Canadian principles of public accountability and open courts. It raises dramatically the stakes of

Chinese takeovers in the resource sector. If ratified, it will tie the hands of future elected governments for at least 31 years."

Why should you care? Well, first off, this deal does not need to be discussed in Parliament. It is simply tabled and within 22 sitting days becomes law. Secondly, it allows Chinese companies to secretly sue to block provincial or local legislation or make demands on the labour or materials used. Is this a form of economic treason, as Andrew Nikiforuk makes the case for in his powerful article this week in the Tyee (Chairman Harper and the Chinese Sell Out). He further states:

"Appallingly, the treaty would give Sinopec, one of the big Chinese backers of the Northern Gateway

pipeline, the right to sue the government of British Columbia if it blocks the project. Sinopec could

also demand that only Chinese labour and materials be used on the pipeline. Moreover the treaty

gives Chinese state owned companies "the right to full protection and security from public

opposition."

The agreement, like all bad deals, comes wrapped in totalitarian paper. The deal does not require

provincial consent. It comes without any risk-benefit analysis. And it can be ratified into law without

parliamentary debate. The more Harper wants to do business with China, the more he acts like

another tank in Tiananmen Square. Barring a revolt within Harper's own party, the trade deal

automatically becomes law on Nov. 1."

Has Mr. Harper finally gone too far? If you, like me, have wondered for 2 or 3 years why he has so adamantly pushed the  Northern Gateway Pipeline in the face of mounting public resistance, while demonizing those who question the environmental, geographic, marine and economic bases for the plan yet providing nothing factual to defend it, perhaps this move finally provides for some truly targeted questions. In whose interest is this pipeline and this investment act? Why gut environmental, fisheries, labour and immigration laws? What do Canadians really stand to gain from this furious sell off? Please ask your member of Parliament these questions, and take a look at Nikiforuk's and Van Harten's excellent call outs. Is this the type of Canada you want? 

You can read more about FIPPA here