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China Deal Assaulting Canadian Environment and Democracy 23 November 12

The Canada-China Financial Investment Promotion and Protection (FIPA) trade deal being brokered in secret backroom negotiations has the potential to severely undermine Canadian sovereignty at all levels of government. It is being brokered without review by the House of Commons or the public. The FIPA deal with China opens the door for Chinese state-owned corporations to sue any level of Canadian government, in secret tribunals, for loss of profits compensation.

As a result, this trade deal allows companies from China to ignore Canada's environmental laws and regulations in pursuit of profits from natural resource extraction.

The FIPA with China is, one sided in China's favour. The agreement Article 4 allows China to bypass and contest provincial, territorial, First Nations, municipal or successive federal government decisions on resource and commercial management. If the National Energy Board approves the Northern Gateway Pipeline through B.C., but B.C. restricts or rejects the deal, Sinopec can sue under this treaty. The matter would then be resolved behind closed doors in arbitration by two lawyers from outside Canada.

FIPAs are treaties between two nations that impose binding obligations on both countries with respect to their treatment of foreign investors and investment. They generally provide guarantees pertaining to non-discriminatory treatment, expropriation, transfer of funds, transparency, due process and dispute settlement.

Matthew Carroll, the campaign director for Leadnow.ca, said the secrecy in the process is just part of the concern. The Canada-China FIPA agreement allows the partner governments to keep lawsuits and settlements private — which is not the case with the North American Free Trade Agreement.

"If a Canadian government is sued under NAFTA, that becomes public information. But it's entirely up to the discretion of our government whether or not they make the information under this FIPA public," he said.

View November 2, 2012 Financial Post article
View October 31, 2012 Ottawa Citizen article
View October 31, 2012 Ottawa Citizen article
View October 30, 2012 Huffington Post article
View October 26, 2012 De Smog Blog post
View October 22, 2012 The Province article
View October 17, 2012 Huffington Post article
View Stephen Harper's Assault on Democracy
View January 11, 2010 National Union of Public and General Employees article
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