[asia-apec 1645] Free trade and investment/NZ

[APEC Monitoring Group]

For your info - here is a form letter currently being used to pressure the
NZ government over trade and investment policy...it contains a summary of
some of the issues which are on the agenda for those of us campaigning
against the neoliberal agenda

in solidarity

Aziz Choudry
GATT Watchdog
___________________________________________________
Dear friends,

Below you will find a form letter prepared on behalf of GATT Watchdog and
CAFCA which can be adapted and  sent to Alliance and Labour MPs, party
branches and officials, but also cross-posted on websites (with these
introductory notes).  With the Labour Party conference coming up in just
over a week, and with the news that the government intends to pursue a free
trade agreement with Hong Kong, we urge you to act quickly on this. We
suggest you send by ordinary mail or email to MPs at Parliament Buildings,
Wellington - (it's free!)

Please send us copies by separate email to notoapec at clear.net.nz or by mail
to PO Box 1905, Christchurch.

Please repost this message and urge others to act.

GATT Watchdog

____________________________________________________________________________
____________

(Your Name)

(Address)

(Date)





Dear


In 1997-98, public outrage led to the defeat of the proposed Multilateral
Agreement on Investment (MAI) which would have given unprecedented powers to
transnational corporations. Yet actions by this government threaten to
achieve many similar aims piece by piece. This is despite both the Alliance
coalition partner and the Greens, on which the government's existence
depends, having campaigned strongly against such policies.


The few controls on foreign investment that remain are being weakened step
by step. Major overseas takeovers continue. Fletcher Paper and Air New
Zealand are just two since the Labour/Alliance government took power.


I am very concerned that there has been no action to strengthen the feeble
controls that are still in place. There are no "national interest" criteria
for the great bulk of foreign investment where no significant land or
fishing quota is involved. We need to regain the ability to choose
investment that suits us, and we need stronger "good character" laws for
foreign investors.


The trigger point for investments to require Overseas Investment Commission
approval was raised from $10 million to $50 million by the outgoing National
Government, and nothing has been done to reverse that.


In fact, the Singapore "Closer Economic Partnership" cements that in. It
commits us to opening even further to foreign investment over the next few
years, particularly in the services sector where important social services
such as health and education will eventually be affected. On top of that it
strips us of the ability to reinstate international capital controls.


I am concerned that this is only the start. There are investment
liberalisation agreements that were negotiated by the previous government
with Chile and Argentina in 1999, which have MAI-like "expropriation"
clauses that would allow investors to force the government to pay
compensation, or even revoke laws, if environmental or social measures
reduce their profitability. These need only Cabinet approval to go into
effect. They have never been opened to public consultation or Parliamentary
debate.


The government has announced negotiations with Hong Kong on a similar
agreement to that with Singapore. It has committed itself to developing a
wider version of the Singapore and CER agreements with the whole of
South-East Asia, through negotiations headed by Bill Birch. It has talked
about new free trade and investment agreements with Chile and the U.S.A. It
supports opening more services to foreign investment through the General
Agreement on Trade in Services (GATS) under the WTO, and there are proposals
for other investment agreements there too.


I therefore strongly urge you to

· Oppose the Singapore agreement and any consequent legislation

· Gain an assurance that Cabinet will not approve the investment agreements
with Chile and Argentina

· Oppose further work on the proposed agreements with Hong Kong and
South-East Asia, and other similar agreements

· Support democratisation of the treaty approval process, including
releasing drafts of proposed agreements during negotiations so the public
can debate them properly.

· Work for a moratorium on further agreements and commitments under the WTO
until an independent review has been made of the effects of previous
agreements and the public have had an opportunity for a wide-ranging and
informed debate on these issues.


The world's political climate has changed radically with the 1997 Asian
financial crisis, the Seattle debacle and the numerous demonstrations,
critical reports and studies that have followed. Though changes in domestic
policies recognise the failure of previous approaches, New Zealand's
international economic policies seem not to have taken any notice of the
sea-change that has occurred.


Rather than continue to follow the previous government's international free
market policies, which are completely at odds with the new government's
opposition to free market policies at home, New Zealand needs to manage its
economic relationship with the rest of the world. New Zealanders need to
have a say in that.


Yours sincerely