Sunday 6 February 2016: TPPA: An Analysis

I trust John Key with this deal. He’s a good investment banker. If he thought it would go wrong, he would not have signed it. And I think the protesting has certainly become anti-JK protesting, rather than actually properly educated about the points it actually wants to make (more on that below …). I feel that you can’t be anti-international trade, and the readily accept the reality of McDonalds and smartphones. Fundamental irony.

The protests. Now. I agree with protesting in theory. But the protesting in Auckland inconvenienced people that had nothing to do with the TPPA for no reason other than to ‘send a message’. You should maybe have thought to send a different message because protesting by blocking off roads is actually just rude and inconsiderate, and makes me think you’re just whinging for the sake of it. Even if you believe what you’re saying, the actual message is lost in the protest; and the protest and fact that inconvenience was caused are the only things that end up reported. So, while I agree with the principle, your approach and respect for others is appaling; so much so that I actually disagree with the point you’re trying to make. That’s an ad hominiem argument. You could probably ignore it. Should probably. The accusations of police using force are mostly because idiots are being stupid and not listening to instructions. Which is surely a breach of some law anyway even on its own. Like the people refusing to leave SkyCity even though protesting there has no value anymore because the deal has been signed now and there’s nothing more that can be done until the agreement is debated fully and in a more civilised manner. Anyways.

See it’s not the idea of a trade agreement that I’m against; and I’m told that most international anythings are negotiated in secret in the way this was done, so that doesn’t really bother me either. The TPPA will eliminate tariffs for exports to the countries (especially the USA) and will bring benefit to the country when it is implemented (which, admittedly, won’t be for a while …). Tariffs on goods will be eliminated over a little while, presumably as a kind of stepping scale. The TPPA of course spends much of it’s 600 pages discussing the extent to which tariffs will be removed for each good to each country. The TPPA ensures that signatories are the primary benefactors of the deal. It agrees on transparent and non-discriminatory guidelines to remove barriers to trade and ensure cooperation.

The problem I have with the TPPA is a thing called ISDS. Investor-state dispute settlement (ISDS) is an instrument of public international law, that grants an investor the right to use dispute settlement proceedings against a foreign government. The actual agreement isn’t so transparent in its wording and actually almost seems reasonable. There certainly seems to be a restriction on the claims that can be made, but that isn’t exactly reassuring because the possibility is still real. The fact that ISDS operates under a different system as national law (no precedent or appeal systems, the arbitrator’s decisions are final and they’re paid by the hour, so the $$$ quickly piles up…). While, in theory, ISDS is a dispute-resolution system that is fair and unbiased, the fact is that these measures make ISDS cases unbalanced in the favour of the investor, and the explosion of ISDS cases since the 1990s is worrying. Many countries have vowed to not sign agreements with ISDS clauses in them. And this is fair because ISDS seems to be an antiquated way for corporate power to undermine government operation. That being said, protesters saying that the rights of New Zealanders are being eroded are … wrong. The TPPA won’t affect individual actions of any one person. Taxpayer coffers, perhaps, but the likelihood that normal government operating will break the TPP is, at least from where I sit, low.

To conclude on a positive note, I want to share an extract from an Annex in the Intellectual Property section; Annex 18-A Article 4. The interpretation of the Treaty of Waitangi, including as to the nature of the rights and obligations arising under it, shall not be subject to the dispute settlement provisions of this Agreement. Chapter 28 (Dispute Settlement) shall otherwise apply to this Annex. A panel established under Article 28.7 (Establishment of a Panel) may be requested to determine only whether any measure referred to in paragraph 2 is inconsistent with a Party’s rights under this Agreement. So, yes. There are problems I have with the TPPA. But ultimately, I believe the benefits will outweigh the costs; apart from the ISDS stuff it seems like a really good trade deal. Mostly because I can’t actually see half the things people say the costs will be; I can’t see anywhere stating that medicine prices will rise, so I don't think medicine prices will rise that much, or certainly not much more than they might have irrespective of the TPPA. Because if the companies were going to put prices up, they would surely do that anyway …

Sources;

-          http://www.scoop.co.nz/stories/PO1506/S00311/fact-sheet-on-investor-state-dispute-settlement-isds.htm

-          https://www.tpp.mfat.govt.nz/


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