Recent agreements (negotiated in secret) also guarantee foreign corporations the rights to lobby against new laws in the name of “transparency”; guaranteed rights that iwi and hapū don’t have.
New Zealand has firmly opposed including Investor-State Dispute Settlement (ISDS) provisions in the Regional Comprehensive Economic Partnership (RCEP) agreement, which covers 15 Asia-Pacific countries.
Foreign investors wanting to protect their gains under the controversial new law could hold the country to ransom by threatening a dispute. As a result, they would constrain New Zealand’s democratic ability to exercise its sovereignty, and to protect te Tiriti rights.
On 21 August 2023, ASEAN, Australia, and New Zealand brought several amendments, improvements and additions to their longstanding free trade agreement known as AANZFTA
The AFTINET submission provides evidence of the harmful use of ISDS over the last decade against public regulation on health, indigenous rights, the environment and most recently against policies to reduce carbon emissions.
The Transpacific Partnership Agreement involves investor - state dispute settlement clauses, which large companies may use ISDS to sue governments for actions they took to stop the spread of the virus.
As ministers of the member countries of the RCEP meet for final negotiations over the trade agreement this week, regional lawmakers today expressed concern about the lack of parliamentary and public oversight of the deal, as well as its potential human rights impacts.
The CTU is concerned that the "upgrade" of the New Zealand-China Free Trade Agreement has not removed the threat of investor suits against the New Zealand government.
There is a high risk that New Zealand would still allow the investor to sue New Zealand in this expensive and discredited system of international investment arbitration