Canada-China investment deal allows for confidential lawsuits against Canada [View all]

[CHIMO]

The Harper government is very keen on Chinese investment. On this there is little doubt, now that the Canada-China investment deal has been released.

The deal will tie the hands of Canadian governments, especially in the resource sector, once Chinese firms buy Canadian assets. It allows Chinese companies to sue Canada outside of Canadian courts. Remarkably, the lawsuits can proceed behind closed doors. This shift to secrecy reverses a long-standing policy of the Canadian government.

Under the deal, Chinese firms can sue in special tribunals to protect themselves from Canadian government decisions. Canadian companies can do the same against China. The technical name for this is “investor-state arbitration.” In Canada, it has been in operation since NAFTA.

In turn, any decision by any state entity in Canada — from federal or provincial legislation to a Supreme Court of Canada decision — can be challenged by a Chinese investor. The arbitrators, if they conclude that the decision violates flexible standards of investor protection, can issue orders and award damages against a country.

http://www.thestar.com/opinion/editorialopinion/article/1264290--canada-china-investment-deal-allows-for-confidential-lawsuits-against-canada