Leaked drafts of the Trans-Pacific Partnership (TPP) has reignited the debate over loss of national sovereignty in free-trade pacts, with opponents claiming the TPP as a sell-out to global corporate interests and advocates dismissing the concerns as "overblown."
The issue gained legs again after the release of what Auckland University law professor and anti-TPP campaigner Jane Kelsey says is a leaked and recent draft of the TPP, which includes provisions allowing foreign investors to sue governments in the event that policy decisions erode their profits.
However, the head of the NZ-US Council, former trade negotiator and diplomat Stephen Jacobi, said such clauses exist in other free-trade pacts and are aimed at allowing foreign investors redress in the event of government actions such nationalisation.
"Opponents of the TPP should take heed of the provisions stating very clearly that signatories will continue to be able to adopt, maintain and enforce legislation protecting the environment, health and labour safety," Jacobi said.
Trade Negotiations Minister Tim Groser came under pressure in Parliament from Green Party co-leader Russel Norman, who questioned why the New Zealand government was not following the lead of the Australian federal government, which has said it will not sign a TPP agreement with such a clause.