TPPA could empower rejected foreign investors in legal challenges
Stuff, New Zealand
TPPA could empower rejected foreign investors in legal challenges
By Andrea Fox
22 September 2015
Under a Trans Pacific Partnership deal, foreign investors in New
Zealand could be able to take international legal action against a
government decision such as that which rejected a Chinese company’s bid
for Lochinver Station, says an Auckland Law School senior lecturer.
Amokura Kawharu said leaked TPPA drafts suggested an investor from a
country that was party to the proposed TPPA, for example an American,
Canadian or Mexican investor, could challenge a decision that went
against them through international proceedings as well as, or instead
of, seeking a judicial review in a New Zealand court.
However, it appeared New Zealand’s TPPA negotiators had sought an
exemption from such dispute settlement measures, though whether that
would be accepted or not was unknown because the draft was still secret,
she said.
Shanghai Pengxin, whose $88 million agreement to buy the 14,000
hectare Lochinver sheep and beef farm has been vetoed by Government
ministers, could seek a judicial review in a New Zealand court of the
decision, but has no protection to challenge under the China-New Zealand
Free Trade Agreement, Kawharu said. China is not a party to the TPPA.
The Government decision went against the recommendation of New
Zealand’s Overseas Investment Office (OIO) that the purchase be
approved, although the office said it was a borderline case. Ministers
said the benefits to New Zealand of Pengxin’s purchase of Lochinver were
"not substantial and identifiable."
Pengxin already has significant agricultural investments in New
Zealand, including the 16 former central North Island Crafar farms.
