A New Zealand

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“Misinterpretation always precedes interpretation by three letters.” With Hidden Agendas being based upon leaked pages of the TPPA, misinterpretation and so-called “worst case outcomes” were always going to embody the theme of this book. In contrast, I believe that the TPPA is a deal New Zealand cannot afford to miss out on, however, some current conditions of the agreement will have to be altered to prevent the potential flaws from overpowering the benefits. The benefits of the TPPA are immense for New Zealand as it includes 9 countries consisting of 40% of the world economy, benefiting New Zealand by over $300 million per year. The reduction in minimal tariffs will lead to huge gains in New Zealand primary sectors in both importing and…show more content…
The introduction and signing of the TPPA will introduce the process of litigation to New Zealand businesses and more worrying, the New Zealand government. Under the terms of the TPPA American based corporations that conduct business in New Zealand can sue the New Zealand government for any law that is implemented that may directly or indirectly hinder their profits. Litigation will take place in an offshore tribunal court, which is usually provided and ruled by the World Bank’s Investment Dispute Centre (ICSID). All FTA’s are usually settled by the WTO in a structured, quasi-judicial court, however, the TPPA is assessed as an investment and the ICSID has a court system that has little case precedent and inconsistent verdicts generally favoring the investor rather than the nation’s government. If the litigation process favors the investor, the country’s taxpayers burdens the litigation costs and extremely large settlement (largest award in favor of the investor was $1.7 billion, Occidental Petroleum against Ecuador) (Lopez 1). I know a burden of this magnitude would supersede the New Zealand taxpayer’s benefits of the TPPA; this is a term that needs to be renegotiated. A significant case of corporation vs. country was the case between El Salvador and Pacific Rim mining company. In 2009 Pacific Rim agreed to terms with El Salvador to mine certain parts of the land in an eco-friendly. In the following years over 90% of El Salvador’s water
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