The Globe and Mail reports, “The Harper government, which signed a long-awaited investment-protection agreement last year – and trumpeted its benefits for Canada – still has not ratified the deal, which was put to Parliament in September. Mr. Harper’s cabinet must ratify the agreement, but has not done so. …A spokesman for (Trade Minister Ed) Fast, Rudy Husny, did not offer any explanation for why the cabinet has not ratified the investment agreement.”
Within today’s article by Campbell Clark, there are various implied reasons why the Canada-China FIPA has not yet been ratified:
1- “The agreement has been challenged in court by the Hupacasath First Nation in British Columbia, which argues the federal government failed to consult First Nations.”
2- “(Last year), the controversial, $15.1-billion Chinese takeover of major Alberta oil company Nexen Inc. was approved (by the Harper government). …The Nexen takeover by Chinese state-controlled firm CNOOC Ltd. sparked political angst in Canada about China’s role in the Canadian economy. …The political backlash over the Nexen deal has clearly spooked the governing Tories, who must deal with a segment of their own caucus of MPs, and their political base, which is wary of Chinese involvement in Canada.”
3- “The ranks of Chinese political leadership have been transformed. …China’s political leadership has been consumed for most of the past year with its own transition – new President Xi Jinping replaced Hu Jintao, and a new premier, state council and cabinet are now in place.”
4- “The Nexen Inc. was approved, but only with a caveat that further deals would face a rough ride. …Senior Chinese leaders will be asking about the restrictions on investment, but they have signalled they are not viewing it as a major dispute.”
The article highlights that Foreign Minister John Baird will be visiting China shortly, while “both Defence Minister Peter MacKay and Trade Minister Ed Fast went to China to see their new counterparts this spring.”
For more, please read:
Ottawa seeks to revive relationship with China
Federal court hears government had duty to consult Hupacasath First Nation on Canada-China FIPA ratification
Council of Canadians comments on sale of Nexen to CNOOC
Our Canada-China FIPA web-page
