China Now Has Buyer’s Remorse in Oil Patch

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Is this another case of life imitating art? Is the foundation being laid to file lawsuits if the Foreign Investment Promotion and Protection Agreement (FIPA) of 2012 is ratified?

An article written by Jeffrey Jones in the Globe and Mail on August 17, 2014 indicates that the Chinese investors are becoming dissatisfied with their return on investment. He states

Chinese companies have shelled out more than $30-billion in Canada’s energy industry, but many of those investments have been hit with operational problems, delays and weak returns, leading to growing impatience in some quarters in China.

The Harper government represented by its Minister of International Trade and Minister for the Asia-Pacific Gateway, Ed Fast, signed a Foreign Investment Promotion and Protection Agreement (FIPA) between Canada and China along with China’s Minister of Commerce, Chen Deming in Sept 2012. See the governments official background with links to the Agreement itself by clicking here.

The 31 year agreement between the two nations allows for lawsuits to be filed if the corporations are not satisfied that regulations and rules allow them to make the profit they want. According to Article 15 of the FIPA, those suits will be heard by secret international tribunal who are unaccountable rather than by courts. Article 20 lays out some of the information for a Claim by an Investor of a Contracting Party.

In the novel, From Thine Own Well this is the kind of disagreement that initiates the corporate takeover of Canada. Thus percolated the story of citizens combating government and corporate greed.

Hope you enjoy the book.

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