Chinese companies can sue BC

The Canada-China Foreign Investment Promotion and Protection Act, known as FIPPA,will come into effect at the end of October.

It is Canada’s biggest foreign trade treaty since NAFTA, reports the Vancouver Observer.

This treaty will penalize BC from negotiating a greater share of profits and creating regulations related to the proposed Northern Gateway pipeline for the next thirty-one years.

The Northern Gateway is a controversial pipeline project proposed to run from the Athabasca oil sands in Alberta to the north coast of BC.

Arbitrators in foreign investment agreement disputes will most likely judge in favour of Chinese investors in cases where the host country attempts to impose new or updated regulations that may interfere with the investor's bottom line.

Critics of the government's handling of FIPPA are calling for consultation from provinces and territories and committee hearings at the very least.