Secondary teachers’ union, the PPTA, has written to the minister of education warning that signing up to the Trans Pacific Partnership Agreement (TPPA) would make it very difficult for governments in the future to legislate for or invest in public education without opening themselves up to legal action.

The TPPA is an international investor dispute agreement currently under negotiation between New Zealand and eight other countries including the USA. If passed it would allow private companies, such as for-profit universities, to sue governments to protect their right to access international markets.

PPTA cites two recent international trade law cases where private companies have attempted to sue governments to allow them access to public services

“In 2000, United Parcel Services – a US company – claimed that Canada Post’s parcel delivery service was unfairly subsidised because it was part of the larger public postal service. USP sought US$160 million in damages. Although the claimant was unsuccessful, several years of arbitration were at a significant cost to the Canadian government.

“Similarly in 2008, Centurion Health – a company owned by a US national – initiated a claim against Canada under NAFTA challenging the Canada Health Act. Centurion Health’s plans to open a private health care facility in Vancouver fell through. The claimant argued that its plans to open a private health care facility in Vancouver were blocked by measures at federal, provincial and municipal levels.”

PPTA says widespread private provision of public education that occurs in New Zealand could be opening up the education sector for these types of claims if it ratifies the TPPA in its current form.