TISA – Another secret trade deal you may never have heard of


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The Daily Blog

You’ve probably heard of the Trans-Pacific Partnership Agreement (TPPA) by now and the widespread concerns around it but what about the Trade in Services Agreement (TISA) also being currently negotiated by our Government?

TISA is another so-called trade deal, negotiated in secret, aiming at a liberalisation of rules and regulations benefitting global corporations. Negotiations began behind closed doors in 2013 amongst 23 nations and staggeringly they have agreed the text of the agreement will remain classified for five years after it comes into force. Wikileaks have just revealed more of the documents.

sliderpic-300x169Concerns have been raised around TISA’s deregulation agenda in services such as transport, water, broadcasting, aged care, the financial sector and New Zealand’s Education Institute is warning offshore corporations could come here and demand the same access to Government education funding. I’ve been looking into the Internet implications of TISA and am deeply concerned for implications on free and open source software, online privacy, the free flow of information and net neutrality.

One big concern is the agreement could also make it impossible for a future Government to require open source software unless it is software used for critical infrastructure. In the leaked texts revealed it says:

Article 6: … Transfer or Access to Source Code 1. No Party may require the transfer of, or access to, source code of software owned by a person of another Party, as a condition of providing services related to such software in its territory.

Every year the New Zealand Government spends millions on proprietary software (think Microsoft) and there are valid arguments for using or giving priority to free and open source software as it can be more affordable, desirable and secure. If this article passes as is, it looks pretty clear it would be difficult to encourage or give priority for tendering for open source software as happens in specific areas of the US, EU and UK or as I proposed at the last Election. You wouldn’t have to think too hard to wonder which companies are lobbying for this but if it passed it would leave the Government with less freedom to move and citizens worse off.

TISA could also stop us requiring where data is stored. The Electronic Frontier Foundation say in their analysis it contains a provision that bans countries from regulating how and when any given company can move, access, and process the data for its services, basically data localisation rules.

Article X.4: Movement of Information No Party may prevent a service supplier of another Party from transferring, accessing, processing or storing information, including personal information, within or outside the Party’s territory, where such activity is carried out in connection with the conduct of the service supplier’s business.

Laws such as these are aimed to ensure companies like Facebook follow national rules to protect their citizen’s data or to avoid say sensitive health records are opened to permissive snooping rules if stored in another country. An example of this is currently the Tax Administration Act 1994 and the Goods and Services Tax Act 1985 which require taxpayers to keep business and GST records in New Zealand and can only be stored offshore if agreed to by the Commissioner of Inland Revenue. I agree with the EFF’s analysis there are arguments for and against information location rules but this important debate should be had in public not behind closed doors and revealed years after decisions are made.

A third red flag in TISA is around Net neutrality. The provisions on “Open Networks, Network Access and Use” use vague language around reasonable network management which could be broad enough to circumvent net neutrality principles that aim to ensure ISPs provide equal access to content and don’t block or throttle content say from a competitor. Net neutrality is something I’ve drafted legislation to protect and something our Government is monitoring and it’s important to ensure and not risk in a secret international agreement.

TISA has managed to run below the radar so far but it’s critical it receives more critical attention. Removing abilities to encourage open source software, remove data localisation rules and threaten net neutrality should all be warning bells. The TPPA, TISA and other attempts like ACTA, negotiated in secret, risk big changes to important areas like the Internet and the citizens of all the countries involved deserve transparency and more accountability. It’s time to press ‘CTRL, ALT, DEL.’ On TISA and the TPPA.

3 Comments Posted

  1. I doubt Dean Hall will be making be making his video game open source, who according to an article on the Gamesplanet website is currently involved in a fight with Immigration, because they object to his application for a prospective employee on the basis that he wants to employ migrant workers for $35,000 per year. He defends this on the basis that the starting salary in the industry $35,000, but I see that as a feeble justification, because what employer would hire an inexperienced software developer and have them relocated to the other side of the world at considerable expense. Furthermore the article says that you have offered to help with the immigration application. Can you comment on this?

  2. Look to Europe where the weight to keep information inland has constrained US tech firms to put resources into European server farms and make numerous lucrative occupations. In the event that you let our information go off into the cloud it brings the monetary advantages with it. What’s more, anything put away in a server farm claimed by a US-joined firm is liable to gathering under the US Nationalist Act.

  3. Look to Europe where the pressure to keep data onshore has forced US tech firms to invest in European data centers and create many high paying jobs. If you let our data go off into the cloud it takes the economic benefits with it. And anything stored in a data center owned by a US-incorporated firm is subject to collection under the US Patriot Act. However NZ agreeing to all this by way of TPP and TISA will mean more dairy exports, at least in volume terms, as commodity prices continue to plummet and export receipts go with it.

    Google Is Going To Build A Massive $770 Million Data Center In The Netherlands:

    EU Sees U.S. Firms Building More Data Centers in Europe:

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