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(Recasts with Huawei lawyer arguments, adds lawyer comments,
Huawei statement)
By Tessa Vikander and Moira Warburton
VANCOUVER/TORONTO, Jan 20 (Reuters) - A lawyer for Huawei
Chief Financial Officer Meng Wanzhou argued on Monday that
"double criminality" was at the centre of a trial to decide
whether Meng can be extradited to the United States, a case that
has strained relations between Ottawa and Beijing.
Meng, 47, arrived in a Vancouver courtroom wearing a dark
top with polka dots, for the first phase of a trial that will
last at least four days, as China repeated its call for Canada
to release her.
Legal experts have said it could be years before a final
decision is reached in the case, since Canada's justice system
allows many decisions to be appealed.
The United States has charged Meng with bank fraud, and
accused her of misleading HSBC Holdings Plc about
Huawei Technologies Co Ltd's business in Iran.
Court proceedings show the United States issued the arrest
warrant, which Canada acted on in December 2018, because it
believes Meng covered up attempts by Huawei-linked companies to
sell equipment to Iran, breaking U.S. sanctions against the
country.
Meng is the daughter of Huawei's billionaire founder Ren
Zhengfei and remains free on bail in Canada. She has said she is
innocent and is fighting extradition in part because her alleged
conduct was not illegal in Canada, an argument known legally as
"double criminality."
Unlike the United States, Canada did not have sanctions
against Iran at the time Canadian officials authorized
commencing with the extradition, her lawyers have said.
The central issue is "double criminality" defense lawyer
Richard Peck told the court.
"Would we be here in the absence of U.S. sanctions law, and
... our response is no," Peck said.
"In a typical case double criminality is not contentious.
This case however is founded on an allegation of breach of use
sanctions, sanctions which Canada has expressly repudiated," he
added.
The courtroom was packed with only standing room available.
Meng's legal team is currently only scheduled to call
evidence in the last week of April, and a second phase of the
trial, focusing on abuse of process and whether Canadian
officials followed the law while arresting Meng, is set to
begin in June. Closing arguments are expected in the last week
of September and first week of October.
The case has had a chilling effect on relations between
Ottawa and Beijing. China has called the arrest of Meng, who has
been living in a mansion in Vancouver's exclusive Shaughnessy
neighbourhood since it occurred, politically motivated.
U.S. President Donald Trump told Reuters in December 2018 he
would intervene in Meng's case if it served U.S. national
security interests or helped close a trade deal with China.
Chrystia Freeland, Canada's foreign minister at the time,
quickly warned Washington not to politicize extradition cases.
"The resolve of the Chinese government to protect Chinese
citizens' proper legal rights is firm and unwavering," foreign
ministry spokesman Geng Shuang told reporters during a daily
briefing. He called Meng's case a "serious political matter."
'SLAM DUNK'
Richard Kurland, a federal policy expert and lawyer not
involved with the case, called Meng's double criminality
argument around the absence of Canadian sanctions against Iran a
sure bet.
"I think the defence has a slam dunk. There are no Iranian
sanctions in Canada and anything (the prosecutors bring up)
that's related to an Iranian sanction in Canada may well be
dismissed," he said.
Soon after Meng's arrest, China detained two Canadians,
former Canadian diplomat Michael Kovrig and businessman Michael
Spavor. China has denied their arrests were related to Meng's
case.
"We trust in Canada's judicial system, which will prove Ms.
Meng's innocence. Huawei stands with Ms. Meng in her pursuit for
justice and freedom," Huawei said in a statement.
Meng's legal team argued in November that she could not be
extradited as Canada did not have sanctions against Iran at the
time Canadian officials authorized commencing with the
extradition, meaning her conduct was not illegal.
In response, Canada's attorney general said Meng was
arrested on charges of fraud and misleading HSBC, which is a
crime in both countries.
"As this case is actively before the courts, it would not be
appropriate for the minister to comment," Rachel Rappaport, a
spokeswoman for federal Justice Minister David Lametti, said on
Monday.
(Reporting by Tessa Vikander in Vancouver and Moira Warburton
in Toronto; Additional reporting by Gabriel Crossley in Beijing
and David Ljunggren in Ottawa; Writing by Denny Thomas; Editing
by Lisa Shumaker, Tom Brown and Bill Berkrot)
