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(Adds Meng lawyer comments in paragraphs 12-13, courtroom
description in paragraph 14)
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 center of a trial to decide
whether she 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, the daughter of Huawei's billionaire founder Ren
Zhengfei, remains free on bail in Canada, and has been living in
a mansion in Vancouver's exclusive Shaughnessy neighborhood.
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.
CHILLING EFFECT
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
U.S. sanctions, sanctions which Canada has expressly
repudiated," he added.
Peck said the United States cast this matter as a case of
fraud against a bank, which he described as "an artifice".
"In reality, sanctions violation is the essence of the
alleged misconduct ... the United States has a global interest
in enforcing its Iran sanctions. Sanctions drive this case,"
Peck added.
There are more than 150 people in the high-security basement
courtroom in downtown Vancouver where the hearing is being held,
including journalists from all around the world. The gallery
where spectators sat quietly is separated from where the judge
and lawyers sit by large sheets of glass, creating a
fishbowl-like effect.
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 when 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 Meng's arrest 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 on Monday. He called Meng's case a "serious political
matter."
'SLAM DUNK'
Huawei said in a statement that it stands with Meng in her
pursuit of justice and freedom. "We trust in Canada's judicial
system, which will prove Ms. Meng's innocence," it added.
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 defense 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.
"The clear priority of everyone in our government ... is the
release and well-being of Michael Kovrig and Michael Spavor.
That is at the heart of all the work we are doing and rightly
so," Freeland, now Canada's deputy prime minister, told
reporters in Winnipeg on the sidelines of a cabinet retreat.
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.
"Our government has been clear that we are a rule-of-law
country and that we honor our extradition treaty commitments.
That is what we need to do and that is what we will do,"
Freeland said.
(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, Bill Berkrot and Paul Simao)
