MAI=MultilateralAgreementonInvestment-davidnicholson
UpdatedJune8,1998,
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MAIworththeeffort
theMultilateralAgreementonInvestment-theMAI


TheMAIisdesignedtoestablishawholenewsetofglobalrulesforinvestmentthatwillgivetransnationalcorporationstheunrestrictedrighttobuy,sell,andmovetheiroperationswheneverandwherevertheywantaroundtheworld,completelyfreeofgovernmentinterventionorregulation,"saysTonyClarke,presidentoftheOttawa-basedPolarisInstitute.


MAIandtheWeb


TheGazette

ThestoryofhowtheMAIdiedisaninstructivelessonaboutdemocracyintheInternetage.TheMultilateralAgreementonInvestmentwassupposedtobecometheworld'sfirstsetofcomprehensiverulesonhowforeigninvestmentshouldbetreatedbynationalgovernments.Theidearemainsasoundone-thattheworldneedsarules-basedsystemforinvestment,justasithasrulesabouttrade.

ButtheMAI,negotiatedinParisamongthe29nationsintheOrganizationforEconomicCo-operationandDevelopment,waskilledbyarag-tagcoalitionofcitizens'groups,labourunions,environmentalactivistsandthelikewhospreadtheirwildestfearsaboutthesecretnegotiationsontheInternet.

Thejungletelegraphwassoeffectivethattradeministersfinallyblinkedandwalkedawayfromthetable.

Thenegotiationswere,indeed,secret.Butthat'showseriousnegotiationsofanykindareconductedattheinternationallevel.Evenso,thesecrecychargewasratherhollow.TheOECDdidpostdraftversionsoftheMAIontheInternetforalltosee.Andcriticstookfulladvantage.Beforelong,theyweresendingeachotherapocalypticE-mailmessagesaboutthehowtheMAIwasatransnationalbillofrightsformultinationalcompaniesthatwouldrobnationalgovernmentsofsovereignty.

Cometothinkofit,that'snotsuchadisturbingnotion.Thinkofalltheawfulactscommittedthroughouthumanhistoryinthenameofnationalsovereignty.Perhapsalittlesharedsovereigntywouldn'thavebeensuchabadthing.

Inanycase,MAIfearshavebeenwildlyoverblown.

Thedealwouldhavegivenforeigninvestorstherighttoseekcompensationiftheyhadbeentreatedlessfavourablythandomesticones.ThisprovisionisalreadypartoftheNorthAmericanFreeTradeAgreement.IthashardlyrobbedCanadaofitssovereignty,andveryfewcompanieshavelodgedcomplaints.

Still,thereweresomelegitimateconcernsaboutMAIoverculture,theenvironmentandsocialprograms.Theseshouldbeaddressedbynegotiatorswhentalksresume,eitherattheOECDorthroughtheWorldTradeOrganization.

Andtheymustresume.Protectionismininvestmentisnomoredefensiblethanprotectionismintrade.

Whenthetradeministersgetbacktogether,theyshouldalsobetalkingaboutWebsitesandE-mailandhowtogettheirmessageofliberalizedinvestmentouttothewiredworldaseffectivelyastheiropponents.





Saturday14February1998MAIworththeeffortTheMultilateralAgreementonInvestment,orMAI,hasbeenunderdiscussionsince1995.Itaimstoprovidetheworld'sfirstcomprehensivesetofrulesonhowforeign investorsaretreatedbynationalgovernments.Ifthe29 nationsintheOrganizationforEconomicCooperationand Developmentareabletoreachadeal,theMAIcouldlater beextendedtoincludethe130countriesintheWorld TradeOrganization.[agoodreadDTN] MAIworththeeffort


TheGazette

OnMondayinParis,negotiatorsfrom29countriesincludingCanadawillresumetheireffortstohammeroutaninternationalcodeofconductgoverningforeigninvestment.FewissuesaresoimportantforCanada,orsobadlymisunderstoodbytheCanadianpublic.

TheMultilateralAgreementonInvestment,orMAI,hasbeenunderdiscussionsince1995.Itaimstoprovidetheworld'sfirstcomprehensivesetofrulesonhowforeigninvestorsaretreatedbynationalgovernments.Ifthe29nationsintheOrganizationforEconomicCooperationandDevelopmentareabletoreachadeal,theMAIcouldlaterbeextendedtoincludethe130countriesintheWorldTradeOrganization.

AndyettheMAIhasbeentreatedlikeaflesh-eatingdiseaseinCanada.IthassparkedsomuchfearandsuspicionthatmanyCanadiansnowbelieveitwoulddespoiltheenvironment,robaboriginalpeopleoftheirrights,preventgovernmentregulationofthetobaccoindustry,destroyfarmmarketingboards,bankruptsocialprogramsandendCanadiancultureasweknowit.

OK,that'sanexaggeration.Butintelligentdebatehasbeenveryhardtofindonthissubject.Forthat,theLiberalgovernmentisasmuchtoblameasthewell-organizedopponentsofthetheMAIinthelabourmovementandontheCouncilofCanadians.Ottawahasdoneapatheticjobofbuildingsupportforaninternationalinvestmenttreatyandexplainingwhyweneedone.

ThesuccessfulpropagandacampaignbeingwagedagainsttheMAIhasconvincedmanyCanadiansthatournationalsovereigntywouldbeatriskandthatfacelessinternationalcorporationswouldhavemorepowersthangovernments.Inreality,alltheMAIreallyintendstodoisensurethatforeigninvestorsaretreatednolessfavourablythandomesticones.Therealprinciplehereisfairness.

Inaglobaleconomy,fairtreatmentofforeigninvestorsmattersmorethanever.Since1973,foreigndirectinvestmentaroundtheglobehasgrownby14timestoover$350billionayear.InCanada,afederalstudyshowsthatforevery$1billionofforeigninvestment,45,000newjobsarecreated.Onejobin10nowdependsonforeigncapital.

Abroad,Canadiansarejustasactive.Foreverydollarofforeignmoneyinvestedhere,Canadianshaveinvested94centsabroad.Withmorethan$171billionontheline,Canadiancompaniesexpecttobetreatedfairlyinothercountries.Takeexpropriation,forexample.IfaCanadianminingcompanywithavaluablepropertysuddenlyfindsittakenoverbyaforeigngovernment"inthenationalinterest,"thenitshouldbefullycompensated.

LabourgroupsandenvironmentalistsopposetheMAI.ButwhatifanothercountrydeliberatelylowereditsenvironmentalandlabourstandardsinordertolurejobsandcompaniesawayfromCanada?Whatwouldtheysaythen?Indeed,oneofthegoalsoftheMAIistomakesurethatcountriesdon'tlowertheirstandardstostealinvestment.

Yes,thereareconcernsabouttheMAI.CanadaisrightlyanxioustolimittheU.S.abilitytoimposeitsdomesticlawsonforeigncompaniesoperatinginCuba,asithasdoneundertheHelms-BurtonAct.Therearealsolegitimatefearsthatbecauseforeigncompanieswouldhavetherighttoappearbeforeadispute-settlementpaneliftheyfeelwrongedbyanationalgovernment,theywouldthenhaverightsandprivilegesthatdomesticcompanieswouldn't.

Clearly,thereismoretoughbargainingaheadinParis.Butaslongasnegotiatorskeeptheprinciplesoffairnessandequaltreatmentinmind,theMAIiswellworththeeffort.

  • Monday,25May1998AddressbyOECDSecretary-General theHon.DonaldJ.JohnstonattheCanadianClubofMontreal
  • AletterfromMargaretLefebvreonMAIandtheOECD
  • GettheFullText
  • MultilateralAgreementonInvestment
  • BostonAreaMAIActionGroups
  • OECDHomepage
  • TENReasonstobeconcernedfromWashington,D.C.
  • MAI-NOTCdnproject
  • MAIInformationandResourceKit

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