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Recently, the OECD's Business and Industry Advisory Council began a new offensive after realising that its dream MAI was on the verge of being derailed. At an official consultation between BIAC and the OECD's MAI negotiating group in January this year, industrialists expressed concerns about the direction the dis- cussions were taking. Herman van Karnebeek, Chairman of BIAC's Committee on Multinational Enterprises (as well as of chemical giant AKZO Nobel and the Dutch branch of the ICC), complained: "We now hear of disturbing signs that many of the elements we were hoping for may not be possible. What then, we are beginning to ask ourselves, is in the MAI for us?"” Some BIAC members, particularly annoyed at the carve-out of taxation and the introduction of labour and environment stan- dards, went so far as to threaten that business might withdraw its support for a sub-standard MAI, which would make ratification difficult in many countries. OECD negotiators calmed members’ fears by asserting that liberalisation remained at the top of their agenda, but that compromises were necessary in order to complete the MAI by April 1998. "Remember, this is only the first step— like the GATT in 1947," BIAC was consoled by an OECD offi- cial. "We are entering a process of historic dimensions."” in the early 1990s.* Although OECD negotiators have never taken these recommendations seriously, Roy Jones of the TUAC Secretariat points out that the recent difficulties in the negotia- tions show that TUAC is right: "labour and environment can 34 blow the treaty apart". BIAC's Committee on Multinational Enterpri MAI AND THE EUROPEAN UNION chemical giant AKZO Nobel and the Dutch branch of the C0), In addition to the 29 OECD countries, the European complained: "We now hear of disturbing signs that many of the Commission has been represented as the 30th negotiator through- elements we were hoping for may not be possible. What then, we out the MAI negotiations. Although the legal status of the are beginning to ask ourselves, is in the MAI for us?"” Commission's role is unclear, the MAI is being treated as a matter Some BIAC members, particularly annoyed at the carve-out of of shared responsibility between the European Commission and taxation and the introduction of labour and environment stan- the member states.* In contrast, the Commission negotiates on dards, went so far as to threaten that business might withdraw its behalf of the 15 member states in the World Trade Organization, a support for a sub-standard MAI, which would make ratification result of paragraph 113 in the Maastricht Treaty which gives the difficult in many countries. OECD negotiators calmed members’ EU competence over a major part of the external trade policies of fears by asserting that liberalisation remained at the top of their its member states. Although shared responsibility allows the agenda, but that compromises were necessary in order to complete Commission to play an influential role in the negotiations, it also the MAI by April 1998. "Remember, this is only the first step— means that the MAI will have to be ratified by the Council of like the GATT in 1947," BIAC was consoled by an OECD offi- Ministers. cial. "We are entering a process of historic dimensions."” Overall, the Commission has played an increasingly important role in coordinating EU member-state positions as the MAT nego- BIAC: BUSINESS BEHIND THE SCENES tiations have proceeded. This might be attributed to the ambitious The Business and Industry Advisory Committee (BIAC) is the leadership in the negotiations by Sir Leon Brittan, of Directorate official voice of business in the General 1 (External Economic OECD's MAI negotiations. Based in Relations)—a man well known for his Paris and established in 1962 like the aggressive, competitive approach to OECD itself, BIAC is regularly con- on, g trade and investment matters. The EU sulted by the OECD both formally And with its far less subtle is simultaneously pushing for a mech- and informally. approach, the IMF continues to anism for investment liberalisation BIAC consists of the employers’ . . both within the OECD negotiations organisations of OECD member use every opportunity to Impose and the WTO. As Sir Leon Brittan groups like UNICE (the Union of | MAFike rules on countries im J once investment and stop new Industrial and Employers' financial Crisis. hurdles being thrown up in its way. Confederations of Europe), Canada's Nothing short of a comprehensive set Business Council on National Issues of binding international rules will cre- (BNCI), USCIB, the ICC, the World ate the level playing field which is so Business Council for Sustainable vital for the European economy."* Development (WBCSD) and others. Some individual corpora- tions including Shell, General Electric, BASF and Kobe Steel are MAI AND THE EUROPEAN PARLIAMENT also represented. BIAC is organised into 14 committees which To date, the European Parliament has been granted no formal work on issues ranging from trade, education and chemicals to role in the MAI negotiations, nor does it have the legal right to international investment. ratify or reject the agreement. However, on its own initiative, the BIAC has been an enthusiastic supporter of the MAI from the Parliament has brought out a resolution on the MAI for discussion beginning of the negotiation process and was actively involved in _in February and most likely a vote in March 1998. pre-negotiation work between 1991 and 1995. There have been a The first draft of the resolution, written by German Green MEP number of formal consultations between BIAC and the negotia- Kreissl-Doerfler, is highly critical of both the MAI and the negoti- tion group, but perhaps more significant has been the work done _ating process, and stresses "the fact that the negotiations have behind the scenes. For example, an ad hoc group of BIAC repre- hitherto been conducted in utmost secrecy, with even the parlia- sentatives meets informally with the OECD negotiators prior to ments being excluded".” each negotiating session.” The draft resolutio: tes that the MAI "refle in imbalance hates, tha MAI AND THE EUROPEAN PARLIAMENT To date, the European Parliament has been granted no formal role in the MAI negotiations, nor does it have the legal right to ratify or reject the agreement. However, on its own initiative, the Parliament has brought out a resolution on the MAI for discussion in February and most likely a vote in March 1998. The first draft of the resolution, written by German Green MEP Kreissl-Doerfler, is highly critical of both the MAI and the negoti- ating process, and stresses "the fact that the negotiations have hitherto been conducted in utmost secrecy, with even the parlia- ments being excluded".” The draft resolution states that the MAI "reflects an imbalance between the rights and obligations of investors, guaranteeing the latter full rights and protection, while the signatory states are tak- ing on burdensome obligations which might leave their popula- tions unprotected". The resolution demands that binding social and environmental standards be included in the MAI, as well as a guarantee that the MAI will not lead to competition on rules in order to attract foreign investment.* In addition, the so-called regional economic integration organi- sation (REIO) clause is a high priority for the European TRADE UNION ADVISORY COMMITTEE (TUAC) Like its corporate counterpart, the Trade Union Advisory Committee (TUAC) has consultative status within the OECD and has a small secretariat in Paris. It represents over 55 trade union organisations in the industrialised world and counts a total mem- bership of 70 million workers. TUAC sees its role as "ensuring that global markets are bal- anced by an effective social dimension".* Accordingly, TUAC has stressed the need for binding social and environmental stan- dards in the MAI since consultations during the feasibility studies 34 - NEXUS APRIL - MAY 1998 And with its far less subtle approach, the IMF continues to financial crisis. Continued on page 86