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workers, development organisations, women's movements and church groups. Although effective resistance to the MAI has arisen late for a variety of reasons, there is no doubt that NGOs are now catching up. With an increasingly clear, common analy- sis of the dangers of corporate-led globalisation, civil society is getting prepared to defend our local economies, our democratic systems and the common good. MAL, state courts will have no jurisdiction in this area of law. The ICC has also made use of its access and consultative status at major international summits to push for the MAI. During the Denver, USA, Summit of the G7 in 1997, the ICC met with the heads of state of the Group of Seven most industrialised countries and presented its viewpoints. Among other things, the ICC urged the leaders to work harder to ensure that the MAI negotiations are concluded quickly and that there be a complete rejection of envi- ronmental and labour standards.” The OECD treaty on investment is a major goal for the ICC, but it is only the first step. In the spring of 1996, the ICC published its report, "Multilateral Rules for Investment",*! in which it expressed its support for all of the major elements in the MAI: the broad definition of investment, national treatment, most- favoured nation treatment, investment protection, and binding investor-state arbitration. The report strongly supports the MAI negotiations, but ends by calling for the December 1996 WTO Ministerial Conference to "begin within the WTO to establish a comprehensive and truly global framework of rules and disci- 62 plines to govern cross-border direct investment" ‘ THE MAIN CORPORATE PLAYERS: The preceding parts have given ample examples of how corpo- rate lobby groups have been involved in the shaping of the MAI. The following is a more detailed overview of the main corporate groupings and the manifold strategies they have used in their cru- sade for investment deregulation in various international forums. ARLE ne a eee nee wanes nae WU eeeewane Pee weeny weteee Casenenee INTERNATIONAL CHAMBER OF COMMERCE investor-state arbitration. The report strongly supports the MAI One of the most heavyweight corporate players behind the MAI iations, but ends by calling for the December 1996 WTO is without doubt the International Chamber of Commerce (ICC). Ministerial Conference to "begin within the WTO to establish a The ICC, which promotes itself as "the world business organiza- comprehensive and truly global framework of rules and disci- tion" with members in over 130 countries, is not primarily an plines to govern cross-border direct investment". umbrella for chambers of commerce from around the world, as the name might suggest.* Its membership includes some of the | EUROPEAN INDUSTRY AND THE MAI: world's wealthiest transnational corporations: Asea Brown The two most influential European corporate lobby groups—the Boveri, Bayer, British Petroleum, Dow Chemical, General European Round Table of Industrialists (ERT) and the Union of Motors, Hyundai, Nestlé, Novartis, Industrial and Employers Confedera- Shell, Toshiba, Zeneca and so forth. tions of Europe (UNICE)—have fol- Quite a few national business associ - One of the most heavyweight lowed different strategies in their ations are also part of the ICC. striving for an international invest- ; The ICC, which clearly has ambi- corporate players behind the MAI ment treaty. tions fo become a major player in | jg without doubt the International global politics, shares its chairman, EUROPEAN ROUND TABLE OF Nestlé president Helmut Maucher, Chamber of Commerce (ICC). INDUSTRIALISTS with the influential European Round in i The European Round Table of Table of Industrialists. The ICC's Its membership includes Industrialists (ERT)® has long been Secretary-General is Maria Livanos some of the world's wealthiest deeply involved in the push for Cattaui, who, over a period of nearly H H investment liberalisation, and has two decades, developed the World transnational corporations. built a very comprehensive strategy to Economic Forum and its annual this end. While supporting the MAI, meeting in Davos, Switzerland, into its main objective is an investment a hugely influential global summit of corporate leaders and top agreement at the WTO." politicians. As early as its 1993 report, "European Industry: A Partner for ICC involvement in the MAI negotiations has partly been the Developing World", the ERT had stressed the need for "a through the Business and Industry Advisory Council (BIAC), the | GATT for investment" and "an institution that could take stock of official business delegation to the OECD negotiations. improvements and be able to lock-in the process of The Chamber itself has left a number of fingerprints on the liberalisation". This point has been often repeated in the five draft treaty—for instance, regarding arbitration. In the current reports on investment produced by the ERT North-South working draft, the ICC's Court of Arbitration is included as one of the main group since 1993. ERT president Helmut Maucher, who also mechanisms for dispute settlement. Vincent J. O'Brien of the ICC heads the ICC and is the CEO of Nestlé, chairs this working said: "We definitely helped with the parts regarding arbitration. group. The ICC clearly has expertise in that area, and so it was natural The ERT has long played an active role in setting the EU policy that we had a hand in there." One of the most controversial agenda. In making the case for investment deregulation, Round aspects of the MAI—the investor-state dispute mechanism which Table members are in direct contact with European leaders and will allow corporations to sue governments in an international the European Commission as well as Third World governments. court—has been developed with the assistance of ICC ‘experts’. The Round Table is jubilant about the positive effects achieved The role of the ICC in this mechanism will be to oversee disputes by two of its proposed tools to further economic globalisation: and facilitate the settlement process. competition on rules (the race to provide companies with the most The MAI allows its signatories to declare certain laws exempt —_ favourable investment conditions) and benchmarking (encourag- from the treaty for national security reasons. However, it is up to ing countries to compare their investment climate, including lev- the MAI dispute settlement panel—overseen by the ICC—to els of deregulation). "Competition on rules and benchmarking determine whether such a claim is valid. No one is entirely sure have proven to be among the most effective drivers of the present how the MAI would affect national law, as interpretation of the process of opening the economy, deregulating and modernising treaty will be left to an independent panel appointed by defen- the institutions for private business investments." dants and corporations bringing the dispute. Under the proposed These concepts, presented in a 1993 survey on investment,” Chamber of Commerce (ICC). Its membership includes some of the world's wealthiest group. The ERT has long played an active role in setting the EU policy agenda. In making the case for investment deregulation, Round Table members are in direct contact with European leaders and the European Commission as well as Third World governments. The Round Table is jubilant about the positive effects achieved by two of its proposed tools to further economic globalisation: competition on rules (the race to provide companies with the most favourable investment conditions) and benchmarking (encourag- ing countries to compare their investment climate, including lev- els of deregulation). "Competition on rules and benchmarking have proven to be among the most effective drivers of the present process of opening the economy, deregulating and modernising the institutions for private business investments."® These concepts, presented in a 1993 survey on investment,” 30 + NEXUS JUNE - JULY 1998 transnational corporations.