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have been eagerly adopted by decision makers. "In the develop» | NON-EUROPEAN CORPORATE LOBBIES AND THE MAI: ing world it positively influenced attitudes and policies...it may | US COUNCIL FOR INTERNATIONAL BUSINESS have had an impact on the views and policies of the European When it comes to lobbying for the MAI, one of the most influ- Commission and European governments in external economic ential industry groups has proven to be the US Council for relations in many different ways." International Business (USCIB). Founded in 1945 "to promote an The ERT advocates an investment agreement within the WTO open system of world trade, investment and finance",” it counts which would include the main elements of the MAI but would over 300 corporations, industry lobby groups, law firms and extend even further. According to the Round Table, a WTO banks among its membership—including the American Petroleum treaty should ensure "continuous opening, also on the sub-federal Institute, BP America, Coca-Cola, Chevron, DuPont, General level" through "rules and criteria for efficient public policy bench- Electric, General Motors, the Global Climate Coalition, marking and institutionalised peer review". The WTO treaty Honeywell, Ford, McDonalds, Mobil, Monsanto, Nestlé USA, should be flexible in order to "extend the coverage of the frame- Philip Morris, Shell, Texaco and Unilever. work to additional relevant areas". The ERT's dream treaty would The USCIB is the US affiliate of the ICC and the International also include international competition policy "able to address Organization of Employers (IOE), and, most significantly, chairs structural impediments" to market access which foreign investors the expert group of the OECD's Business and Industry Advisory might come across, "defining the relevant market as more and as Committee (BIAC). global". One hundred and fifty CEOs are busy pushing for investment The ERT seems overly optimistic about the time frame for the liberalisation through the USCIB's Investment Committee, completion of the WTO agreement they desire, proposing a chaired by Glen Skovholt of the Honeywell corporation.” This "structured debate on strategy and concepts for a global agree- policy committee has been very active on the MAI and has used ment on investment at the next WTO Ministerial expected in June _its widespread corporate tentacles for various pressure tactics. 1998", and the "rapid conclusion of an agreement of the new In addition to regular meetings with US negotiators immediate- kind".”° No doubt they will receive full support from the ly before and after each MAI negotiating session, USCIB also European Commission, one of the main advocates of an MIA arranges direct access for its members to Ambassador Frans within the WTO. Engering, chairman of the OECD Trade Commissioner Sir Leon MAI negotiating group. Brittan, in reaction to the 1996 ERT . Domestic support for MAI has been survey on conditions for foreign When it comes to lobbying created by the USCIB's collaboration investment, said: "I was particularly with groups such as the National struck by the message that we need- for the MAI, one of the most Governors Association and the ed to think about the best role of influential industry groups has Council of State Government. international negotiation, and to proven to be the US Council The USCIB's interest in investment strike a balance between using the liberalisation initiatives is not restrict- WTO to establish agreed best prac- for International Business ed to the MAI in the OECD. tice and using the WTO process to USCIB Facilitated by its membership in bod- create more modern and dynamic ( ). ies like the Business Advisory Council for APEC (the Asia-Pacific benchmarking. My own hope is that Economic Cooperation forum) and WTO can do both."” the Trans-Atlantic Business Dialogue The ERT has strategically facilitated the softening of develop- (TABD), where it co-chairs the working group on investment, the ing-country opposition to a WTO investment agreement. Many USCIB ensures that investment remains at the top of the agenda Third World countries have argued that discussion on investment _ in all relevant forums, including the WTO and regional treaties. should be held within the framework of UNCTAD, so at the end Overseas pressure is also a tactic, and a USCIB delegation visit- of 1997 the ERT co-organised with this organisation a meeting on ed the Japanese business organisation Keidanren in Kyoto in investment. In attendance were 16 CEOs from ERT member order to enlist support for US business objectives in the MAI.” companies (including ABB, British Petroleum, Krupp, Nestlé and There is no doubt that the USCIB has influenced the MAI from Shell), ICC Secretary-General Maria Livanos Cattaui, and 25 the beginning of the process. In 1991, four years before official Geneva-based ambassadors. The meeting focused on "dialogue negotiations began and long before MAI was out in the open, the on matters concerning FDI and the development dimension of the USCIB was already providing input on pre-negotiation work. issues and concepts relevant to a possible multilateral framework Later, in March 1995, the Council released a statement clarifying on investment", and used the June 1997 ERT investment report as US business objectives, which, in its own words, "formed the instruments such as public policy a basis for discussions.” basis of the formal BIAC submission to the OECD".* The USCIB is clear about why it desires a MAI treaty. "The UNICE MAI should eliminate many of the restrictions which make it too UNICE, the European industrial employers organisation, tends costly for US firms to access foreign markets", according to to play a more reactive role than the ERT, generally responding to Stephen Canner, the USCIB's Vice-President for Investment specific European Union policies as they emerge. Policy.” Consequently, the USCIB agrees with other industry As the EU has not officially released its position on the MAI, groups that the inclusion of labour and environmental provisions UNICE has thus far taken a back seat in the negotiations. in the MAI would be an enormous blunder, and has encouraged Nonetheless, the group strongly supports the MAI and is repre- the US administration to resist pressure from these interests.” sented in the negotiations through its BIAC membership.’* —_ Such provisions, it believes, "will deter key LDCs [less-developed Additionally, UNICE is a strong proponent of a Multilateral countries], who are not members of the OECD, from adhering, Agreement on Investment (MIA) within the WTO.” [and] thereby undercut a major objective of the United States—to When it comes to lobbying for the MAI, one of the most influential industry groups has proven to be the US Council for International Business (USCIB). UNICE UNICE, the European industrial employers organisation, tends to play a more reactive role than the ERT, generally responding to specific European Union policies as they emerge. As the EU has not officially released its position on the MAI, UNICE has thus far taken a back seat in the negotiations. Nonetheless, the group strongly supports the MAI and is repre- sented in the negotiations through its BIAC membership. "* Additionally, UNICE is a strong proponent of a Multilateral Agreement on Investment (MIA) within the WTO.” JUNE - JULY 1998 NEXUS - 31