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THE MILLENNIUM-ROUND BUSINESS OFFENSIVE entirely consistent with sustainable development, he has come We want neither to be the secret girlfriend of the WTO, nor some way in adopting green NGO demands on strengthening the should the ICC have to enter the World Trade Organization position of multilateral environmental agreements (MEAs) as well through the servants’ entrance.* as on the relevance of judging products on the process and pro- —Nestlé's Helmut Maucher —_ duction methods applied, allowing eco-labelling and using the precautionary principle. However, many of these demands have Aner of highly influential business groupings are concoct- been rejected by Southern governments, who fear that they will be ing their own campaigns in support of the Millennium used to intensify the use of trade instruments to protect Northern Round. A common feature of these strategies, following upon the interests and that they will shift the environmental burden to Third lessons of the failed MAI negotiations, is a move away from the — World countries. tradition of fierce opposition to social and environmental clauses Many Northern citizens’ organisations also distrust the in the WTO. Industry obviously hopes that this tactic will encour- Commission's promises, and stress that adding vague clauses is no age NGO support for further liberalisation. real solution for an institution which globalises highly unjust and unsustainable consumption and produc- - UNICE: A Softer Approach tion patterns.” They insist upon a mora- The European employers’ organisation torium on further trade and investment UNICE, for example, recommends that The failure of the MAI liberalisation until the WTO system has WTO negotiators secure the "widest possi- negotiations in the OECD been fundamentally reformed. ble endorsement by public opinion", while simultaneously "facilitating the expansion came asa nasty surprise to ERT: A GATT for Investment of economic acuvities essential for achiev: the European Round Table 7 ee lise Cer) Round Table or ing the goal of increased living standards sone industrialists as a long history o: around the world" and "reconciling liber- of Industrialists... deep involvement in the push for invest- alisation of international trade and invest- ment with the realisation of other objec- tives of general interest, such as economic ment liberalisation, its main objective being an agreement within the WTO. As early as 1993, the ERT stressed the need development of the least-developed countries, application of inter- for "a GATT for investment" to "lock in the process of liberalisa- nationally accepted labour standards and protection of consumers tion".* This wish has been repeated in the five reports on invest- or the environment".*° ment produced by the ERT's North-South working group since Although UNICE is very keen on a WTO investment agree- 1993. ment, including the MAI's broad definition of investment and The failure of the MAI negotiations in the OECD came as a unlimited national treatment for foreign investors, it judges that nasty surprise to the Round Table, but, as Secretary-General Wim unrestricted market access and full-scale liberalisation are not fea- Philippa explained, the ERT soon afterwards indicated to the sible in the short term. Commission that it "would very much like to work along with the UNICE is an active participant in the Commission's dialogues | Commission, and with the WTO if they eventually will become with civil society on the Millennium Round, and with an unusual- the partner, to try to speed up an acceptable MAI".” ly soft approach. However, the group also has its own separate The ERT has established a separate working group on foreign meetings with the Commission where the rhetoric is likely to be — economic relations, chaired by Peter Sutherland, currently chair- less geared towards soothing NGO concerns. man of BP and Associate of Goldman Sachs International.” Philippa clearly regards Sutherland, the former GATT Director- The EU's 'Green’ Carrot General, as the ERT's secret weapon. He explains that "his EU Commissioner Brittan has also become increasingly vocal knowledge, his experience, his contacts, his channels” will make about the 'mainstreaming' of the environment in the new round. the ERT "more proactive" and give it "a possibility to speed up Although still claiming that trade and investment liberalisation is matters"."' We want neither to be the secret girlfriend of the WTO, nor should the ICC have to enter the World Trade Organization through the servants’ entrance. Noaoctl4'c Halmut Manchor Aner of highly influential business groupings are concoct- ing their own campaigns in support of the Millennium Round. A common feature of these strategies, following upon the lessons of the failed MAI negotiations, is a move away from the tradition of fierce opposition to social and environmental clauses in the WTO. Industry obviously hopes that this tactic will encour- age NGO support for further liberalisation. The failure of the MAI negotiations in the OECD ee a ae nr eer= ae came as a nasty surprise to the European Round Table of Industrialists... + The EU's 'Green’ Carrot EU Commissioner Brittan has also become increasingly vocal about the 'mainstreaming' of the environment in the new round. Although still claiming that trade and investment liberalisation is Endnotes www.globalpolicy.org/socecon/bwi-wto/wtoinvst. website http://europa.eu.int/comm/dg01/ 36. Sir Leon Brittan, in a speech entitled "Europe htm. dgInewround.htm. and the United States: New Challenges, New 43. WTO, "Report (1998) of the Working Group on 47. European Commission DG1A, "International Opportunities", address to The Foreign Policy the Relationship between Trade and Investment to tules for investment and the WTO", public discus- Association, New York, 23 September 1998, the General Council", WT/WGTI/2, 8 December sion paper distributed at a dialogue meeting between http://europa.eu.int/comm/dg01/0923slbsp.htm. 1998 (98-4920). Available through the WTO the Commission and non-governmental organisa- 37. Cavanagh, John, "Background to the Global Document Dissemination Facility, tions in Brussels on Wednesday 27 January 1999, Financial Crisis", Institute for Policy Studies, www.wto.org/wto/ddf/ep/public.html. www.xs4all.nl/~ceo/mai/eu/euinvdis.html. September 1998, www.ifg.org/cavanagh.html. 44. Sir Leon Brittan, in a speech entitled "Europe 48. European Commission DG1A, "Note for the 38. Associated Press, Thursday 3 June 1999. and the United States: New challenges, New attention of the 113 Committee, Subject: WTO 39. See, for instance: "Trade Myths and Gender Opportunities", 23 September 1998 (see note 36). New Round — Trade and Investment", Brussels, 15 Reality", ICDA, 1999, and "Gender Focus on the 45. Sir Leon Brittan, in a speech entitled "The WTO December 1998, www.xs4all.nl/~ceo/mai/eu/ WTO", ICDA, 1999, e-mail icda@skynet.be. Future Agenda", at a Meeting of the European 113invest.html. 40. UNCTAD, "World Investment Report 1997". Community and European Non-Governmental 49. Notes made during EC-NGO dialogue meeting, 41. See, for instance: European Economy: Reports — Organisations, Business Federations and Labour Brussels, 28 January 1999. and Studies, no. 3, 1997. Organisations on the WTO Future Agenda, Brussels, 50. EC, "Minutes of the first meeting of the 42. Wall, Tim, "New WTO Investment Rules Cause 16 November 1998, http://europa.eu.int/comm/dg01/ Investment Network", European Commission docu- Concern; Major issues loom for countries already 171 1brng.htm. ment, Brussels, 27 November 1998. struggling with Uruguay Round trade agreements", 46. The EC publishes information on its prepara- 51. EC, "Annotated Agenda, Investment Africa Recovery, vol. 10, no. 3, December 1996, tions for the proposed WTO Millennium Round on Correspondent Network", Brussels, 5 March 1999. 24 © NEXUS THE MILLENNIUM-ROUND BUSINESS OFFENSIVE — Nestlé's Helmut Maucher FEBRUARY — MARCH 2000