The Multilateral Agreement on Investments (MAI), negotiated since 1995 at the Organization for Economic Cooperation and Development (OECD), elevates the rights of investors and investment far above those of governments, local communities, citizens, and the environment.
The International Forum on Globalization (IFG) played a critical role in casting a public spotlight on what negotiators had been doing behind closed doors. Coordinating popular resistance campaigns in 11 of the 29 OECD countries, meeting with government and non-government policy makers to discuss how the MAI would affect their policies and programs, and organizing an ad campaign exposing the most egregious elements of this agreement were some of the efforts that led toward the stalling of the MAI.
This was a tremendous success, given that no international agreement of such import had ever been delayed by an assembly of citizen groups. As the Financial Times (April 30, 1998) reported, "...the unexpected success of the MAI's detractors in winning the public relations battle and placing governments on the defensive has set alarm bells ringing. 'This episode is a turning point," says a veteran trade diplomat. "It means we have to rethink our approach to international economic and trade negotiations.'"
Several IFG Associates have been monitoring this "rethinking" of strategies and a pattern has emerged. Knowing that it may be impossible to try and get the whole enchilada in one agreement, globalization advocates are dividing up components of the original MAI and introducing them into new venues "fast track," IMF expansion, and a new combined trade package that includes a trade bill with Africa, and a new Caribbean Basin initiative, among other things. In addition, although the MAI was stalled twice this year at the OECD, it is not dead. It appears that basic proposals of the MAI will be re-introduced at the World Trade Organization (WTO). We are keeping a vigilant watch on the situation and will keep you informed.
Testimony of Victor Menotti, IFG Special Projects Coordinator,
before the British Columbia Legislative Assembly's Special Committee on the
MAI
September 29, 1998Vancouver, BC