[asia-apec 584] MAI Update/Action Alert

[Larry Kuehn]

GATT Watchdog
PO Box 1905,
Christchurch
Aotearoa (New Zealand)

28 August 1998

MAI UPDATE & URGENT ACTION ALERT!

ACTION ALERT! ACTION ALERT! ACTION ALERT! ACTION ALERT! ACTION
ALERT! ACTION ALERT! ACTION ALERT! ACTION ALERT! ACTION ALERT!

PLEASE COPY AND DISTRIBUTE TO ALL NETWORKS

After a frenzied year of campaigning to expose and oppose the OECD
(Organisation for Economic Cooperation and Development)
Multilateral Agreement on Investment (MAI), described as a charter
of freedoms for the transnational corporations which dominate the
global (and local) economy, things seem to have gone quiet.  NOT
SO!

While the MAI talks might have "paused" with the calling of a
six-month moratorium at the late April OECD Ministerial Meeting in
Paris, suspending negotiations, and promising transparency and
public consultations, it is far from dead.  Now is the time to
crank up the opposition once again...

Several US non-governmental organisations (NGOs) were briefed in
Washington DC on July 15 by the State Department, confirming their
suspicions that MAI negotiations have taken place on a bilateral
level.  While there won't be a multilateral negotiationg session
at the OECD until October 19/20, MAI negotiators from the US,
European Union (EU), and Canada have been meeting to discuss
issues relating to the agreement, including exceptions.

The US seems to be hoping that not much will happen on the MAI
until after November's Congressional elections, but that it will
be concluded at the OECD rather than in the World Trade
Organisation (WTO) at which it doubts it will be able to secure as
comprehensive a set of investment protections.  Some non-OECD
countries, especially in the "Third World" oppose an agreement on
investment taking place at the WTO.  The EU, however, appears to
favour moving the MAI negotiations to the WTO.  Last month Leslie
Swartman, press secretary for Canadian Trade Minister Sergio
Marchi, said that Canada was definitely "still at the table" and
anticipating talks to resume in October.

It also looks likely that the observer group of Argentina, Brazil,
Chile and the Baltic states will become participants in the
negotiation of the text, although none are OECD members.  No doubt
these countries will be used to say that "developing" countries
are now being involved in MAI talks.

New Zealand Involvement In The MAI

An Australian contact has alerted us to the fact that New Zealand
Treasury officials have been in recent contact with their
Canadian and Australian counterparts about the MAI.  According to
Australian Treasury sources, resumption of MAI negotiations in
October is expected to lead to a further meeting in April 1999,
with the aim of concluding the MAI before the WTO launches its
next trade liberalisation round.  Apparently New Zealand officials
are pushing for a general exception of government procurement from
the MAI's coverage.  GATT Watchdog currently has an Official
Information Act request in to Finance Minister Bill Birch in
relation to recent and current New Zealand involvement in
discussions on the MAI, and has also written to other government
and opposition MPs on the issue.

Unresolved Differences

As you may recall, there remained a number of serious sticking points
among OECD countries about the MAI.  France, Canada and others
wanted to exempt film and other cultural material from the MAI.
European countries have criticised US trade sanctions laws like
the Helms-Burton Act against companies investing in Cuba
(investors in Iran and Libya are also targeted by US legislation).
The US is critical of an EU proposal to allow EU countries to
treat investors from other EU member countries more favourably
than others.  Other disputes include ones about wording relating
to the environment and labour standards, and a long list of
reservations setting out areas to which the MAI won't apply.

How much progress has been made in ironing out such differences
among OECD member countries in bilaterals or other meetings since
April remains to be seen.  US negotiators have described recent
bilateral discussions on the MAI as "clearing cobwebs" and working
out how to move on to resolve different positions.

TIME FOR ACTION

The New Zealand Government and other governments pushing ahead
with the MAI show little sign of rethinking their economic
direction in the wake of the Asian crisis which many critics of
free trade and investment have predicted for some time.  And a
minority National government will be unconstrained from within in
its push to conclude the MAI.

Back in April, we warned that the MAI should not be allowed to
slink back into the darkness only to spring up again when we were
least expecting it. With only a few weeks to go before the
six-month "pause" is over, it is time to turn our attention back
towards fighting the MAI.  European opponents of the MAI are
calling for an international week of action against the MAI from
September 21st-28th.  But GATT Watchdog believes that NOW is the
time to be getting active on the MAI again!

WHAT YOU CAN DO

* Write letters to the editor, ring up talkback using this update
and what you already know about the MAI.

* Raise the matter in groups, organisations and unions which you
belong to.  Talk about the issue in your community.  Talk to your
local media.  Copy and distribute this GATT Watchdog update.

* Visit and/or write to your MP.  Ask what they know about NZ's
current involvement in discussions on the MAI.  If they don't
know, ask them to find out for you.

* Raise the issue with local body candidates.  Remember, Local
Government New Zealand, and a number of Councils (including the
Dunedin, Invercargill and Christchurch City Councils, and
community boards in Waikato) have already put out statements
critical of the MAI and the anti-democratic way in which the
Government has participated in MAI negotiations.  Make this a
local body election issue.

For more information contact GATT Watchdog
<gattwd at corso.ch.planet.gen.nz> ph: (03) 3662803
















































****************************************************
Larry Kuehn, Director		lkuehn at bctf.bc.ca
Research and Technology		lkuehn at vcn.bc.ca
B.C. Teachers' Federation
(604) 871-2294 (Fax)			www.bctf.bc.ca