MAI - Opinions (Archived)

• The (Australian) Government believes that an appropriately worded MAI could provide benefits to Australia. For example, Australians who invest overseas would benefit from a more transparent and certain global investment framework and Australian offshore investments will be more secure because of the protection offered by the MAI. Australia would also benefit from the higher global investment promoted by an MAI. Strong global investment is critical to generating high levels of economic growth over the longer-term, and brings benefits from the creation of jobs, from higher income and from new technology..... Senator Rod Kemp Australian Assistant Treasurer, when tabling the draft MAI text in Parliament, March 31 1998.

• A coalition of over 70 development, environmental and consumer groups from around the world are extremely concerned about the provisions of the MAI and believe it should not proceed in its present form. From their analysis, the MAI conflicts with international commitments already made by OECD member countries including the Rio Declaration; Agenda 21; UN Guidelines for Consumer Protection; Habitat Global Plan of Action, and the mulilaterally agreed set of principles to control restrictive business practices..... Australian Democrats MAI Web Site

• Under the 'expropriation' clauses of the MAI, corporations will be able to sue governments for damages for any legislation that increases their costs, such as increased wages, social and environmental standards. With such a threat hanging over their heads, governments are unlikely to introduce any measures that will improve social well-being or the health of the environment. Effectively this would be the end of democracy.... Stop MAI Coalition, Australia.

• The MAI is to be a comprehensive agreement covering all forms of investment coming from MAI investors, including the establishment of enterprises and the activities of established foreign-owned or controlled enterprises. Its aim is to apply MAI disciplines to all sectors and at all levels of government. It extends beyond traditional foreign direct investment to encompass portfolio investment and intangible assets. Further work is focusing on intellectual property rights, indirect investment, concessions, public debt and real estate. progress report presented by the MAI Negotiating Group to the OECD Council meeting at Ministerial level in May 1997.

• The OECD multilateral agreement on investment (MAI) has been described as a charter of rights and freedoms for transnational corporations (TNCs) and international investors, which they will have the right to enforce against governments. It imposes no corresponding responsibilities on investors..... Dr Jane Kelsey , Law Faculty, Auckland University

• The World Trade Organisation agreement is about multilateral trade liberalisation. That is exactly what it is. You do not have to look very far to find the benefits. In the last few months we have seen Indonesia, Malaysia and Thailand, with major changes in their tariff regimes, pressing down. We wish it went further and we would like more but they are substantial improvements. As a result of GATT we have had improved access since 1 January for Australian produce into, amongst other places, the United States market and more will flow over the next five years. (Senator Bob McMullan - from Australian Senate Hansard - 2nd February 1995 - in answering a Question Without Notice on Trade
• The previous government ignored the fact that the aggressive political trade policy of economically powerful governments, coupled with a strong support for what they see as strategic industries, would ensure that the trade field is not level; the support of free investment and foreign ownership would lead to transfer pricing and other distortions; and increased foreign ownership by vertically integrated transnationals would result in unfair trade pressures on domestic producers. I ask: what is this government intending to do about this and where are the minister's updated figures? (Senator Margetts - from Australian Senate Hansard - 28th October 1996 - Question Without Notice on Trade
• When we make domestic law, it affects the Commonwealth, the states and the community, and it should be made within the province of the Australian nation. You should not be able to hang it, in the way that this was done, on conventions which are made by people outside of this country, people who have no feeling or understanding of how we operate as a Commonwealth country. The importance of this decision will manifest itself and we will see better legislation in coming years as a result of it. (Senator Crane 2nd May 1996 - Senate Hansard - Reform of the Treaty-Making Process
• Fischer defends MAI negotiations

  The Australian Government has launched a strident defence of its active involvement in international negotiations on the Multilateral Agreement on Investment (MAI).

  The defence comes as a number of consumer, environmental and labour groups attack the proposed treaty for its potential impact in their respective domains.

  Responding to the MAI's critics, Trade Minister Tim Fischer said the Agreement would reinforce the global, rules-based trading system, while preserving governments' freedom of action in areas of vital national interest.

  "Contrary to speculation in some quarters, the MAI will not override Australia's laws and policies." Mr Fischer said.

  "Indeed, Australia will only sign the treaty if it is in our interest to do so, and only after following the Government's treaty-making processes of consultation and accountability."

  "Foreign investors operating in Australia are - and always will be - required to adhere to Australia's law and regulations." he said.

  Australian Trade Briefs 23 March 1998

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