Friends of the Earth Birmingham Action Briefing Apr/May 98

Multilateral Agreement on Investment

"Removing your rights to environmental and ethical standards"

Ask most people, environmentalists or not, the question "What do you think about MAI?" and they're likely to responsed "MAI? Never heard of it!". The reason so few people have heard of the Multilateral Agreement on Investment (MAI) is that it has been developed in secrecy - up until January 1997, the US government denied it even existed! This isn't surprising, because the less the public know about it, the less likely they are to be concerned by the way it sacrifices their democratic rights.

MAI has been under discussion since 1995, by members of the OECD, the Organisation for Economic Co-operation and Development. The OECD is a club containing 29 of the worlds richest countries, including the UK.

The aim of MAI is to give more rights to multi-national companies, and remove rights from local and national governments. MAI will allow multi-nationals to sue governments over laws which enforce environmental, social or public health standards.

Luckily, the truth about MAI is finally coming out, after activists managed to get hold of leaked copies of the draft agreement. Here's what the MAI will do:

• Prohibit government policies which favour local firms.
• This means an end to subsidies to support local economic development.
• Prevent governments imposing ethical, environmental or social standards on multinationals.
• Allow multi-nationals to sue governments if they introduce legislation which effects their profits.

Interestingly, some of the most vocal opposition to MAI is coming from Canada. So, why are people in Canada so concerned? Well, Canada is already signed to to the NAFTA (North American Free Trade Area) agreement, a sort of mini-MAI which only applies to the Canada, the USA and Mexico. Already, the Canadian government is being sued for $325 million by the Ethyl Corporation, because of a Canadian ban on MMT, a neuro-toxic fuel additive.

So, NAFTA has effectively removed the rights of Canadian voters to control their environment and public health. If MAI succeeds, it would remove those rights from people in the UK.

The MAI would have a number of effects on Birmingham. It would override the Local Agenda 21 agreement reached at Rio in 1992, which aims to encourage sustainability through local participation.

Local democracy would be reduced, as councils would be unable to bring in policies which favour local development or community businesses. Currently, councils can specify conditions on international investments, for example, requiring a company to employ local people, or source components locally.

The final threat from the MAI, is a no-get-out clause. If the UK signs up to the MAI, we would not be able to leave for 5 years. Once we had declared our intention to leave, the MAI would stay in force for another 15 years! If the govenment decided to withdraw before these 20 years had passed, the UK could be sued. In contrast, most international treaties allow counties to withdraw with a maximum of 6 months notice.

1. Write to your MP and councilors asking them to oppose the MAI and raise questions about it in the House of Commons or Council Meetings.
2. Write letters to local an national newspapers, raising your concerns about the implications MAI would have on democracy, environmental and social policy.
3. H U R R Y ! The MAI signing has already been delayed by a year to this April, more pressure can delay it futher and eventually stop it in its tracks!
4. If you have internet access, read more about MAI at: http://www.cs.bham.ac.uk/~anp/mai.html

Third World First, who work campaign on world poverty, human rights and the environment say:

"If the M.A.I. had been law 10 years ago Nelson Mandela would still be behind bars today. The economic sanctions which helped end apartheid would be banned by the new Multilateral Agreement on Investment (MAI)."

Andy Pryke.