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Economic Justice News
Vol. 1, No. 3 October, 1998

The MAI is Still Alive
Kill It with an Action Week: October 3 - 10
by Margrete Strand
Public Citizen’s Global Trade Watch

The powerful business interests and political elites pushing the Multilateral Agreement on Investment (MAI), the "investors' bill of rights" that would require countries to privilege corporate privilege over individual and societal rights, are nearing the end of their self-declared break. They have been hoping that the six-month recess from negotiations which widespread protests over the treaty's provisions forced on the Organization for Economic Cooperation and Development (OECD), the club of the 29 richest countries, would convince opponents that the treaty is dead.

But as the negotiations re-open on October 20, the worldwide movement that sprang up to kill the MAI is ready and waiting. In fact, they have been tracking the unofficial bilateral discussions that governments have been conducting during the recess. We know that significant differences between OECD countries remain on issues such as "cultural" products, procurement processes, and subsidies. But defeating the treaty will still require massive and continuing worldwide mobilization.

There is also talk of opening negotiations on another version of the MAI at the World Trade Organization (WTO) next year. The U.S. government opposes that move at this time because it fears the WTO would not maintain the lavish investor protections the OECD can presumably be trusted to include.

We can expect to see the protection of international investors continue to pop up in different forums such as the Free Trade Area of the Americas (FTAA), the WTO, the International Monetary Fund (IMF), and the Transatlantic Economic Partnership (TEP). We call this the MAI Shell-Game where the MAI is the rotten pea at the core of the agenda.

NAFTA Lawsuits Sets Alarming Precedent

A recent settlement by the Canadian government shows what we can expect more of under the MAI. The U.S.-based Ethyl Corporation sued the Canadian government in April, accusing Canada of expropriating its profit with its import ban on a gasoline additive, MMT. The Canadian government imposed the ban out of concern for the environmental and public health risks that MMT poses. Under various NAFTA regulations, however, such a ban can be challenged by corporations under the investor-to-state dispute mechanisms, regardless of the reason the ban was implemented. The Canadian government agreed to not only revoke the ban on MMT, but also to pay Ethyl $10 million AND make a public statement stating that MMT poses no risk. The MAI, with its expanded definitions of expropriation and performance requirements, and with the investor-to-state dispute mechanism, could lead to more lawsuits that threaten environmental standards.

Grassroots actions against the MAI & what you can do in the months to come

There are several actions that YOU can take to make sure that the MAI gets killed once and for all. The first is to talk to people and tell them about the MAI. Give them information and refer them to webpages (see below) with MAI information. Send a letter to the editor of your local newspaper, and write your Senators and Representative and ask them what their position is on the MAI.

From October 3rd to the 10th there will be a WEEK OF ACTIONS AGAINST THE MAI. This is a great opportunity to bring attention to the MAI in your community, by organizing a rally...a teach-in...a debate...hand out information...do street theater...anything that you can think of.

Wednesday, October 7 is NATIONAL ALL-CALL DAY. Activists from around the country will be calling the negotiators, urging them to withdraw from the negotiations. Make sure to mark your calendar and get all your friends and family to call as well!

Madeline Albright (State Department): 202-736-4247

Charlene Barshefsky (USTR): 202-395-6890

John Podesta (White House): 202-456-1414

As a more long-term project activists are encouraged to launch an MAI Free-Zone through their city councils. Several cities in the U.S. have already declared themselves MAI-free zones, including San Francisco, Boulder, Olympia (Washington), and Berkeley. Because people often feel that trade issues don't concern them, MAI Free-Zones are the perfect tool to demonstrate how a treaty like the MAI will impact state and local laws. These resolutions send a strong signal to the negotiators and our elected officials that people care about and understand trade issues and that the FAIR TRADE MOVEMENT is growing. The victory against the MAI is ours to take if we continue to organize and educate against the free trade corporate lobby!

For more information about the MAI or for a copy of an MAI Action-Kit, please contact Margrete Strand at Public Citizen's Global Trade Watch, 202-546 4996, ext. 306 or at mstrand@citizen.org.

Websites where you can get up-to-date information on the MAI are:

http://www.citizen.org/pctrade/mai.html

http://www.foe.org/ga/mai.html

http://www.rtk.net:80/preamble/mai/mai-home.html

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