Vol. 489 No. 2
16 Mr. Gormley asked the Tánaiste and Minister for Enterprise, Trade and Employment whether the Multilateral Agreement on Investment is likely to be agreed by 28 April 1998; and the plans, if any, she has to sign this agreement on behalf of the Government. [7616/98]
77 Proinsias De Rossa asked the Tánaiste and Minister for Enterprise, Trade and Employment the position being taken by the Government in the negotiations on the new Multilateral Agreement on Investment Treaty. [4291/98]
93 Mr. O'Shea asked the Tánaiste and Minister for Enterprise, Trade and Employment if the Multilateral Agreement on Investment restricts the ability of the sovereign Government to introduce laws which interfere even indirectly with multinational companies' pursuit of profits; and if she will make a statement on the matter. [7797/98]
I propose to take Questions Nos. 16, 77 and 93 together.
The Multilateral Agreement on Investment, known as the MAI, is being negotiated under the auspices to the Organisation for Economic Co-operation and Development the OECD — in Paris. It will be a free-standing international treaty open to all countries willing and able to meet its obligations. The deadline for completion of negotiation was April 1998. However, it is certain that this deadline will not be met.
Countries which become party to the MAI will commit themselves to treat foreign investors no less favourably than they treat their own investors. They will also agree not to discriminate among investors of different MAI parties. In general, as long as a country does not discriminate against foreign investors, the agreement will not restrict the ability of a Government to legislate.
Other important provisions will include the following: transparency of laws and regulations; the right to transfer funds to and from the host country although governments will be able to suspend this right temporarily in the event of a balance of payments or monetary crisis; the right of the investor to bring key personnel to the host country — subject to general immigration laws; the prohibition of certain performance requirements — such as minimum export targets — as a condition for allowing an investment to be set up and the right of a foreign investor to adequate and effective compensation in the event of the expropriation of property. All of these provisions will be underpinned by a dispute resolution system both between states and between the investor and the host state. Where countries are willing and able to implement the main thrust of the MAI but have difficulties with specific obligations, they will have the opportunity to negotiate countryspecific exceptions.
The Government supports the conclusion of the MAI and expects that this country will, in due course, become a party to it. This would allow us to give yet another important signal to foreign investors that they are welcome here. We already treat foreign investors favourably and would not, therefore, need to make fundamental changes in order to honour our commitments.
The agreement would also be of value to our outward investors in that it would allow them to compete on a level playing field in the markets of those countries which choose to become party to the MAI. They would also benefit from the assurance that they can repatriate their profits here, employ Irish managers and specialised technicians, and have a right of fair and adequate compensation if their property in another MAI country were ever expropriated.
The approval of the Dáil would be required before Ireland agreed to be bound by the terms of the MAI.
