Bernard Allen
Ceist:26 Mr. Allen asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will make a statement on the signing of the multilateral agreement on investment; and the implications, if any, it has had. [4183/98]
Vol. 487 No. 4
26 Mr. Allen asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will make a statement on the signing of the multilateral agreement on investment; and the implications, if any, it has had. [4183/98]
34 Mr. Gormley asked the Tánaiste and Minister for Enterprise, Trade and Employment the policy of the Government on the proposed multilateral agreement on investment; the implications of this process for this country; and if she is reacting to criticisms of this process as voiced by many development agencies as to the effects of this agreement on countries in the developing world. [1804/98]
I propose to take Questions Nos. 26 and 34 together.
The multilateral agreement on investment, known as the MAI, is being negotiated under the auspices of 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. Negotiations are due to be completed this year.
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. 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 country-specific exceptions.