What is the Multilateral Agreement on Investment?
The MAI is designed to be a set of rules for international investment. It is being written by a group of industrialized countries who belong to the Organization of Economic Cooperation and Development, also know as the OECD. The OECD countries haven’t yet agreed on the final version of the MAI, but it may become law sometime in 1998. The MAI gives international investors rights and freedoms that cannot be limited by governments. For example, the MAI states that governments must treat foreign investors as well as or better than domestic companies. Governments cannot place special conditions on foreign investors. If the MAI passes, governments may not be able to restrict foreign investment in agriculture or other important industries. Companies could sue governments that try to enforce these kinds of conditions. It is also possible that the MAI will not respect international agreements such as United Nations conventions or environmental agreements like the ones made at the Earth Summit.
