24th April 1999
Many people in this country have been following the progress of the international 'agreement' known as the Multilateral Agreement on Investment (MAI). The MAI is a trade liberalisation program designed to allow foreign companies unrestricted access to Australian markets,Australian natural resources and unregulated use of Australian labour, affording Multi-National Corporations (MNC's) the same legal rights as Australian citizens.In return for paying such a high price, we get foreign investment dollars and export earnings from Australian MNC's, such as BHP or Rio Tinto. If the Australian government agrees to the proposal on behalf of the Australian people, foreign companies will gain unlimited access to our environmental resources, will have the capacity to further dominate our local markets to the detriment of Australian small business and will be able to set the labour market and working conditions for Australian employees.
On top of this, as MNC's will enjoy legal support from the government as 'corporate citizens', these corporations will have the right to sue any person or body who decides that their actions are not in the best interests of the country or the people of Australia.
The MAI does, of course, have strong support from those MNC's who stand to gain unrestricted access to markets such as Australia and is such being pushed in world economic 'forums' such as the OECD (Organisation for Economic Cooperation and Development) and the WTO (World Trade Organisation). The MAI was first pushed onto the agenda of the WTO in 1996 but was flatly opposed by many Third World representatives such as India as being a direct threat to their national sovereignty.Developed World countries such as France also refused to support the MAI. The proposal was then taken to the OECD (a forum for the world's top economic powers-excludes most Third World nations) but debate was again stalled as opposition mounted,again led by countries such as France as well as Non-Government Organisation's (NGO's) and concerned citizen interest.
It is of utmost importance to us as Australians to be aware that the Australian government has been one of the strongest supporters in both the OECD and WTO forums for the implementation of the MAI. The Australian,Canadian and United States governments are all strongly in favour of the proposal.
Despite this opposition from concerned countries as well as Non-Government Organisations, the MAI has been pushed back to the WTO for further 'debate'. The MAI's backers claim that the WTO is a more democratic body as it includes more nations (which it does) so this is a better place for more open discussion. However, it is important to note that in the first year of the WTO's existence, of the 50 trade disputes it dealt with, 18 involved the United States,which won 17. The Developed Nations know that if they can gain a majority amongst the powerful, they can then play each developed country off against another using their enormous financial and diplomatic clout within the forum.
The next WTO forum is to be held in January 2000 in Seattle, Washington.
The Australian government has of course been invited and is currently seeking public submissions as to the sorts of issues it should raise and the postions of the Australian people on issues of World Trade and trade liberalisation, including the MAI. When we examine Alexander Downer's comment last year to the Bulletin magazine that, "Opposition to the MAI is driven by nothing but closed-minded nationalism", then we see just how much shouting we have to do.
However, submissions must be in by May 1, so it is crucial that we get writing to not only our government but also to all Australians who genuinely care about the sovereignty of our nation, our Environment,our local business and our working conditions,as the threat to our living standard is a very real one.
e-mail:trade.consult@dfat.gov.au
Contact:Mr Steve Moran Trade Negotiations Division
Department of Foreign Affairs and Trde
RG Casey Building
Barton ACT 0221
Fax (02) 6261 3514