The Multilateral Agreement on Investment (MAI) is being negotiated by the OECD (Organisation for Economic Cooperation and Development). The OECD is a forum where governments of mostly rich countries conduct negotiations in order to formulate policies on trade and investment. The MAI is a new international economic agreement which will make it easier for transnational companies to move freely across international borders.

Here is a summary of the MAI adapted from Public Citizen's Global Trade Watch factsheet.

"We are writing the constitution of a single global economy" said Renato Ruggerio, World Trade Organisation Director General (WTO Singapore Ministerial, December 1996).

• The MAI would forbid most remaining barriers to, and controls on international investment flows. If adopted, this agreement would dramatically undermine the ability of federal, state and local governments to shape economic and social policies.

• The current MAI text gives private corporations and foreign investors legal standing to directly sue sovereign governments. If a corporation or investor feels they are not getting everything promised by the investment pact, they can demand payment from a government using a special MAI tribunal. The international tribunals that would hear the dispute could impose monetary fines on governments.

• The MAI mandates "National Treatment" to ensure that foreign investors and companies are treated the same as domestic companies. Therefore, tax incentives for small business and laws that are designed to nurture home-grown companies could be challenged because they inherently discriminate against large foreign investors and corporations.

• Corporations and investors from all member countries would also be granted "Most Favoured Nation" status. Governments would no longer be allowed to distinguish between countries or companies based on human rights (e.g. MFN for China), labour, environmental or other "non-trade" criteria.

• The MAI proposes a ban on "performance requirements" which are conditions or terms governments require of investors. Examples of performance requirements include: contributing to the investment needs of the local community, utilising domestic goods or services (domestic content), hiring local employees or "speed bumps" on capital flight. Without the ability to place conditions on investments, governments will have limited control over capital flight and corporate accountability.

• There advanced stage. has been virtually no public or political scrutiny of the MAI, yet negotiations have already reached an advanced stage. MAI negotiations began in the OECD in 1995 and had an initial completion date of May 1997. Until January 1997, the MAI text was entirely secret.

To find out more about MAI you can contact:

• Public Citizen's Global Trade Watch

by E-mail (ctaylor@citizen.org),

by Internet (http://www.citizen.org/gtw),

by mail (215 Pennsylvania Ave SE, Washington, D.C. 20003)

or by phone (202-546-4996)

• Preamble Centre for Public Policy

by E-mail (juhasza@rtk.net)

by Internet (http://www.RTK.NET:80/preamble/mai/)

by mail (1737 21st Street, N.W. Washington, D.C. 20009)

by phone (202-265-3263)

• Trade Union Advisory Committee (TUAC) to OECD

by E-mail (tuac@oecd.org)

by Internet (http://www.tuac.org)

by mail (26 Avenue de la grande-armee, F75017, Paris)