7:48 AM May 26, 1997

NGOS SHOW DISSATISFACTION WITH MAI PROCESS

Geneva 26 May (TWN) -- A number of non-governmental organizations (NGOs), dealing with environment, development and consumer issues, have expressed dissatisfaction with the negotiation process surrounding the OECD Multilateral Investment Agreement (MAI).

This has been underlined in an open letter to OECD Ministers of Foreign and Economic Affairs, Trade, Environment and Development Cooperation and the OECD Secretary-General, who are due to commence their Ministerial meeting in Paris on Monday.

This coalition of NGOs, comprising of Oxfam-UK, International Coalition for Development Action, World Development Movement, Consumers International, Save the Children Fund, Friends of the Earth-US and the World Wide Fund For Nature, have stated that "the lack of comprehensive and inclusive consultation with stakeholders on the MAI, has resulted in an agreement which places the rights of foreign investors on a higher legal plane than protection of the environment, achievement of social objectives and consumers' interests."

The NGOs add that, as currently drafted, the MAI could have the following negative effects:

* it could retard or even reverse progress towards the adoption of strong national and international environmental and social standards;

* will hamper countries' efforts to achieve sustainable management of their natural resources;

* could prevent developing countries' in particular, from using legitimate national economic policies to ensure that inward investment delivers the economic and social benefits vital for achieving sustainable development; and

* will discourage the open flow of environmental and social information among producers, consumers, and communities.

The NGOs note that, however, due to the extension of MAI negotiations until, at the earliest, December 1997, an opportunity exists to amend this process, and fully integrate environmental protection, consumer protection and broader sustainable development objectives into the MAI.

The NGOs observe that such an integration process had already been committed to by the OECD members in January 1991, an again at the Rio Earth Summit in June 1992. Five years on from Rio, the MAI represents a litmus test of the OECD's commitment to sustainable development, and the NGOs point out that they will be actively watching and commenting on what has been achieved.

The NGOs have also suggested the following actions to be taken at the OECD Ministerial meeting in May 1997:

* Immediate initiation of a comprehensive and independent review of the environmental and social implications of the MAI;

* Immediate consultation with, and meaningful participation by non-OECD countries, many of whom will be under considerable pressure to join the MAI once it is finalised;

* An immediate commitment to opening up the negotiation process, including timely availability of draft texts, and formal mechanisms for NGOs to provide input; and

* Announcement of a preliminary consultation with non-governmental groups will be held before the Special Session on the UN General Assembly in June, at which consultation a plan and timetable for future NGO involvement in the negotiations would be agreed.

The NGOs conclude that the MAI could be a pivotal instrument in strengthening international coordination to achieve sustainable development, or a mechanism which accelerates current destructive and inequitable modes of economic activity. The MAI will also send a strong signal to the non-OECD countries with regards to economic priorities for the next century.

This signal, the NGOs note, must be one that gives priority to sustainable development for all citizens, and not just an extension of rights to businesses.