Brussels, 06/01/2003 (Agence Europe) - The association "Confrontations", chaired by Philippe Busquin MEP (French, GUE) held a debate in Brussels on "After Doha, what multilateral framework for foreign investment?". Commissioner Pascal Lamy and the Director of the Trade and Finance division of the World Trade Organisation, Mr. Eglin, were among the speakers, alongside representatives of trade unions, non-governmental organisations and business.
According to Mr. Herzog, who summarised the opinion of the preparatory work, "a multilateral agreement on investment within the WTO is desirable if it integrates strict conditions affecting the very substance of what is negotiated within the WTO and is accompanied by commitments by multinationals and States relating to the social responsibility of companies and for development". The launch of negotiations will indeed take place "but its gestation will be lengthy ad is still far from over", said Mr. Elgin, hinting that the agreement would doubtless not be a replica of the very controversial MAI. On the side of business, the preference as expressed by the CEO of Lafarge, Bertrand Collomb, and a representative of UNICE, Andre Driessen, tends towards the creation of a framework of equitable rules, shared by all and that guarantee legal stability and visibility, which would encourage direct investment abroad. For Mr. Collomb, the social responsibility of companies cannot be left up to the sole responsibility of business, there needs to be a framework to promote it and render it coherent. Pradeep Mehta, of the Consumer Unity and Trust Society, on the other hand, echoing the stand taken by India in Geneva, considers that such an agreement, far from leading to a substantial increase in FDIs to developing countries, could even be harmful. A mistrust of a WTO agreement echoed by Ruth Mayne, of Oxfam, who, while recognising the need for multilateral rules on investments, insists": "the WTO is not the right forum for signing a multilateral agreement as its mandate is only aimed at liberalisation and does not allow it to introduce obligations on investors". According to her, existing environmental and social standards at multilateral level must be made binding and financial standards need establishing before any agreement is made. For the trade unions, Roy Jones, OECD representative, an agreement on investment could have its place within the WTO, given the strong link between investment and trade. But, he stresses, this link is also strong between investment and working conditions. The agreement on investment must therefore be the opportunity of introducing social standards within the WTO. "Impossible!", replied Commissioner Lamy. "Social standards are not part" of the Doha commitments, and Cancun will not be able to do anything about it.