A Multilateral Agreement on Investment: Would It Undermine Subnational Environmental Protection?

Abstract

Investors in the United States and other countries have a significant and growing stake in overseas business operations. The U.S. government is a leading proponent of a proposed OECD agreement to protect foreign investors from “discriminatory and distorting” government practices and to assure the free flow of capital across international borders. This agreement, a proposed Multilateral Agreement on Investment (MAI), would give cross-border investors greater protections than currently provided by NAFTA and the Uruguay Round agreements. OECD negotiators have stated that one of their goals is to curtail the powers of subnational governments in ways that go beyond NAFTA and the World Trade Organization. This article's purpose is to examine the potential impact of a proposed MAI on state and local environmental policies and practices and identify actions state policy makers can take to preserve their authority to accommodate local preferences in protecting natural resources and the environment.

Get full access to this article

View all access options for this article.

References

Adamantopoulos, K. , & Price, D. (1995). Towards a multi-lateral investment regime: Results in the Uruguay Round and prospects in the OECD. International Banking and Financial Law, 1-1.

Canadian International Trade Ministry . (1995a). 1995 Register of United States Barriers to Trade. Ottawa: Author.

Canadian International Trade Ministry . (1995b, April 5). U.S. barriers still in place, says 1995 Canadian register. BNA International Trade Reporter.

Countries can't use trade to promote environmental action, conference told . (1992, May 20). BNA International Trade Reporter.

Doughton, S. (1997, January 11). 9th circuit court gets appeal of state's strict oil-spill rules. The News Tribune, p. B3-B3.

European Commission . (1994). Report on United States barriers to trade and investment, p. 57-57. Brussels: Author.

The International Association of Independent Tanker Owners (Intertanko) v. Lowry, 1996 WL 691968 (W.D. Wash).

OECD Secretariat . (1996). Main features of the MAI. Paris: Organization for Economic Cooperation and Development.

Office of the U.S. Trade Representative (USTR) . (1996a, June). Memorandum. Washington, DC: Author.

10.

Office of the U.S. Trade Representative (USTR) . (1996b). Multilateral Agreement on Investment 3. Washington, DC: Author.

11.

Office of the U.S. Trade Representative (USTR) . (1996c). Multilateral Agreement on Investment 4. Washington, DC: Author.

12.

Organization for Economic Cooperation and Development (OECD) . (1996). International direct investment statistical yearbook. Paris: Author.

13.

Orbuch, P. , & Singer, T. (1995). International trade, the environment, and the states: An evolving state-federal relationship. Journal of Environment & Development, 4(2), 121-144.

14.

The outlook : Foreign executives see U.S. as prime market. (1997, February 3). The Wall Street Journal, p. A1-A1.

15.

Pilcher, C. (1995). Comparative analysis of state sovereignty protections in the Uruguay Round Agreements Act. Washington, DC: Harrison Institute for Public Law, Georgetown University Law Center.

16.

State Recycling Laws Update . (1995). Ramond Communications, 9-9.

17.

U.S. Department of Commerce , Economics and Statistics Administration , Bureau of Economic Analysis . (1992). Foreign direct investment in the U.S.: 1992 benchmark survey. Washington, DC: Author.

18.

The World Bank . (1995). World investment report. Washington, DC: Author.