What Is Multilateral Investment Agreement

The agreement is not limited to acceptance by OECD members; the MAI is open to all other countries that are willing and able to fulfil their obligations. Many non-OECD countries are actively following the progress of the MAI negotiations, as they expect the MAI to set the standard for future investment agreements. In fact, five countries/economies (Argentina, Brazil, Chile, Hong Kong and Slovakia) participated as observers in the MAI negotiations and could become signatories to the agreement. In addition, Latvia, Lithuania and Estonia have expressed a strong willingness to accede to the agreement. In this context, efforts have also been made in various other areas to negotiate high-level comprehensive investment agreements. More than 1,100 bilateral investment treaties (IPTs) are now in force worldwide. In most cases, these agreements were concluded between an industrialized country (usually a member of the OECD) and a developing country. The United States, for example, has signed 40 BITS so far, and 31 have entered into force. Multilaterally, the World Bank, the Asia-Pacific Economic Cooperation (APEC) Forum and the WTO each have investment-related instruments, most of which have no dispute settlement mechanisms. Developing countries also participate in the negotiations on each of these instruments. However, there is no agreement with high standards like the MAI among OECD members – the world`s largest recipients and suppliers of foreign direct investment – which is part of the reason why the US is currently involved in the negotiations. Answer: In response to U.S. legislation on sanctions against their companies, Europeans and others have proposed that the MAI prohibit one party from punishing another party`s investor or its investments based on the investor`s activities in third countries.

We will not accept provisions that would prevent us from taking the necessary steps to protect our national security and foreign policy interests when responding to threats to our interests and fundamental values. The draft AMI reflects the United States.

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