With worldwide international investments now running at an annual $1,600 billion, the OECD is planning a system of international guidelines to cover fair practice. The intention is to establish protection for investors against defaults on loans, expropriations and prohibitive taxation policies, in an International Agreement on Investments (MAI).
Parliament's resolution on the MAI, calling for a thorough analysis of its impact on social, environmental and development conditions, was approved by 437 to 8. Parliament wants to be consulted on the possible outcome of the agreement under the Assent Procedure, and there is a call for it not to be signed in its present form.
There are also concerns about copyright protection and aid policy, and the rapporteur, Mr Kreissl-Dorfler, is anxious to ensure that third world governments respecting international environmental, labour, health and safety standards will not be penalised.
One contentious issue concerns the film industry, and whether or not Europe's cinema industry should benefit from national or EU subsidies. The resolution supports an exemption for Europe's film industry, as strict compliance with proposed international trade rules limiting state financing could undermine the EU's promotion of initiatives designed to demonstrate Europe's cultural diversity.
Other points taken up in the draft resolution include a call for greater transparency and public debate. Parliament wants an EU court ruling on the compatibility of the MAI with EU law, and attention paid to the concerns of developing countries. There should be a level playing field with regard to incentives for relocations. Investors needs for protection should be balanced with respect for human rights, environmental and social standards. For the Commission, Sir Leon Brittan defended the concept of the MAI.