(EU) and the Common Market of the South (MERCOSUR)? - FDCL
(EU) and the Common Market of the South (MERCOSUR)? - FDCL
(EU) and the Common Market of the South (MERCOSUR)? - FDCL
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procurement <strong>and</strong> <strong>the</strong> restriction <strong>of</strong> national mechanisms <strong>of</strong> control <strong>and</strong> influence<br />
remain as an entire body <strong>of</strong> regulations at <strong>the</strong> disposition <strong>of</strong> corporations, capital <strong>and</strong><br />
commerce.<br />
Foreign investors have to be granted <strong>the</strong> same rights as national ones, according<br />
to <strong>the</strong> rules <strong>of</strong> <strong>the</strong> MFN <strong>and</strong> NT clauses, <strong>and</strong> additionally foreign investors <strong>and</strong> market<br />
participants dispose <strong>of</strong> more rights as <strong>the</strong> domestic investors due to possibilities to<br />
take legal action at international arbitration courts. Fur<strong>the</strong>rmore, in international legal<br />
disputes international trade <strong>and</strong> investment legislation over rules national law:<br />
“However, today’s globalization mainly rests on internationally accorded <strong>and</strong><br />
nationally ratified rules on <strong>the</strong> liberalization <strong>of</strong> financial markets, investment <strong>and</strong><br />
<strong>the</strong> trade <strong>of</strong> goods. Hardly one day passes, without international negotiations<br />
on fur<strong>the</strong>r agreements. Therefore, state authority in terms <strong>of</strong> design <strong>and</strong> control<br />
occurs through international regulation <strong>and</strong> national implementation.” 321<br />
Any form <strong>of</strong> national or regional performance requirements such as:<br />
• minimum quotas <strong>of</strong> local employees,<br />
• special consideration <strong>of</strong> local producers <strong>and</strong> suppliers in <strong>the</strong> chain <strong>of</strong> production<br />
or in public procurement processes,<br />
• requirements for technology transfers,<br />
• preferential treatment for domestic suppliers regarding subsidies or awarding<br />
<strong>of</strong> contracts,<br />
• tax incentives for domestic suppliers,<br />
which do not apply in <strong>the</strong> same way for foreign <strong>and</strong> domestic suppliers, <strong>the</strong>reby<br />
are considered as discriminatory market distortion by bilateral, regional or multilateral<br />
investment agreements, <strong>and</strong> would <strong>the</strong>refore be prohibited: national, regional or local<br />
potential for decision making in <strong>the</strong> area <strong>of</strong> implementing measures to promote<br />
development by <strong>the</strong> state is <strong>the</strong>reby complicated or completely impeded.<br />
The commercialization <strong>of</strong> public expenditure is to be subjected as well to <strong>the</strong> regime<br />
<strong>of</strong> international trade: One <strong>of</strong> <strong>the</strong> most pr<strong>of</strong>itable market segments on a global<br />
level is <strong>the</strong> area <strong>of</strong> public procurement, which accounts for around 15 percent <strong>of</strong><br />
international trade. 322<br />
321 Own translation <strong>of</strong> <strong>the</strong> following orignial text: “Allerdings beruht [...] unsere heutige Globalisierung wesentlich auf<br />
international vereinbarten und national ratifizierten Regeln über die Liberalisierung von Finanzmärkten, Investitionen<br />
und dem Güterh<strong>and</strong>el. Es vergeht kaum ein Tag, an dem auf internationaler Ebene nicht über weitere Übereinkommen<br />
verh<strong>and</strong>elt wird. Staatsgewalt im Sinne von Gestaltung und Ordnung durch internationale Regelung und nationale<br />
Umsetzung findet daher statt.” Taken from: Stoll, Peter-Tobias: Globalisierung und Legitimation, Göttingen, May 19,<br />
2003, p. 4, http://www.cege.wiso.uni-goettingen.de/Veranstaltungen/antrittsvorlstoll.pdf.<br />
322 http://europa.eu.int/comm/trade/issues/sectoral/gov_proc/index_en.htm.<br />
113