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(EU) and the Common Market of the South (MERCOSUR)? - FDCL

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on November 12 in Brussels, that if <strong>the</strong>re should be negotiations on <strong>the</strong> investment<br />

topic, <strong>the</strong>se should occur on <strong>the</strong> multilateral level <strong>of</strong> <strong>the</strong> WTO.<br />

Since Cancún Brazil has been positioning itself within <strong>the</strong> Alliance <strong>of</strong> <strong>the</strong> G-20,<br />

G-22, G-X 236 , <strong>and</strong> has relatively strong negotiation partners on its side <strong>and</strong> insists<br />

on <strong>the</strong> universal guarantee <strong>of</strong> national scopes <strong>of</strong> design, development-focussed<br />

industrial <strong>and</strong> fiscal policies, <strong>the</strong> maintenance <strong>of</strong> local-content reglamentation <strong>and</strong><br />

performance requirements. 237 The Brazilian negotiation delegation had already<br />

urged at <strong>the</strong> tenth round <strong>of</strong> <strong>the</strong> <strong>EU</strong>-<strong>MERCOSUR</strong> bi-regional negotiation committee<br />

(X. BNC) from June 23-27, 2003, that first a preliminary revision <strong>of</strong> <strong>the</strong> negotiation<br />

texts should occur <strong>and</strong> methods, negotiation modalities <strong>and</strong> general <strong>and</strong> specific<br />

definitions related to <strong>the</strong> investment issue should be treated, before <strong>the</strong> topic itself<br />

could be negotiated. 238<br />

Regarding <strong>the</strong> investment issue <strong>the</strong> Brazilian government has agreed – in accordance<br />

with its <strong>of</strong>fer to <strong>the</strong> <strong>EU</strong> – to only admit post-establishment investment<br />

guarantees, i.e., guarantees for investment which have already been realized in <strong>the</strong><br />

country, as opposed to <strong>the</strong> so-called pre-establishment guarantees according to<br />

which foreign investors, who feel discriminated against, e.g., by changes in legislation<br />

(environmental requirements, performance requirements, local-content rules,<br />

etc.)– without having materialized an investment in <strong>the</strong> country yet - can take legal<br />

action at international courts against this “indirect” expropriation. 239 The Lula-government<br />

explicitly opposes this possibility for so-called investor-to-state disputes in all<br />

its free trade negotiations. 240 In <strong>the</strong> same way <strong>the</strong> Brazilian government advocates<br />

exceptions in <strong>the</strong> area <strong>of</strong> liberalizing capital <strong>and</strong> pr<strong>of</strong>it-transfers, in order to, e.g., protect<br />

national economies against abrupt capital flight or speculative attacks in times<br />

<strong>of</strong> crises. 241 However, it does not go as far, as to mention <strong>the</strong> term “regulations on<br />

236 The Canadian Secretary <strong>of</strong> Trade Pierre Pettigrew in a lapidary manner called <strong>the</strong> G-X: “G- more or less.” See: Valor<br />

Econômico, October 16, 2003.<br />

237 “Por considerar um tema “sensível”, o governo quer transferir para a Organização Mundial do Comércio (OMC) a<br />

discussão sobre regras para investimentos, que poderiam limitar a liberdade dos países para estabelecer medidas<br />

de política industrial com favorecimento a empresas instaladas no país. Mas os negociadores do Brasil aceitam<br />

discutir o chamado “acesso a mercados em investimentos”, garantias ao investidores estrangeiros de tratamento<br />

idêntico ao concedido para o investidor nacional, em setores a serem estabelecidos com a negociação. Essa<br />

garantia, aliás já está na Constituição brasileira.” Valor Econômico, 29.10.2003. Own translation: “The [Brazilian]<br />

government considers <strong>the</strong> discussion on investment rules to be a sensitive issue, as <strong>the</strong>y [<strong>the</strong> investment rules]<br />

could restrict <strong>the</strong> countries’ liberties to establish industrial policy-measures which favor resident companies.<br />

Therefore <strong>the</strong> Brazilian government wants to transfer <strong>the</strong> issue to <strong>the</strong> WTO. But <strong>the</strong> Brazilian negotiators accept<br />

to discuss <strong>the</strong> so-called “market access for investment”, i.e., guarantees for foreign investors to receive identical<br />

treatment as <strong>the</strong> national investors, in sectors which are to be established in <strong>the</strong> negotiation process. This<br />

guarantee is by <strong>the</strong> way already in <strong>the</strong> Brazilian Constitution.”<br />

238 For an explication <strong>of</strong> <strong>the</strong> genaral position <strong>of</strong> Brazil see: Peterson, Luke Eric: Brazil Remains Wary <strong>of</strong> International<br />

Investment Rules, in: INVEST-SD, June 1, 2003.<br />

239 Valor Econômico, October 29, 2003.<br />

240 Ibid.<br />

241 Folha de São Paulo, November 2, 2003.<br />

85

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