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

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94 The MEBF successfully works as a lobby and pressure group 272 : [The MEBF] “wants to use its mechanisms to give direct input into these political negotiations and thereby help to shape the face of a future trade area.” 273 Already in 1999 the MEBF boasted of its influence on political decision makers: “The political perception of the business-driven initiative and its inaugural Conference was impressive.” 274 The MEBF considered its own lobbying as an essential catalyst in the establishment of the free trade negotiations between the EU and MERCOSUR: MEBF “launched a campaign to get European governments to grant the European Commission a mandate for free trade negotiations with MERCOSUR. “Finally the MEBF lobbying succeeded and the EU complied with one of MEBF's most urgent demands” [MEBF Newsletter, Issue II, July 1999].” 275 The demands of the MEBF span across the entire width of the free trade agenda, with a special emphasis on the issue of the “protection” of foreign investment. Already in 1999 the MEBF had demanded, with respect to the sector of investment in the EU-MERCOSUR free trade agreement 276 : • national treatment for investors/investments; • common investment rules and procedures at all governmental levels; • non-discriminatory access to government funds, civilian research and development programs; 272 “[...] Der MEBF begleitet die Freihandelsverhandlungen zwischen der EU und dem MERCOSUR von Seiten der Wirtschaft. Nach dem Scheitern der WTO-Verhandlungen in Cancún gewinnen die EU-MERCOSUR- Verhandlungen und damit auch der MEBF an Bedeutung. [...] Im Rahmen der IV. MEBF-Konferenz werden Papiere mit gemeinsamen MERCOSUR / EU-Empfehlungen zu den Bereichen Marktzugang, Investitionen und Dienstleistungen verabschiedet und in den Verhandlungsprozess eingebracht. Finanzminister Eichel, der brasilianische Wirtschaftsminister Furlan und EU-Kommissar Liikanen haben ihre Teilnahme bereits zugesagt. Weitere hochrangige Politiker aus dem MERCOSUR und der EU werden erwartet.” http://www.ixpos.de/frameset. htm?content=http://www.ixpos.de/news/meldungen/BDI105.html?prevHome=1. Own translation: “[...] The MEBF is part of the free trade negotiations between the EU and MERCOSUR from the side of business. After the failure of the WTO negotiations in Cancún, the EU-MERCOSUR negotiations and with them also the MEBF are gaining importance. [...] At the IV MEBF conference papers with joint MERCOSUR/EUrecommendations for the areas of market access, investment and services were passed and brought into the negotiation process. [German] Secretary of Finance Eichel, the Brazilian Secretary of Commerce Furlan and EU Commisary Liikanen have already confirmed their participation. Other high-ranking politicians from the EU and MERCOSUR are expected to participate.” 273 http://mebf.arcelor.com/about.htm. 274 http://mebf.arcelor.com/rio.htm. 275 Torrelli, Claudia: MERCOSUR for sale? The EU’s FTAA and the need to oppose it. Corporate Europe Observatory (CEO) & Transnational Institute (TNI), Info Brief, Amsterdam, August 2003, p. 3. 276 http://mebf.arcelor.com/pdf/MEBF_Rio_Declaration.pdf.
• free movement of capital connected to an investment including free transfer of profits; • elimination of tax legislation, policies, and practices which discriminate against foreign investors; • modification of respective tax laws on the treatment of foreign earned income to encourage foreign investment and to prevent double taxation; • national security exceptions in investment should be limited, narrowly circumscribed and applied in a transparent manner; • foreign investment protection agreements should be sped up. In the newest version of the “Brasília Declaration” from October 30, 2003 the same demands remain, amended by formulations, which demand the immediate start of negotiations on public procurement, which declare the model of public-private-partnership to be an overall remedy and emphatically demand a broad agreement to protect investment within the FTA. 277 The issue of investment is at the top of the MEBF agenda. Investment is one of the four “new issues”, which were accorded at the WTO Ministerial Conference in Singapore in 1996, which since then have been labeled the “Singapore-issues”: Trade and investment, competition policy, government procurement and trade facilitation. And these so-called “Singapore-issues” are a popular object of negotiations and pipe dreams of the EU-Commission, also in the EU-MERCOSUR negotiations. The European Commission has always praised the MEBF: In June of 1999 the then EU-commissaries Manuel Marín and Martin Bangemann had expressed their highest regard of the MEBF. 278 And interestingly enough the DG Trade seems to have adopted the MEBF declaration from October 30th as its own – how else should the circumstance be interpreted, that the Brasília-declaration can be found on the DG –trade website in the category of “related items-news” (where normally only EU press statements or documents related to “EU-MERCOSUR” can be obtained). 279 The importance of the Singapore-issues for the European Commission should not be underestimated. EU foreign trade commissioner Pascal Lamy sees them as the motor for development: 277 MERCOSUR/European Union Business Forum: Brasilia Declaration, Brasília, October 2003. 278 FAX from Manuel Marin / Martin Bangemann. See: http://mebf.arcelor.com/pdf/EU_reaction_Rio.pdf: “On behalf of the European Commission we would like to express our appreciation once again for the results achieved by the MERCOSUR-EU Business Forum (MEBF).” 279 http://trade-info.cec.eu.int/doclib/html/114120.htm. 95
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Christian Russau Enforcement of int
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Preface Since the end of 1999 the C
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If the “Interregional Association
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8 Chapter 5: The enforcement of int
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10 1.1 Negotiations of the “Inter
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12 A similar agreement of the so-ca
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14 tute in the eyes of many countri
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16 amaraty, where the FTAA-negotiat
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18 free trade agreement between the
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20 at the UN Millenium Summit to ha
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24 tual contradictions between the
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26 fired. The workers union OGB-L,
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28 policy and EU development policy
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Chapter 2: Foreign direct investmen
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50% in 2002 as compared to the prev
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The reasons for propagating this co
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promotion of domestic demand, in or
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2.2 International Agreements and Tr
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(EU) and the Common Market of the South (MERCOSUR)? - FDCL

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