(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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96<br />
“We have tried to explain how much we believe <strong>the</strong> Singapore issues, such as<br />
trade facilitation, are <strong>the</strong> key, not <strong>the</strong> hindrance, to development.”280<br />
In view <strong>of</strong> this immense significance given to <strong>the</strong> Singapore-issues by <strong>the</strong> European<br />
Commission, <strong>the</strong> BBC in <strong>the</strong> run-up to Cancún could not resist to spread <strong>the</strong><br />
news that henceforth <strong>the</strong> focus would be on <strong>the</strong> “Brussels-issues.” 281 And especially<br />
two <strong>of</strong> <strong>the</strong>se Brussels-issues are <strong>of</strong> special importance for <strong>the</strong> <strong>EU</strong>: Investment <strong>and</strong><br />
government procurement.<br />
In this context <strong>the</strong> Commission envisions <strong>the</strong> following with respect to <strong>the</strong> investment<br />
issue:<br />
“We believe that it is in <strong>the</strong> interest <strong>of</strong> all countries to create a more stable <strong>and</strong><br />
transparent climate for FDI world-wide. In our view, <strong>the</strong> WTO should focus on<br />
FDI, leaving aside short-term capital movements.<br />
Non-discrimination, transparency <strong>and</strong> predictability <strong>of</strong> domestic laws applicable<br />
to FDI should be <strong>the</strong> guiding principles for <strong>the</strong> investment framework<br />
that we envisage to negotiate.<br />
The admission <strong>of</strong> investors should be dealt with following a gradual approach:<br />
each government should be able to decide which sectors can be opened to<br />
foreign investors <strong>and</strong> which ones cannot, according to transparent, positive<br />
<strong>and</strong> non-discriminatory commitments.<br />
Each government should also preserve <strong>the</strong> right to regulate <strong>the</strong> economic<br />
activity within its territory, including in <strong>the</strong> fields <strong>of</strong> development, environment<br />
<strong>and</strong> social conditions.<br />
The dispute settlement mechanism should be that <strong>of</strong> <strong>the</strong> WTO. Investor-to-<br />
State arbitration does not fit in <strong>the</strong> WTO framework, <strong>and</strong> should be left to<br />
bilateral agreements.<br />
Rules on investment protection, for instance in case <strong>of</strong> expropriation, could<br />
also be discussed, if WTO Members found it useful. Any such rules, however,<br />
must not affect a host country’s right to regulate, in a non-discriminatory manner,<br />
<strong>the</strong> behavior <strong>of</strong> firms in its territory.” 282<br />
At <strong>the</strong> same time, <strong>the</strong> negotiating side for <strong>the</strong> <strong>EU</strong>, after <strong>the</strong> “failure” <strong>of</strong> Cancún,<br />
seems to have made a shift in orientation:<br />
280<br />
Speech by Commissioner Pascal Lamy to <strong>the</strong> United Nations, October 31, 2003 “IS THERE LIFE AFTER<br />
CANCUN?”.<br />
281<br />
http://www.bbc.co.uk/portuguese/economia/story/2003/09/030911_casssuca2mp.shtml.<br />
282<br />
<strong>EU</strong>: DG Trade: http://europa.eu.int/comm/trade/issues/sectoral/investment/conswtoag_inv.htm.