Aboriginal Self-Determination and the MAI

by Y.A. Zarowny  ARC - Victoria

February 1998

he proposed Multilateral Agreement on Investment (MAI) will have severe ramifications for all Canadians.  For Aboriginal peoples pursuing land claims and self-government as a means to authentic self-determination, it could be devastating.

What is the MAI?
The MAI is an agreement by the world's 29 richest nations (including Canada) that are Ahome to 95.4% of the world's  largest transnational corporations (TNCS). Its intent is to severely limit any government's ability to regulate foreign investment  (basically the TNC's). This agreement is  being  secretly negotiated in Paris since 1995 by the member states of the Organization for Economic Co-operation and Development (OECD). The agreement will give foreign investors (TNCS ) legal status equal to or greater than that of the signing member states and its citizens. For example, foreign investors and governments on behalf of foreign investors can sue member states who have governments contravening the provisions of the MAI, but the MAI does not give governments the right to sue foreign investors on behalf of its citizens. This constitutes a tremendous shift away from any government's capacity, including Aboriginal, to act on behalf of its constituents. These    provisions are binding for 20 years.

Questioning Some Key Provisions
The national treatment provision requires that Canada treat foreign investors the same as domestic corporations and not-for-profit agencies with respect to programs,  subsidies and tax incentives.  Does this threaten  Aboriginal peoples tax-exempt status?
The MAI severely limits a government's ability to place performance requirements on foreign corporations in exchange for the privilege of accessing resources and markets. Among these are training programs, hiring and buying locally, job creation and environmental standards. Will these affect the means of Aboriginal leaders who wish a better return from sustainable, self-sufficient economies?
The MAI requires governments to compensate foreign investors immediately and fully for expropriation. In the word of the MAI, this refers not only to seizure of property, but to the removal of resources from foreign access (eg.fish, property, trees), to any regulations or taxes that may add to the costs of operation and for lost opportunity to profit from a planned investment. What would   happen, for example, to Aboriginal fisheries?  How does this effect land claim negotiations?
Provided for within the MAI is a   dispute settling appointed tribune that operates above the level of national governments and is binding on all levels of government - federal and otherwise.  The  tribunes decisions are to be based on the provisions of the MAI; not the laws of the nation.
In effect, even with the breakthrough Delgamuukw Decision and should the federal and provincial governments agree to a fair transfer of resources, responsibilities and only the facade of power to Aboriginal             governments, what Aboriginal leaders could do with these would be subject to the provisions of the MAI.  Would this mean we could have a transfer of resources,  responsibilities and only the facade of power to Aboriginal governments but no authentic power to use resources in a self-determining manner?
Recently, there are indications that the MAI is in trouble.  As people are becoming more aware, global resistance is mounting.  However, given the history and the forces at work here, something similar will reappear. Consequently, we need to increase our awareness of these global actors and their strategies to entrench their power and world view while truncating ours.  We need to clarify our values and objectives while talking across differences with other groups to find common ground for solidarity. We must never give up our hope that we can engage our world in order to transform it into one that respects a people's right to authentic self-determination.

For more information:

Public Citizen's Global Watch: www.citizen.org

Yvonne Zarowny is an educator and writer living in Qualicum Beach, B.C.  She has had a long time involvement in both local and international justice/development     issues.