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<html> <head> <meta name="Generator" content="Corel WordPerfect 8"> <title>MARCHI TABLES GOVERNMENT RESPONSETO PARLIAMENTARY COMMITTEE'S REPORT ON MAI</title> </head> <body text="#000000" link="#0000ff" vlink="#551a8b" alink="#ff0000" bgcolor="#c0c0c0"> April 23, 1998 No. 97 MARCHI TABLES GOVERNMENT RESPONSE TO PARLIAMENTARY COMMITTEE'S REPORT ON MAI International Trade Minister Sergio Marchi today tabled the Government's response to a House of Commons Sub-Committee report on negotiations for the proposed Multilateral Agreement on Investment (MAI). "The Government's response to the Committee's recommendations confirms our commitment to an approach that is both sensitive to, and in keeping with, the interests and concerns raised by the Canadian public," said Mr. Marchi. "Indeed, the parliamentary consensus reflected in the Committee report very much complements the position taken by the Government throughout the MAI negotiations." At the Minister's request, the all-party Sub-Committee on International Trade, Trade Disputes and Investment of the Standing Committee on Foreign Affairs and International Trade held public hearings in November on the MAI and submitted its report with recommendations in December 1997. The Government has responded positively to all of these 17 recommendations, which provide useful advice to the Government and its negotiators. During the hearings, the Sub-Committee heard from more than 50 Canadian witnesses and received over 150 written submissions representing diverse perspectives and a wide range of concerns. A number of experts and spokespersons for national associations also presented their views on the proposed deal. In its response, the Government reiterates its commitment to continued consultations with Parliament, the provinces and Canadians. Canada will only sign an agreement, with ironclad reservations, that fully preserves its freedom of action at both the federal and provincial levels, on Canadian culture, the environment, labour standards, health, education, social services, Aboriginal programs and programs for minority groups. "In this parliamentary process, I've asked, I've listened and I've agreed," concluded Minister Marchi. "In these negotiations, there is no time line. There is only Canada's bottom line, and we will not sign on unless our requirements are met." The MAI is being negotiated in Paris under the auspices of the Organization for Economic Co-operation and Development (OECD), a body that promotes co-operation among the world's 29 major industrialized countries including Canada. The agreement is an attempt to negotiate a multilateral framework of rules for investment. - 30 - A backgrounder is attached. For further information, media representatives may contact: Leslie Swartman Office of the Minister for International Trade (613) 992-7332 Media Relations Office Department of Foreign Affairs and International Trade (613) 995-1874 This document and the Government's response to the Sub-Committee report are also available on the Department's Internet site: http://www.dfait-maeci.gc.ca Backgrounder HIGHLIGHTS OF THE GOVERNMENT RESPONSE TO THE SUB-COMMITTEE ON INTERNATIONAL TRADE, TRADE DISPUTES AND INVESTMENT OF THE STANDING COMMITTEE ON FOREIGN AFFAIRS AND INTERNATIONAL TRADE (SCFAIT) In the Government's response to the Sub-Committee's report, Minister Marchi, on behalf of the Government of Canada, expressed his satisfaction with the report's recommendations. The recommendations confirm Canada's approach to date in these negotiations. As well, the Government agrees with all the recommendations. This is especially true of the following recommendations: Recommendation 1 - That Canada continue to participate in the negotiations The Government is satisfied with this recommendation that "Canada's participation in the negotiations does not commit us to whatever agreement results from the process. The Government will only sign an agreement that fully preserves our freedom of action, at both the federal and provincial levels, on Canadian culture, the environment, labour standards, health, education, social services, Aboriginal programs and programs for minority groups. Simply put, the Government will only accept a MAI that is consistent with our national values and our Canadian approaches to key issues." Recommendation 2 - Consultations and informing Canadians In November 1997, the Sub-Committee on International Trade, Trade Disputes and Investment held public hearings on the MAI, at the request of the Minister for International Trade. Canadians were invited to appear before the Sub-Committee and submit briefs. In fact, the Government's priority has been to inform the Canadian public. Members of Parliament have been informed extensively, opposition critics have been briefed and numerous press briefings and interviews have been given. Government officials have consulted broadly with the provinces, non-governmental organizations and the private sector. A list of the organizations consulted to date by the Government, as well as background information on the MAI negotiations and Canada's objectives, is available on the Department of Foreign Affairs and International Trade Internet site (http://www.dfait-maeci.gc.ca). Recommendation 3 - Involvement of provinces and further parliamentary examination before signing any negotiated agreement Since the outset of the negotiations in 1995, the Government involved the provinces and consulted them frequently and consistently. They are debriefed after every negotiating session, copied on all reports and have access to all negotiating documents. Federal and provincial trade officials have met numerous times over the past three years to address issues related to the negotiations. The federal-provincial Trade Ministerial meeting of February 19, 1998 allowed for a thorough discussion of Canada's objectives and bottom lines. The Government agrees to consult further with the Parliamentary Committee on the negotiations towards a potential agreement. The Government will also continue to make public new versions of the MAI consolidation of draft working texts as they become available from the negotiating process. Recommendation 12 - Core labour standards in the text of the agreement Canada recognizes that the International Labour Organisation (ILO) is the proper forum for advancing international labour law, but, like other countries in the MAI negotiations, fully supports inclusion in an agreement of references to the principles underlying ILO core labour standards and the association of the Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises. The core principles of non-discrimination on which the MAI rests will not limit the ability of governments to maintain or, indeed, promote labour standards. The Government is committed to ensuring that the MAI does not inadvertently threaten labour standards, whether in Canada or globally. Recommendation 13 - Introduction of effective environmental standards The Government is committed to advancing environmental protection and sustainable development. Canada will not accept obligations that would infringe on the right of governments to regulate or take appropriate measures in the interests of protecting the environment or promoting sustainable development. Canada is currently working with other countries to introduce language into the agreement that would stipulate clearly that the MAI does not prevent countries from maintaining, introducing or enforcing environmental measures of general application. Recommendation 14 - That Canada achieve an adequate and effective cultural exemption Canada will preserve the right to adopt or maintain policies, programs and measures that promote and preserve Canadian culture and cultural industries. Such an approach is reflected in the NAFTA, the Canada-US Free Trade Agreement (FTA), the Canada-Chile FTA, the General Agreement on Trade in Services (GATS) and Canada's Foreign Investment Protection Agreements (FIPAs). Recommendation 16 - That Canada achieve an unbound reservation for health, education and social services The Government is on record for its commitment to preserving its full freedom of action, at both the federal and the provincial levels, with no standstill or rollback, in key areas such as health, education, social services and programs for Aboriginal Peoples and programs for minority groups. These areas are of critical concern to Canadians, and the Government believes fully that they require a uniquely Canadian solution in terms of public policy. April 23, 1998 </body> </html>

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