SPECIAL COMMITTEE ON THE MULTILATERAL AGREEMENT ON INVESTMENT
SECOND REPORT

Third Session, Thirty-sixth Parliament
June 29, 1999


Preface

The Legislative Assembly of British Columbia, Canada, resolved to appoint a special committee to look into the Multilateral Agreement on Investment (MAI) on April 27, 1998. During a special debate on the draft agreement, Hon. Michael Farnworth, Minister of Employment and Investment, began by introducing the following motion, resolution 43, which read:

[That this House continue to pressure the Government of Canada to undertake a broad public consultation on the Multilateral agreement on investment and be it further resolved that this Legislature urges the federal Liberal government to ensure that Canadian medicare and social services are fully excluded from the provisions of the MAI and to refuse to sign any version of this agreement which compromises the ability of British Columbians to manage and conserve their natural resources as they see fit or the power of the province to lever jobs and economic benefits for the residents of British Columbia;

That the government of Canada not sign the draft multilateral agreement on investment or agree to lock in any part of the existing text at the OECD ministerial council meeting taking place today, April 27, through April 28 in Paris, France;

That the government of Canada suspend its participation in the MAI negotiations until the Canadian public have been thoroughly consulted, through parliamentary hearings in all regions of the country; and

That the Legislative Assembly of British Columbia establish a special committee to examine, inquire into and make recommendations respecting all aspects of the Multilateral agreement on investment.]

The Members of the Legislative Assembly approved the motion unanimously.

Immediately following the adoption of this resolution, the Premier, the Hon. Glen Clark, moved resolution 42, a motion to establish a special committee to examine the MAI. This resolution, which the House also passed unanimously, comprised the committee's terms of references and can be found on page 5 of this report.

This committee was appointed to examine and make recommendations with respect to the draft MAI. The committee's terms of reference instruct it to consider key issues arising out of the proposed agreement for British Columbia, the implications of the agreement for Canada and British Columbia, the most appropriate way of representing the interests of British Columbians with respect to the agreement, and the most effective means of increasing British Columbians' awareness and knowledge of the issues arising out of the agreement. The committee is also empowered to gather views, information and proposals concerning the MAI from individuals and groups in British Columbia or elsewhere, and to solicit discussion on issues that will be subject to future MAI negotiations.

The committee's work was organized to occur in two phases: the information-gathering and expert hearing phase and the regional public hearing phase. The first of these phases focused on gathering and disseminating expert testimony on the proposed MAI and the principal issues arising out of it. A major part of this phase was eight full days of public hearings held on September 29, 30 and October 1 and 2, 1998, in Vancouver, and on October 8, 9, 14 and 15, 1998, in Victoria. The expert witness hearings were recorded, transcribed and published in Hansard, which is available to the public. Educational videos of selected portions of the proceedings were also prepared and are available upon request through the Clerk of Committees.

Near the end of the first phase of its review, as international negotiations on the MAI were about to recommence in Paris, the committee adopted, on division, the following motion proposed by Mr. Orcherton:

"BE IT RESOLVED: that the Special Committee on the Multilateral Agreement on Investment of the Legislative Assembly of British Columbia, Canada, call on the Government of British Columbia to urge the Canadian government to:

1. Reject the fundamental basis of the MAI negotiations scheduled to reconvene in Paris on October 20 and 21, 1998.

2. Propose a new set of guiding principles for a more balanced approach to international trade and investment agreements wherever they may be negotiated.

3. Use this unique opportunity to provide world leadership to foster greater international economic and social stability by strengthening democratic institutions at all levels of government and at all stages of development.

4. Propose that all parties undertake a comprehensive and transparent consultation and decision-making process to ensure that the ongoing process of globalization is redirected to address the interests of all sectors of society."

The committee's first report was made public on December 29, 1998, and is available on the committee's web site and upon request from the Clerk of Committees.

The second phase of the committee's process consisted of a series of public hearings held in Terrace, Prince George, Nelson, Courtenay, Victoria, Surrey, Kamloops, Kelowna, Vancouver and Burnaby between February 17 and March 12, 1999. The substance of these regional hearings is the subject of this second and final report of the committee.


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