Arguments In Favor of the Multilateral Agreement on Investments
by Jason Lam

The rapid technological developments in the field of communications and travel has facilitated the development of a world wide marketplace.  This new, globalized economy will provide advancements in the trading of goods and services and will, thus, stabilize the financial health of all participating member nations.  Industries will now have access to technologically advanced methods of manufacturing, which will produce more efficiently and result in less waste. The United States is the largest recipient of foreign investment and will stand to gain a great deal from this agreement.  Foreign investment money will spur economic growth and create a better standard of living in this country.  A stronger economy will encourage its citizenry to invest more time and money into this country and it is this funding that is vital to the maintenance of our natural resources.

This new economic agreement can prove beneficial to the environment if a few provisions are included.  First of all,  individual governments need to be maintain a level of sovereignty that would allow them to set environmental standards and to screen out proposed projects involving foreign investments. This would facilitate the growth of foreign investments, while ensuring that individual countries have the ability to maintain an adequate level of environmental protection. The ability of foreign firms to invest directly in other countries will allow developing countries to skip the environmentally costly process of industrial manufacturing.  Without the interest of the powerful business sector, technologically advanced and environmentally efficient methods of production will not be implemented in these countries.

Another provision to the MAI that can benefit the environment would require foreign investors to adhere to the more stringent regulations of either their home country or of the country being invested in. This will force companies to utilize the most efficient methods of manufacturing that produce the greatest amount of product from the least amount of raw materials, while generating the smallest amount of waste.  It is this focus on efficiency that will provide the environment with its greatest benefits.

In conclusion, the development of a globalized marketplace will produce advancements in both trade and technology.  The inclusion of two major provisions to the agreement would ensure that the environment would benefit from the newly globalized economy.  By maintaining a high level of government sovereignty, individual governments can and will protect their own natural resources while the presence of stringent, pro-environment standards will force investors to operate in an efficient, environmentally-friendly manner.
 

See the handy chart illustrating the arguments for and against MAI.

 
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