The European Commission (EC) and other OECD countries would like a foreign investment treaty (or `multilateral investment agreement') within the World Trade Organisation (WTO). This would allow foreign companies to establish themselves with 100 per cent equity in all sectors (except security) in any WTO country; and receive `national treatment' on a par with local firms. National policies favouring local enterprises or facilities would be deemed discriminatory, and thus illegal under WTO rules. The penalties for non-compliance with WTO agreements are extensive.
