CEO Letter Reaffirming Business Support for a High Standards MAI

April 20, 1998

Ambassador Charlene Barshefsky

U.S. Trade Representative

Office of the U.S. Trade Representative

600 17th St., NW

Washington, DC   20508-4801

Dear Ambassador Barshefsky:

We are writing to reaffirm our support for the investment negotiations currently underway in the OECD.

A high standards Multilateral Agreement on Investment (MAI) is clearly in the national interest.  Foreign investments by U.S. companies help to contribute to economic growth and sustain good paying jobs in the United States.

·         U.S. companies’ overseas operations generate substantial income that is returned to the United States for reinvestment here.  In 1997, this flow of income back into the United States was $82 billion.

·         In 1995, U.S. companies with foreign investments exported $362 billion of goods from the United States, which accounted for 62% of U.S. exports.  These U.S. companies ran a surplus of $75 billion in their trade.

·         More than three-fourths of the jobs of U.S. companies that invest overseas  are in the United States.

We recognize that U.S. negotiators have worked hard to achieve an MAI and that progress has been made.  However, there is still considerable work ahead to conclude an agreement that is worth having.  For example, MAI must not include exceptions that can be used in the future to justify open-ended discrimination against U.S. companies and their workers.

With respect to labor and environment, we recognize that these are important issues but do not believe that investment leads to degradation of environmental and labor standards. We believe they can be dealt with in the MAI if common sense and goodwill prevail.

We urge the Administration, in cooperation with the Congress and private sector, to push forward with the OECD negotiations and try to bring them to a successful conclusion as soon as possible.

Identical letters are being sent to Secretary Madeline Albright, Secretary Robert Rubin, and Secretary Richard Daley.

Sincerely,

Richard D. McCormick

Chairman and Chief Executive Officer

US WEST, Inc.

Chairman, US Council for

International Business

James E. Perella

Chairman, President and Chief Executive Officer

Ingersoll-Rand Company

Chairman, National Foreign Trade Council