In addition, the creation and transparent enforcement of the necessary international rules to prevent the double payment of public costs (social insurance costs, etc.) involved in transfer of company staff are also needed.
The establishment of the general clause in the MAI should also be considered.
In addition to confirming the spirit of the TRIMs Agreement, the prohibition of measures which have the effect of distorting investments and are not treated under the TRIMs Agreement, such as technology and manufacturing transfer requirements and local equity requirements, should be specified under the MAI. In addition, provisions of the actual measures for receiving favorable treatment (tax reductions, financial assistance, etc.) should be included.
Concerning investment incentives subject to only foreign-affiliated businesses, the purpose to contribute to the rectification of investment imbalances should be clarified. Also they should be introduced under acceptance in the host countries.
Country Specific Reservations are based on individual conditions in each country, and it will be desirable to shrink these areas gradually to achieve liberalization. Exceptions which violate the principle of MFN should be prohibited.
Furthermore, in the future process of liberalization negotiations, a method should be adopted in which each country indicates its business areas for country specific reservations, in which standstill and rollback measures should be applied. At the same time, it will be necessary to establish a monitoring mechanism and a declaration to ensure the action of the signatories. Participation by non-OECD Member countries should be encouraged by setting more relaxed terms and step-wise procedure.
The relationship between international dispute settlement mechanisms and local remedies should be readjusted so that the system can be used comfortably by investors. It is also necessary to discuss ways to improve the convenience of the utilization of existing international dispute settlement mechanisms.
Investors should be able to choose whether the compensation for expropriation is calculated according to market price or the initial cost of the investment. In addition, compensation should be paid in a stable and internationally convertible currency.