These multilateral agreements are not simple, because they have details that can sometimes take years to negotiate. The details of each multilateral agreement are specific to each country`s trade and trade practices. In the wake of these tensions, the recent attempt to establish a multilateral legal framework for di di has resulted in a complete failure of the debate on the regulation of LDCs. In the late 1990s, the OECD began negotiating a multilateral investment agreement (MAI). The aim was to create a strong framework for FDI regulation, which dealt with market liberalization, protection of (foreign) investments and international dispute resolution. The MAI would become the equivalent of the GATT/WTO, where the GATT would provide the rules and rules governing international trade and the MAI the rules and rules applicable to international investment. This independent nature of the MAI was highlighted in particular by the United States and it was stated that the MAI would be open to all OECD members and that non-OECD members could also participate. The OECD`s choice as a negotiating framework was highly controversial, as it excluded the participation of the majority of developing countries. However, OECD members argued that the MAI negotiations would be the best in the OECD, with 85% of all FDI flows being made up of OECD countries. In addition, the preference given to the OECD as the main point of discussion in May may also be linked to the disappointment of the United States with regard to the outcome of the TRIM negotiations in the WTO. The fifth advantage is in emerging countries. Bilateral trade agreements tend to favour the country with the best economy. This penalizes the weaker nation.
But strengthening emerging markets helps the developed economy over time. Multilateral trade agreements are concluded between two or more countries in order to strengthen the economies of Member States by exchanging goods and services between them. The multilateral trade agreement establishes trade relations, trade facilities and financial investments between member states in such a multilateral trade agreement. Compared to bilateral trade agreements, multilateral trade agreements are difficult to negotiate, as more and more Member States participate in multilateral trade agreements. Pending the level of standards in the multilateral trade agreement, Member States will be treated in the same way. Bilateral agreements are not the same as trade agreements. The latter relates to the reduction or elimination of import quotas, export restrictions, tariffs and other trade barriers between states. In addition, the rules governing trade agreements are defined by the World Trade Organization (WTO). However, other countries with which the United States generally enters into multilateral agreements are countries with high trade rules.
The United States is having difficulty facilitating the import and export of goods without a multilateral agreement. France`s withdrawal followed a report by French MEP Catherine Lalumiére on the negotiations. After receiving this report, Prime Minister Lionel Jospin addressed the National Assembly on 10 October 1998 and announced his decision to withdraw.