| Invisible Government The World Trade Organization (WTO) is emerging as the world's first global government. But it was elected by no-one, it operates in secrecy, and its mandate is this: To undermine the constitutional rights of sovereign nations. How could this happen? What can we do? Starting tonight, the World Trade Organization (WTO) begins its Ministerial Meeting in Seattle. Just created in 1994, it is now the principal rule-making body of the global economy. 134 nation-states have ceded it powers that once firmly resided within nations. The WTO is already among the most powerful, secretive, and undemocratic bodies on Earth. Its authority extends deeply into the internal political processes of sovereign countries, forcing them to alter laws and priorities. It is fast becoming a bonafide global government for the new millennium. WTO former Director-General Renato Ruggiero called it the "new constitution for a single global economy." And a European trade minister said: "It's not undemocratic, it's anti-democratic. The central idea of the WTO is that free trade - actually the values and interests of global corporations - should supersede all other values. Any obstacles to global trade are viewed with suspicion. In practice, these "obstacles" are the laws of nation-states that protect the environment, small businesses, human rights, consumers, labor as well as national sovereignty and democracy. The WTO views these as possible impediments to "free trade," and they become subject to challenge within closed WTO tribunals. Unlike other global bodies (including the UN), the WTO enjoys unique enforcement powers. Offending countries must conform with WTO rules, or face harsh sanctions. Secret tribunals The WTO's judicial system ("Dispute Resolution Body") operates in secret: no press, no public, no public interest organizations. Three bureaucrats (former corporate or government trade officials, with no social or environmental training) make profoundly important judgements affecting human health, jobs, agriculture and food, and the environment. The only standards these invisible judges apply concern consequences to the freedom of corporate trade. They have never once ruled in favor of the environment. It would be impossible to list the many dozens of cases they have heard (though we can send you information about them; see number below). But, here are a few: - The WTO ruled that the U.S. must rewrite parts of its Clean Air Act to permit imports of less pure gasoline; the result may be more air pollution and lung disease. - The European Union was told it cannot ban imports of beef products (from the U.S.) that had been treated with potentially cancer-causing hormones. - Japan was told to lift its import ban on certain fruits that carry dangerous invasive insects. Such products require heavy doses of harmful pesticides at the border. The WTO ruled Japan must import the fruits, regardless. - And, after a challenge by the U.S., Europe was told to stop favoring bananas grown in the Caribbean by small independent farmers over Chiquita Bananas grown by corporate, plantation-style, agriculture. Do you begin to see a bias in this? Chilling effects Actually, the WTO achieves most of its purposes by a "chilling" effect. The mere threats of actions have been sufficient to get most small nations to voluntarily change their laws and legal structure to be "WTO compliant." For example, Guatemala decided voluntarily to lift a ban on advertising by Gerber Infant Formula that claimed it was healthier than breast milk. Canada removed its ban on a suspected neurotoxin, MMT, under threat of a challenge (under a NAFTA rule that's now proposed as a WTO rule). Thailand quit manufacturing its own low cost AIDS drug after the U.S. threatened a WTO suit to help American drug companies. (Thailand's AIDS victims can't afford to pay American drug prices. The U.S. is also threatening South Africa.) Here's what's most important: Whether challenges are brought by the U.S. against a country, or by another country against the U.S., or by other countries against each other, the composite effect is "cross-border deregulation" which ratchets- down standards for safety, health and the environment everywhere. That is the WTO's goal: Free trade for corporations, but severe controls upon nations and citizens that try to protect the safety of their food, their jobs, small businesses or Nature. New expansions In Seattle, the WTO will propose a new "Millennium Round" of negotiations. One proposal for this round would make it nearly impossible for any government to ban the import of genetically engineered foods. Another would permit global corporations to enter "public sectors" like education, healthcare, public broadcasting, water delivery. We might find Mitsubishi controlling American schools, or Exxon running BBC. There's also a move to cut tariffs on wood products, which would ravage the world's last pristine forests. But the Godzilla of WTO plans is to revive some of the old, discredited Multilateral Agreement on Investment. Those rules would impose restrictions on every level of government; down to states, counties and cities. Foreign companies would have to be given "national treatment," i.e., treated exactly as if they were local companies. So, let's say your city now favors local or minority owned businesses to build municipal buildings, roads, or to provide school lunches. This would be illegal. Let's say your state wanted to stop the cutting of forests, or fishing for endangered species; a foreign company could sue, saying this deprives them of profits that local companies had already enjoyed. Let's say your state requires new investors to use "domestic content," or to hire local workers, or to not send their profits back to Europe (but to reinvest some in the community). Such local rules would be illegal. It would also be impossible for any country to regulate rapid capital entry or exit, leaving all countries vulnerable to currency speculators and financial crashes. Neither would your country, state or city be able to "discriminate" against countries with terrible human rights or environmental records, as was done against South Africa during apartheid. If this law had existed back then, South Africa would not have democratized. Nelson Mandela would still be in jail. Winners & losers There is an ideological rationale for free trade. It supposedly benefits all segments of society. The homily goes like this: "A rising tide will lift all boats." So far, however, it's only lifting yachts. Following 20 years of the most rapid expansion ever of global trade, only a tiny group at the top of the corporate pyramid has experienced significant benefits. Gaps between rich and poor have been widening, even in the U.S. For example, American CEOs are now paid, on average, 419 times more than line workers, and the ratio is increasing. Median hourly wages for workers is down by 10% in the last ten years. The top 20% of the U.S. population owns 84.6% of the country's wealth. And the wealth of the world's 475 billionaires now equals the annual incomes of more than 50% of the world population combined. Lifting all boats, indeed. WHAT CAN YOU DO? Right now, hundreds of public interest groups are in Seattle to protest the WTO. Most want the WTO to stop in its tracks: No Millennium Round. No expansion of powers. A full public re-assessment of the WTO's performance till now. Many feel the WTO can never be democratically reformed. Meanwhile, there are many ways you can participate. Lots of information is available. Please contact us. International Forum on Globalization Institute for Policy Studies-Global Economy Project Friends of the Earth Global Exchange Sierra Club Greenpeace USA International Center for Technology Assessment United Steelworkers of America Alliance for Sustainable Jobs and the Environment Defenders of Wildlife People Centered Development Forum Rainforest Action Network The Council of Canadians Project Underground Sea Turtle Restoration Project The Humane Society of the United States Pacific Environmental Resources Center Earth Island Institute Institute for Local Self-Reliance Polaris Institute Tikkun Magazine International Forum on Food and Agriculture International Society for Ecology and Culture Signers are all part of a coalition of more than 60 non-profit organizations that favor democratic, localized, ecologically sound alternatives to current practices and policies. This advertisement is #3 in the Economic Globalization series. Other ad series discuss extinction crisis, genetic engineering, industrial agriculture and megatechnology. For more information, please contact: Turning Point Project, 310 D St. NE, Washington, DC 20002 1-800-249-8712 • www.turnpoint. |
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