archives: WTO Info

Cancun: The Iron Fist of Free Trade
by Catriona Stuart 4:05pm Wed Aug 20 '03 (Modified on 4:10pm Wed Aug 20 '03)
http://nyc.indymedia.org/front.php3?article_id=70127

If the World Trade Organization holds a meeting in the woods, does it make a sound? The United States and Euro-pean Union certainly hope that if it did, no one noticed.

Since the last round of WTO negotiations in Doha, Qatar nearly two years ago, the world's most powerful nations have been stealthily preparing for the 5th WTO Minis-terial to be held in Cancun this September. Holding hastily scheduled meetings in remote corners of the globe, such as a recent one in Canada, safe from protesters and smaller nations alike, powerful coali-tions are conspiring to push through con-troversial changes.

THE ISSUES

The Cancun agenda encompasses every-thing from foreign investment and patent rights to trade barriers. The stakes are dan-gerously high for developing countries. « The issue isn't just about tariffs and quotas any-more, this is about setting rules over what countries can do domestically, » says Chris Slevin, of Public Citizen's Global Trade Watch program.

Agriculture is shaping up to be one of the most contentious issues. Arguments between the United State and the European Union over the importation of genetically modified crops have led to a simmering trade war. Less-developed nations have even greater stakes in the debate. They want an end to the dumping of farm goods by U.S. and E.U.-subsidized agribusinesses. Peter Rosset of Food First, a non-profit think tank working on hunger-related issues, says subsides have decreased the price of wheat by 50 percent below production costs and corn by 20 percent, making it impossible for small farmers to compete.

Africa continues its call for assistance in combating the HIV-AIDS crisis. In Doha, much excitement generated around the TRIPS and Health Declaration, which allowed member countries to import or manufacture generic drugs for « public health crises. » Since then, however, the United States has sought to limit what is considered a public health crisis, and has pushed African representatives to negotiate directly with the pharmaceutical giants.

At the center of the Cancun negotiations is a proposal similar to the Multilateral Agreement on Investment that was defeated by a highly organized public campaign in 1998. Bill Rosenberg of the Seattle to Brussels Network likens the plan to the MAI « wearing a trendy development t-shirt. »

Essentially designed to protect foreign investors and allow them a controlling hand in developing economies, the agreement would limit the ability of governments to regulate such investments within their own borders. The investment agreement is a U.S. and E.U. priority, but something developing nations want to avoid.

« No convincing arguments have yet been put forward » in favor of the proposed agreement, said the Indian Ambassador to the WTO of the proposed agreement. « Differences of opinion still abound, even amongst proponents. Further commitments in such a major area could prove to be disastrous for developing countries. »

MANIPULATING THE SYSTEM

In July, 10 civil society groups presented a « Cancun Democracy Challenge » to WTO officials and representatives. The document highlights 12 points for improving inclusiveness and transparency in decision-mak-ing and process. Specifically targeting the use of « mini-ministerials, » such as the one in Canada, the groups say such informal practices allow more powerful countries to marginalize developing nations.

According to Aileen Kwa, a policy analyst with Focus on the Global South, this is business as usual. « The same strategies were used in the run-up to Doha, and they worked. » She says that the details of negotiations « would shock any one who assumes that this international institution functions in a civilized and democratic manner. »

Walden Bello, a noted critic of the WTO, says that at Doha the United States and European Union forced smaller countries into supporting free trade. Bello explained that Western governments threatened developing nations with a complete cutoff in aid and access to foreign markets if they did not accept the big powers' agenda. While resistance to these strong-arm tactics is growing within the WTO, grassroots pressure continues to build.

« What we can do is spread information, » says Victor Menotti, program director of the International Forum on Globalization, a California- based NGO that is organizing informa-tion forums in Cancun. « By far the biggest force [on the ground] will be the campesinos who have been hit very hard by NAFTA... they are very organized, and very numerous. »

Other grassroots organizations such as the People's Forum for Alternatives to the WTO (www.omcmexico.org), and the Cancun Welcoming Committee (www.cancun-committee.org) have formed in recent months to educate people about the impact of these potential agreements.

« The function of the WTO is like the bicycle analogy, it either has to go forward or fall over; it can't survive without making new agreements. If we can manage to pull just one strategic string then it would be a great victory, » said Menotti.


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