Trade Off
by Geov Parrish
It wasn't supposed to be this way.
The World Trade Organization, the international free trade body whose
ministerial talks in Cancun, Mexico collapsed last week, was never intended
to be hampered by consideration of the concerns of the worlds poor.
A group of over 20 poor nations from the South, led by its largest
economies particularly Brazil, and including India, Mexico, and new WTO
member China blocked the U.S. and European Union last week from imposing
yet another round of trade agreements, this time regarding agricultural
products, that would have helped cement the widening economic imbalance
between rich and poor.
Until the 1999 WTO meetings in Seattle, rich countries, particularly the
U.S., pretty much called the shots in the WTO, a trade organization begun
in 1994 largely founded through U.S. efforts and dedicated to bringing
NAFTA-style trade practices to the world. Large corporations from the U.S.,
Europe, and Japan could take advantage of cheap labor in the South, and
sell their products there by undercutting smaller indigenous industries.
Countries like the U.S. would lose jobs but get lots of cheap stuff. Poor
countries would lose local jobs, and then compete with each other in a race
to the bottom to see who could offer global corporations the fewest taxes,
least environmental or worker safety laws, and cheapest, most pliant labor
forces.
Here in Seattle, protests that had been erupting for a decade in countries
like India and Indonesia astonished the world by coming to a wealthy,
comfortable city in the North. Once he meetings started, a group of African
delegates took the protesters message to the ministerial talks themselves
blocking destructive new agreements.
Two years ago, the next WTO ministerial meeting was held in the feudal oil
kingdom of Qatar with the entire country closed off to those annoying
protesters. Not much happened in the meetings themselves, as the U.S. and
E.U. were primarily concerned with making sure an agreement, any agreement,
could come out of Qatar to convince the world that the WTO was still a
going concern.
This year, in Cancun a posh island resort even more closed off than usual
to ordinary Mexicans the substantive matters could be put off no longer.
The U.S. and E.U. wanted a new agricultural agreement that would remove
trade tariffs even as U.S. agribusiness, for example, continue to receive
massive farm subsidies and price supports from the federal government.
Those large corporations now dominate American agriculture, having all but
extinguished the family farm over the past 20 years; they have now also
nearly destroyed Mexican agriculture thanks to NAFTA, dumping cheap corn
and other commodities in the Mexican market and driving the prices so low
Mexican farmers cannot sell their crops and make enough money to survive.
In Mexican states like Michoacan and Guerrero, whole rural villages are
abandoned, their former residents gone either to the city or the States in
a desperate search for a livelihood.
This is the future that the U.S. and Europe want for the farms of the rest
of the world, too. And in the wake of Seattle and the rift that has never
been closed since, the refusal by the governments of poor countries to go
along now threatens the very existence of the WTO. The U.S., in particular,
created the WTO; if the WTO doesn't do what the U.S. wants, the WTO ceases
to be a useful institution.
European Union Trade Commissioner Pascal Lamy, whose closing speech as the
Cancun talks disintegrated was tinged with bitterness, blasted the
stalemated organization and the structure that made the Cancun rebellion
possible. The WTO remains a medieval organization, Lamy said after the
talks broke off. Rep. Charles Stenholm (R-TX), one of the architects of the
U.S. agricultural trade proposal, characterized the breakdown thusly: The
WTO resembled the United Nations. And we all know what Republicans think of
the United Nations, where the great masses of unwashed poor countries also
actually have a vote just like the rich ones.
The U.S. would much rather have international trade decided on the model of
the IMF or World Bank, which are instead more or less run on the one
dollar, one vote principle. Lamy had it exactly backward medieval rule, at
least in Europe, was generally the absolute power of kings. The kings owned
the resources of their domain, and their poor subjects paid tribute but got
nothing in return. That's more the vision of what the E.U. and U.S. wanted
the WTO to be than what it has become.
The breakdown in talks constituted a tremendous victory for fair trade
advocates, many of whom inside and outside the meetings had descended on
Cancun to voice their opposition to the agricultural agreement and other
proposals on foreign investment and competition being pushed by the E.U.
and Japan.
Inside the halls, Cancun became an even more dramatic victory than Seattle
had been. No new talks were scheduled, and with their traditional dominance
stymied, the U.S. may turn its attention elsewhere and abandon the WTO
entirely as its vehicle for creating a global economic structure that helps
corporations rule the world.
That process has already begun. Since the disastrous Seattle meeting, both
the Clinton and Bush Administrations have been deemphasizing the WTO,
preferring to pursue the same policies of dominance through multilateral
regional agreements. The most important of these is the Free Trade Area of
the Americas, a proposed pan-hemispheric free trade zone; the next
scheduled meeting to continue FTAA negotiations comes in Miami in November.
In Miami as in Cancun, Quebec, Seattle, and cities and towns across the
global South the drive by farmers, labor, environmentalists, anti-poverty
activists, and many others to dismantle transnational corporate control of
the world's economies will continue. And now, the momentum is all on the
side of economic and social justice.
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