Top
10 Reasons
to
oppose the WTO
1. The WTO only
serves the interests of multinational corporations
The
WTO is not a democratic institution, and yet its policies impact all aspects
of society and the planet. The WTO rules are written by and for corporations
with inside access to the negotiations. For example, the US Trade Representative
relies on its 17 "Industry Sector Advisory Committees" to provide input
into trade negotiations. Citizen input by consumer, environmental, human
rights and labor organizations is consistently ignored. Even requests for
information are denied, and the proceedings are held in secret
2. The WTO is
a stacked court
The
WTO's dispute panels, which rule on whether domestic laws are "barriers
to trade" and should therefore be abolished, consist of three trade bureaucrats
who are not screened for conflict of interests. For example, in the tuna/dolphin
case that Mexico filed against the US, which forced the US to repeal its
law that barred tuna from being caught by mile-long nets that kill hundreds
of thousands of dolphins each year, one of the judges was from a corporate
front group that lobbied on behalf of the Mexican government for NAFTA.
3. The WTO tramples
over labor and human rights
The
WTO has refused to address the impacts of free trade on labor rights, despite
that fact that countries that actively enforce labor rights are disadvantaged
by countries that consistently violate international labor conventions.
Many developing countries, such as Mexico, contend that labor standards
constitute a "barrier to free trade" for countries whose competitive advantage
in the global economy is cheap labor. Potential solutions to labor and
human rights abuses are blocked by the WTO, which has ruled that it is:
1) illegal for a government to ban a product based on the way it is produced
(i.e. with child labor); and 2) governments cannot take into account the
behavior of companies that do business with vicious dictatorships such
as Burma.
4. The WTO is
destroying the environment
The
WTO is being used by corporations to dismantle hard-won environmental protections,
who call them barriers to trade. In 1993 the very first WTO panel ruled
that a regulation of the US Clean Air Act, which required both domestic
and foreign producers alike to produce cleaner gasoline, was illegal. Recently,
the WTO declared illegal a provision of the Endangered Species Act that
requires shrimp sold in the US to be caught with an inexpensive device
that allows endangered sea turtles to escape. The WTO is currently negotiating
an agreement that would eliminate tariffs on wood products, which would
increase the demand for timber and escalate deforestation.
5. The WTO is
killing people
The
WTO's fierce defense of intellectual property rights-patents, copyrights
and trademarks-comes at the expense of health and human lives. The organization's
support for pharmaceutical companies against governments seeking to protect
their people's health has had serious implications for places like sub-Saharan
Africa, where 80 percent of the world's new AIDS cases are found. The US
government, on behalf of US drug companies, is trying to block developing
countries' access to less expensive, generic, life-saving drugs. For example,
the South African government has been threatened with a WTO challenge over
proposed national health laws that would encourage the use of generic drugs,
ban the practice of manufacturers offering economic incentives to doctors
who prescribe their products and institute "parallel importing," which
allows companies to import drugs from other countries where the drugs are
cheaper.
6. The US adoption
of the WTO was undemocratic
The
WTO was established out of the Uruguay Round of the General Agreement on
Tariffs and Trade (GATT) negotiations. On December 1, 1994, Congress approved
GATT under Fast Track during a lame duck session of Congress. Fast Track
limits public debate by not allowing amendments. The approval of the WTO
required entire sections of US laws to be rewritten to conform with the
WTO rules, similar to the way that treaties often redefine how the US will
interact with other states. Had the agreement been voted on as a treaty,
requiring a two-thirds majority in the Senate, it would have been defeated.
7. The WTO undermines
local development and penalizes poor countries
The
WTO's "most favored nation" provisions requires all WTO member countries
to treat each other equally and to treat all corporations from these countries
equally regardless of their track record. Local policies aimed at rewarding
companies who hire local residents, use domestic materials, or adopt environmentally
sound practices are essentially illegal under the WTO. Under the WTO rules,
developing countries are prohibited from following the same polices that
developed countries pursued, such as protecting nascent, domestic industries
until they can be internationally competitive.
8. The WTO is
increasing inequality
Free
trade is not working for the majority of the world. During a the most recent
period of rapid growth in global trade and investment-1960 to 1998--inequality
worsened both internationally and within countries. The UN Development
Program reports that the richest 20 percent of the world's population consume
86 percent of the world's resources while the poorest 80 percent consume
just 14 percent. WTO rules have hastened these trends by opening up countries
to foreign investment and thereby making it easier for production to go
where the labor is cheapest and most easily exploited and environmental
costs are low. This pulls down wages and environmental standards in developed
countries who are having to compete globally.
9. The WTO undermines
national sovereignty
By
creating a supranational court system that has the power to economically
sanction countries to force them to comply with its rulings, the WTO has
essentially replaced national governments with an unelected, unaccountable
corporate-backed government. For the past nine years, the European Union
has banned beef raised with artificial growth hormones. The WTO recently
ruled that this public health law is a barrier to trade and should be abolished.
The EU has to rollback its ban or pay stiff penalties. Under the WTO, governments
can no longer act in the public interest.
10. The tide is
turning against free trade and the WTO!
There
is a growing international backlash against the WTO and the process of
corporate globalization over which it presides. Movement-building by coalitions
such as People's Global Action against the WTO in Europe and the Citizen's
Trade Campaign in the US are growing fast, as public support for corporate-managed
free trade dwindles. Recent polls show that 58 percent of Americans agree
that foreign trade has been bad for the US economy, and 81 percent of Americans
say that Congress should not accept trade agreements that give other countries
the power to overturn US laws. (Too late!). This is why tens of thousands
of people from all walks of life converged for the ''Showdwodn in Seattle"
at the End of November, 1999: to confront the World Trade Organization
head on at its ministerial meeting.
Join
us In Washington in mid-April 2000!!