-1) LARGE AMT. OF MONEY BORROWED FOR "PROJECT" LOANS

 -2) PROJECTS OFTEN FAIL TO PAY WELL

 -3) COUNTRY HAS TROUBLE MAKING PAYMENTS

 -4) "STRUCTURAL ADJUSTMENT" (aka "POLICY") LOANS:   INTERNATIONAL MONETARY FUND (IMF) LOANS MONEY IN EXCHANGE FOR AUSTERITY & MORE EXPORTS.

  - tends to AID LENDER - $50 BILLION PER YEAR IN 1980's  FROM SOUTH TO NORTH

 -5) SOCIAL & ENV. COSTS RISE

ACCOUNTABILITY:

 -SECRECY OF DOCUMENTS
 -DISCLOSURE OF RECORD OF DECISIONS
 -LOCAL PEOPLE LEFT OUT

ENVIRONMENT:

 -ENVIRONMENT POORLY INCORPORATED
 -GLOBAL ENVIRONMENTAL FACILITY

ARGUMENTS FOR TRADE LIBERALIZATION
 

A. MORE COMPETITION, THUS GREATER ECONOMIC EFFICIENCY

B. TRADE AND INVESTMENTS IN CLEANER TECHNOLOGIES

C. "NORTHERN" COUNTRY TARIFFS ON IMPORTED MANUFACTURED GOODS FORCE EXPORTS TO BE IN PRIMARY PRODUCTS, LEAVING THE MOST INTENSE IMPACTS AND LEAST ECONOMIC BENEFIT IN DEVELOPING COUNTRIES.

D. INVESTMENT COULD DIVERSIFY ECONOMIES THAT HAVE BEEN DEPENDENT ON A VERY FEW EXPORT COMMODITIES.

ARGUMENTS AGAINST LIBERALIZATION

A. FREE TRADE ZONES  MAY BECOME POLLUTION HAVENS
BREAKS ON TAXES, REGULATION, AND OTHER ENTICEMENTS

B. DECREASE IN FOOD SELF-SUFFICIENCY

C. DEPENDENCE ON EXTENSIVE TRANSPORTATION

D. DOWNWARD HARMONIZATION OF ENVIRONMENTAL & LABOR STANDARDS

THE WORLD TRADE ORGANIZATION (WTO)

HISTORY

• 1947 - GENERAL AGREEMENT ON TARRIFFS AND TRADE (GATT) FOUNDED
• 1950-80S  7 EARLY ROUNDS OF NEGOTIATIONS; ENCOURAGED "MOBILITY OF CAPITAL INVESTMENT"
•  1986 - "URUGUAY" ROUND OF TALKS STARTED
•  1994 - US CONGRESS RATIFIES  PACT PRODUCED BY URUGUAY ROUND

THIS PACT:
* CREATED A NEW ORGANIZATION, THE WTO.
* FURTHER REDUCED TARIFFS (INCLUDING AGRICULTURAL ONES FOR THE FIRST TIME)
* ELIMINATED TRADE QUOTAS OR REQUIREMENTS FOR HIGH LOCAL CONTENT.

•  1999 - 134 NATIONS AGREED TO PACT; MEETING IN SEATTLE TO ADDRESS NEW ISSUES:
* DETAILS ON AGRICULTURAL SUBSIDIES - A MAIN CAUSE OF FAILURE OF TALKS
* LABOR RIGHTS (US'S MAJOR GOAL)
* LOWERING TARIFFS IN SEVERAL AREAS
* SET UP NEW 9TH, "MILLENNIUM ROUND" OF NEGOTIATIONS TO ADDRESS:
* ALLOWING GLOBAL CORPORATIONS TO ENTER 'PUBLIC SECTORS' (EDUCATION, HEALTHCARE, ETC.)
* PREVENT BANS ON GENETICALLY MODIFIED ORGANISMS
* PUSH AHEAD ON THE MULTILATERAL AGREEMENT ON INVESTMENT (DEFEATED IN 1998)

ENVIRONMENTAL CONCERNS IN SEATTLE WTO PROTESTS:

WHAT CONSTITUTES A 'BARRIER TO TRADE"?
 

1. KILLING OF DOLPHINS IN PURSE-SEINING TUNA IN E. PACIFIC

* 1972 DOLPHINS PROTECTED BY US MARINE MAMMALS PROT. ACT
* 1972 - 368,600 DOLPHINS KILLED; 1983 ONLY 10,000 BY US BOATS
* BOATS 'REFLAGGED' AS MEXICAN, SOLD TUNA INTO US
* 1980'S MMPA AMENDED TO RESTRICT IMPORTED TUNA TO DOLPHIN-FRIENDLY ONLY.
* COUNTRIES RESPONDED - TOTAL DOLPHIN TUNA FISHING MORTALITY DROPPED:
          1986 - 133,000;  1998 - 2,000
* 1991 - GATT PANEL RULES AGAINST US LAW, ARGUING THAT  HOW A PRODUCT IS PRODUCED CANNOT BE A BASIS FOR REJECTING IT
* RULING NEVER FORMALLY ADOPTED, AND COUNTRIES WORKED OUT INTERNATIONAL DOLPHIN CONSERVATION PROGRAM INSTEAD

2. SEA-TURTLE RULES

* STEMMING FROM ESA PROTECTION, THE U.S. REQUIRES TURTLE EXCLUDER DEVISES (TEDs) ON SHRIMP NETS TO ALLOW TURTLES TO ESCAPE. 16 NATIONS RESPONDED BY REQUIRING THEM.
* SHRIMPING WITHOUT TEDS KILLS ABOUT 150,000 TURTLES ANNUALLY
* US EMBARGOS SHRIMP IMPORTS FROM INDIA, MALAYSIA, PAKISTAN, WHICH HAD NOT IMPLEMENTED RULES REQUIRING TEDs. THEY CHALLENGED THE US RULES TO WTO
* 1998, WTO PANEL RULES AGAINST EMBARGO & U.S. RULES, HOLDING USE OF TRADE MEASURES TO PROTECT GLOBAL RESOURCES SOMETIMES JUSTIFIED, BUT NOT IN THIS CASE
* U.S. MODIFIES IMPLEMENTATION, SEEKING TO AVOID STIFF SANCTIONS.

3. RULING THAT U.S. MUST RE-WRITE PARTS OF ITS CLEAN AIR ACT TO PERMIT IMPORTS OF LESS PURE GASOLINE

4. EUROPEAN UNION TOLD IT CANNOT BAN IMPORTS OF BEEF PRODUCTS FROM US THAT HAVE BEEN TREATED WITH POTENTIALLY CANCER-CAUSING HORMONES.

5. JAPAN TOLD TO LIFT IMPORT BAN ON FRUITS CARRYING INVASIVE INSECTS THAT REQUIRE PESTICIDE TREATMENT ON IMPORT.

6. EUROPE TOLD TO STOP FAVORING BANANAS GROWN IN CARIBBEAN BY SMALL INDEPENDENT  GROWERS OVER THOSE BY US CORPORATE BANANAS GROWN PLANTATION STYLE

OTHER ISSUES THAT WERE TARGET OF PROTEST IN SEATTLE:"

* "TRANSPARENCY": NEED FOR MORE OPEN, ACCOUNTABLE PROCEDURES IN WTO, ESPECIALLY IN ITS DISPUTE RESOLUTION PROCESS, WHICH OPERATES IN SECRET (NO PRESS, NO PUBLIC, NO NGO'S.  PANELS COMPOSED OF 3 UNELECTED BUREAUCRAT TRADE SPECIALISTS.

* NET RESULT OF ALL WTO ACTIONS: INCREASING CONSTRAINT ON NATIONS' ABILITY TO PROTECT SAFETY OF PRODUCTS AND NATURE, AND TO INFLUENCE POSITIVE STANDARDS ELSEWHRE.

Recent extensive survey research in developing countries reveals high degrees of environmental concern & support for protection, despite low 'standard of living' conditions.

Majorities in 21 of 24 nations favored env. protection over economic development

World Commission on Environment and Development (1987):