Globalization Without

Without Representation  

Representation

George Herbert Bush was the first president to voice the corporate dream of a free trade area stretching from Alaska to the tip of South America, but it took New Democrat Bill Clinton to move the dream forward in a series of negotiations stretching over several years. Since 1998, trade negotiators from every country in the Western Hemisphere (except Cuba), assisted by hundreds of corporate "advisors," have been negotiating the Free Trade Area of the Americas (FTAA). This will be a treaty to create the largest free trade zone in the world, an area with 800 million people and a combined GDP of $11 trillion.

The Republicans under George II have already made it clear that an early priority will be getting "fast track" authority for these negotiations. Fast track authority would restrict Congressional action in the treaty process to a simple up or down vote on the treaty as whole, making it much easier for the Administration to push a treaty, no matter what its flaws, through Congress. Receiving such authorization is important to the administration since the goal for implementation of the treaty is 2005 and the US has been pushing for 2003. The committees were to have draft texts ready by December 2000. Trade Ministers will be meeting in Quebec on April 18-22, to start putting together a complete treaty.

The big business community is salivating at the prospects for new markets, cheap labor, and low regulatory standards that would be opened up by such an

       

Globalization without Representation is based on a leaflet issued by the national Democratic Socialists of America. For more information, go to http://www.dsausa.org. For information about Chicago DSA, go to http://www.chicagodsa.org.

       

 
     

Page 2

_________________________________________________
 
     

agreement. But the average person should be skeptical of negotiations that would extend the model of the North American Free Trade Agreement, a treaty that has brought the US job losses, lower wages and a ballooning trade deficit, to the entire hemisphere. In fact, it is likely that this treaty will go beyond NAFTA. It will incorporate some of the most far-reaching provisions of the WTO system, the proposed General Agreement on Trade in Services (GATS), and the abandoned Multilateral Agreement on Investment (MAI). These are all agreements that promote globalization under terms extremely favorable to big business and largely heedless of the needs of the masses of the populations in the countries concerned.

This may be why the average person and until recently most members of the US Congress have been kept unaware of even the existence of negotiations. Negotiations have been conducted largely in secret, with the negotiating documents closed to all those without security clearance. Over 500 corporate representatives on the Trade Advisory Committee have this clearance, along with the trade negotiators, and have been able to heavily influence the ongoing negotiations. Meanwhile, interested citizens groups have been restricted to submitting their concerns to a committee of government representatives who are supposed to transmit them to the negotiators.

The structure of the negotiating committees reinforced fears that public concerns were not being taken into account. Negotiations have been proceeding in nine working groups: 1) agriculture; 2) services; 3) investment; 4) dispute settlement; 5) intellectual property rights; 6) subsidies, anti-dumping and countervailing duties; 7) competition policy; 8) government procurement; and 9) market access.

The descriptions of the mandates of the committees makes it clear that their roles is to free up, as much as possible, international movement of capital in all areas. The demands of non-governmental organizations (NGOs) for working groups on democratic governance, labor and human rights, consumer safety, and the environment were denied.

Finally, under pressure from citizens groups and members of Congress, the governments of the US and Canada have made summaries of their positions in the negotiations public. The summaries have confirmed the worst fears of NGOs about the provisions in the working groups drafts. As Maude Barlow, Volunteer Chairperson of The Council of Canadians, puts it: "Essentially, what the FTAA negotiators have done, urged on by the big business community in every country, is to take the most ambitious elements of every global trade and investment agreement existing or proposed and put them all together in this openly ambitious hemispheric pact." And, as under NAFTA, while the interests of big business would be backed by enforceable sanctions, the interests of the public in a clean environment and fair labor standards are acknowledged only in broad terms and are not backed by any enforcement mechanism.

Some of the things that could happen under the FTAA:

 
     

 
     

Page 3

_________________________________________________
 
     
  • Lack of enforceable provisions on labor standards could force down wage levels and working standards throughout the hemisphere as corporations play off poor workers against even poorer workers in other countries.
  • The provisions of the infamous Chapter 11 of NAFTA would apply to every country in the hemisphere, allowing private and investors to sue governments directly for compensation for any law, court ruling or administrative regulation that arguably "discriminates" against foreign investors. This provision has already been used several times by US corporations to challenge environmental laws in Canada and Mexico. Most recently, in November, 2000, a NAFTA tribunal found in favor of the Ohio-based waste disposal company S.D. Myers, Inc., in its suit against the Canadian government challenging a law banning export of polychlorinated biphenyls (PCBs) even though this law had been adopted by Canada to carryout its obligations under another international treaty! The ruling could cost Canada $50 million. Such lawsuits, or the threat of such suits, have or could force changes not only in environ-mental regulations but in a multitude of other laws and regulations designed to protect the public.
  • Provisions on services and government procurement policies could force the countries to allow private competition in every area of the economy including the provision of health, education and social security programs. Canadians especially fear the effect on their national healthcare system.
  • Provisions on intellectual property rights would extend the protections given by patents and copyrights in one country to all the other countries in the FTAA. The strong protections given by US law to such things of pharmaceuticals protections that keep US prices for drugs the highest in the world would be enforceable in all of the countries.

This is only the beginning of a long list of problems with the FTAA. Various US citizens and labor groups are gearing up for a concentrated campaign including country-wide demonstrations around the April meetings in Quebec and a repeat of their successful campaign of pressure on Congress to block the passage of fast track authority.

Additional Sources

1. The Alliance for Responsible Trade has published an analysis of the US position in the talks from the point of view of representatives of various affected groups. The entire report is down-loadable from their website at www.art-us.org or contact them for copies at (202) 898-1566.

 

2. Public Citizen's Global Trade Watch provides various resources for activism around the FTAA including a fact sheet, sample letters to Congressmen and to the editor, and a "Spring of Action" calendar FTAA-related events. These resources are available on their website at www.tradewatch.org or by calling the Global Trade Watch office at (202) 546-4996.

 
     

                                                            
 

Join DSA

to Change the USA!

We are socialists because we reject an economic order based on private profit, alienated labor, gross inequalities of wealth and power, discrimination based on race and sex, and brutality and violence in defense of the status quo.

We are socialists because we share a vision of a humane social order based on popular control of resources and production, economic planning, equitable distribution, feminism, racial equality and non-oppressive relationships.

We are DSA because we work on developing a concrete strategy for achieving that vision, for building a majority movement that will make democratic socialism a reality in America. We believe that such a strategy must acknowledge the class structure of American society and that this class structure means that there is a basic conflict of interest between those sectors with enormous economic power and the vast majority of the population.

You are invited to join this grand enterprise of fundamentally changing our civilization. Join DSA to help change the U.S.A.!


Yes! I want to join the largest socialist organization in the U.S.A. Dues include subscriptions to DSA's national magazine, Democratic Left, and Chicago DSA's newsletter, New Ground. Dues are:

 

___ $75 Sustainer; ___ $45 Regular; ___ $20 Low income or student.

Enclosed is a contribution of $ _______ to help your work.

___ Please send me more information about DSA.

Name:


Address:


City, State, Zip:


Phone:


Email:


Return to: Chicago DSA, 1608 N. Milwaukee, Room 403, Chicago, IL 60647. Please make your check payable to Chicago DSA. Contributions and dues are not tax - deductible.