Hi there,
The International Center for Trade and Sustainable Development has
released Volume 3, Number 3 of BRIDGES, its weekly trade news digest. Two
interlocking themes dominate : food issues and an upcoming "millenium
round" of negotiations by members of the World Trade Organization (WTO).
As detailed in
CLINTON SUPPORTS MILLENNIUM ROUND the US has now joined
Japan and the European Union in seeking plenary discussions at the WTO.
The US had previously favored a more narrowly focussed approach arguing
that global talks were too cumbersome (read : made it more difficult for
the US to "divide and conquer" states insufficiently compliant with
Washington's agenda).
Several elements of the US proposal are worthy of note. First is the
absence of investment from the prospectus. This, along with Bill Clinton's
admonition that labor and environmental standards must be incorporated in
new WTO disciplines, indicates that neoliberals are still smarting from
the black eye dealt them in the MAI campaign.
Sadly, the foregoing provisoes are bound to be more cosmetic than real
(though if investment is kept off the ledger that at least will be
something). Moreover there is also outright bad news : Clinton wants a
millenium round to strengthen intellectual property rights and to smash
barriers to international traffic in genetically modified organisms
(GMOs).
The former measure will be used to further American domination of the
Internet by making technology transfers more expensive. At the same time
it would serve to undercut possible advantages accruing to developing
nations from their biotic diversity by facilitating the collection by
multinational firms of royalties for life patents.
The latter aspect is also examined - but from the perspective of a
developing country - in INDIA HEAL
THYSELF. Acknowledging that increased
foreign investment within India has produced an open season on the
subcontinent's rich flora and fauna, officials quoted in the article
stress the need for the national government to manage the commercial
development of these organisms. Attention is given to the need to
safeguard aboriginal societies but only insofar as these peole function as
virtual dowsing rods ("they play a significant role in the identification
of new medicinal plants"). Needless to say, the notion that autochthonous
populations have any sort of prior claim to these plants (never mind
questions of the plants' inherent, as opposed to instrumental, value,
hence entitlement) does not arise.
The change with respect to GMOs is intended to make the world safe for
biotech concernments (notably Monsanto) which have been coming under
increasing attack from both the developing nations and the European Union.
Another BRIDGES piece ( U.S. WARNS ON GMO
TRADE) indicates the seriousness
with which Washington takes this issue. Outrageously, the item quotes
Clinton as warning signatories to a United Nations instrument (the
Convention on Biological Diversity) that health concerns cited in the
covenant will not be allowed to impede commerce! Of course, this really
only amounts to spelling out the prime directive of the WTO...
Clinton's agenda bodes ill for advocates both of nationalistic economic
policies and of secondary boycotts. With the glaring exception of
intellectual property rights WTO work on issues proceeds in one direction
only : liberalisation. If Clinton has his wish and government procurement
is put on the table the result is apt to be still greater obstacles to
domestic bias in public sector purchasing and further travails for those
who try to weaken illegitimate regimes (such as Myanmar/Burma) by
blacklisting their products.
BRIDGES also has Clinton counselling integration of the activities of the
International Labor Organization (ILO), the Bretton Woods Twins and the
WTO. One might hope that the ILO would serve as something of a check on
the other bodies but I fear it is only likely to be used as windowdressing
to give the appearance that the other institutions have mellowed.
---Antoni
From : BRIDGES Volume 3, Number 3 (January 25,1999)
CLINTON SUPPORTS MILLENNIUM ROUND
U.S. President Bill Clinton last week called for a new round of
multilateral trade negotiations and for measures geared toward
"institution-building" at the WTO. The Clinton Administration favours a
global trade round to last about three years, shorter than previous
trade rounds such as the Uruguay Round that took seven years to
complete. The U.S. would call for the launch of a new round when it
hosts the Third WTO Ministerial in November-December this year.
The EU and Japan have already called for a Millennium Round of trade
talks. The U.S. risked being politically embarrassed at the Third
Ministerial, playing host to trade ministers but not supporting a global
trade round.
Included on the U.S. Millennium Round agenda are agriculture (talks for
which are already scheduled to begin late this year), elimination of
discriminatory trade barriers against genetically modified food
products, trade in services, further work on protection of intellectual
property, a permanent ban on electronic commerce duties, and government
procurement.
Further, the Clinton Administration said it would require that the talks
ensure that labour and environmental standards are protected and that
the WTO is more open and accountable. "We must ensure that ordinary
citizens in all countries actually benefit from trade, trade that
promotes the dignity of work, the rights of workers, the protection of
the environment," Mr. Clinton said.
The Clinton Administration faces a major domestic hurdle to its
Millennium Round agenda in that the president has been unable to win
renewal of so called fast track negotiating authority. Fast track is
critical to U.S. credibility at the negotiating table since trading
partners are reluctant to negotiate with the U.S. if hard work can
become unravelled in the Congress.
Democrats will not pass fast track without labour and environment
linkage and Republicans vigorously oppose such linkage. Democrats have
proposed a moderated version of fast track in which Congress would have
the right to "check in" on trade negotiations, although such an approach
could meet opposition from U.S. trading partners. The Clinton
Administration, meanwhile, said that Millennium Round agenda could be
achieved with or without fast track.
The Clinton Administration also announced that it would push for
"institution building" at the WTO. Institution-building priorities
include technical assistance to least developed countries; customs
reform; trade and environment collaboration; better collaboration with
the International Labour Organisation; and co-operation between the
International Monetary Fund, World Bank, and WTO to improve world
financial systems. U.S. Trade Representative Charlene Barshefsky noted
also that the U.S. would focus on reforming the Dispute Settlement
Understanding (DSU) in ways that promote compliance, noting that the
current banana dispute highlights the need for such reform.
"Clinton Calls for New Global Trade Round Including Intellectual
Property, Procurement," INTERNATIONAL TRADE REPORTER, January 20, 1999;
"Back on the fast track," FINANCIAL TIMES, January 21, 1999; "Clinton
seeks consensus on freer trade," JOURNAL OF COMMERCE, January 21, 1999;
"Barshefsky indicates support for three-year WTO talks," INSIDE US
TRADE, January 22, 1999.
U.S. WARNS ON GMO TRADE UNDER BIOSAFETY ACCORD
As negotiators ready for the final round of biosafety accord
negotiations, scheduled for Feb. 14-23 in Cartagena, Colombia, the U.S.
warned that the accord should not interfere with trade in genetically
modified organisms.
As part of the Convention on Biological Diversity (CBD) adopted at
UNCED in 1992, it was agreed in 1995 that an international protocol on
biosafety was needed to complement the CBD, to ensure the safe
transfer, handling, use and disposal of living modified organisms
(LMOs, often referred to as genetically modified organisms, or GMOs).
At present there are no binding international agreements addressing
situations where LMOs cross national borders. (See BRIDGES Weekly Trade
News Digest, Vol. 2, No 33, August 31, 1998.)
The U.S. wants to narrow the scope of the protocol to include only GMOs
that would be planted in the environment, and object to proposals made
by a number of African and other developing countries to control
imports on fruits, vegetables and even processed foods which contain
GMOs. The U.S. argues that these products would be consumed directly by
animals or humans and thus pose no risk to other (e.g. plant) species
in the importer's environment. Ethiopia and other African countries
also support labelling of products containing GMOs, a proposal with
some support from the EU, but which is opposed by agricultural
exporting nations including the U.S., Canada, Australia, Argentina and
Chile.
Even if the labelling and import restriction provisions are included in
the biosafety protocol, the Clinton Administration has said that the
protocol cannot supersede countries' WTO obligations, and is reportedly
pushing for language to this effect to be included in the protocol.
U.S. and international environmental groups last month said in a letter
to U.S. Vice President Al Gore that to include such language would
undermine multilateral environmental policy. The groups urged instead
that, since the WTO has admitted that it is not an expert on
environmental matters, "the prudent recourse for the WTO would be to
request the advice of the Protocol as to how to resolve a complaint
related to the Protocol," rather than proceeding within the vacuum of
WTO dispute settlement rules.
"Whether Biosafety Protocol Will Cover GMO Products or Organisms Is Key
Issue," INTERNATIONAL TRADE REPORTER, January 13, 1999; "Environmental
letter on Biosafety Protocol," INSTITUTE FOR AGRICULTURE AND TRADE
POLICY, December 21, 1999; "U.S. fights to reduce impact of Biosaftey
Protocol on GMO trade," INSIDE US TRADE, January 8, 1999.
INDIA HEAL THYSELF WITH REGULATION OF MEDICINAL PLANTS
India - home to more than 7,500 species of medicinal plants, is a
leading supplier (along with China and Brazil) to the booming global
market for medicinal plants, estimated to be worth US$60 billion annual.
However, while the plants may provide a cure for what ails humans and
animals, booming trade in medicinal plants could bring serious ills to
the environment which fosters them.
"Not less than 75 percent of medicinal plant collection is from the wild
and this inevitably leads to the destruction of biodiversity and genetic
stocks," according to an Indian trade official. According to a study by
the Exin Bank of India, medicinal plant collection leads to the
deforestation of 165,000 hectares (about 425,000 acres) every year. At
present nearly 100 medicinal plant species in India face extinction.
To maintain its position as a leading supplier of medicinal plants,
observers note that India must adopt regulatory policies to encourage
the sustainable commercial-scale cultivation of medicinal plants, lest
25 percent of its entire plant species become extinct within 50 years.
At the same time, indigenous cultures must be protected as they play a
significant role in the identification of new medicinal plants.
Financial and technical support from foreign companies will also help
promote sustainable commercial cultivation.
"India sees its opportunity as medicine returns to roots," FINANICAL
TIMES, January 20, 1999.
WTO IN BRIEF
The U.S. this week is expected to raise objections to safeguard
provisions outlined in the patent regime India put forward last month to
comply with a 1998 WTO ruling (see BRIDGES Weekly Trade News Digest Vol.
3, No 1-2, January 18, 1999). The U.S. objects to India's requirement of
compulsory licensing, which the U.S. argues is only allowed when a
product patent regime is in place, not for a process patent regime such
as the one India put forward. Compulsory licensing would allow India to
give companies licence to produce an otherwise patented good if it is
necessary to protect public health and nutrition. "U.S. objects to EMR
provisions," ECONOMIC TIMES (India), January 15, 1999.
In response to global economic turmoil and a proposed new round of WTO
negotiations, the WTO is looking for ways to accelerate its accession
process. The EU is reported to favour a so-called "accession round" of
intensive accession negotiations. WTO Director General Renato Ruggiero
has proposed extending provisional status to countries, affording them
the benefits of WTO membership while they remain formally outside the
WTO system. Currently 30 countries have membership applications pending.
"Global economy: WTO seeks to speed up accession process," ECONOMIST
INTELLIGENCE UNIT, January 19, 1999.
BRIDGES Weekly Trade News DigestŠ is published by the
International Centre for Trade and Sustainable Development
with support from the Institute for Agriculture and Trade
Policy. Editor: Caroline Dommen, ICTSD, Geneva Executive
Center, 13 ch. des Anémones, 1219 Geneva, Switzerland;
email: cdommen@ictsd.ch; tel: (41-22) 917 8497; fax: (41-
22) 917 8093. Executive Director: Ricardo Meléndez-Ortiz,
address as above, email: rmelendez@ictsd.ch.
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