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Responsible Trade
The World Trade Organization: Globalization without Representation

"Democracy today is not possible without a politics that can control global economic forces, because without such control it won’t matter who people vote for -- corporations will rule." - Michael Sandel, Harvard University

Patriot

On Nov. 30, 1999, thousands of trade officials from more than 150 countries will meet at the Seattle Summit of the World Trade Organization (WTO) -- the biggest trade summit ever on American soil. Negotiators could greatly expand the WTO’s powers. But citizen groups will urge the Clinton administration to take executive action to fix trade rules that undermine environmental and health standards.

Sacrificing Democracy

Established in 1995, the 134-member WTO shifted enormous power from local, state, and national governments to unaccountable international bureaucrats. The WTO can review and penalize any act of any government that in any way compromises trade rules. Governments must comply. As the WTO charter states: "Each member [country] shall ensure the conformity of its laws, regulations and administrative procedures with its obligations in the [WTO]."

WTO dispute panels consist of three trade lawyers. Only national governments are represented in disputes. Citizens’ organizations and state and local governments are locked out, even when their interests are at stake. Proceedings are secret. Rulings are final and binding. A country that loses a dispute must change its domestic law or pay penalties to keep its law in place.

Government of, by, and for the Corporations

The WTO also shifted enormous power over environmental and health laws from ordinary citizens to the corporations that dominate global trade. More than 500 corporate lobbyists sit on 16 committees that advise the US Trade Representative (USTR) -- the White House office in charge of trade talks. These committees are closed to the public, while their deliberations are treated as national security secrets.

When Congress has rejected legislation that would weaken environmental protection laws at home, corporate lobbyists have simply carried some of these same proposals to the USTR for inclusion in "trade agreements."

Anti-Environmental Record

WTO panels have ruled against:

* Europe’s ban on beef treated with growth hormones suspected of causing cancer in humans.

* US clean gasoline rules designed to reduce urban smog.

* US requirements that countries selling shrimp in the US market use turtle escape devices to save endangered sea turtles.

WTO rules also exert a powerful "chilling effect" on environmental progress as governments pro-actively comply. Food safety, human rights, and invasive pest standards have all been weakened in this way.

Selling the WTO

The Clinton administration has proposed several modest reforms that would open up the WTO to increased public involvement. Yet, overall, its trade policy favors corporate interests over the public interest. For instance, the administration invited corporate America to "sponsor" the Seattle Summit. Co-chaired by Boeing and Microsoft, the Seattle Host Organization has solicited contributions of up to $250 thousand from corporate donors. The WTO cannot possibly make fair decisions on important environmental and health issues when private interests have bought and paid for the summit.

Make Trade Clean, Green, and Fair!

To make trade clean, green, and fair, the Sierra Club is urging the Clinton administration to take executive action to:

* fix current trade rules so that they no longer undermine environmental and health standards;

* open the WTO to citizen participation; and

* conduct a thorough, objective, and participatory environmental assessment of the WTO.

Get Involved!

* Send a letter to the editor of your local newspaper.

* Organize a local Fair Trade Committee;

* Join our network by sending your contact information to margrete.strand@sierraclub.org.


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