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Responsible Trade
The World Trade Organization:
Trading Away our Health and Heritage

"The business of the WTO should be to raise the bar on environmental protection for all nations, not lower it to the lowest common denominator of rapacious resource extraction." - Seattle Post-Intelligencer, May 30, 1998

On Nov. 30, 1999, President Clinton will host thousands of trade officials from more than 150 countries in Seattle for a summit of the World Trade Organization (WTO) -- the biggest international trade meeting ever on American soil. The WTO is a global organization that encourages international trade by setting limits on government action. Negotiators plan to launch sweeping new trade talks that could have a devastating impact on our environment. Citizen groups are challenging the Clinton administration instead to take executive action to make trade clean, green, and fair.

Government of, by, and for the Corporations

Under the WTO's charter, international trade tribunals can review and impose penalties for any act of any government that in any way compromises trade. The main beneficiaries are the large corporations that want to speed up international trade. Consequently, the WTO has acquired broad powers to foster trade at the expense of environmental standards.

Food Safety.As a result of the WTO and other trade agreements, America is importing more and more of its food. US safety inspectors can't keep up with the growing workload. To accelerate the process, the WTO encourages importing countries to accept the safety systems of exporters, but many imports come from countries where food safety is less advanced. As a result:

* Twenty thousand people were sickened with salmonella after eating alfalfa sprouts from the Netherlands.

* Thousands more suffered severe diarrhea and vomiting in 1997 and 1998 after eating tainted raspberries from Guatemala.

* In early 1999, thirteen Floridians contracted typhoid fever after drinking imported fruit juice.

In addition, the WTO has ordered Europe to lift its ban on American beef treated with growth hormones. The Clinton administration argued that the ban was not "scientific," even though some scientists believe that hormone residues may contribute to rising breast cancer rates. This could set a dangerous precedent that could one day force the US to lower its own food safety standards.

Forests and Farms. As trade grows, more and more exotic pests hitchhike into the country on imported goods. For example, the Asian long-horned beetle has already destroyed thousands of trees in New York and Chicago after entering the country in wooden crates from China. Yet federal pest control officials say the WTO bars them from setting the tough, precautionary standards needed to keep pests out. Exotic pests already cost the US economy more than $138 billion in lost crops, denuded forests, and property damage. Exotics are also the second biggest threat to endangered species after habitat loss.

Clean Air. The Clinton administration weakened the Clean Air Act's clean gasoline program after the WTO ruled that the program was unfair to foreign refiners who make dirtier gasoline. Under the new rules, smog pollution will worsen at a time when the Environmental Protection Agency says we need tougher standards to reduce asthma attacks.

Wildlife. In April 1998, the WTO ruled against the US law requiring that all shrimp sold in America is caught in nets with turtle escape devices. These devices could save almost all of the 150,000 endangered sea turtles that drown in shrimp nets each year. To comply, the Clinton administration issued new standards that will be impossible to monitor and enforce.

Global Warming. The Clinton administration has threatened to use the WTO to keep foreign governments from improving environmental standards. For instance, the administration has threatened Japan with WTO action if it adopts more stringent auto fuel economy standards. The administration fears that the new standards would harm sales for gas guzzlers built in Detroit -- even though higher fuel economy is the biggest single step we could take to reduce global warming pollution.

Sleepless in Seattle

Current trade rules make it harder to prevent environmental problems. But as bad as the WTO's environmental record has been so far, things could get much worseafter Seattle. Instead, we should seize this opportunity to address the existing problems and to make sure that even more environmental threats are not created.

Deforestation. The Clinton administration plans to sign an agreement on forest products trade in Seattle that would accelerate wood consumption, and deforestation, worldwide.

Family Farmers/Clean Water. With farmers facing one of the worst economic crises in memory, the Clinton administration is pushing for new agricultural trade talks to save rural America. But foreign markets cannot absorb all the excess production. As Agriculture Secretary Dan Glickman admitted, "I think we [have] a Polyannaish view of the world market." Take hogs, for example. Despite record exports, overproduction by giant factory hog farms has glutted the American market and driven two-thirds of our independent family hog farmers out of business. "Our exports are doing fine," says livestock economist Glen Grimes, "We’re just being overwhelmed with hogs." Rather than pin farmers’ hopes on exports, we should cut subsidies to corporate factory farms and impose stringent regulations on the corporate hog farm wastes that are polluting America’s water.

Corporate Rights. Talks on a new investors' agreement could be launched in Seattle that would hamstring environmental protection around the world. Modeled on provisions of the North American Free Trade Agreement (NAFTA), the new investors' agreement could give corporations the right to sue governments over new standards that hurt their profits. Taxpayers would then be forced to pay transnational corporations for their right to clean air and clean water. This process has already begun. A Canadian chemical company has sued under NAFTA's investor provisions for $1 billion after California banned a cancer-causing gasoline additive that is polluting the water.

Make Trade Clean, Green, and Fair!

A responsible trade policy would open markets and protect the environment -- not put our health and natural heritage at risk. To make trade clean, green, and fair, 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 Responsible Trade Committee.

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


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