The
"big bully" attributes of the US also came through in the way the
convention was conducted by US trade representative Charlene Barshevsky, who
by virtue of being from the host country, shared the responsibility with WTO
Director General Mike Moore. Choosing to go above the heads of most member
country representatives, she worked through secret dialogues with negotiators
from the most powerful and recalcitrant countries, results of which, if any,
she expected the rest to go along with. One such result was a committee which
was not authorised by the general council of the WTO, to consider the possible
linkage of trade and labour standards, which popped up midway through the
meeting and received a hostile response from most developing countries.
The
tenor of the US strategy appeared to be that in return for minor concessions
on what were the original items up for negotiations in the current stage of
the WTO's history, the developing countries could be steam-rolled into accepting
a new round with a wide and damaging agenda.
In resorting to this strategy the US was clear that one fundamental "convention"
adopted earlier in GATT and more recently in WTO proceedings would not be
violated. This was that decisions would be based on consensus, allowing the
developed countries to use their economic clout, stemming from their dominance
over international trade and capital movements, to force some degree of compliance
from the developing countries in trade negotiations. If that convention is
dropped, and a vote taken based on the one-nation-one-vote principle provided
for in the WTO's constitution, the issues of links between trade and labour
and environmental standards would have gone out of the window, given the fact
that the majority were against them.
Fortunately,
partly because unity between the developed countries, especially on questions
relating to agriculture and bio-engineered food products, could not be arrived
at, and their combined pressure could not be wielded to try and enforce developing
country compliance for a one-sided declaration heralding new trade talks,
the Seattle negotiations collapse and ended with no result.
Needless
to say, every section involved would claim success or refuse to accept failure.
The protestors would say that they have been able to stall a new round, though
not having such a round which covers labour and environmental standards could
actually be a setback for US trade unions and some environmental groups which
seek to advance the environmental cause at the expense of everything else.
The developing countries would return home saying that they have stalled inclusion
of these issues in future negotiations, even though no progress has been made
on the demand to review and reform the trading framework created by the Uruguay
Round agreement. The EU would be glad that it has, as yet, not had to retract
on the question of agricultural support. And finally the US would argue that
it has put "implementation issues" on the back-burner and brought
to the front its principal concerns, especially the new ones relating to labour
and environment, making them an informal part of any agenda for all future
trade talks.
In
fact, Ms. Barshevsky, even made the collapse of the meeting an American 'decision',
when she declared to weary negotiators that: "My judgement and in turn
the judgement shared by the director general ... was that it would be best
to take a time out, consult with one another and find a creative means to
finish the job.'' US officials were still holding that their unfinished agenda
would be revived at Geneva in six months' time. In the meanwhile, Barshevsky
held, talks on agriculture and services mandated by the Uruguay agreement
can begin in January. Clearly, the US view is that even though it has not
clinched a deal, it has set the direction which any future talks would take.
In the long haul it expects that, as happened with the last round of trade
talks which took almost a decade to get going in 1986 and end in 1994, WTO
members can be tired into arriving at some agreement along the lines it desires.
There
are important lessons here for developing countries like India. First, the
Seattle talks once again reveal that in the world of trade it is power and
politics and not altruism that determines the rules of the game. The belief,
therefore, that a multilaterally-brokered liberalisation of trade would result
in fair trade is completely misplaced. Second, the view that there are no
choices other than participation in the WTO needs to be rethought if such
participation is a sure route to turning the world trading system further
against developing-country interests. Finally, if the most powerful in the
world do not want to give up protection in traditional areas like textiles
and agriculture, and are seeking to win for themselves new instruments of
protection in the form of labour standards and environmental conditions, going
ahead with unilateral liberalisation of external economic policies at home
would be mistaken, since the world trading system itself may foreclose the
export benefits such liberalisation is expected to offer. Its time to stand
up and say that it is not US workers alone who matter. Ours do too.