In the event, this
discussion and the recent trade experience of developing countries
suggests that expectations that the new world trading arrangement will in
itself bring substantial static and dynamic gains to the developing
countries were grossly exaggerated. The developed countries arrived at a
compromise in which the US and EU retained protection of their agriculture
as well as sensitive labour-intensive sectors, while winning for
themselves greater access into developing country markets for
telecommunications, information technology and financial and other
services. This has in practice only perpetrated the inequality
characterising the world trading system.
Despite this experience, the developed countries have chosen to push for a
new round of trade negotiations at
Seattle.
Most developing countries are sceptical about the motivations of the
developed countries. The scepticism stems in part from the unwillingness
of the developed countries to agree to a review of the fall-out of the
Uruguay Round before proceeding further down the road of selectively
opening up trade. But more crucially it is also related to the two issues
which are expected to dominate the discussions: first, the linkage between
trade and environmental concerns; and second, the proposal to incorporate
a social clause in the trade agreement. The testimony of Ambassador
Richard Fisher, Deputy United States Trade Representative, to the Trade
Subcommittee of the Senate Committee on Finance on July 14, 1999 is
revealing. Elaborating on the Clinton Administration's trade agenda, which
will have at its centre a new accelerated negotiating Round for the 21st
century, he included among the initiatives to be taken up by the US the
following:
-
Addressing
the intersection between trade and environmental policies. Trade and
environmental policy need to be mutually supportive. As trade promotes
growth domestically and overseas, we must at the same time ensure clean
air, clean water and protection of our natural resources, as well as
effective approaches to broader questions like conservation of
biodiversity.
-
Addressing the
intersection between trade and labour. Again, as in our domestic
economy, growth can and should be accompanied by safer workplaces and
respect for core labour standards. There is room for the WTO to
collaborate with the International Labour Organisation on some of these
issues. As the President has announced, the Administration is requesting
$35 million in FY 2000 for a new multilateral program in the ILO to
provide technical assistance for international labour rights
initiatives, such as eliminating exploitive child labour, and for our
own Department of Labour to help our trading partners strengthen labour
law enforcement. These and other such efforts should be a focus of
renewed co-operation with the ILO.
To quote free-trade
enthusiast T. N. Srinivasan once again: "the most serious external threat
to developing countries in the post-Uruguay Round world trading order is
from the attempts to link their market access to performance in non-trade
related areas such as protection of the environment and labour standards.
The pernicious notion that a country with lower environmental and labour
standards, when it exports its products to another with higher standards,
is engaged in eco-dumping and is in unfair competition has gained
ground... diversity in labour and environmental standards (at least as far
as purely domestic environmental insults are concerned) is legitimate, No
country should be coerced to set those standards at levels that are not
sustainable given its stage of development. There is also the danger that
the movement in the developed countries genuinely concerned about
environmental degradation and interested in the improvement of labour
standards in poor countries will be captured by those who wish to use it
for their own crass protectionist purposes. It is clear that if the
developed countries are not willing to compensate poor countries for
raising their standards beyond what they could sustain on their own but
coerce them through denial of access to their own markets, the
liberalisation of market access in the post-UR world will have no meaning
for poor countries." These and the arguments delineated earlier, provide
strong reasons to struggle for an agenda of "standstill, review and
roll-back". But as in the case of the Uruguay Round the interests of the
developing countries are unlikely to influence the decision whether
negotiations should begin or what should be their agenda. |