The Seattle World Trade Organization (WTO) Ministerial meeting
was controversial even before it started - and then continued on a downhill slide,
resulting in a large public relations disaster for the US. Many trade experts
and economists agree that the failure in Seattle could usher in a period of trade
friction and cause the already high US trade deficit to climb. They also predict
that any further liberalization of the world's trading rules will have to wait at least
two years, until after a new US president and Congress have been elected, and a
new governance structure put in place at the WTO headquarters in Geneva.
The meeting began with conflicts over the agenda. Many countries
demanded that anti-dumping laws be discussed. Japan, Mexico, South Korea
and Brazil, in particular, loathe US antidumping laws. The US, standing alone
among the member countries, refused to budge. Many of the delegates, especially
from poorer countries, also objected to Clinton's suggestions on child labor
protections, the environment and other matters, which they contended
would strip them of their main trade bargaining chip - low wages. The President
also made references to his support of "sanctions" against countries which do
not comply with high labor and environmental standards, taking his economic
staff members by surprise.
These disagreements, in conjunction with the massive riots and
demonstrations occurring in Seattle, broke down the negotiations and prevented any
agreements being reached on future negotiations.
Scrambling to recover from the WTO disaster, Clinton and
European Union leaders recently endorsed a plan to push quickly for the new round of global trade talks. The President also stated that the US will not wait until after the November presidential elections to initiate talks.
On the brighter side, we can be assured that the next US president is
likely to be a free trader, as all the leading contenders have stated their support for
more open markets. In addition, a growing group in Congress, called the
New Democrat Coalition (NDC), are strong advocates of trade expansion. Five
Coalition members - Cal Dooley (CA), Jim Moran (VA), Jim Davis (FL),
Anna Eshoo (CA) and Adam Smith (WA) - were all given A+ grades on
international trade votes last year. NDC priorities
for this year include passage of the Africa Trade bill and permanent NTR status
for China.
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