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Date sent:              Mon, 17 May 1999 14:29:05 -0700
To:                     [EMAIL PROTECTED]
From:                   Sid Shniad <[EMAIL PROTECTED]>
Subject:                WTO Leadership Race Exposes Deepening Polarisation Over
        Globalisation

MEDIA RELEASE FOR IMMEDIATE USE 16 May 1999

GATT WATCHDOG, PO BOX 1905, CHRISTCHURCH, NZ.
PH (03)3662803

WTO Leadership Race Exposes Deepening Polarisation Over 
Globalisation

"There is a message to be learnt from the acrimony surrounding the 
unresolved Mike Moore-Supachai Panitchpakdi race for the World 
Trade Organisation top job that ardent free traders like the New 
Zealand government ignore at their own peril.   It signals a very real 
sense of marginalisation and frustration among a growing number 
of countries who question just who gets the goodies from 
globalisation and makes the rules for world trade," says GATT 
Watchdog spokesman, Aziz Choudry. 

"Many developing countries have long been sceptical of the 
supposed benefits of trade liberalisation and warn that a new 
negotiating round with new issues will further marginalise them. 
With the next round of negotiations due to start at the Third WTO 
Ministerial Meeting in Seattle later this year, there is likely to be 
pressure from 'developed' nations to expand the GATT/WTO 
agriculture and intellectual property agreements, introduce issues 
like competition policy, government procurement, and possibly 
attempt to resurrect an MAI (Multilateral Agreement on 
Investment)-type agreement."

"Many countries were told during the GATT Uruguay Round that a 
brave new world of borderless trade leading to increased prosperity 
awaited if only they committed themselves to a global free market 
agenda now advanced by the WTO. Over four years after its birth, 
and despite its claims to operate by consensus,  the WTO maintains 
the dominance of the most powerful players in the global economy - 
countries and companies - over the rest."  

"Look at the USA's track record on trade - one of Mr Moore's 
strongest backers.  It bullies the rest of the world to open up their 
markets, yet refuses to follow the same economic recipe itself. That 
is the reality of the WTO - protection for the powerful - market 
discipline, regardless of the costs, for the rest."

"When former WTO Director-General Renato Ruggiero was in 
New Zealand in 1996 he spoke of a stark choice that countries had 
to make - globalisation or war. Yet globalisation and the narrow 
economic dogma that it promotes is contributing to conflicts 
around the world, from the US-EU banana dispute, to the spread of 
communal violence in many countries hit by austerity measures and 
economic liberalisation, to the ongoing conflict in Chiapas, Mexico 
in the wake of NAFTA.  Many of them have their roots in the 
increasing global economic instability and inequity between and 
within nations as a result of the acceleration of the globalisation 
process.  Regardless of how much longer it takes to resolve the 
WTO Director-General position, those tensions will continue to 
impact on APEC and WTO negotiations."

"And that will be a good thing.  Maybe then we can let the facts get 
in the way of a good story for a change and take a long hard look at 
the poverty of evidence in support of the claims in favour of further 
economic liberalisation."

However, GATT Watchdog stands by its tactical support for Mr 
Moore's WTO bid, announced last year.  

"Picture the consternation and confusion among delegates from the 
134 member countries listening to simultaneous translations of Mr 
Moore's descriptions of critics of unrestricted trade and investment 
as "grumpy geriatric communists.. . a mutant strain of the left who 
tuck their shirts into their underpants" and "primitives who if they 
had their way would plunge our nation and the region into chaos 
and depression".  To have such a zealous free trader in the WTO 
top job could blow the whole thing apart."

"The New Zealand Government continues to put itself on the 
extreme edge of trade and investment liberalisation and blind faith 
in a free market model which has failed to deliver benefits to any 
but a small handful, at great human costs."   "Instead of pushing for 
the inclusion of new issues in the upcoming WTO round we need a 
comprehensive, in-depth review and assessment of the existing 
agreements and a moratorium on introducing new issues. But the 
New Zealand government is so besotted with the free market, it 
does not believe that such assessments are necessary".  

"Recent correspondence with several ministries about government 
support for further liberalisation of trade in forest products 
confirms this view.  There has not been any assessment of the likely 
impacts of such agreements on New Zealand and the region's 
forests, nor are there any plans to carry one out. Yet the New 
Zealand government is vigorously pushing to conclude a forest 
product liberalisation deal."

"The heat, tension and acrimony surrounding the WTO leadership 
race is symptomatic of a much deeper unease at the way in which 
the organisation operates, and the dubious benefits from the policies 
it promotes which have failed to trickle down to the majority of the 
population - globally and here in New Zealand," said Mr Choudry.

For further comment: contact Aziz Choudry, GATT Watchdog 
(03) 3662803 



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