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
