Socialist Resistance

An archive of socialistresistance.org, 2002–2022

Should we be happy that Cancún summit failed? What's the - alternative to the WTO!

Socialist Resistance no10  |  page 18

This is scanned newsprint, not web text. The original PDFs carried no text layer at all, so every word here was read off the page by OCR. Expect dropped opening letters, run-together words and wrong characters. There was no contents page to cut the paper up by, so the articles were found from the size of their headlines: a headline may carry its kicker, and where an article ran beside a boxed panel a few lines of the neighbour can appear. The scanned issue is the authority; this text is here so the words can be found at all.

Why is failure at Cancún welcome?

The talks were intended by WTO leaders to further reduce barriers to international trade and investment. The Cancún agenda was supposed to slash tariffs on farm goods and eliminate agricultural-export subsidies. It would cut industrial tariffs, especially in areas that poor countries cared about, such as textiles. It would free up trade in services; and it would negotiate global rules (subject to a framework to be decided at Cancún) in four new areas — competition; investment; transparency in government procurement; and trade facilitation.

The problem was that neither the US nor the EU, who currently subsidise their big farmers to the tune of $52bn and $88bn respectively, causing ruin to millions of third world farmers unable to compete, were prepared to make serious concessions.

The sunder has turn so towards a 290 stock arkan ga protectionism since the crash but still want their powerful companies to gain unlimited access to other countries' markets. They and the EU want the legal right to invest abroad without restrictions - such as clauses specifying minimum local content sourcing, profit repatriation, health and safety legislation, job creation and security, and minimum wages.

They also want the right for their multinationals to bid for all government contracts without restrictions, in contests in which local competitors would be overwhelmed. The current sale of the Iraqi economy by the US administration to its corporate friends demonstrates its global intentions.

But the EU, led by chief negotiator intransigent - both on agricultural also encouraged some of the poorest African countries such as Mali to stand up to Uncle Sam, over its subsidised cotton exports, which have wrecked their fragile

But all sides agree that the intervention of an alliance of NGOs and mass movements in various parts of the globe played a key role in encouraging the weaker nations to

of Tradhonor 49s Korean Confeder powerful actors on the world stage.

Without them the weak poor country ruling classes would have contented themselves with the odd crumb from the imperialist feast. The Brazilian Workers Party government is a classic illustration of this weakness and vacillation, pursuing a neoliberal programme at home but prepared in its foreign policy to display some independence from imperialism.

The "irresponsible" NGOs (which as Oxfam to mass trade unions) who The Economist absurdly blames for the failure of Cancún often represent litte by themselves. Many of them derive their current influence from their global reach, which enables them to form a strategic view, and from their ability to articulate the demands of poor country governments and/or mass movements.

But the US/UK coalition invasion of Iraq the massive anti-war movement articulating the opposition of the majority of the world's ... The WTO was formed to break open world markets for the major multinationals. If it cannot be used for this the US and EU will sideline it, much as the US has sidelined the United Nations in the field of political and military action. .•.• population which it provol

and its failure to defeat Iraqi resistance was also a key fac tor in Cancún.

This encouraged the waverers to stand up and be counted without fear of paying the consequences. If the US had been able to install stable rule in Iraq, and was threatening military action against anyone who stood in their way the picture would have been very different.

The victory of Cancún is likely to prove short-lived as the neoliberal juggernaut rolls on. The US and EU are increasingly disillusioned with the "mediaeval" WTO and are increasingly turning to bilateral trade and investment deals with individual countries or groups of countries. This will isolate them and weaken their negotiating positions in their desperation to increase investment and trade.

The solution to the unequal trading system which has reduced much of humanity to starvation does not lie in saving institutions like the WTO as some, including George Monbiot, have argued.

The WTO was formed to break open world markets for the major multinationals If it cannot be used for this the US and EU will sideline it, much as the US has sidelined the United Nations in the field of political and military action. Developing states such as India and China will prove temporary and unreliable allies in the fight against the unfair world trading system.

These states are merely concerned To protec that on pace cate

talist interests when they conflict with those of the big blocs. They only occasionally and temporarily coincide with the struggles of the world's oppressed in their conflicts with the ravages of imperialism. They are amongst the worst offenders in, for example, implementing disastrous dam projects in their own countries.

The only way forward to a fairer system of world trade which benefits the vast majority of humanity across the globe is to build the mass movements which have caused a crisis for the multinationals and their state sponsors to full trade spectrum dominance' since Seattle.

This means continuing to campaign for the cancellation of third world debt, fair (not necessarily market) prices and access for third world produce, and massive aid pro grammes. It means building the World regional and European Social Forum movements as the means of welding a world movement independent of all governments

One essential means to achieving this is the building of a mass movement to get the coalition troops out of Iraq. This is not only an obtainable objective but would be a fundamental blow to any US thoughts of achieving by military means what they cannot achieve at the negotiating table.

In the words of Lee Kyung-Hae

"My warning to all citizens is that uncontrolled multinational corporations and a small number of big WTO officials are endangering humans. They are leading an undesirable globalisation of inhumane, environmentally degrading, farmer-killing and undemocratic policies. It should be stopped • immediately, otherwise the false logic of neoliberalism will destroy diversity in globa agriculture with disastrous consequences to all human beings."