Voices against globalisation of trade has started emanating from the so-called citadel and advocate of free trade — USA. This makes us to think — whether the globalisation is proceeding in its right way ?
Last week the Bush administration had to face the wrath in the Congress with representatives demanding a vote on whether to quit the WTO. US law gives Congress the right to vote on WTO membership every five years. The US Trade Representative Office must prepare a report outlining the costs and benefits of the country’s participation in the WTO.
The Bush administration, however, submitted a annual trade report to the Congress and made a case for concluding WTO negotiations during the President’s second term in office. The report also contains five-year report on the impact of US participation in WTO.
The US trade office has warned that quitting WTO would result in closure of markets to “Those American workers and farmers dependent on continued trade liberalisation and would ignite unfettered trade practices that would distort the global economy beyond anything imaginable today.”
The first part of the statement shows a clear admission how “those” American farmers are benefitted. In fact it is the rich farmers in US who are largely benefitted by the distorted trade practices. The second part of the statement is, however, a false claim that US is preventing unfettered trade practices that seeks to distort global economy beyond anything imaginable today.
The US trade office has argued that “free trade” has helped the country to boost its gross domestic output 18% over the past 10 years and resulted in 25% rise in individual income. The US consumers are benefitted by lower prices for groceries and other goods such as automobiles, televisions and cellular phones. This statement is also another admission of how the US consumers benefits on account low global prices, particularly in case of groceries.
However, representatives like Bernie Sanders questioned the report of US trade office and said that the costs of WTO membership and North American Free Trade Agreements are too high. Mr Sanders alleged that the US trade policy has been a disaster for the middle class and workers. He said that US workers should not be asked “To compete with desperate people in China and elsewhere who are forced to work for 30 cents an hour, who go to jail if they try to form independent unions.”
George W Bush has already read the writing on the wall in his own country. He is desperate and wants to conclude the WTO negotiations in his last term of office. There is a growing opposition in the Congress about US trade policy. US trade deficit has soared by 24% to the level of $ 617.7 billion in 2004. The recent WTO ruling against US anti-dumping laws has upset many in the Congress. These anti-dumping laws are designed to protect local producers. All these factors will determine the US future course of negotiations in the WTO.
It is almost certain that US will become more aggressive in WTO negotiations, trying to defend its domestic support and subsidies and denying market access to the Third World. It may try to bring back contentious Singapore issues and insist on harmonisation of patent laws as strategies to bargain to its benefit for keeping its trade protection regime secure.
The process has already begun. The US in its proposed bilateral investment treaty with Pakistan has suggested inclusion of protection of intellectual property rights in the definition of investment. Pakistan has raised objection to this proposal.
The US is pressing Mercosur and Andean group of countries to join the Free Trade Area of Americas (FTAA). The annual report presented to the Congress said that without WTO, other countries could impose higher duties on American exports. And without the WTO, the US would not have the leverage it needs to address trade barriers that disadvantage American farmers, ranchers, workers and business, including discriminatory tax policies and custom procedures, subsidies, unjustified anti-dumping actions and weak intellectual property protections. The annual report, thus, clearly lays down the agenda for US negotiations in WTO.
The aim of US negotiations is likely to be based on asking other countries to open up their markets, while US will continue to protect its own market. The message of the annual report is clear that US wants a harmonisation of patent laws and the harmonised patent law will be included in WTO agenda.
The growing opposition in the Congress to the US unfair trade practices is a sufficient indication that it does benefit the poor in that country. The Bush administration is determined to maintain this hegemony in favour of the rich.
source: http://www.financialexpress.com/fe_full_story.php?content_id=84554 7mar2005
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