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Eyes on Trade

Public Citizen's Global Trade Watch blog on globalization and trade

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About Public Citizen's Global Trade Watch

Global Trade Watch's mission is to ensure that in this era of globalization, a majority have the opportunity to enjoy economic security, a clean environment, safe food, medicines and products, access to quality affordable services such as health care and the exercise of democratic decision-making about the matters that affect their lives.

Who are we?

 

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WHAT IS GLOBAL TRADE WATCH?

Global Trade Watch (GTW) is a division of Public Citizen, the national, nonprofit consumer advocacy organization founded in 1971. Public Citizen has over 225,000 due-paying members mainly in the United States. Global Trade Watch was created in 1995 to promote government and corporate accountability in the globalization and trade arena Public Citizen did not get into “trade.” Rather, we recognized early on that the interests we had long battled domestically in promoting our agenda of democratically accountable governance, economic justice, public health and environmental wellbeing were advocating for new international institutions where decisions could be made behind closed doors and without the participation of those who would live with the results. We learned how “trade” pacts such as the World Trade Organization (WTO) and the North American Free Trade Agreement (NAFTA) impose expansive constraints on federal, state and local governments with respect to many non-trade policies, from food and product safety to financial regulation to local development and access to essential services to climate change and the environment and more. The pacts also establish new rights for foreign investors to operate under deregulated terms in financial services, natural resource extraction, and other sensitive sectors. Effectively, these "trade" agreements shift an ever-increasing number of issues away from local decision-making bodies and into inaccessible foreign venues where few citizens or elected officials can follow. Thus, merely to remain effective in achieving our goals, Public Citizen had to design strategies to effectively engage in this new context.

Having built unique substantive capacity and diverse contacts with other public interest organizations, the press and policy-makers, GTW's work makes Public Citizen one of the few U.S. progressive organizations focused full-time on globalization issues. Our work seeks to make the measurable outcomes of this model accessible to the public, press and policy-makers, while emphasizing that if the results are not acceptable, then the model can and must be changed or replaced. We have become a leader in promoting a public interest perspective on an array of globalization issues, including implications for our jobs and wages; food, health and safety; environmental protection, economic justice, and democratic, accountable governance. GTW has a proven ability to make complicated, seemingly arcane, intractable issues accessible and relevant to the press, policy-makers, and the public – building bottom-up pressure for change. GTW has a record of designing strategies and campaigns that operate on the local, state, national and international levels to affect the outcomes of policymaking.

Representatives of Public Citizen's Global Trade Watch division serve on the Executive Board of the Citizens Trade Campaign, a coalition of labor, environmental, religious, family farm and consumer organizations united in the pursuit of socially and environmentally just trade policy.

GTW also represents Public Citizen as a member of the Our World Is Not For Sale (OWINFS), a network of organizations, activists and social movements worldwide fighting against the current model of corporate globalization embodied in global trading systems. OWINFS is committed to a sustainable, socially just, democratic and accountable multilateral trading system.

 

HOW DOES GTW AFFECT PUBLIC POLICY?

GTW combines substantive and analytical capacity with extensive grassroots, press, and policy-maker relationships to develop public policy debates on vital trade and globalization issues. We design multifaceted national and international campaigns that focus on the current mechanisms of globalization, such as the WTO its General Agreement on Trade in Services (GATS) and other WTO pacts; NAFTA and its expansions including the Central America Free Trade Agreement (CAFTA) and various bilateral U.S. Free Trade Agreements (FTA); and the procedures by which such policies are designed and implemented. We also carefully track ongoing negotiations, including with respect to the proposed Trans-Pacific Partnership FTA and Doha Round WTO expansion. We conduct research and monitor trade pact outcomes; publish books, reports and a wide range of other materials; maintain our online Trade Data Center of publicly accessible, localized information; educate the public through an extensive grassroots program; maintain relations with press and policy-makers; and coordinate closely with an array of domestic and international allies and partners.

WHAT IS GTW’S PHILOSOPHICAL APPROACH?

Animating many facets of our work is the concept of the “public citizen” - a person who, once empowered with information and tools to effect change, makes being an activist part of her or his daily life. Thus, a GTW goal is clarifying for people that the current globalization model is neither a random inevitability nor “free trade.” We have worked in many venues to demonstrate for the public, press and policy-makers that our current system is merely one version of rules, which includes a “corporate-managed trade” system, removal of government safeguards policies on investment and finance, commodification of environmental commons and public services, deregulation and international harmonization of domestic regulatory standards and new protections and rights for investors and foreign corporations. GTW has engaged many new constituencies by showing how “trade” affects their interests. All of our work seeks to make the measurable outcomes of this model accessible to people, while reiterating that if the results are not acceptable, then the model can and must be changed or replaced. We focus most of our resources on U.S. domestic work because, despite the real achievements of our counterparts in many nations, transformational change to the terms of globalization will be thwarted unless we can change the U.S. approach.

WHAT ARE GTW'S MAJOR ISSUES?

The World Trade Organization (WTO): Just over ten years ago, citizen activists shut down the WTO ministerial in Seattle to protest the devastating impact of the WTO's corporate globalization agenda on our jobs, wages and the environment. Now, big corporations are back at it, again pushing an expansion of the WTO's power. The 2001 “Doha Round” WTO expansion, the same retrograde agenda that would expand the WTO’s powers that was rejected in Seattle in 1999, was launched over the objection of many countries shortly after the 9-11 terrorist attack. GTW works with a global network of civil society groups to stop the Doha Round and replace that agenda with negotiations to replace the existing WTO rules. GTW prioritizes work on the WTO because it is a primary delivery mechanism implementing the corporate-led model of globalization. Indeed, in a moment of candor, the WTO’s first Director General, Renato Ruggiero, announced: "We are writing the constitution for a single global economy." The WTO enforces 17 agreements, most of which have little to do with trade per se. Effectively, it is an enforceable system of global governance that imposes broad constraints on its signatory governments’ domestic policies on any non-trade matters. The WTO requires that countries “ensure the conformity of their laws, regulations and administrative procedures” with the 900-plus pages of the WTO’s non-tariff rules. Countries whose laws extend beyond the WTO’s constraints on food safety, financial regulation, affordable generic medicine, and more can be challenged within the WTO’s binding dispute resolution tribunals. There, countries are ordered to conform their laws to the WTO rules and trade sanctions can be imposed until they do so. Our book “Whose Trade Organization” provides a comprehensive record of the WTO’s damaging outcomes.

NAFTA Expansion and the FTAs with Korea, Colombia and Panama: Given the damaging outcomes of NAFTA and its existing expansions, GTW is working to stop three more such deals. Negotiated by the Bush administration, all three pacts have now been adopted by the Obama administration. These pacts pose significant policy and political peril. Passing the Korea deal would kill tens of thousands more U.S. jobs. Even official government studies show it will increase the U.S. trade deficit. Passing the deal with Colombia, the world’s unionist assassination capital, would kill any leverage Colombian union, Afro-Colombian and other community leaders and their U.S. union and civil society friends and allies have to stop the murders, forced displacements and other acts of political violence that dominate life in Colombia. And passing the Panama deal would kill our ability to fight tax havens and try to extract the millions in unpaid corporate taxes we need to balance the U.S. budget without risking attack by corporations under new privileges established in the pact. President Obama campaigned and won on his promises to deliver a fundamental change of course on our trade policy. Instead, we face a situation - an Obama Colombia-Korea-Panama NAFTA expansion - that is equal parts damaging, heartbreaking, infuriating and disgusting. But, these pacts will only go into effect if Congress approves them, so contact your member of the House of Representatives today.

Trade Agreements and Financial Deregulation: Foreclosed homes. Lost jobs. Collapsing banks. The greatest government involvement in the economy in generations. While these headlines dominated the news, one of the root causes of the global financial crisis has largely been ignored: over the last several decades, the U.S. government and corporations have pushed extreme financial deregulation worldwide using "trade" agreements and international agencies like the WTO, FTAs and Bilateral Investment Treaties. Deregulation of the financial sector from banking and insurance to asset-management, pension-funds and securities, is among the most consequential but least discussed aspects of WTO and other trade pacts. Indeed, until recently, few were even aware that the WTO and FTAs covered financial policies, much less that they locked countries into deregulation they undertook in the 1990s. The new global consensus for reregulation conflicts with the trade pact bans on many common forms of financial regulation. And, unimaginably, the proposed Trans-Pacific FTA, the three pending FTAs with Korea, Panama and Colombia and the WTO Doha Round would impose further financial deregulation. GTW has created a new body of research and analysis that unpacks this issue and proposes solutions to the existing rules’ problems. We are working with civil society organizations, scholars and government officials in numerous countries to try to fix the existing rules and ensure no further deregulation is imposed in future pacts.

Trans-Pacific Partnership FTA: These negotiations with Asian and Latin American nations were originally initiated by the Bush Administration in 2008, with a focus on financial deregulation and new foreign investor rights. The Obama Administration decided to continue with this process in 2010, promising it would create a new “high-standard 21st Century” agreement. However, as talks have proceeded, the administration has in fact begun to replicate the old model, heading the process towards becoming a NAFTA with Australia, Brunei, Chile, New Zealand, Peru, Singapore, Malaysia and Vietnam. As the first trade agreement negotiations entered into by the Obama administration, this is a critical venue in which the administration could create a new U.S. trade agreement model to replace the failed NAFTA model. Activists and policymakers in the countries involved in these talks have become increasing concerned about their direction and have intensified efforts to ensure either these talks result in a new deal or no deal. The target date for completion of the Trans-Pacific FTA is the end of 2011, but talks are expected to continue into 2012.

The Trade Reform Accountability Development and Employment (TRADE) Act: The TRADE Act outlines a way forward to a new American trade and globalization agenda that could benefit more people. This legislation lays out what we are FOR as a model for trade expansion that can harvest the benefits of trade without the damage of the NAFTA model. This alternative trade agreement and negotiating model is supported by a broad array of labor, consumer, environmental, family farm and faith groups. It requires a review of existing trade pacts, including NAFTA and the WTO and sets forth what must and must not be included in future trade agreements. It also provides for the renegotiation of existing trade agreements and describes the key elements of a new trade negotiating and approval mechanism to replace Fast Track that would enhance Congress' role in the formative aspects of agreements and promote future deals that could enjoy broad support among the American public. By the end of the 111th Congress, 152 members of the House of Representatives had cosponsored this legislation. This included more than two-thirds of House Democrats from conservative New Democrats and Blue Dogs to Progressive to Black and Hispanic caucus members and two-thirds of the full committee chairs and 55 subcommittee chairs – plus GOP. I

International Investment Rules That Erode Governments’ Authority: Under these rules, foreign corporations are empowered to sue governments in closed foreign tribunals outside of domestic courts directly for cash compensation. If a corporation wins, the taxpayers of the "losing" NAFTA nation must foot the bill. NAFTA's investment chapter (Chapter 11) contains a variety of new rights and protections for investors and investments in NAFTA countries. If a company believes that a NAFTA government has violated these new investor rights and protections, it can initiate a binding dispute resolution process for monetary damages before a trade tribunal, offering none of the basic due process or openness guarantees afforded in national courts. These so-called "investor-to-state" cases are litigated in the special international arbitration bodies of the World Bank and the United Nations, which are closed to public participation, observation and input. A three-person panel composed of professional arbitrators listens to arguments in the case, with powers to award an unlimited amount of taxpayer dollars to corporations whose NAFTA investor privileges and rights they judge to have been impacted. This extraordinary attack on governments' ability to regulate in the public interest is a key element of recent and proposed NAFTA expansions. Almost any government action, including non-discriminatory regulatory measures – local zoning laws, state court rulings, forestry laws, toxics bans have and can be challenged before trade tribunals bereft of due process guarantees or sovereign immunity shields. GTW was a global leader in exposing the dangers of the Multilateral Agreement on Investment (MAI) proposal that was derailed through an international civil society campaign, and currently is raising awareness about similar extreme investor rights and their private enforcement included in the three Bush-era FTAs and now being promoted by the United States in the Trans-Pacific FTA. We have tracked all of the NAFTA, CAFTA, and FTA “investor-to-state” cases which provide evidence of the threats poses by this model of extraordinary investor privileges and rights. To date, $350 million has been paid out in NAFTA cases. Here is our comprehensive table of all NAFTA, CAFTA and FTA cases.

Replacing Fast Track With an Inclusive, Democratic Trade Negotiating and Approval Process: Fast Track was a U.S. procedure established in the 1970s by President Nixon for negotiating trade agreements that concentrated power in the president’s hands. It delegated to the executive branch Congress’ exclusive constitutional authority to “regulate Commerce with foreign nations.” In particular, Fast Track allowed the executive branch to select countries for, set the substance of, and then negotiate and sign trade agreements — all before Congress had a vote on the matter. Under Fast Track, normal congressional committee processes were circumvented and the executive branch was empowered to write lengthy implementing legislation for each pact on its own. These executive-authored bills altered wide swaths of U.S. law to conform domestic policy to each agreement’s requirements. Moreover, Fast Track was unique in that it empowered the executive branch to force a congressional vote on such implementing legislation and the related agreement within a set amount of time. This system has been used to ram through Congress trade pacts that do not enjoy public support. Fast Track renewal was last slipped through Congress at midnight in 2002 by only two votes. On June 30, 2007, the current grant of Fast Track, now called “Trade Promotion Authority” by its supporters, expired. Fast Track is not needed to approve trade agreements, a fact proven by the dozens of trade agreements that have been passed without its use. Fast Track unnecessarily creates a situation where negotiators cannot be held accountable by the public, and legislators are denied their constitutional authority to set the terms of trade agreements. A longtime priority of GTW is to replace this mechanism with a new process that provides a meaningful role throughout for Congress and state legislatures and that provides the openness and opportunities for public participation that could result in trade pacts that enjoy broad support. A Fast Track replacement that enjoys broad support is included in the TRADE Act.

Trade Pact Invasion of State and Local Policy Space: Starting with NAFTA and the WTO in the mid-90s, international "trade" agreement provisions began invading traditional state policy space - delving deeply into matters of state law from bans on state-level Buy-Local procurement policy to rules limiting land use policy to constraints on energy, health and other service sector regulation. Indeed, today, U.S. trade agreements contain numerous non-trade policy obligations and regulatory constraints to which state, and local governments are bound to conform their domestic policies – even though these rules cover matters otherwise under state authority. GTW has worked to help build awareness among state and local officials about this pernicious form of international preemption and helps officials engage in the process to try to safeguard state and local policy space.

 

WHAT ARE SOME OF OUR PUBLICATIONS?

GTW serves as researcher and translator of an array of globalization issues for other NGOs, the press, policy-makers and the public. We continually create, update and distribute materials ranging from lengthy, footnoted books and reports to fact sheets and talking points on a multiplicity of topics. In each section of our website, you will find a diverse set of materials that provide information for different audiences. This includes fact sheets and talking points on current campaigns, charts of how each member of Congress voted on each major trade vote since 1991, tables summarizing the outcomes of NAFTA, CAFTA, FTA and WTO cases, lengthy footnoted memos so you can dig deeper, copies of actual trade pact texts with annotation to make them user friendly and guides, such as our Pocket Trade Lawyer (available in numerous languages), key to reading a GATS schedule and more. The goal of our website if to make accessible and understandable sometimes complicated or publicly unavailable information about trade and globalization and how it affects each of our daily lives. Do you need more information? Contact us on gtwinfo@citizen.org.

Contact Us

Public Citizen’s Global Trade Watch,
215 Pennsylvania Ave, SE, Washington DC, 20003.
gtwinfo@citizen.org / www.tradewatch.org

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