Started by SysOut at 08:00pm May 23, 2002 BST

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From: World Trade Organisation Public Relations <communications@gatt.org> Subject: WTO to shut down, refound under new charter

[NOTE: On May 21, information regarding the WTO's restructuring was released prematurely at a special luncheon of CPA Australia, Sydney (http://www.aapmedianet.com.au/scripts/DisplayRelease.dll?id=304601). The early release of this information, which met with overwhelming approval, has accelerated this announcement, originally scheduled for next Friday.]

May 23, 2002 FOR IMMEDIATE RELEASE

WORLD TRADE ORGANIZATION WILL DISBAND, REFOUND UNDER NEW CHARTER

After a protracted and detailed review of current trade policy and its effects on developing countries, the World Trade Organization has decided to effect a cessation of all operations, to be accomplished over a period of four months, culminating in September. The WTO will

reintegrate as a new trade body whose charter will be to ensure that trade benefits the poor.

As of September, agreements reached under the WTO will be suspended pending ratification by the new organization, tentatively referred to as the Trade Regulation Organization. Many existing agreements are likely to be re-ratified, but each will be subject to individual review for compliance with the TRO's charter, which is based upon the Universal Declaration of Human Rights.

The restructuring has come in response to numerous studies (http://www.gatt.org/trastat_e/) indicating that current trade liberalisation rules and policies have led to increased poverty and inequality, and have eroded democratic principles, with a disproportionately large effect on the poorest countries.

Under the restructuring, the GATS agreement will be scrapped entirely, and a new agreement regulating services will be forged after an assessment of the effects of past services liberalisation, and when there has been adequate opportunity for governments and civil society to analyse and debate new proposals.

In addition, all aspects of TRIPS, TRIMS, AoA, and other agreements will be reviewed with humanitarian and other considerations in mind, and will be progressively replaced with corresponding versions under the TRO.

Proposals and resolutions for the foundation of the TRO will be evaluated beginning in June according to their likelihood of furthering the TRO charter. Specifically this will mean redressing the imbalances of existing trade agreements; providing access for developing countries to developed countries? markets; assessing the effects past trade liberalization and redressing problems where possible; and developing an enforceable framework for special and differential treatment guaranteeing that development policies are not undermined by trade agreements.

The immediate necessity, besides fixing core problems, will be to build a new regime of trust among members (notably between HIC and LDC members), with civil society organizations (NGOs), and with members of the public. The core goal is to establish rules whose priority is to benefit the poor, improve the environment, and strengthen democratic

principles--in a pragmatic and immediate rather than theoretical and longterm sense.

In order to provide greater access to the Least Developed Countries who will most benefit from the existence of the TRO, the organisation's headquarters will be moved from their current location in Geneva to the capital of one of the LDCs. Proposals for final location are currently being solicited.

CONTACTS:

World Trade Organization Public Relations: communications@gatt.org CPA Australia Public Relations: barbara.magee@cpaaustralia.com.au

United Nations Universal Declaration of Human Rights: http://www.un.org/Overview/rights.html

Studies page: http://www.gatt.org/trastat_e/

This release online: http://www.gatt.org/

Interesting stunt. How did you spoof the address? That is one of the better hoaxes I have seen.

The real thing, of course http://www.wto.org/

Just something a pen friend sent me...

Did they just register a gatt.org site and copy most of the content from the wto.org site? It actually had me wondering if I had completely missed a major change in international economic diplomacy, for about 10 seconds.

yeah. Freaky.

Ahhh! If only it were true!

<dreams on about a better world>

Yeah - Abolish the WTO, Tariffs for Everyone!!

For a moment there, I was about to re-evaluate everything I believed about western governments and corporations.

Well, seeing your views on other threads, that still could be a good idea.

Nah, I'd love to have a reason to re-evaluate what I think, but I haven't found one yet.

Ok, a query then - does trade liberalization benefit or hinder economic development?

If there was perfect trade liberalisation, it would benefit economic development, yes. But:

1) It is far from perfect. The rich countries dictate terms. The USA has slapped protective tariffs on steel, agriculture and a whole load of other products. As has Europe.

2)Economic development is not everything. A developing country needs to get it's infrastructure right before even thinking about economic growth. Forcing coutries to liberalise their health, education, water and electricity supplies when they are still developing makes poor people far poorer.

1). Agree - but, given the completely unequal balance of political, does it not therefore dictate the need for a multilateral organization to lower developed countries' tariff barriers?

2) How so? Does the import / export of goods and services affect how countries tax, provide social services, etc? Are you not confusing trade liberalization with government austerity budgeting and privatization?

1) It is far from perfect. The rich countries dictate terms. The USA has slapped protective tariffs on steel, agriculture and a whole load of other products. As has Europe.

This is a separate issue from trade liberalization. The IMF often forces austerity measures in order to give countries financial aid, but no one forces countries to privatize in order to trade.

No, countries are often given loans, with the condition that they must liberalise their water, electric system, healthcare and education systems. Then westen companies come in, take over the public services and the cost goes up, so people are left without basics. Countries often have no choice.

But I have argued about this so many times on GU that I can't be bothered re-stating arguments. Read George Soros, On globalization George Soros is hardly a left wing radical, and he makes a lot great points.

Again, you're talking about gov't deficit financing. What does that have to do with trade liberalization?

Actually, Soros doesn't talk at all about trade liberalization. His beef is with unregulated capital markets and its effect on gov't sovereignity.

I've just told you. That's what trade liberalisation is

Opening your markets. All your markets.

i no one forces countries to privatize in order to trade

Don't they? Well, Cuba has resisted so far. Is the trade embargo still in place? Venezuala resisted, there was a US backed coup. Iran nationalised it's oil industry - there was a westen backed coup.

#20 It's the same thing, or at least two sides of teh same coin

Trade and financial markets generate wealth effectively but cannot take care of other social needs.

A quote from Soros:

http://www.soros.org/textfiles/writings/103001_The_Free_Market_for_Hope.txt

Don't they? Well, Cuba has resisted so far. Is the trade embargo still in place? Venezuala resisted, there was a US backed coup. Iran nationalised it's oil industry - there was a westen backed coup.

This is a very skewed view of history. Following your logic, why isn't the US launching an embargo on Norway, with its publicly controlled oil?

Or England, when it nationalized its automotive industry, or France / Germany / UK / etc with their nationalized mass transit & public health systems, or India, with its 30 years of socialist policy, or every LDC that followed input substitution trade policies for over 20 years, or Brazil, with massively high tariff barriers on automobiles, computers, and many other goods, etc etc etc.