Clinton Whacked on WTO

Jeffrey St. Clair sitka at home.com
Wed Feb 9 07:37:39 PST 2000


Daniel P. Moynihan, proving once again, his endorsement of HRC is hardly a merit badge to be worn on the working class side of town.--jsc

Clinton Rebuked Over Trade Talks

By MARTIN CRUTSINGER AP Economics Writer

WASHINGTON (AP) -- Members of Congress sharply criticized the Clinton

administration's handling of global trade negotiations that collapsed last year amid

violent protests in Seattle. One Democratic senator contended that U.S. trade

policy is currently in ``crisis.''

U.S. Trade Representative Charlene Barshefsky and Treasury Secretary Lawrence

Summers faced tough questioning Tuesday from lawmakers on two separate

Congressional committees demanding to know what approach the administration

was taking to rescue efforts to launch a new round of trade negotiations. The talks

were designed to open markets for American farmers and manufacturers.

An effort by the World Trade Organization to start such talks failed in early

December when 135 nations attending the Seattle conference could not agree on a

negotiating agenda. The conference was marked by street protests against

globalization which turned violent, forcing authorities to declare a state of

emergency and call out the National Guard.

One of the stumbling blocks to launching a new negotiating round was the

administration's insistence that new discussions include a working group to study

the link between trade and labor issues. The Clinton administration has also been

pushing for future trade agreements to take environmental standards into account.

Both of those issues are deeply opposed by the more than 100 developing

countries who make up the bulk of the WTO's membership. They argue that

linking trade agreements with labor and environmental standards represents a

threat to the competitive advantages they enjoy over industrial countries.

Senate Finance Committee William Roth told Summers that while such issues

could be addressed ``we feel there are other forums for doing so'' other than the

WTO. He said the administration's intransigence on this point was causing a

harmful delay in starting new trade discussions to open markets for U.S. products.

Sen. Daniel Patrick Moynihan, D-N.Y., told Summers the administration was

trying to have it both ways, arguing that it supported a more open trading system

while pursuing efforts to impose trade barriers against countries with deficient

labor and environmental rules.

``You can't say we want a more open trade system and we want arrangements that

will prevent trade,'' Moynihan said. ``American trade policy is in a crisis. It is the

only crisis on the horizon that could spoil the economic good times.''

Summers told the Senate committee that the administration was simply trying to

get approval for a study group to look at the link between trade and labor issues.

However, that issue was muddled during the negotiations when President Clinton

said in a newspaper interview that the ultimate U.S. goal was to impose sanctions

against countries with poor labor standards.

Both Summers and Barshefsky, who appeared separately before a House Ways

and Means trade subcommittee, insisted that the administration was continuing to

work with other countries to find ways to find compromises that allow for a new

round of trade discussions. Barshefsky noted the WTO had agreed to start

preliminary discussions in the area of agriculture and services while trying to work

out ways to launch a broader trade round.

The House panel received a General Accounting Office report that said no one

factor could be blamed for the failure of the Seattle talks but it did suggest too little

advance work had been done to narrow differences before the trade ministers

reached Seattle.

Barshefsky insisted that the world trading system would survive the Seattle

breakdown, noting that there have been many such negotiating failures in the past

with the WTO's predecessor, the General Agreement on Tariffs and Trade.

But Rep. William Thomas, R-Calif., challenged that assertion, saying the collapse

of the Seattle meetings was ``far more disastrous'' because of the extensive

television coverage of the street protests.

The administration received support for its insistence on linking future trade deals

with labor and environmental protections from environmental groups and labor

organizations who testified before the House panel.

AFL-CIO President John Sweeney said the current rules of the global economy

``have freed up corporations to move production around the globe in search of the

most vulnerable and disenfranchised workers and the most lax regulation.''

AP-NY-02-08-00 1819EST



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