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WTO and Democracy?

NIGD News and Notes April 2005

In this WTO special:
1. Universal Rights and Democracy in Investments, Competition and Services of the Global Economy
2. Trade War over GM Food: WTO as the Trojan Horse
3. Towards a Democratic Intellectual Property Regime
4. Undercurrents in World Trade

On 9-10 April, at the Fourth Finnish Social Forum, NIGD launches four Discussion Papers on the WTO and its democracy deficit. What are the main issues in trade policy today? What is the proactive trade political agenda of civil society organisations? The English summaries of the discussion papers are presented in this WTO special.

1. Universal Rights and Democracy in Investments, Competition and Services of Global Economy

Ville-Veikko Hirvelä calls for space for democratic will-formulation for the peoples of the world. One step in the direction of creating such a space is to implement a regime of global taxation. In particular taxation of financial transactions and ecological issues are of prime concern. In his discussion paper, Ville-Veikko says that the peoples must be granted the right to decide over their own living conditions. He explains how the present political system does not allow for peoples to take equal part in decisions on a global level. These decisions include issues regarding the distribution or use of global resources. The conditions for the economy and its profitability must be open and free for the peoples to decide over through means of democratic mechanisms for decision making and participation.

2. Trade War over GM Food: WTO as the Trojan Horse

Anastasia Laitila has written about the EU and US dispute on the import restrictions on genetically modified foodstuff. The actual purpose is to point out through case studies how MNCs and industries use the WTO as a tool to promote and strengthen their own interests. On the other hand this case is also a good example of how some countries promote trade liberalization without always wanting it themselves. For example the EU has been driving for more liberalisation through the WTO but is still trying to restrict market access for foodstuff (such as hormone treated beef and genetically modified organisms).

3. Towards a Democratic Intellectual Property Regime

Knowledge is the basis of all societies. Throughout history there have been contradictory tendencies towards knowledge. On the one hand, there is the democratic tradition where freedom and sharing are the main principles. On the other hand, there is the tendency of monopolies. They have been exercised by states, religious institutions and more recently corporations. This model can be called feudal as it concentrates power and benefits to few. The neo-liberal era in politics and economics has reinforced the feudal tendencies in knowledge systems. Consequently, the set of international agreements on intellectual property rights (IPR) have become more important during the past decades.

Marko Ulvila calls for a policy change from a corporate innovation system to a democratic innovation system in the fields that are essential to human welfare and survival. These include food and nutrition, public health and scientific knowledge. Immediate steps needed would be the discontinuation of the TRIPS agreement, pursuing the proposed development agenda in the World Intellectual Property Organisation, removal of patents on essential drugs, removal of patentability of living organisms and the promotion of open content, standards and access.

4. Undercurrents of World Trade

The conditions for democratic trade relations are equal positions of negotiation. Democratic participation (as based on equal possibilities of participation and influence by all parties) presumes that there are no asymetric dependency relations between the participants. However, behind the scenes of the official trade negotiations there are many factors that lead to imbalance in positions of negotiation. Katarina Sehm Patomäki calls these factors undercurrents in world trade. In her text, she has defined the undercurrents to stem from dependency relations between the South and the North. These dependency relations have emerged as a result of the policies of double standards as practiced by the North toward the South. Double standards are particularly visible in the areas of clothing and textiles, agricultural products and food stuff, military industry and steel and iron. In her discussion paper she has collected ten suggestions and concrete proposals on how to break these undercurrents in order to make decision-making mechanisms regarding world trade truly democratic.


 

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