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>LE MONDE DIPLOMATIQUE - May 1999
>
>TRANSATLANTIC WHEELING AND DEALING
>
>Watch out for MAI Mark Two
>______________________________________________________________
>
>Sheltered from the hubbub of war and crisis, Europe, the United States
>and the World Trade Organisation (WTO) are devising agreements that
>will remove the final obstacles to the free play of "market forces"
>and require countries to submit to the unfettered expansion of the
>multinationals. Learning from the failure of the Multilateral
>Agreement on Investment (MAI), big business and technocrats are trying
>to force through a decision before the end of 1999.
>
>by CHRISTIAN DE BRIE *
>______________________________________________________________
>
>The corpse of the Multilateral Agreement on Investment (MAI) hardly
>had time to get cold in the vaults of the Organisation for Economic
>Cooperation and Development (OECD) (1) before the ultra-liberal Dr
>Jekylls led by Sir Leon Brittan, the outgoing European Commission
>vice-president and Thatcherite die-hard, have tried to clone it,
>excitedly hoping to see new Draculas emerge from their test tubes by
>the year 2000.
>
>This urgent work is being carried out in two secret laboratories with
>"keep out" signs to deter anyone not wearing a lab coat: the
>Transatlantic Economic Partnership (TEP) and the Millennium Round of
>the World Trade Organisation.
>
>The first of these, which opened on 16 September 1998, is dedicated
>(though it will not admit it) to that favourite project of the British
>and the Americans - seeing the European Union dissolved in a free
>trade area with the United States. Following the failure of the first
>attempt in 1994, a rehashed version presented by the European
>Commission on 11 March 1998 under the name NTM (New Transatlantic
>Marketplace) was thrown out by the foreign ministers of the Fifteen on
>27 April.
>
>As he had done before, Brittan went back to his drawing board (without
>seeking a mandate) to come up with a disguised version of his pet
>scheme. If the 27 pages of the Commission recommendation on the
>negotiation of agreements in the field of technical barriers to trade
>between the EU and the US (2) are anything to go by, the outcome
>promises to be instructive. (An abbreviated version was approved by
>the Council, empowering it to negotiate on behalf of the member
>states, then by the European parliament in September and November
>1998).
>
>On the pretext of removing "technical barriers to trade", which
>include health, social and environmental protection regulations, the
>ultimate aim is to "reach a general commitment to unconditional access
>to the market in all sectors and for all methods of supply" of
>products and services, including health, education and public
>contracts. In the inimitable jargon of the Commission, states and
>local authorities are required to make all derogations explicit in the
>form of "a negative freedom" given that the agreements negotiated
>apply to all the territory of the parties, regardless of their
>constitutional structures, at all levels of authority. This is very
>restrictive for the local authorities of the European countries, but
>of little risk to the US, where the federal states are not bound by
>Washington's signature in the matter.
>
>The aim is gradually to draw up common minimum regulations "based on
>the recommendations of enterprises" in order to "create new outlets"
>for them - all this in "a spirit of conviviality". Involved in the TEP
>talks from the outset, the multinationals have greatly influenced the
>content thanks to a powerful lobby that has been institutionalised for
>four years: the Transatlantic Business Dialogue (TABD) bringing
>together the upper crust of big business on both sides of the North
>Atlantic. Its last two-yearly meeting took place in Charlotte (North
>Carolina) in November 1998.
>
>Big business to call the tune
>
>In order to allay suspicion, they are trying to rush through the
>establishment of a Transatlantic Consumer Dialogue, a Transatlantic
>Labour Dialogue and a Transatlantic Environment Dialogue for
>consumers, trade unions and ecologists respectively, who will have to
>stay firmly within the bounds set by big business in the TABD. The
>latter has no intention of giving anything more than a half-hearted
>commitment to optional codes of conduct with no sanctions attached.
>
>Thus "hemmed in", talks proceed behind closed doors, using salami
>tactics to avoid alerting public opinion, so that everything can be
>sewn up by December 1999. Industrial goods, services, public
>contracts, intellectual property, etc. - in a dozen fields, slice by
>slice, "mutual recognition agreements" (MRA), apparently technical but
>in fact political, seek to reduce standards and regulations to the
>lowest common denominator. The outcome is that the safeguards that
>Europe has built up, in food, the environment and health in
>particular, are being dismantled.
>
>Once agreement has been reached, governments will be obliged to
>abolish any laws that conflict with the MRAs. And it is no surprise to
>find that the procedures will consist of meetings "at cabinet level in
>order to maintain political impetus" and between "top officials
>assisted where necessary by ad hoc or specialist groups" who will take
>care of everything together with consultants from the world of
>business.
>
>Talks conducted behind closed doors without democratic control aim for
>a hastily signed final agreement: the TEP follows the same aims as the
>MAI - to hand over all human activities to capital, without let or
>hindrance, thereby stripping the EU, member governments and local
>authorities of their ability to pursue their own policies, be they
>economic, social, cultural or environmental.
>
>But the document signed at the London transatlantic summit on 18 May
>1998 has another aim: to establish a US-EU condominium capable of
>imposing its will on the rest of the world, and in particular the
>countries of the South in the talks due to open at the WTO in
>December. The war being prosecuted, with the support of their
>governments, by transnational corporations on both sides of the
>Atlantic for the conquest and domination of world markets is becoming
>increasingly brutal and has no regard for laws. Witness America's
>extraterritorial Helms-Burton and D'Amato-Gilman acts that are
>contrary to international law; the banana war lost by the EU despite
>the Lom� agreements that are no longer worth the paper they are
>written on; the disputes over hormone-contaminated meat and
>genetically modified organisms (GMOs) that contravene health
>regulations, to name only a few recent examples that have made the
>headlines.
>
>For example, the US food industry organisation Grocery Manufacturers
>of America has decided to challenge the European "eco-labelling"
>directives and other consumer protection legislation said to reflect
>"local cultural values" and be discriminatory in terms of
>international competition (3). It is precisely the role of the MRAs
>negotiated under the TEP to settle such disputes in the best interests
>of business, even if the agreement makes an ass of the EU (4).
>
>Encouraged by the work of his first laboratory, the insatiable
>Brittan, far from being content to deal with the outgoing Commission's
>current business, is actively preparing for the success of the second:
>the Millennium Round. The idea is to convert the meeting of the
>ministerial conference of the 131 WTO member countries in Seattle in
>December 1999 into an enormous globalisation fair, where the removal
>of the final obstacles to capital's freedom of action would be
>negotiated pell-mell. Without any prior decision to that effect,
>public contracts, competition, product controls and investment would
>be added to the initial agenda for the revision of the 1994 Marrakesh
>accords on agriculture, services and industrial property. In other
>words, it is the MAI Dracula.
>
>In the case of intellectual property and farming, for example, this
>would mean absolute compliance with patent rights in seed, especially
>soya and transgenic rice, in which American corporations hold a
>monopoly, and strict limits on member countries' rights to hold buffer
>stocks against the risk of famine. In the case of public contracts,
>foreign firms would have the same rights as national ones for all
>local, regional and national public contracts, with the contract going
>to the most "efficient". In competition matters, countries would no
>longer have any control over public purchase offers and mergers. In
>the name of trade facilitation, controls in ports and airports would
>be restricted to one sample or container. For investment the proposals
>are the same as the MAI, except for arbitration.
>
>The multinationals intend having their way in everything: apart from
>the Transatlantic Business Dialogue and the European Round Table of
>Industrialists, a new lobby , the Business Investment Network, is hard
>at work. The Seattle meeting looks set to be a Millennium
>Merry-Go-Round; come next June, the International Chamber of Commerce
>will be rallying public opinion in its support, while Sir Leon Brittan
>will be touring Southeast Asia, trying to win over such recalcitrant
>countries as India, Pakistan and Indonesia. But, crisis-stricken and
>closely dependent on the International Monetary Fund (IMF), most
>countries of the South will put up little resistance. The scene seems
>to have been set in advance for the US and the EU to call the tune.
>
>The WTO's negotiating methods and practices lend a hand here.
>Countries are supposed to submit their lists of requests, concessions
>and requests for debate by the end of June 1999. After that, the WTO's
>executive body, the General Council, will work behind closed doors
>planning the content and proceedings of the ministerial conference.
>The details of the agreements will be worked out in a large number of
>informal meetings (not even the list of participants will be
>published) and the silence of the weakest countries will be taken to
>signify acceptance.
>
>"Transparency", "deregulation", "liberalisation", "opening of
>markets", "good governance" are only matters for countries and their
>citizens, never for large corporations. There is no draft
>international agreement to put an end to what is common practice in
>the jungle of big business: secret agreements and cartels, dumping and
>transfer price manipulation; speculation and insider dealing;
>financial crime, tax evasion and money laundering; spying and piracy;
>surveillance and exploitation of workers, banning of trade unions;
>plundering and embezzlement of collective resources and common
>property, endemic corruption of economic channels, major markets and
>state machinery.
>
>So there seems to be nothing to prevent the transnational corporations
>taking possession of the planet and subjecting humanity to the
>dictatorship of capital. Almost all of them are based in the most
>powerful countries of the North (the US, Canada, the EU, Japan) where
>large-scale mergers and concentrations continue apace with the
>unconditional support of governments and international bodies given
>over to their cause. Controlling virtually all the means of
>information and communication, they meet with only localised and
>sporadic resistance as they compete relentlessly for monopoly control
>of the markets.
>
>Making people submit to the implacable logic of profit is now the only
>policy of the great powers and the organisations they control,
>especially the OECD, IMF and WTO. The havoc they cause is terrible and
>they do it with impunity: accelerated impoverishment and destruction
>of the social structures of entire populations, who are deprived of
>the most basic rights, driven from their homes and left fighting for
>survival; the weakest state collapse under the weight of structural
>adjustment policies and debt, unable to guarantee their people's
>security or provide a minimum of working public services. The
>consequences are a return to barbarism and ethnic conflict; ever more
>crises bringing plummeting living standards and soaring unemployment
>(5); a widespread increase in inequality and poverty, even in the
>supposedly richest countries, especially that shop window of
>liberalism, Tony Blair's Britain (6).
>
>In order to crush any thought of organised resistance to the
>supporters of this new world order, tremendous police and military
>forces are being used to establish a doctrine of repression: poverty
>itself is made a crime on the domestic front just as recalcitrant
>states are internationally vilified (7).
>
>Able in a few hours to find the billions of dollars necessary to save
>from bankruptcy the few robber barons who have eaten their fill at a
>speculative fund (LTCM), these new master of the world cannot spare
>even one tenth that amount to provide over a billion human beings with
>clean drinking water, even though 25,000 people die every day for want
>of it (8). They are streaks ahead of the tyrants of the Middle East,
>the Balkans or elsewhere, against whom we are regularly roused to
>great humanitarian tirades. "Water is life!" proclaims Vivendi
>(formerly G�n�rale des Eaux) in a lavish advertising campaign,
>building its wealth on organising its scarcity.
>
>In the urgency of the situation, resistance is being organised to meet
>the forthcoming onslaught. Drawing on the experience of the successful
>fight against the MAI, an international campaign of information and
>action is being organised and coordinated with the support of the
>trade union, social and community movements and questions are being
>asked of elected representatives (9). The immediate aim is a
>moratorium on all trade talks with, ultimately, supervision of the
>transnationals, the establishment of an international economic court
>of justice and the "deratification" of the agreements already signed.
>This is not to forget reform of the WTO which operates in permanent
>violation of the basic principles of democratic societies.
>
>* Observatoire de la mondialisation (Globalisation watch)
>
> Translated by Malcolm Greenwood
>
> (1) See "A dangerous new manifesto for global capitalism" by Lori M.
>Wallach, Le Monde diplomatique in English, February 1998.
>
>(2) "Recommendation for a Council decision, presented by the
>Commission" (undated); and "Resolution of the European Parliament",
>Bulletin of the Communities (COM.98.0125) and "Opinion of the Economic
>and Social Committee" (CES 1164.98).
>
>(3) Testimony of a leader of Grocery Manufacturers of America to the
>US Senate trade subcommittee, 28 July 1998.
>
>(4) See Jean-Claude Lefort and Jean-Pierre Page, "Double jeu autour de
>l'AMI", Le Monde diplomatique, October 1998; Jean-Claude Lefort,
>Europe-Etats-Unis: quelles relations �conomiques?, rapport
>pr�liminaire, Assembl�e Nationale, rapport d'information No. 1150.
>
>(5) To take just one example, the crisis resulted in 25 million people
>being made unemployed in East Asia.
>
>(6) "La Grande-Bretagne s'alarme de la pauvret� croissante et
>introduit le Smic horaire", Le Monde, 31 March 1999.
>
>(7) See Ignacio Ramonet, "Social democracy betrayed", Le Monde
>diplomatique in English, April 1999.
>
>(8) According to the World Health Organisation (Le Journal du
>dimanche, 4 April 1999)
>
>(9) For more information, see "L'AMI clon� � l'OMC", pamphlet produced
>by Coordination contre les clones de l'AMI, Observatoire de la
>mondialisation, 40, rue de Malte, 75011 Paris.
>_________________________________________________________________
>
>ALL RIGHTS RESERVED � 1999 Le Monde diplomatique
>
><http://www.monde-diplomatique.fr/en/1999/05/13mai.html>
>
>
>
>
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