WTO Expansion Threatens U.S. State Sovereignty

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Thu, 30 Mar 2006 13:47:44 -0500 (EST)

" Global Trade Watch " <publiccitizen

[FAIRTRADE] WTO Expansion Threatens State Sovereignty

 

 

 

http://DemocracyInAction.org

 

 

The State Of Global Trade

 

Federal Trade Negotiators Poised to Expand WTO Powers at the Expense

of State Sovereignty

 

Dear Fair Trade Activist,

 

This month, in lieu of GTW's regular monthly e-newsletter, we thought

you would be interested in our work at the state and local level.

State of Global Trade is a new quarterly newsletter sent to thousands

of state and local officials. Read what we just sent below, then

contact your governor. You can also read more about GTW's state and

local program on our website.

 

Did you know that at the December 2005 World Trade Organization (WTO)

Ministerial Conference in Hong Kong, federal trade negotiators agreed

to push for an expansion of WTO powers, which would put an alarming

array of existing and future U.S. state and local laws at risk of

challenge in closed-door WTO tribunals?

 

" A growing number of federal, state and local officials around the

world have come to recognize that GATS, as it currently exists,

contains several provisions that conflict with our ability to

effectively and appropriately regulate in the public interest. "

 

— Oregon Gov. Ted Kulongoski

 

Under this proposal, foreign countries would be empowered to use the

WTO dispute resolution system to challenge a range of commonplace U.S.

state and local policies that multinational service sector firms argue

are WTO-illegal " barriers " to their plans for global expansion.

 

Last week, Governor Kulongoski of Oregon acted to safeguard his

state's sovereignty by demanding that Oregon be excluded from the U.S.

Trade Representative's (USTR) WTO expansion plan.

 

Read Governor Kulongoski's letter to Ambassador Portman, USTR.

 

The WTO agreement in question - the General Agreement on Trade in

Services (GATS) - went into effect in 1995 as one of the original 17

Uruguay Round agreements enforced by the WTO. The GATS goes far beyond

our traditional concept of trade rules, such as tariffs and quotas on

goods. Instead, the GATS sets international rules to which every

signatory government must conform their domestic policies regarding

control and ownership of public services and regulation of

private-sector service providers. The current GATS rules can be used

to second-guess state and local decision-making in many areas of

traditional state and local authority under the U.S. system of

federalism, such as zoning and land use, health care, gambling,

library services and more.

 

At issue in these new WTO expansion talks is both what service sectors

will be covered by GATS rules and what the rules will require. Federal

trade negotiators are currently working to expand the GATS by signing

up more sectors of our service economy to the agreement's restrictive

rules.

 

Already GATS rules promote privatization and deregulation of services

by prohibiting governments from limiting the number of foreign

service-providers and discouraging the creation of new public services

or exclusive service contracts. GATS rules also prohibit certain

domestic policies that have the unintended effect of disadvantaging

foreign firms, even if those policies were applied equally to domestic

and foreign firms. New services now at risk are higher education,

energy, and more.

 

Browse Public Citizen's NEW GATS Directory to see what the USTR has

put on the negotiating table.

 

You can make sure that your hands are not tied by federal trade

negotiators by working to ensure that GATS expansion does not apply to

your state, and by requesting that your state be " carved out " of

sensitive service sectors.

 

The GATS, when applied to areas of traditional state and local

authority, treads on the delicate balance between the federal

government and the states established by the U.S. Constitution.

Unfortunately, over the decade-long track record of the WTO, tribunals

have revealed repeatedly their judgment that the U.S. system of

federalism is in itself a trade barrier because it segments markets.

 

You can make sure that your hands are not tied by federal trade

negotiators by working to ensure that GATS expansion does not apply to

your state. When state officials have raised concerns about GATS, U.S.

trade officials have responded that GATS covers only those aspects of

the U.S. service economy we choose to submit. Federal trade officials

have said that they are seeking state-level input. By requesting that

your state be " carved out " of GATS expansion as well as previously

committed sensitive service sectors, you can preserve your continued

policy space and that of future legislatures.

 

But, time is of the essence. This week, federal trade negotiators are

in Geneva for GATS talks. The EU is demanding that countries show

their cards with regards to the services negotiations in a stocktaking

exercise by April 30, 2006. State officials interested in safeguarding

their authority need to submit their requests to USTR now, before

malleable negotiating documents become binding commitments under

international and U.S. federal law.

 

To learn more about what you can do to stop this backdoor form of

international preemption, please contact Saerom Park at 202-454-5127.

 

Thanks for all that you do.

 

Sincerely,

The Global Trade Watch Team

 

Contact Your Governor!

 

Ask your governor to safeguard your state's sovereignty in ongoing WTO

GATS negotiations.

 

 

Trade Action in State Capitols

 

State legislators in more than ten states are working to make the

trade policymaking process more open and accountable. Highlights to

date for 2006 include:

 

* Utah: Governor Huntsman signs HB 39. HB 39 establishes a new

Utah International Trade Commission and requires that the Governor

consult the commission before binding the state to the terms of an

international trade agreement. See also " International trade

commission proposed, " Deseret Morning News

* Colorado: Legislature sends HB 06-1010 to Governor Owens' desk.

HB 06-1010 prohibits the Governor from signing on to the government

procurement rules of an international trade agreement absent

legislative approval. See " Contract bill wins approval, Gov. Owens

Weighing Veto, " Denver Post

* Hawaii: " Isles must not be bound by U.S. trade pact, " Rep. Roy

Takumi, The Honolulu Advertiser

* Rhode Island: " Legislators aren't buying into trade agreement, "

The Providence Journal; and " Edith Ajello: Let's discuss CAFTA before

committing R.I., " The Providence Journal (registration required)

 

 

Take Action!

 

Learn more about the WTO services negotiations:

 

* Browse Public Citizen's NEW searchable GATS Directory. You can

search the Directory in three ways: 1) by specific service sector

(such as higher education, insurance, road and rail transportation);

2) by key issue area (each issue category such as energy, land use,

offshoring or domestic regulations contains information from multiple

service sectors); or 3) by keywords.

* Read key findings from the GATS Directory.

* Send an email to Saerom Park to request a sample letter to your

governor and the USTR.

 

 

WTO's Threat to Local Authority Over Land Use

 

During the WTO Hong Kong Ministerial, Public Citizen released a new

report: Big Box Backlash: The Stealth Campaign at the WTO to Preempt

Local Control Over Land Use.

 

* " Wal-Mart Hopes WTO Will Help It Open a Door, " Los Angeles Times

* Transcript from CNN's Lou Dobbs Tonight

 

 

Tell a Colleague

 

This is the first edition of State of Global Trade, a low-frequency

newsletter for state and local officials. Help spread the word.

 

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