The
Free Trade Area of the Americas (FTAA) plans to be the biggest
corporate power grab yet. Essentially, what the FTAA negotiators
have done, urged on by the big business community in every country, is to take
the worst elements of every global trade and investment agreement---existing or
proposed---and put them all together in one hemispheric pact. By Maude Barlow
The
Free Trade Area of the Americas (FTAA), currently being negotiated by the 34
countries of North, Central and South America and the Caribbean (excluding
Cuba), is intended by its architects to be the most far-reaching trade agreement
in history. If reports coming from the Negotiating Groups working on the deal
are correct, the FTAA will form the largest free trade zone in the world,
encompassing a population of 800 million and a combined (GDP of $11 trillion
(U.S.), and reach into every area of life for the citizens of the
Americas.
The
FTAA, launched at the December 1994 Summit of the Americas in Miami, Florida,
will be the focus of talks in Quebec City, April 20-22, 2001. Although it is
based on the model of the North American Free Trade Agreement (NAFTA), it goes
far beyond NAFTA in its scope and power. As it now stands, the FTAA would
introduce into the Western Hemisphere all the disciplines of the proposed
services agreement of the World Trade Organization (WTO)--- the General
Agreement on Trade in Services (GATS)---- with the powers of the failed
Multilateral Agreement on Investment (MAI), to create a new trade powerhouse
with sweeping authority over every aspect of life in Canada and the
Americas.
The
GATS, now being negotiated in Geneva, is mandated to liberalize the global trade
in services, including all public programs, and gradually phase out all
government "barriers" to international competition in the services sector. The
Trade Negotiations Committee of the FTAA, led by Canada in the crucial formative
months when the first draft was written, is proposing a similar, even expanded,
services agreement in the
hemispheric pact. It is also proposing to retain, and perhaps expand, the
"investor-state" provisions of NAFTA (Chapter II), which give corporations
unprecedented rights to pursue their trade interests through legally binding
trade tribunals.
Combining the powers of NAFTA and the WTO into one agreement will give
unequaled new rights to the transnational corporations of the hemisphere to
compete for and even challenge every publicly funded service of its governments,
including health care, education, social security, culture and environmental
protection.
As
well, the proposed FTAA contains new provisions on competition policy,
government procurement, market access and dispute settlement that, together with
the inclusion of services and investment, could remove the ability of all the
governments of the Americas to create or maintain laws, standards and
regulations to protect the health. safety and well-being of their citizens and
the environment they share. Moreover, the FTAA negotiators appear to have chosen
to emulate the WTO rather than NAFTA in key areas of standard-setting and
dispute settlement, where the WTO rules are tougher.
Essentially, what the FTAA
negotiators have done. urged on by the big business community in every country,
is to take the most ambitious elements of every global trade and investment
agreement----existing
or proposed---and put them all together in one hemispheric
pact.
If the
terms and recommendations of the FTAA Negotiating Groups are the substantive
basis for a hemispheric trade pact the whole process is unacceptable and the
citizens of the Americas must work to defeat it. In spite of government
protestations that they have negotiated these new trade and investment rules in
full collaboration with their citizens, the proposed FTAA reflects none of the
concerns voiced by civil society and contains all of the provisions considered
most objectionable by environmentalists, human rights and social justice groups,
farmers, indigenous peoples, artists, workers, and many others. Every single social program,
environmental regulation and natural resource is at risk under the proposed
FTAA. As it appears to stand now,
there is no possible collaboration to make this trade pact
acceptable.
That is
not to say that the citizens of the Americas are opposed to rules governing the
trade and economic links between our countries. However, it cannot start with
the assumptions and goals of this FTAA.
Rather, it must begin by revisiting current international trade
agreements like the WTO and NAFTA. It is time for a new international trading
system based on the foundations of democracy, sustainability, diversity and
development. As a beginning,
Chapter 11 must be removed from NAFTA; water must be exempted; the energy
provisions rewritten with an emphasis on conservation; and culture must he truly
exempted.
Most
important, the world of international trade can no longer be the exclusive
domain of sheltered elites, trade bureaucrats and corporate power brokers. When they understand what is at
stake in this hemispheric
negotiation the peoples of the Americas will mobilize to defeat it. That is the fate it deserves.
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Maude BarIow is Volunteer C hairperson of The Counil of Canadians