1. The WTO will have the same status as the UN, IMF, and World Bank.
Article VIII of the Agreement (p.5) states the WTO "shall have legal personality and shall be accorded by each of its members such privileges and immunities as are necessary for the exercise of its functions." The existing GATT organization will disappear.
2. Under WTO, Congress agrees to change US laws to meet WTO obligations.
Article XVI (P. 10) states: "Each Member shall ensure the conformity of its laws, regulations, and administrative procedures with its obligations as provided in the annexed Agreements."
3. All WTO decisions will be made by the votes of the WTO Members.
One country, one vote, no veto. Article IX (p.5) states that decisions "shall be taken by a majority of the votes cast, unless otherwise provided in this agreement or the Multilateral Trade Agreements...each Member of the WTO shall have one vote." In the WTO, Antigua's vote will have equal weight with that of the US. Developing nations will have 83 percent of the WTO votes.
4. The WTO will be the global Supreme Court of Trade Disputes.
As per Section 2 of the Dispute Settlement Understanding, the WTO will adjudicate global trade disputes, monitor national responses, and compel enforcement of its decisions. WTO rulings are final. The WTO can impose trade sanctions and fines on the US if we do not abide by its decisions. The WTO can authorize cross-sector retaliation. If the US loses a WTO dispute panel decision, for example, the World Trade Organization can give the plaintiff nation(s) authority to select which US industries, or combination of US industries, must bear the burden of the WTO trade sanctions. Under WTO, innocent bystander industries can be drawn into any trade fight.
5. Trade Agreements can be changed by a vote of the WTO Members.
Article X, paragraph 4 (p. 7) states that amendments to the substance of global trade agreements shall take effect for all Members upon acceptance by two-thirds of the WTO Members. Article IX (p. 5) gives the WTO the exclusive authority to interpret the provisions of the Agreement. Any "decision to adopt an interpretation shall be taken by a three-fourths majority of the Members." It will be very difficult for the US to change any adverse WTO interpretation.
6. Congress cannot "fix" the Agreement in the implementing legislation.
Article XVI, paragraph 5 (p. 10) states, "No reservations may be made in respect to any provisions of this Agreement." Thus, Congress cannot fix any offending provision in this Agreement.
By any measure, the World Trade Organization severely diminishes U.S. sovereignty. Any Congressional leader that approved this agreement either did not read it, or did not have America’s best interests in mind
Pat Choate is an economist, author of seven books and was the 1996 Vice Presidential running-mate of Ross Perot for the Reform Party. Choate received his PH.D. in economics from the University of Oklahoma.
E-mail editor@economyincrisis.org
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Article Comments From Readers
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guest says "Sovereignty points only" on 11/03/07
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It is definately good for our Nation to get out of the WTO in order to sustain a democracy of, by, and for the people of the United States.
Just as foreigners should have no right to dictate American trade law. America has no right to interfere in the laws of foreign nations such as Iran and Iraq.
Ralph Nader has made these points before.
Additionally NAFTA and CAFTA should be abolished as they are extention instruments to cut down American wealth and sovereignty. These were never officially publicly approved and hence have no genuine legality in a true democracy. They were foisted upon our people by Democrat and Republican elites whose interest was short term profiteering.
The quality of life issue about Runaway Capitalism has not been addressed.
The WTO, NAFTA,and CAFTA, are all trade instruments to aid and abet the naked greed of corporations and the CEO's who run them at the expense of human welfare.
As long as businesses can cherry pick the world they are given power to create a New World Order of Billionaires and Serfs. They currently take advantage of:
*Illegal alien worker importation in the USA
*The lowest wage, most compliant non-union employees in foreign countries
*Tax havens to facilitate tax evasion by laundering profits earned in wealthy countries to tax free zones/nations such as Iraq and The Cayman Islands
*Nations with lax worker protections creating unnecesary deaths, and injury
*Nations with no/low environmental standards which allow the dumping of pollution into the public trusts of air,water and land without cost or penalty
Runaway Capitalism actively disempowers people and creates the race to the bottom destroying human rights and happiness and the environment in the process.
This is the natural, predicatable and inevitable result of naked greed exalted above all else.
Until there are salary caps on the overwealthy and incentives for sustainable growth, we can expect the coninutal plundering of the earth.
Although this Capitalist system will inevitably collapse one day as its predicated on infinite growth on a finite planet. It would be far better to transition to a kinder gentler form of governace such as Socialism or Communism which have demonstrated far better record of promoting human happiness without all the attendent evil of Capitalism.