WTO Reform and Subnational Interests

| | | |

WTO Reform and Subnational Interests

The debate over WTO reform will intensify as the year progresses. It is worth tracking positions emerging on this issue, and considering the potential implications for subnational interests.

In the last few years, NGOs have made a number of proposals for WTO reform. Generally speaking, they have argued for greater transparency in WTO processes, a proactive document derestriction policy, access to and standing before dispute panels, and a restructuring of organisational values away from "free trade," and toward "fair trade." As well, each presents a specific focal point depending upon their issue orientation - i.e., gender, poverty, environment, labour, and development. Of those already weighing in, the UK Consumers' Union and its American counterpart, the World Wildlife Fund, and elements of the international labour movement have all presented interesting views on the reform question.

The EU view on reform will be formally expressed in a paper being prepared by the EC for the European Parliament. It is not clear when the document will be tabled, though can be considered unlikely before the spring of 2000. However, there have been tantalising indications of the general thrust of the EC position. Certainly, Pascal Lamy's December 13 remarks at Strasbourg are relevant at the level of principle.

When Lamy used the phrase "globalisation maitrisée" at Strasbourg, he was referring to the manner in which Seattle had altered the future course of trade liberalisation. To some degree, therefore, it is a term of art in service to the EC's objectives for multifunctionality, development, and so on.

However, the phrase may well contain a new value orientation. The English translation is "properly managed globalisation". In other words, this appears to be implying a people's globalisation. EU President Romano Prodi gave a speech at Carleton University December 16, just three days after Lamy's remarks, in which he said, " Let us see globalisation not as a threat, but as an opportunity to be grasped, in the interests not of multinational companies but of ordinary people everywhere." Similarly, the US-EU Statement on the WTO of December 20 references a desire to "harness" globalisation by strengthening and extending WTO rules.

Accordingly, the phrase can be interpreted as implying a movement toward "fair trade" as the new objective, rather than the traditional "free trade" formula. This provides a broad umbrella under which most of the new forces can be addressed This is in effect a step toward controlled or managed globalisation. As something with which we have almost no knowledge or experience historically, it represents a new source of uncertainty in trade relations.

Certainly, it does imply a sea change at the political and institutional level. Ironically, the one agreement that did emerge in Seattle was among parliamentarians from about 60 countries who decided that they had a duty to participate and shape the WTO agenda. While appealing to western democratic temperaments, the work of WTO will become more complicated and less efficient with the deeper intrusion of domestically responsive political forces. However, it may happen anyway, as it offers a means of buffering and accommodating the diverse pressures now facing the multilateral trading system.

And if it does, it raises a series of questions relevant to federations in general, and Canada in particular. Canada can be expected to make a contribution as well. It is in this context of reform, therefore, that an opportunity could present itself to enhance the provincial role at the international level. Once the debate is in full swing, a range of options will emerge. From a parliamentary perspective, for example, there is a sound, historically relevant argument for a provincial representation role in any parliamentary forum.

Similarly, if non-governmental organisations can lay claim to a legitimate role by virtue of the WTO Charter, the claims of subnational governments to a role in the dispute settlement process are stronger, particularly when cases involve policies and programs within their legislative jurisdiction.

Profile Services Search Trade Analysis Updates
Contacts Trade News Policy Street Link To Us Site Search