Trade, globalization & ecology

1. Trade, globalization & ecology Bretton Woods institutions The WTO World Bank The Fair Trade Movement Ecological Modernization POLS 384 Lec 13

2. Bretton Woods & the Age of Ecological Innocence GATT: free trade >> WTO (1995) • Reduce tariffs, nontariff barriers to trade IMF: short-term currency loans • Export-led growth, “structural adjustment” World Bank: long-term infrastructure development • Dams, roads, power plants, resource extraction 1970s: end of ecological innocence • Our Common Future (1987): sustainable devt. • WTO: goal of sustainable development POLS 384 Lec 13

3. WTO Mission • Free trade in goods, services, finance • Primary IO promoting econ. globalization • Comparative advantage > export-led growth • Monocrops: coffee, cocoa, tea, sugar, beef • Promotes global economy rather than self-sufficiency • Tenets: commodification, homogenization, growth • Background assumption: labor theory of value • Economic & human capital over natural & social capital POLS 384 Lec 13

4. Key WTO Environmental Rulings • 1998 Shrimp-Turtle case (U.S. vs. Asia) • U.S. cannot require turtle excluder devices • First ENGO brief permitted • Several cases of U.S. vs. E.U. • EU ban on U.S. hormone-fed beef overturned (ongoing since 1998) • WTO rejects EU science • EU cannot favor indigenous (often organic) banana farmers in their former colonies over Chiquita & Dole bananas (ongoing since 2002, new ruling yesterday) • EU must allow GM food (2005) • Chilling effect • Under Gerber threat of WTO suit, Guatemala revoked labeling law on infant formula (1995) POLS 384 Lec 13

5. WTO and Environmental Treaties • Committee on Trade & Environment • Recognizes authority of environmental treaties • Environmental treaties about trade OK if they don’t conflict with WTO • If party to envt’l treaty takes action against nonparty, WTO claims authority • Trade sanctions in environmental treaties? • So far, no test cases • Chilling effect • Threat of WTO challenge inhibits Basel ratifications POLS 384 Lec 13

6. Food, Trade and Globalization • GMO: piercing cells via bacteria, inserting genes • Monsanto Round-up Ready seeds (1994) • US today: 90% of soy, 60% of cotton, 50% of corn • Heavy subsidies • U.S., Canada & Argentina account for 80% of GMO crops • Little protest in US, rejected in EU • EU banned GMO food until 2005 WTO ruling • EU GMO labeling law (1999) • US & Monsanto threatened WTO case • “Labeling implies a nonexistent risk” • Widespread public distrust in all countries polled • Resistance in developing countries • African countries facing food crisis refuse US GMO food aid • Resistance wearing thin with current global food crisis • Biosafety Protocol (2003) • Precautionary Principle: OK to ban GMO even without clear evidence of harm • No challenge from WTO POLS 384 Lec 13

7. Globalization, Post-Seattle • Binding dispute settlement panels • Sovereignty? • Transparency & democracy? • New coalition: labor & environment • Fair trade movement • TransFair, started in Europe in 80s, began certifying in U.S. in 1999 • Guarantees producers minimum floor price • Promotes sustainable agriculture • Most fair trade coffee, tea & cocoa is organic • $90 million to DC farmers from U.S. alone • Global Exchange, Fair Trade Federation POLS 384 Lec 13

8. Internalizing costs, bypassing the state • Consumer boycotts • Tuna boycott >> “dolphin-safe” label • Eco-labeling • Forestry Stewardship Council • Voluntary business codes • ISO-14001 • Socially responsible investment • Green mutual funds • Shareholder initiatives POLS 384 Lec 13

9. Ecological Modernization • “Sustainable development” by decoupling growth from environmental degradation • Invest in clean production & consumption, services • Energy, recycling, green building & transport • Popular in Europe • Green consumerism • Green investment • Green jobs • Role of the state & the future of liberal economics? POLS 384 Lec 13