Global Trade Regulation

Who regulates

trade?

World Bank/International Monetary Fund

The World Bank provides $20 billion/year to developing countries for things such as •Education•Health•Agriculture•Roads•Electricity

World Bank Headquarters, Washington DC

The IMF is responsible for ensuring the stability of the international

financial system; lends to troubledeconomies when they need it IMF’s Washington, DC Headquarters

Criticisms of World Bank/IMF• Their loans/grants are often linked to making dramatic free market

changes in a country’s economy that benefit western corporations• Their actions have hurt more than helped in many places• By charter, the President of World Bank is always American.• According to the Bank’s charter, each country contributes a certain

amount and gets that percentage of votes in deciding actions of the bank.France 4.3%United Kingdom 4.3%Germany 4.5%Japan 7.9%United States 16.0%

Since major decisions require an 85% super-majority, the U.S. is the only country that has veto power.

John Stewart on the World Bank (4 min.)

http://www.npr.org/player/v2/mediaPlayer.html?action=1&t=3&islist=true&id=3&d=04-17-2012 New World Bank Pres.

North American Free Trade Agreement

(NAFTA)1993 U.S. , Mexico & Canada sign far-reaching trade agreement

– Involves complete reduction of tariffs and barriers to trade among the three

– Creation of a completely FREE TRADE ZONE

Was/Is NAFTA controversial?

Film clips from “Commanding Heights”(9 minutes)(10:10-19:00)—2 clicks in

Positive Effects of NAFTA

• Trade restrictions have been removed from many categories, including:

--motor vehicles and auto parts

--computers--textiles--agriculture

• Trade among the three has greatly increased

Negative Effects of NAFTA

• Massive dislocation of people, impoverishment of farmers

Displaced Mexican farmers protesting in Mexico City

U.S. Agribusiness

•weakening of environmental

& labor lawsBattery recycling

World Trade Organization

Controversy over the WTO

Who is in Charge?

WTO as Dictator?

Collapse of Communism (1990)

World movement towards Capitalism

Free Trade requires a set of “rules”

Road to Globalization

WTO becomes Global Referee

WTO HISTORYCreated 1995 (replaced General Agreement on Tariffs & Trade (GATT))

Headquartered in Geneva, Switzerland

146 Members - incl. ~ 100 Developing

Countries

WTO Functions•Provides a negotiating forum for nations to work toward lowering trade barriers (tariffs, quotas)

•Handles trade disputes through its Dispute Settlement Body

Criticisms of WTOSome argue its rules are written IN SECRET by and for

corporations with inside access; consumer, environmental,

human rights, labor organizations get left out

Also, the WTO‘s Dispute Settlement Body can require that a government change its laws immediately or receive sanctions

Who is watching the Environment?

1999 Seattle protest against the WTO

Film clip: “Commanding Heights” (11 minutes—full clip)1:14:27 --- 1:25:46 (15 clicks in)