under threat: democracy under the new trade deals democracy under the new trade deals prepared for...
TRANSCRIPT
![Page 1: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/1.jpg)
Under Threat:Under Threat:Democracy under the New Trade
Deals
Democracy under the New Trade
DealsPrepared for the
By the Resource Center of the Americas & Labor Education Service, University of MN
Minnesota Fair Trade CoalitionMinnesota Fair Trade Coalition
(June 2003)
![Page 2: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/2.jpg)
Millions of good jobs lost Millions of good jobs lost
• 3,000,000 manufacturing jobs lost to free trade since 1994
• Over 750,000 jobs lost under NAFTA alone
In recent years, Free Trade Agreements have cost this country millions of good jobs.
![Page 3: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/3.jpg)
Sweatshops-R-Us Globalization Sweatshops-R-Us Globalization • Many jobs sent to poor
countries
• Work often done under sweatshop conditions
• Workers often denied unions and basic human rights
![Page 4: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/4.jpg)
These trade deals also eroded our democratic process.
These trade deals also eroded our democratic process. • In 1998, the WTO ruled new
U.S. clean air standards were barriers to free trade – and they forced the U.S. to change them.
• Under NAFTA, a Canadian company sued the U.S. for almost $1 billion when California banned a toxic gasoline additive.
![Page 5: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/5.jpg)
Democracy Under Attack Democracy Under Attack
• Now a new generation of trade deals threaten to undermine our democracy even further.
![Page 6: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/6.jpg)
Democracy at Risk. Democracy at Risk.
• The new trade agreements challenge fundamental concepts of democratic government and national sovereignty.
• And they threaten to put many key public services under corporate – not public – control.
![Page 7: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/7.jpg)
New Trade Deals and
Government
New Trade Deals and
Government • Negotiations are underway on:
– FTAA (Free Trade Area of the Americas)
– GATS (General Agreement on Trade in Services)
• These agreements could:– mandate privatization of government services– threaten environmental protections, safety and
human rights laws.– undermine worker rights and protections
![Page 8: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/8.jpg)
All without citizens or elected officials having any say.
All without citizens or elected officials having any say.
![Page 9: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/9.jpg)
FTAA (Free Trade Area of the Americas) FTAA (Free Trade Area of the Americas)
• FTAA extends NAFTA to 34 western hemisphere nations
• FTAA greatly expands coverage of NAFTA
• Negotiations aim to be done in 2004 -- voted on by Congress in 2005
![Page 10: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/10.jpg)
GATS (General Agreement on Trade in Services)GATS (General Agreement on Trade in Services)
• Goal is to cover all services, all methods of delivering services, and every government measure at all levels affecting trade
• GATS is administered by the World Trade Organization (WTO)
• GATS covers 146 nations, including U.S.
• Negotiations aim to be done in 2004 -- voted on by Congress in 2005
![Page 11: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/11.jpg)
GATS targets all government
measures
GATS targets all government
measures• rules• policies• laws• subsidies• regulations• court decisions
![Page 12: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/12.jpg)
GATS limits what laws we can pass
GATS limits what laws we can pass• Will likely prohibit measures
that are “more burdensome than necessary” for foreign companies
• Measures would have to be the “least trade restrictive” possible
• Would prohibit government from setting conditions on awarding contracts except those necessary for product quality or supplier capability
![Page 13: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/13.jpg)
Sample MN Laws at RiskSample MN Laws at Risk• Prevailing wage
• Corporate subsidy reform reporting and wage standards
• Corporate feedlot restrictions
• Electricity rate regulations
• HMO non-profit requirement
• Cost clean-up requirements for pipeline spills
• Many other environmental, labor, and corporate accountability laws
![Page 14: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/14.jpg)
GATS, FTAA and Public ServicesGATS, FTAA and Public Services
• Could require many public services to be opened to bid by private foreign companies …
... regardless of the will of citizens or our elected officials.
![Page 15: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/15.jpg)
So,So,What public services are targeted?
What public services are targeted?
![Page 16: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/16.jpg)
Water ServicesWater Services
• Water collection, purification and distribution
• Waste-water treatment
Many of these services are now provided by municipal water districts
![Page 17: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/17.jpg)
This continues a corporate push to control water supplies
This continues a corporate push to control water supplies
![Page 18: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/18.jpg)
The World Bankestimates a fully-privatized global water market is worth $800 billion a year
![Page 19: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/19.jpg)
Rebecca Mark, former CEO of Enron’s Water Division, said she would not rest until she had:
“fully privatized the global water market.”
![Page 20: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/20.jpg)
Enron worked closely with the Bush administration to define U.S. goals for GATS
Surprise …Surprise …
![Page 21: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/21.jpg)
Waste Management ServicesWaste Management Services
• Waste management is also targeted under GATS
GATS will likely allow foreign firms to bid on municipal sanitation and incineration work.
![Page 22: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/22.jpg)
Air and Water Protection ServicesAir and Water Protection Services
• Protection of ambient air and climate
GATS will likely allow foreign firms to bid on the work currently done by the U.S. Environmental Protection Agency (EPA), state Pollution Control Agencies (PCAs), perhaps even OSHA.
![Page 23: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/23.jpg)
Environmental Protection ServicesEnvironmental Protection Services
• Protection of biodiversity and landscape
GATS targets for privatization services that include work done currently by the National Parks Administration, U.S. Forest Service, Bureau of Land Management, and state Departments of Natural Resources
![Page 24: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/24.jpg)
Transportation ServicesTransportation Services
• Urban mass transit and other transportation services
GATS could allow foreign firms to bid on mass transit services – buses, trains, metro mobility, etc.
It may even include school bus transportation.
![Page 25: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/25.jpg)
Education ServicesEducation Services
• Higher education, adult education and various training services
Currently negotiations are underway to cover all education beyond secondary school.
![Page 26: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/26.jpg)
If these trade deals passIf these trade deals pass
These public services could be privatized without citizen input.
• It wouldn’t matter if we thought corporate control didn’t serve the public good -- we couldn’t pass laws to protect our interests.
![Page 27: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/27.jpg)
Let’s look at a hypothetical case …Let’s look at a hypothetical case …
• Assume GATS rules are already in place
This is how the new trade agreements might undermine democracy in local communities…
![Page 28: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/28.jpg)
A couple of years ago,
U.S. Filter tried to take control of New Orleans’ water system.
![Page 29: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/29.jpg)
• 65% of New Orleans voters signed a petition demanding public control of their water.
Citizens fought back.
But …
They thought they had won. They thought they had won.
• The Water and Sewerage Board rejects U.S. Filter’s bid.
• And the coalition secures a requirement that any future privatization effort must be put to a public referendum.
![Page 30: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/30.jpg)
This is what democracy is supposed to look like.
This is what democracy is supposed to look like.
![Page 31: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/31.jpg)
But one day,
a few months after the new GATS takes effect in 2006, the City of New Orleans receives a letter …
![Page 32: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/32.jpg)
… from U.S. Filter …
![Page 33: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/33.jpg)
… a division of Vivendi.
![Page 34: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/34.jpg)
… is a French-based multi-national corporation and one of the world’s largest private water companies.
Vivendi …
![Page 35: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/35.jpg)
… is also one of the “water barons” criticized for providing poor service at a higher cost to consumers in their African and Latin American water privatization schemes.
![Page 36: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/36.jpg)
Dear City of New Orleans:
You are obliged under the provisions of
GATS to consider U.S. Filter’s bid to
operate the New Orleans water system.
This decision cannot be put to a citizen
referendum.
Very truly yours,
Vivendi
Their letter says,
![Page 37: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/37.jpg)
New Orleans seeks help.It asks for an opinion from the U.S. Trade Representative’s Office.
![Page 38: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/38.jpg)
The U.S. Trade Representative replies:
• New Orleans must allow U.S. Filter to bid.
• If they refuse, the U.S. must use all means at its disposal to force compliance – or else face huge penalties.
![Page 39: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/39.jpg)
• US Filter submits a bid and it is the low bid – under GATS New Orleans must accept it.
New Orleans complies.
• It doesn’t matter that New Orleans’ law requires a citizen referendum.
• It doesn’t matter that New Orleans citizens want to retain control over their water.
![Page 40: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/40.jpg)
This was fiction.But if GATS rules are adopted as currently envisioned, this fiction could become all too real.
![Page 41: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/41.jpg)
In the 1990s corporate free-traders began their assault on our democracy.
Now they are stepping up the attack.
![Page 42: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/42.jpg)
What can be done?What can be done?• Build awareness
– educate your membership
– write opinion piece or letter to editor
– write article for local newsletter
• Contact Congress– write Congress about specific issue
– encourage your organization or local elected officials to contact Congress
• Make it an election issue– put question on candidate screening
– talk to local elected officials about local impacts
• Mobilize people nationally– prepare for November Miami rallies
![Page 43: Under Threat: Democracy under the New Trade Deals Democracy under the New Trade Deals Prepared for the By the Resource Center of the Americas & Labor Education](https://reader035.vdocument.in/reader035/viewer/2022062720/56649f115503460f94c245ec/html5/thumbnails/43.jpg)
Join the
Minnesota Fair Trade Coalition
more than 60 allied groups fighting to make respect for working people, family
farmers, our environment, and our democracy an integral part of the global economy
Contact:
Larry Weiss612-276-0788 x19