POLS 384 Lec 131 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 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?