International Organizations Trade & Economic Interdependence -- The WTO, NAFTA & EU (Cont’d) Jan. 22nd, 2003

The World Trade Organization Canada and the WTO  e/distabase_wto_members1_e.htm e/distabase_wto_members1_e.htm  as respondent  Canadian Wheat Board (vs. US – expected decision, Feb.2004)  aircraft subsidies (vs. Brazil) March $247 million  as complainant  softwood lumber (vs. US) TGAM wlumberwto0119/BNStory/ Business/ TGAM wlumberwto0119/BNStory/ Business/  bio-tech (vs. EU, May 2003)  asbestos (vs. France, 1998)

The World Trade Organization WTO and national sovereignty WTO and the US  pr_e/tp226_e.htm pr_e/tp226_e.htm WTO – ongoing negotiations

The World Trade Organization WTO and national sovereignty WTO and the US  pr_e/tp226_e.htm pr_e/tp226_e.htm WTO – ongoing negotiations  the failure in Cancun

The World Trade Organization WTO and national sovereignty WTO and the US  pr_e/tp226_e.htm pr_e/tp226_e.htm WTO – ongoing negotiations  the failure in Cancun WTO and Anti-Globalization Protests

The World Trade Organization WTO and national sovereignty WTO and the US  pr_e/tp226_e.htm pr_e/tp226_e.htm WTO – ongoing negotiations  the failure in Cancun WTO and Anti-Globalization Protests  international/asia/20FORU.html international/asia/20FORU.html

NAFTA – Trade Plus North American Free Trade Agreement (NAFTA) similar to principles enshrined under WTO plus...  investor protection  cross-border mobility  environment and labour side agreements

NAFTA – Trade Plus Free Trade Agreement (FTA), 1989  Canada and US  removal of almost all barriers to flow of goods and services between the two countries  reduction of tarrif and non-tariff barriers (e.g. subsidies)  national treatment

NAFTA – Trade Plus North American Free Trade Agreement (NAFTA), 1994  extended FTA to Mexico  limited differences between FTA and NAFTA  expanded to include intellectual property, medical services, etc.  border crossing for business people  side agreements environment labour standards  investor protection

NAFTA – Trade Plus Chpt.11 on investment  defines expropriation and requires compensation  corporations act as complainant  cases (examples)  Ethyl Corporation  Sun Belt Water  Methanex  Metalclad

NAFTA – Trade Plus Chpt.11 on investment  provides rights to foreign investors...  that are not constitutionally guaranteed to domestic investors in Canada  enshrines property rights that were deliberately left out of the Canadian constitution  effects on public policy  “regulatory chill”  “ratchet effect”  counter-argument – investor protection is a necessity for deepening economic integration

NAFTA – Where Now? FTAA – Free Trade Area of the Americas  expansion of NAFTA to 34 countries  alca.org/busfac/clist_e.asp alca.org/busfac/clist_e.asp

European Union (EU) – Economic & Political Integration expansion – deepening and broadening integration EEuropean Coal and Steel Community, 1951 ssix countries (Belgium, France, Germany, Italy, Luxembourg, the Netherlands) EEuropean Economic Community (EEC), 1957 nnegative integration – absence of restrictions on movement of workers, goods, services DDenmark, Ireland and UK admitted, 1972 EEuropean Union, 1993 ppositive integration – actively fostering integration Maastricht Treaty, 1992 Amsterdam Treaty, 1997 115 members currently Greece (1986), Spain (1986), Portugal (1986), Austria (1995), Finland (1995), Sweden (1995)

2004 expansion  10 candidate countries (Bulgaria, Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Romania, Slovenia, Slovakia, Turkey)

European Union (EU) – Economic Integration single market  free movement of people, capital (investment), goods and services  customs union  single set of trade/tariff policies monetary union  the Euro phased in common labour market  Schengen Agreement, 1985

European Union (EU) – Political Integration common political institutions  legislative – shared legislative powers Council of the European Union –ministers and heads of state of member countries European Parliament –direct election  executive – European Commission  President and commissioners appointed by member states  confirmed by European Parliament  judiciary – Court of Justice

European Union (EU) – Political Integration common political institutions common European citizenship  freedom of movements  fundamental rights  civil and political rights common social citizenship (limited)  access to social programs in other countries common currency  money traditionally symbol of sovereignty  requires integrated monetary policy regional development funds  to help correct regional imbalances in wealth within the EU

Main Points! range of options for integration  economic integration  negative integration (removing barriers to economic integration) trade (WTO & GATT) trade plus (NAFTA)  positive integration (actively fostering integration) –common market (EU)  political integration  economic integration only WTO and NAFTA  economic integration and political integration EU

Democratic Issues... to what degree do democratically elected governments have the right to cede sovereignty in international agreements? to what degree do democratic governments have the right to make decisions that are binding on future governments? what is the required level of citizen engagement?  is involvement of democratically elected governments enough?  do international institutions themselves have to be democratic (and what would this mean)?