Global Trade Regulations: World Bank, IMF, and WTO

1. Global Trade Regulation Who regulates trade?

2. World Bank/International Monetary Fund • The World Bank provides • $25 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 IMF’s Washington, DC Headquarters

3. 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. http://www.thedailyshow.com/video/index.jhtml?title=world-bank&videoId=86187 John Stewart on the World Bank (4 min.)

4. North American Free Trade Agreement (NAFTA) 1993U.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

5. Was/Is NAFTA controversial? Film clips from “Commanding Heights” (9 minutes) (10:10-19:00)—2 clicks in

6. 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

7. Negative Effects of NAFTA • Massive dislocation of people, impoverishment of farmers U.S. Agribusiness • weakening of environmental • & labor laws Displaced Mexican farmers protesting in Mexico City

10. World Trade Organization Controversy over the WTO

12. Who is in Charge?

13. WTO as Dictator?

14. Road to Globalization Collapse of Communism (1990) World movement towards Capitalism Free Trade requires a set of “rules” WTO becomes Global Referee

15. WTO HISTORY • Created 1995 (replaced General Agreement on Tariffs & Trade (GATT)) • Headquartered in Geneva, Switzerland • 146 Members - incl. ~ 100 Developing Countries

16. WTO Functions • Provides a negotiating forum for nations to work • toward lowering trade barriers (tariffs, quotas) • Handles trade disputes through its Dispute Settlement Body

17. Criticisms of WTO • Some 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

19. Who is watching the Environment?

20. 1999 Seattle protest against the WTO Film clip: “Commanding Heights” (11 minutes—full clip) 1:14:37 --- 1:26 (15 clicks in) http://www.youtube.com/watch?v=PopvQY3p31k (The Global Debate: new unease about globalization 10:25 full clip start to finish) 0:13-start of globalization debate; anti-globalization Seattle—unions, other groups (1:20-4:00); Larry Sumners on invisible benefits and clear negatives of trade(4:10-5:00), union concerns (5:00-5:30); Developing world wants more trade, not less (5:30-6:30), Clinton backtracks (6:30-7:30); emerging markets complain that west won’t open up (7:30-8:30); world anti-globalization network forms (8:30-9:30); World Bank/IMF become focus of attacks; pie in face (9:30-10:30)