Trade Institutions
Transcript of Trade Institutions
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Business Strategy and Policy
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GLOBAL
BUSINESS
INSTITUTIONS
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What kind of institutions do support internationalisation?
Among various institutions that support internationalisation, an
important role is played by the
Chambers of Commerce Abroad
They are business associations established as private sector
organisations, based on the principle of freedom of association,
and that operate for the interests of their members without any
obligation to assist the government (i.e., CCA are akin to so
called !Anglo"a#on model! rather than !Continental model! CC$.
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What kind of institutions do support internationalisation?
Among various institutions that support internationalisation, an
important role is played by the
Chambers of Commerce Abroad
They generally originate from the spontaneous gathering of
businessmen and%or business company e#ecutives based in the
same local area within foreign countries, that later apply for
recognition of CCA status from home country public authorities
or home national association of CC.
The CCA play a silent albeit substantive role in trying to shape
institutions and regulations of foreign markets (e.g., Amcham
&elgium' Cowles, ))*, +, and -eterson and Cowles, ))$,
although they have not been largely researched so far.
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The CCA perform various activities/
influencing economic and social actors for creating and sei0ing
new business opportunities,
working with rule-making organisations that affect international
trade and foreign investments,
preventing potential conflicts with stakeholders and
minimising political risk,
and actively engaging the media and other public arenas for
safeguarding image and reputation of their members.
The meaning of what they do 1 sometimes labelled 2business
diplomacy3 1 can be better defined by drawing some conceptual
boundaries between their activities and those of other related
concepts (4akoff, )5$.
6. What kind of institutions do support internationalisation?
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Field ofactivity
Organisationalvenues
Desiredperformance
Obectives ofthe activity
!ode ofoperation
"ole ofactor#s$
Diplomacy(4ee and7udson,+8' "atow,)5' "aneret al., +$
9ntergovernmental The pursue ofpeaceful means forconducting businessbetween states
To build and sustainpositive andconstructive relationsbetween states
Advising, organising,negotiating, informationgathering and analysis,rules compliance,ambiguity handling
:acilitators
%conomic&commercial
diplomacy(;ana, ++'4loyd, +<'Coolsaet,+8' =eung,+8$
9ntergovernmentalor business
government
The pursue ofeconomic gains and
advantages forcountries
To promote e#ports,attract inward foreign
investments, andstimulate othereconomic activities
Advising, networking,negotiating, gathering
information andanalysing it, and conflicthandling
-rofessional!salesmanship!
Businessdiplomacy("aner et al.,
+$
9ntergovernmentalor businessgovernment
The pursue ofeconomic gains andadvantages for
business companies
To establishfavourable conditionsfor business
companies! activities
Creating and sei0ingbusiness opportunities,safeguarding image and
reputation of businesscompanies, affectingrulemaking, conflictprevention
>ntrepreneurial broker
Publicrelations(7utton,)))'&ernays,)66' 7arlow,
)55$
9nterorganisationalor personal
The pursue of theinterests of theorganisation or ofthe public
To actively reapopportunities or reactto threats
Communicating,cooperating, issuemanagement, gatheringinformation,defining responsibilities,embrace change,
anticipate trends.
"trategicrelationshipmanagers
What kind of institutions do support internationalisation?
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4et us look at CCA established by four main > countries...
'ermany (@ie @eutschen Auslandshandelskammern, A7$
about 8, companies associated in countries
France (nion des Chambres de Commerce et d!9ndustrie :ranBaises
l!>tranger, CC9:>$
about +6, companies associated in 5 countries
(taly (Assocamereestero$
about +8, companies associated in 8) countries
)he *+ (&ritish Chambers of Commerce Abroad$
in over ) countries
in 6 Asian countries (&angladesh, Cambodia, China, 9ndia, 9ndonesia,
Dapan, "outh orea, 4aos, Ealaysia, -hilippines, "ingapore, "ri 4anka,
Taiwan, Thailand, Fietnam$
6. What kind of institutions do support internationalisation?
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Country of origin
Host 'ermany France )he *+ (taly
Bangladesh ))* ))
Cambodia ))
China ) ))+ )s ()6s$ ))
,ong +ong G.A. )* G.A. ))5 ())<$
(ndia G.A. )55 G.A.
(ndonesia )5 ()+8$ )5) ))s
apan G.A. ) )6s )5+
South +orea ) )* )55 +s
.aos
!alaysia G.A. )) )*8
Philippines G.A. )) ))5 +
Singapore +8 )5) )) ()58$ G.A.
Sri .anka G.A.
)ai/an ) )) G.A.
)hailand G.A. )*s )8* )5
0ietnam G.A. )) ))s ))*
What kind of institutions do support internationalisation?
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Common membership services(access to members directory, subscription to newsletters and bulletin, access to
sectoral industry publications and country reports, participation to social events,
workshops, and seminars, attendance to language courses, benefits from CCA!s
media presence, and access to Hob seekers databases$
2In demand3 services for members(provision of information on specific companies or markets, the search and screening
of potential suppliers and business partners, the organisation of and assistance forbusiness meetings and trade missions, the organisation of and assistance for
participating to trade fairs and e#hibitions, the legal assistance for the establishment of
businesses, business domiciliation and secretary services, legal assistance and
advice, translation and interpreter services, advertisement and sponsorships, and
employment services$
Consultative and policy advocacy functions(members! committees focused on various thematic areas such as corporate social
responsibility, industrial relations, education, young professionals, government
relations, policy and consultation, sustainable development, ta#ation and regulation'
they also serve to share information and updates on legislation, policy initiatives,government officers! political orientations, and turnover of key officers positions within
6. What kind of institutions do support internationalisation?
Gl b l B i I tit ti
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Global Business InstitutionsPRISMS
1.Private vs. communitca!italism
".GGOs vs. NGOs
#.Go$%illas vs. Ti&ers'.T(e bene)ts vs. costs o*
*ree tra$e+.S(oul$ GGOs su!!ort
bot( cultural *orms o*
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-.S(oul$ (uman ri&(ts re!lacenational soverei&nt as t(e
e &oal o* nations,/. Is $e*ensive !rotectionism
0usti)able (enun$er$evelo!e$ nations aret(reatene$ b Global +22
cor!orations,3.S(oul$ ric( nations be
re4uire$ to en&a&e in im!ort
substitution,
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5. 6oes t(e IM7 (ave an a&en$a toconvert Ti&er nations to !rivateca!italism,
12. S(oul$ t(e international $ebt o*stru&&lin& Ti&er nations becancelle$,
11. S(oul$ t(e IM7 be re*orme$ oreven $issolve$,
1". S(oul$ &overnments use t(eircor!orations as a *orei&n !olictool,
1#. Is !rivate ca!italism a *orm o*
nationalism,
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ENTERING T8E LAST ERA O7 8UMAN8ISTOR9,
7amilies :lans Tribes
;illa&es :ities
Nations Re&ions
Era o* internationalism<multilateralism= over
nationalism
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T(ere>s no bi&&er
$imension *or t(eorl$ to &rointo unless it>s
inter!lanetartra$e?
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@A ne &lobal civili%ation (as emer&e$
(ose i$entit lies not 0ust in t(e norms
o* $ress a$vertisin& multinational
bran$s or t(e constant bu%% o* orl$
music. Tec(nolo& (as enable$ our !lanet
to be covere$ b a sin&le civili%ation *or
t(e )rst time in (uman (istor. It is no
enmes(e$ in tin ca!illaries t(at not onl
transmit in*ormation at li&(tnin& s!ee$but
also conve inte&rate$ norms o* social
!olitical economic be(avior.C
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D89 NATION STATES ARE 6E:LINING
1. Nations are becomin& so economicallinter$e!en$ent t(at re&ionali%ation isbecomin& a ne *orce.
". Peo!le are more mobile t(an everbe*ore.
#. Minorit !o!ulations in a &roin&number o* nations are assertivel$eman$in& &reater sel*$etermination.
'. Global cor!orations can meet t(e
consumer nee$s o* t(e orl$>s!o!ulation better t(an most national&overnments.
+. Ne &lobal !roblems (ave emer&e$ t(at
re4uire t(e coo!eration o* nationsF
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A NED"1
ST
:ENTUR9GLOBAL
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T(e "1st centur !olitical economicor$er is no lon&er base$ on secon$(al* "2t( centur :ol$ Dar American
ca!italism vs. Soviet :ommunism.Accor$in& to ne &lobal t(inerGeor&e 7rie$man t(e "1st centur&lobal structure is overbalance$ in*avor o* U.S. (e&emon becauseAmerica is *or t(e time bein& t(eonl trul &lobal !oer. But anot(er
"1st
t(iner 7aree$ aaria assertst(at e are livin& in a @PostAmericanC orl$ (ere t(e U.S. isnot $eclinin& as muc( as ot(er
$evelo!in& nations <le$ b :(ina
( i i " ill
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T(ese risin& "1st centur !oers illeventuall move to *orm <!rimarileconomic= coalitions as a
counterbalance to U.S. $ominance.Ne variants o* ca!italism areemer&in& better suite$ to t(e cultureso* $evelo!in& nations !osin& a lon&
term c(allen&e to t(e Destern @neoliberalC A$am Smit( i$eolo& <!ro)tmaHimi%ation sin&lestae(ol$ernationalist= ca!italism. In t(is @!ost
AmericanC emer&in& orl$ structuret(e U.S. ill (ave to $eci$e i* it antsto !artici!ate in s(a!in& t(e neor$er via multilateral !olic
consultation or settle *or a less
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NED EMERGING GLOBAL
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NED EMERGING GLOBALIN7RASTRU:TURE 7OR T8E "1
:ENTUR9
1. Global GovernmentOr&ani%ations <GGOs=
". NonGovernmentOr&ani%ations <NGOs=
#. Global Public PolicNetors <GPPNs=
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GGOs TO6A9
1. International Monetar 7un$
<Aut(orit over nations t(atborro mone=
". International Labor
Or&ani%ation <U.N.= <Aut(oritover (uman ri&(ts violations int(e &lobal or!lace=
#. Dorl$ Tra$e Or&ani%ation<Aut(orit over nations intra$in& !ractices=
' I t ti l St $ $
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'. International Stan$ar$sOr&ani%ation <Man$ates
stan$ar$s *or all !(ases o*&lobal business o!erations=
+. Euro!ean Union <Assumin&
increasin& aut(orit over t(eeconomic !olitical !ractices o*"+ Euro!ean nations=
-. International :riminal :ourt<I::= <:a!acit to !rosecutenational lea$ers (o commit
@(i&( crimes a&ainst (umanitC=
/ N t( A i 7 T $
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/. Nort( American 7ree Tra$eA&reementF limite$ but &roin&aut(orit over @:ANAMERI:OC
3. @G/C G"2C &overnmentsFIn*ormal coalition o* t(e orl$>s / "2 lar&est economies (ic(strive to inuence (o t(e &lobaleconom o!erates
5. T(e inuence o* t(e Unite$ Nationsover soverei&n nations (as beenlimite$ b t(e nationalism o* a *enations !ossessin& veto !oer
MEMBERS O7 T8E @G"2C
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MEMBERS O7 T8E @G"2C• Ar&entina Australia Bra%il :ana$a
:(ina 7rance German In$ia In$onesiaItal Ja!an MeHico Russia Sau$i ArabiaSout( A*rica Sout( Korea Ture UK USA<un$erline$ members maeu! t(e @G/C=
• T(e G"2 as instrumental in mana&in& t(eorl$ economic crisis o* "223"212insti&ate$ b investment ban an$$ere&ulation abuses in t(e USA. Dit(out
t(e illin&ness o* t(e orl$>s lar&esteconomies to stimulate t(e $e!resse$&lobal econom recover *rom t(e crisisoul$ (ave been muc( sloer an$ more
$estructive.
T8E I::
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T8E I::1T(e International :riminal :ourt <I::= is an
in$e!en$ent !ermanent court t(at tries
!ersons accuse$ o* t(e most serious crimeso* international concern namel &enoci$ecrimes a&ainst (umanit an$ ar crimes.T(e I:: is base$ on a treat 0oine$ b 12'member nations so *ar <but not t(e USA=. T(eI:: is a court o* last resort. It ill not act i* acase is investi&ate$ or !rosecute$ b anational 0u$icial sstem unless t(e national!rocee$in&s are not &enuine. In a$$ition
t(e I:: onl tries t(ose accuse$ o* t(e&ravest crimes. In all o* its activities t(e I::observes t(e (i&(est stan$ar$s o* *airnessan$ $ue !rocess.C T(us *ar t(e :ourt>s maininvolvement (as been it( t(e ars in:on&o Su$an U&an$a.
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T8E ESSEN:E O7 NGOs1. NGOs strive to re!resent t(e communit
interests o*ten i&nore$ b !rivatecor!orationsF em!loee el*areenvironmentalism (uman ri&(ts etc.
". Alt(ou&( varie$ in mission NGOs s(are
one common !ers!ectiveF unrestraine$nationalistic economic &rot( is t(ecatalst *or t(e orl$>s bi&&est
!roblems in t(e "1 centurFenvironmental $e&ra$ationmaterialistic consumerism eH!loitativeca!italism etc.
@NGO ( b t( $
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@NGOs (ave become t(e ne an$ecient atc(ers o* multinationalsbein& able to $enounce t(oseactivities (ic( coul$ be $ama&in&to t(e environment an$ to localcommunities as ell as some
s(ame*ul corru!tion !ractices as aresult t(e (ave been able to *orcet(em to im!rove t(eir cor!orate
social res!onsibilit an$ t(eiraareness o* t(e (eav costs tot(eir sales o* (avin& a ne&ative
social re!utation.C
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NGOs &o a*ter GGOslie $o&s c(ase
cats.
:an t(eir o!!ose$missions ever be
reconcile$,
sF
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sFT(e @Global Anti&rot( :oalitionC
<GA:=
Antibusiness environmentalists (umanri&(ts or&ani%ations antica!italists
Ne A&e activists neoisolationists
1. Amnest International
". Green!eace
#. 8uman Ri&(ts Datc(
'. Peacenet
+. 7orest :onservation Portal
-. One Dorl$
O;ER "+222 NGOS IN T8E DORL6
O7AM INTERNATIONAL
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O7AM INTERNATIONAL
7oun$e$ in 155+ OH7am <OH*or$ :ommittee*or 7amine Relie*= is one o* t(e orl$>s ma0orNGOs a con*e$eration o* 1# social 0ustice!ro&ress or&ani%ations <it( #222!artners in 122 nations= orin& to&et(er to!romote sustainable economic $evelo!mentan$ !overt. @OH*am ors it(communities allies an$ !artneror&ani%ations un$ertain& lon&term$evelo!ment emer&enc or researc( an$
cam!ai&nin& *or a *airer orl$. De see to(el! !eo!le or&ani%e so t(at t(e mi&(t &ainbetter access to t(e o!!ortunities t(e nee$to im!rove t(eir liveli(oo$s an$ &overn t(eir
on lives.C
1 Rain*orest Action Netor
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1. Rain*orest Action Netorvs. :iti&rou! over loanst(at le$ to (abitat loss climate c(an&e in 6:s
". Green!eace vs.EHHonMobil to re$uceclimate c(an&in& *uel!ro$uction
#. Peo!le *or t(e Et(icalTreatment o* Animals vs.Bur&er Kin& Den$>s *orbee* *armin&
slau&(terin& abuses
' Green!eace vs 6o :(emical
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'. Green!eace vs. 6o :(emical<t(at bou&(t Union :arbi$e trie$ to &et U: oQ t(e (oo *or itsliabilities *rom a !estici$e $isasterin In$ia $urin& t(e 1532s=
+. :entre *or Science Environmentvs. :oe Pe!si in In$ia over (i&(!estici$e concentrations in t(eirso*t $rins
-. :(il$ren>s activists vs. Nie *orseats(o!s
1 8o $i$ nations ten$ to
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1.8o $i$ nations ten$ toresolve t(eir $iQerences
be*ore GGOs NGOs came ont(e scene, <ar colonialism=
".D(at !romotes !eace moreF in$e!en$ent nations orinter$e!en$ent nations, <T(emore nations nee$ eac( ot(ert(e more t(e coo!erate.=
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NETDORKS
@GPPNs are $esi&ne$ to brin& in businessas a lar&er !artici!ant in t(e !rovision o*
t(ose !ublic &oo$s t(at are at t(e (eart o*t(e &lobal sustainabilit an$ $evelo!menta&en$as. GPPNs lin local national re&ional &overnments transnationalcor!orations ot(er businesses an$ t(eirassociations. 6iverse sometimes o!!osin&&rou!s $iscuss common !roblems t(at no
one o* t(em can resolve b itsel*. T(e i$eat(at t(ese various &rou!s can meet *ace to*ace in a nont(reatenin& *orum to $iscussissues is !romisin&. GPPNs maHimi%es t(e
inclusion o* material in*ormation a ric(C
1 +2 -2 GPPNs (ave emer&e$ since
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1. +2-2 GPPNs (ave emer&e$ sincet(e earl 1552s to !romote!artners(i!s beteen business
&overnment NGOs to coor$inateresources to )&(t &lobal economicsocial ecolo&ical !roblems.
". T8E :ONSULTI;E GROUP ONINTERNATIONAL AGRI:ULTURALRESEAR:8 strives to broa$en
researc( su!!ort *or *oo$ su!!lies sustainable a&riculture <(erenations can *ee$ t(emselves aren>t $e!en$ent on im!ortin& *oo$=
# GLOBAL REPORTING INITIATI;EF
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#. GLOBAL REPORTING INITIATI;EF6evelo!s &lobal sustainabilitaction accountabilit &ui$elines
*or cor!orations'. MILLENNIUM E:OS9STEM
ASSESSMENTF Anal%es scienti)c
researc( *or !olic initiatives onecosstem c(an&e
+. ME6I:INES 7OR MALARIA ;ENTURE
-. RENEDAL ENERG9 POLI:9NETDORK
/. T8E INTERNATIONAL :AMPAIGN TO
BAN LAN6MINES
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B<ene)t=:OMPANIES
@BC <bene)t= com!anies are a ne
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B <bene)t= com!anies are a ne(bri$ beteen *or!ro)t non!ro)tor&ani%ations. :om!anies lie
Neman>s On <starte$ b actor PaulNeman= Pura ;i$a :oQee <or&aniccoQee= contribute t(eir !ro)ts to
c(aritable causes a$o!tin& a !artbusiness!art !art !(ilant(ro!or&ani%ational mo$el. Some Bcom!anies even !a $ivi$en$s tot(eir s(are(ol$ers. Most B com!aniesc(aracteri%e t(emselves as missions$riven rat(er t(an com!etitivel
$riven.
@BC :or!orations are a ne t!e o*
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B :or!orations are a ne t!e o*cor!oration t(at are !ur!ose$rivenan$ create bene)t *or all stae(ol$ers
not 0ust s(are(ol$ers. B :or!orations
are unlie tra$itional res!onsiblebusinesses because t(eF
• Meet com!re(ensive an$ trans!arentsocial an$ environmental !er*ormancestan$ar$s.
• Institutionali%e stae(ol$er interests.
• Buil$ collective voice t(ou&( t(e !oero* a uni*in& bran$.C
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GATT 7 t
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GATTF 7orerunner toto$a>s Dorl$ Tra$e Or&.
1. General A&reement on TariQsan$ Tra$e 15'3USA
". GATT as t(e )rst &lobal or&. toattem!t to !romote *ree tra$e
#. T(e onl a GATT coul$ !asstra$e !olic as i* all member
nations a&ree$. Most *avore$nation status <M7N= as t(eirincentive.
' In t(e 1552s GATT *ell
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'.In t(e 1552s GATT *ella!art because $evelo!e$
nations an$ $evelo!in&nations coul$ no lon&er
a&ree on a common !olica&en$a because t(eere !oles a!art.
+.T(is us(ere$ in t(e Dorl$Tra$e Or&ani%ation <DTO=
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1 In 155+ GATT as
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1. In 155+ GATT as
reor&ani%e$ as t(e DTO". 8ea$4uartere$ in
Geneva Sit%erlan$#. 1'- member nations
'. ++2 staQ members
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DTOF T(e Datc( 6o&
o* Global Tra$e
T8E O77I:IAL DTO MISSION
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T8E O77I:IAL DTO MISSION
1.Promotin& *ree
e4uitable &lobal tra$e
".Settlin& tra$e $is!utes
#.Evaluatin& t(e tra$e!olicies o* nations
'.Provi$in& economicconsultin& to 6:s
T8E REAL DTO MISSION
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T8E REAL DTO MISSION
@T(e essential &oal o* t(e DTO
is to $ere&ulate internationaltra$e. To accom!lis( t(isDTO rules limit t(e ca!acit o*&overnments to re&ulate
international tra$e or tointer*ere it( t(e activities o*cor!orations.C
:learl t(e DTO sees to!romote @neoliberalCca!italism in (ic( maretstae !rece$ence over nations.
MOST :OMMON NONTARI77
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MOST :OMMON NONTARI77TRA6E BARRIERS
1. Subsi$iesF T(e &overnment )nanciall(el!s cor!orations *armers tocom!ete a&ainst *orei&n com!etition
". uotasF 7orcin& nations to restrict t(e
4uantit o* eH!orts t(e sen$#. ;ERs <@;oluntarC EH!ort Restraints=F
Armtistin& nations into@voluntarilC restrictin& t(eir eH!orts
'. Local sourcin& re4uirementsF 7orei&nmanu*acturers must bu su!!lies*rom $omestic su!!liers
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5. “Dumping”: selling below cost in
foreign markets to “steal” marketshare from local competitors6. Asian sweetheart bank loans:
The Asian government pas o!loans companies can"t pa o!.#. Tari! o!set ta$ breaks:%ompanies get to re&uce theirta$es b the amount of tari!s the
pai&
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'ost(favore& nation status:)T* members get tari!
breaks
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BASI: DTO
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BASI: DTOSTRU:TURE
1.T(e 6is!uteSettlement Bo$
".T(e Tra$e PolicRevie Bo$
#.T(e General :ouncil<Secretariat=
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6ONE
1.@In*ormal &reen roomC
consensus *orums beteennations t(at ant to @$o a $ealC
". :onsensus ministerial meetin&s<it( ma0orit votin&!ermissible but voluntara&reement !re*erre$=
#.Policrecommen$in&committees s!ecial issue tas
*orces
'. T(e DTO must see to
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'. T(e DTO must see to(armoni%e its !olicies it(t(ose o* ot(er &lobal&overnment or&ani%ations<GGOs=
+. T(e DTO uses t(e tec(nicalstaQ o* GGOs *or !olic analsis
-. T(e DTO isn>t su!!ose$ to
micromana&e t(e economic!olicies o* its members <as t(eIMBDorl$ Ban (ave been
accuse$ o* $oin&=
DT L UT 7 T8E @ UA6C
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NATIONS
1. T(e @4ua$C nations o* t(e DTO
<t(e U.S. :ana$a EU Ja!an t(e EU= o*ten !ool t(eir votin&!oer an$ !olitical inuence to
steer DTO activities in a$esire$ $irection.
". @T(e ua$ countries basicall$etermine (ic( issues areim!ortant an$ come to t(e ooran$ (ic( $o not.C
T8E DTO>S TEET8
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T8E DTO S TEET81. Member nations enact en*orce
t(eir on tra$e re&ulations". Nations can sue eac( ot(er over
tra$e $is!utes <via a t!ical civil
liti&ation !rocess o* o!!osin& lateams 0ur !anel o* tec(nicaleH!erts ver$ict a!!eal o!tion=
#. Tra$e le&islation can be !asse$ bma0orit vote can be bloce$ ba consensus o* DTO members.
T8E DTO TRA6E
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T8E DTO TRA6E:OMPLAINT PROTO:OL
1.T(e *eu$in& nations musten&a&e in an in*ormal$ialo&ue be*ore t(e DTO
can &et involve$".I* t(e *eu$ is not resolve$
a*ter -2 $as a DTO tra$e!anel <@0urC= can be*orme$ t(e case resolve$it(in one ear.
T( DTO l
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T(e DTO !anels
<0u$&es= meet insecret all
!rocee$in&s remaincon)$ential. Nooutsi$e a!!eal is
!ermitte$
T8E TOP + DTO PLAINTI77S 155+
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"22"1. IN6IAF 7ile$ 1+ suits
". BRAILF "" suits#. :ANA6AF "' suits
'. EUF -# suits
+. USAF 7ile$ /' suits <innin& /3=T(e U.S. success*ull $e*en$e$a&ainst "+ o* suits as $e*en$ant
(i&(er t(an t(e 1+ victor rate*or DTO $e*en$ant nations overall. <EU on '- o* its cases as
$e*en$ant=
1. Go$%illas )le$ -# <1// out o* "/5= o*
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DTO c(allen&es beteen 155+"22"a 4uarter o* t(ese ere a&ainst
Ti&ers Go$%illas on 5+ o* t(esec(allen&es
". Go$%illas on 31 <' o* + cases= o* all
cases )le$ in t(e DTO#. Ti&ers on 5+ <"2 o* "1 cases= o*
c(allen&es a&ainst Go$%illas (ileGo$i%illa on 3" o* t(eir suitsa&ainst ti&er nations.
'. SummarF PlaintiQ nations (ave onmost o* t(e time Go$%illas (ave )le$
on a more suits t(an Ti&ers
1. In "22" t(e U.S. lost a 'B suit
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to t(e EU over &rantin&American com!anies taH
$e$uctions *or EU tariQs.". In "22# t(e DTO sla!!e$ t(e
USA it( a "."B )ne *or steel
tariQs.#. In "22' t(e DTO levie$ t(e U.S.
an annual )ne o* 1+2M as lon&
as t(e @Br$ Amen$mentCremaine$ in eQect <(ic(com!ensates U.S. com!anies *or
)lin& tra$e com!laints relate$ to
AMERI:A SUES :8INA
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In "22/ t(e U.S. lo$&e$
tra$e com!laints in t(eDTO a&ainst :(ina
c(ar&in& t(em it( !ain&eH!ort subsi$ies to :(inesecom!anies !iratin& 6;6s
:6s restrictin& t(esale o* *orei&n )lms
music in :(ina
In t(e summer o* "225 t(e Dorl$
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Tra$e Or&ani%ation issue$ an
un*air !ractices rulin& a&ainst:(ina *or re4uirin& Americanme$ia com!anies to use state
one$ :(inese com!anies *or$istributin& t(eir !ro$ucts tot(e :(inese maret!lace an$ *or
t(e &overnment>s ri&(t to altert(e contents <censor= o* me$iamaterial.
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1. A&reement on Tec(nical Barriers To Tra$eFPro(ibition o* tra$e 4uotas embar&os or
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Pro(ibition o* tra$e 4uotas embar&os orbans.
". A&reement on A&ricultureF Nations s(oul$
im!ort *oo$ (en it is c(ea!er t(an&roin& it at (ome. No a&reement eHistson eliminatin& a&riculture subsi$ies.
#. A&reement on Tra$erelate$ IntellectualPro!ert <TRIPs=F Nations must en*orce t(eintellectual !ro!ert las o* ot(er nations
'. General A&reement o* Tra$e in Services<GATS=F Nations must o!en t(eir bor$ers
to t(e eH!ortin& o* services *rom aroun$t(e orl$.+. A&reement on Tra$eRelate$ Investment
Measures <TRIMs=F Nations must o!ent(eir bor$ers to t(e unrestricte$ ino
outo o* ca!ital.
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7AILURE O7 T8E DTO 6O8A ROUN6<"222"22-= O7 TRA6E TALKS
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<"222"22-= O7 TRA6E TALKS
1. T(e roun$ o* DTO tra$e tals starte$ in "222 int(e Mi$$le East nation o* atar (a$ &reat (o!es*or a$$ressin& t(e tra$e com!laints o*
$evelo!in& nations <@Ti&ersC= relatin& to t(e useo* a&ricultural subsi$ies b ric( <@Go$%illaC=nations.
". But t(e roun$ colla!se$ in t(e summer o* "22-(en Go$%illa nations )nall @t(re in t(e toelC
on eHten$in& t(e subsi$ $ialo&ue *urt(er.#. Ti&ers (ave " s!eci)c com!laints a&ainst Go$%illanations *or t(eir use o* (eav a&riculturalsubsi$iesF <A= Subsi$ies si&ni)cantl loer t(ecost o* Go$%illa a&ricultural !ro$ucts t(usrestrict t(e amount o* a&ricultural !ro$uctsim!orte$ b Go$%illas *rom Ti&er nations <B=Un$er t(e DTO>s im!ort substitution !olicTi&ers are *orce$ to !urc(ase man subsi$i%e$*oo$ eH!orts *rom Go$%illa nations since t(e arec(ea!er t(an (at Ti&ers can &ro t(e same
!ro$ucts *or at (ome.
'. T(e U.S. ante$ t(e 6o(a roun$ to* tti t iQ t(
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*ocus more on cuttin& tariQs t(an onsubsi$ies but t(e EU as o!en to$iscussin& tariQ cuts on manu*acture$!ro$ucts onl not *arm !ro$uct tariQs.
+. T(e U.S. asn>t intereste$ in subsi$com!romise insistin& t(at no ne
DTO a&reement as !re*erable to aatere$ $on one.
-. @T(e most liel route to renee$DTO subsi$ tals is *or nations to
reali%e t(at re&ional <bilateral= *reetra$e a&reements $on>t (ave nearlt(e economic !otential as true &lobal<multilateral= a&reements.C
LESS REGIONAL 7REE TRA6E MOREGLOBAL
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GLOBAL@To$a t(e t(rivin& orl$ econom is
com!lacent. Protectionism (as
$ecline$ si&ni)cantl $ue to re&ional*ree tra$e a&reements <NA7TA t(e EU
MER:OSUR etc.=. But nations must
un$erstan$ t(at bilateral <re&ional=tra$e $eals com!licate im!ortin&eH!ortin& on a &lobal basis es!eciall
in Asia (ere a noo$le bol o* /2
bilateral tra$e $eals &reatl com!licatet(e ecienc o* !ro$uct movementlo&istics. In a$$ition bilateral $ealsten$ to &enerate muc( bi&&er tra$in&bene)ts *or lar e nations t(an small.C
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DTO PROTESTS
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DTO PROTESTS
:ontrovers !rotests accom!an
t(e DTO ever time it (ol$sroun$s o* tals in (ost citiesaroun$ t(e orl$. In 1555
+2222 sometimes violent!rotestors s(ut $on DTOsessions in Seattle. Subse4uent
roun$s o* tals in Ital :ancun8on& Kon& Rostoc Germanalso eH!erience$ varin& $e&rees
o* turbulence.
GLOBAL INSE:URITIES :AUSE6 B9 T8E
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SPREA6 O7 NEOLIBERAL :APITALISM
1. :las( o* secularconsumerist culturesit( communit cultures in A*rica Latin America t(eocratic culturesin t(e Mi$$le East.
". Ra!i$ rise in &lobal oil !rices cause$b :(ina>s ra!i$ ca!italistic &rot(
#. Global !ros!erit base$ on America>s
$ebt)nance$ overconsum!tion'. 6estabili%ation o* orl$ )nancial
marets b America>s investment
banin& scan$al o* "223
T8E MAIN :ON:ERNS O7 DTO :RITI:S DIT8
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BUSINESS6RI;EN GLOBALISM IN :"1
1. Ra!i$l risin& &lobal ealt(ine4ualit is evi$ence o* un0ustca!italism
". Domen all over t(e orl$ butes!eciall in t(e $evelo!in& orl$(ave been *orce$ to aban$on t(eir*amil nurturin& role to earn
mone. #. Global economic 0ob insecurit
are eH!lo$in& $ue to &lobal
ca!italistic com!etition
'. :ultural insecurit is &roin&
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it( t(e ra!i$ s!rea$ o* Desternconsumerism <materialism $ebt!ollution a$vertisin&=
+. Environmental insecurit is
eH!an$in& $ue to t(e ra!i$ onseto* @social outsourcin&C<eH!ortin& !ollution ris
!ro$ucts abroa$=-. Political insecurit is t(e
b!ro$uct o* economic cultural
environmental insecurit
/. In its eQorts to su!!ort t(e
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interests o* &lobal cor!orationsover t(e interests o* nations o*local communities t(e DTO!ro(ibite$ t(e EU>s eQorts to
restrict im!orts (ormone*e$bee* a!!rove$ seat s(o!manu*acturin& in man
$evelo!in& nations an$ si$e$it( com!anies o!!osin&*orei&n labor unions an$
environmental le&islation.
@National &overnments ce$e$
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!oer to t(e DTO an$ IM7 or(a$ t(is !oer sei%e$ *rom
t(em b international marets.T(e orl$ econom nee$s to be
brou&(t bac in line it(!olitical nee$s so t(at nationalan$ &lobal !olitical structures
ill reect t(e interests o* t(eorl$>s !eo!les an$ assertaut(orit over &lobal marets. C
:RITI:S 7ROM T8E RIG8T
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:RITI:S 7ROM T8E RIG8TNot all DTO critics are *rom t(e le*t o*
t(e !olitical s!ectrum. :onservative@neoliberalC ca!italists o!!ose&overnment intervention into t(emaret!lace !re*errin& *or t(e
@invisible (an$C o* ca!italism to (ave*ull sa. Neoca!italists t(us o!!oset(e *ree tra$e interventions o* GGOs!re*errin& t(at cor!orate an$
nationalistic interests o!erateit(out GGO institutionalcoor$ination or multilateral <multination= !olic .
@8uman ri&(ts must
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u a & s usre!lace national
soverei&nt as t(e einternational issue.
Dealt( countries illbecome inun$ate$ it(
immi&rants unless t(eNort(Sout( economic
$ivi$e is *ace$ C
LIBERTARIAN <neo
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LIBERTARIAN <neoliberal=
:APITALISMF T8E
E:ONOMI: I6EOLOG9O7 GLOBAL
GO;ERNMENTINSTITUTIONS
1. @NeoliberalC <!rivate= ca!italism is t(ei$eolo& o* most Destern nations
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i$eolo& o* most Destern nations<es!eciall t(e USA=. Its be$roc!rinci!les inclu$e t(e im!ortance o*!rivate enter!rise *ree tra$e minimum&overnment encroac(ment on t(e@invisible (an$C o* ca!italism t(e !ro)tmaHimi%ation et(ic.
". @NeoC re*ers to a!!lin& t(is ca!italisti$eolo& to nations in a$$ition tocor!orations @liberalC re*ers to
liberali%in& t(e role o* &overnment in!romotin& !rivate enter!rise *ree tra$e<as o!!ose$ to re&ulatin& businessactivit onin& or runnin&
cor!orations=.
T8E I6EOLOG9 O7NEO LIBERAL :APITALISM
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NEOLIBERAL :APITALISM
1.@Invisible(an$C ca!italism base$ on
&rass roots !ro)tmaHimi%in& business$eals re&ulate$ b im!ersonal institutions<:PA )rms stoc marets broers la)rms etc.=
". Sin&le stae(ol$er <)nancialonersstoc(ol$ers= !rivate cor!orationscom!etition in 6arinist survivalo*t(e)ttest in$ustries
#. Laisse%*aire ca!italism base$ on limitin&t(e &overnment>s re&ulator role
'. Neoliberalism ants t(e maret to
control ca!italism not &ovenments.
'. EH!ortin& o* neoca!italist !oliciest $ l i ti i l b l
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to $evelo!in& nations via &lobaleconomic institutions <Dorl$ Tra$e
or&ani%ation InternationalMonetar 7un$Dorl$ Banre&ional *ree tra$e a&reements=
+. EH!ortin& Destern culturet(rou&(out t(e orl$Fconsumerism !o! culture uniseH
&en$er roles @Social 6arinistC<survivalo*t(e)ttest=com!etition
Is neolib ca!italism
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Is neo lib ca!italism
suitable *or t(einter$e!en$ent "1st
centur orl$ oronl *or t(e
in$e!en$ent 15t( "2t( centuries,
GLOBAL
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GLOBAL
GO;ERNMEN
T E:ONOMI:
INSTITUTION
S
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+,---- emploees/
1. T(e Dorl$ Ban $escribes itsel* as @anor&ani%ation o* 13' countries orin&
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or&ani%ation o* 13' countries orin&to *oster &lobal monetar coo!eration
secure )nancial stabilit *acilitateinternational tra$e !romote (i&(em!loment an$ sustainable economic&rot( an$ re$uce !overt.C
". It (as loane$ over #+2B over t(e !ast+2 ears mostl to $evelo!in&nations. Mone as loane$ to a total
o* -- $iQerent nations in t(e !ast "+ears.
#. In recent ears t(e Ban>s avera&e
annual loan rate (as been "2B.
8OD T8E DORL6 BANKSTRI;ES TO SER;E
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STRI;ES TO SER;E
6E;ELOPING NATIONS1.Lon&term loans <1+#2 ears=*or economic social$evelo!ment
".In*rastructure loans <$ams(i&(as bri$&es etc.=
#.Pollution re$uction'.7amil (ealt( re!ro$uctive
services
)01 A23 T03 42AT3 73%T*27
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*8 '*7T D%s 7* )3A9
•Agricultural economies•7carce investment
capital•;imite& business
infrastructure•)eak institutions
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1. T(e IM7 ten$s to mae s(ort
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1. T(e IM7 ten$s to mae s(ortterm <#+ ears= loans to (el!
$evelo!e$ nations $eal it(s(ortterm economicc(allen&es suc( as occasional
tra$e $e)cits recessionseaenin& currenc or cro!$isasters. It relies on its sister
len$er t(e Dorl$ Ban to maelon&erterm $evelo!mentalloans <ma0or construction!ro0ects (ealt( (uman
". T(e IM7 maes s(ortterm loans tonations stru&&lin& it( tra$e balance
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nations stru&&lin& it( tra$e balance!roblems unstable currencies.
#. T(e IM7 sometimes maes lar&e risloans t(at !rivate bans oul$ not mae.It>s t(e len$er o* last resort.
'. T(e IM7 !rovi$es a buQer to $eal it(
t(e (ot mone !roblem <mone crisscrossin& bor$ers it( limite$institutional control=.
+. Private sector )nancers can>t $eal it(t(e com!leHit ris o* )nancin&nations.
-. T(e IM7 is o*ten use$ to a$vance t(e
*orei&n !olic aims o* its $e!ositors.
D89 NATIONS 6EPOSIT MONE9
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IN T8E IM7 TO BE LOANE6 OUTNations $on>t mae $e!osits in t(e IM7
in or$er to mae mone on interestbut rat(er to (ave a sa in t(e termso* t(e loan. T(e more mone a nation
$e!osits in t(e IM7 t(e more sa it&ets in $eterminin& t(e terms o* t(eloanVsuc( as structural c(an&es t(eborroer must mae in its !olicies economic structure !olicies. T(usIM7 loans can be a !otent *orm o*&lobal !olitical inuence.
B tra$ition t(e Dorl$
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Ban !resi$ent is
electe$ b t(e U.S.<t(e lar&est
s(are(ol$in& nation=(ile Euro!e c(ooses
t(e IM7 mana&in&
$irector
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Neoliberalism is t(e economic!(iloso!( o* @libertarian <neo
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!(iloso!( o* @libertarian <neoliberal= ca!italismC t(at su!!orts
t(e @invisible (an$C o* maret<rat(er t(an communit or&overnmental= *orcesF !ro)t
maHimi%ation *ree tra$eunrestricte$ movement o* ca!italresources <mone tec(nolo&=
across bor$ers &lobal business.T(e + *oun$ational libertarianca!italism !olicies o* t(e IM7 areF
W1. PRI;ATIE <sell &overnmentruncom!anies to !rivate cor!orations=
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com!anies to !rivate cor!orations= 6EREGULATE <$ro! all restrictions
on (ic( com!anies are alloe$ tocom!ete in in in$ustr=
ProsF &overnments $on>t run
businesses ecientl or eQectivel:onsF @Ti&ersC <$evelo!in& nations=
(ave *e lar&e cor!orations ca!able
o* !rivati%in& &overnmentcom!anies so *orei&n )rms!rivati%e t(em instea$
W". REMO;E GO;ERNMENTRESTRI:TIONS ON T8E 7LOD O7
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RESTRI:TIONS ON T8E 7LOD O77OREIGN 6IRE:T IN;ESTMENT
ProsF Investors are alrea$ tain&bi& enou&( riss b loanin& t(eirmone to Ti&ers t(e s(oul$n>tbe *orce$ b Ti&er &overnments toleave t(eir mone t(ere anlon&er t(an t(e ant to.
:onsF Ma0or re&ional currencmelt$ons (ave (a!!ene$ $ue tot(e @(ot moneC sn$romecause$ b lac o* restrictions on
76I os
W#. MANAGE TRA6E AROUN6 T8E NEE6SO7 :ORPORATIONS
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O7 :ORPORATIONS
ProsF :or!orations tae t(e riss in
&lobal business s(oul$ t(us bein t(e $river>s seat cor!orationsare la$en it( !ro$uctive
resources:onsF :or!orations value !ro)t over
!atriotism o*ten aQect
international !olitics $ue to t(eirsi%e ealt(. All nations are$e!en$ent on &lobal cor!orations
to one eHtent or anot(er
W'. PRA:TI:E IMPORT SUBSTITUTIONIN TIGER NATIONS
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T(e IM7 im!ort substitution !ro&ramencoura&es Ti&er nations to im!ort
ecientl!ro$uce$ commo$ities<es!eciall a&ricultural !ro$ucts= *romGo$%illa nations in !lace o* !ro$ucin&t(em $omesticall.
ProsF Ti&ers can im!ort man commo$ities*rom &iant Go$%illa a&riculturalcon&lomerates c(ea!er t(an !ro$ucin&at t(em at (omeVo*ten because Go$%illa*armers &ain a com!etitive a$vanta&e
*rom lar&e &overnment subsi$ies:onsF Im!ort substitution can cause Ti&ers
to lose t(eir *oo$ sel*sucienc !ut*armers out o* or in economies t(at
lac substitute 0obs
W+. MAKE GLOBAL BUSINESSOPERATIONS AS UNI7ORM AS
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OPERATIONS AS UNI7ORM ASPOSSIBLE TO EPE6ITE E77I:IEN:9
ProsF Loers t(e cost!rice o*!ro$ucts
:onsF 7orces 6:s to 4uit main&inecient !ro$ucts toinstea$ im!ort t(em *rom
more ecient nations. T(ese6:s t(en eH!erience 0ob losses become less sel*sucient.
AMERI:AN 7ARM SUBSI6IES
I "22+ A i * i $
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In "22+ American *armers receive$ over"2B in *arm subsi$ies t(us $e!ressin& t(e
&lobal !rice o* corn <'- o* total subsi$ies=sobeans <- o* total subsi$ies= rice <3o* total subsi$ies= cotton <"# o* totalsubsi$ies= an$ (eat <12 o* total
subsi$ies=. SiHt !ercent o* American*armers receive no &overnment subsi$iesan$ 12 <mainl t(e lar&er commercial*arms= &et /" o* total American subsi$es.Bra%il (as alrea$ on a subsi$relate$DTO suit a&ainst t(e U.S. an$ American*armers are orrie$ about more subsi$
relate$ suits in t(e near *uture <es!eciall
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1. A recent stu$ o* t(e lon&termeQectiveness o* IM7Dorl$ Ban loan
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!ro0ects $isclose$ t(at (al* o* t(e --nations )nance$ b t(e sister institutions
over t(e !ast "+ ears ere are better oQto$a t(an t(e ere be*ore !artnerin&it( t(e IMBDBVan$ "2 o* t(ese nationsere actuall orse oQ economicall.
". :ritics c(ar&e t(e " or&ani%ations it(bacin& illconceive$ $evelo!mental!ro0ects t(at $is!lace$ more t(an a million!eo!le *rom t(e (omes s!ane$environmental $ama&e eit(er ma$e*ra&ile $emocracies more instable orrein*orce$ t(e !olitical !oer o* $ictatorial
lea$ers in re!ressive !olitical re&imes.
EAMPLES O7 ALLEGE6 IM7DBBOON6OGGLES
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1. T(e Sar$ar Sarovar $am !ro0ect
in In$ia $is!lace$ "+2222!eo!le into s4uali$ resettlementsites.
". T(e Polonoroeste 7rontier6evelo!ment !ro0ect cause$lar&e scale $e*orestation in t(e
Bra%ilian rain *orest.#. T(e Pa Mun $am !ro0ect in
T(ailan$ $estroe$ lar&e (uman
an$ animal (abitats
IM7DB STRATEGI: MISTAKES1 In most !laces (ere t(e o!erate
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1. In most !laces (ere t(e o!eratet(e IM7DB t!icall un$ercut
!rivate len$ers <&lobal bans= (oare more liel to (ol$ t(eir clientnations res!onsible *or (o t(emone is investe$ sa*e&uar$e$
*rom corru!tion.". In an attem!t to $iminis( socialism
t(e " or&ani%ations *re4uentl *orce
&overnments to cut t(eir $omestics!en$in& to suc( an eHtent t(atsi&ni)cant economic $onturnsresult <causin& si&ni)cant
unem!loment=
#. IM7 loans o*ten (ave belomaret interest rates (ic(
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maret interest rates (ic(encoura&es nations to borro
lar&er sums t(an t(e canaQor$ to !a bac.
'. T(e IM7DB mae loans to$evelo!in& nations in s!ite o*corru!t &overnments (o o*tenuse t(e mone *or non
economic !ur!oses suc( asbolsterin& t(e militar main&loans to @*at catC businessmen.
+. @Even t(ou&( t(e inuence o*t(e IM7DB is o*ten overstate$
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t(e IM7DB is o*ten overstate$t(e (ave not been &iven
enou&( cre$it *or man o* t(elittle t(in&s t(e $o ell. Bot(institutions !rovi$e invaluableeconomic analsis in*ormationabout t(e &lobal econom t(atno ot(er nation or GGO coul$!er*orm it( suc( sill.C
-. More t(an -2 o* Asians /2o* A*ricans *eel t(e " institutions(ave (a$ a !ositive eQect on
t(eir countries
/. 6es!ite some o* its !olicies t(at(ave *allen s(ort o* t(e mar T(e
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Dorl$ Ban (as (el!e$ man o* t(e
orl$>s !oor to receive sc(oolin&&ain access to clean ater an$electricit increase a&riculturalout!ut an$ to bene)t *romim!rove$ in*rastructure suc( asroa$s an$ sanitation !ro0ects.
3. @A balance$ assessment o* t(e
Dorl$ Ban oul$ liel s(o t(atmore !oor !eo!le (ave bene)te$*rom ban !ro0ects t(an (ave not.C
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6evelo!in& nations (ave been *orce$to *ollo a less secure !attern o*
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!economic $evelo!ment t(an t(e
lar&est economies o* t(e orl$. 6ueto t(e onset o* ra!i$ @tra$eliberali%ationC <4uic elimination o*!rotectionism subsi$ies !lusim!ort substitution= $evelo!in&nations ere not &iven t(e sameo!!ortunit to !rotect t(eir ne
in$ustries until t(e became stron&enou&( to com!ete on t(eir ona&ainst t(eir !oer*ul com!etitors in
t(e $evelo!e$ orl$
Accor$in& to $evelo!in& nation economist8aJoon :(an& (istor &ave Destern
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Euro!e Ja!an t(e U.S. an$ several areaso* Asia muc( lon&er to slol nurturet(eir e &rot( in$ustries viasubstantial subsi$ies an$ ot(er *orms o*in*ant in$ustr !rotection.
@Ric( countries (ave ice$ aa t(ela$$er *rom 6:s b *orcin& *reemaret*reetra$e !olicies on !oor countries.Alrea$ establis(e$ countries $on>t antmore com!etitors emer&in& t(ro&u&(t(e nationalistic !olicies t(et(emselves success*ull use$ in t(e
!ast C
26evelo!e$ countries (ave been accuse$ o*maintainin& (i&( levels o* !rotectionism on t(e
$ $ i t $ b $ l i
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&oo$s an$ services eH!orte$ b $evelo!in&countries suc( as a&ricultural an$ *oo$
!ro$ucts teHtiles *ootear an$ clot(in&. T(e(ave also been accuse$ o* &enerousl an$absur$l subsi$i%in& t(eir on a&ricultural!ro$uction (ic( is lar&el inecient an$ ver
uncom!etitive visXvis t(at o* $evelo!in&countries. T(ese subsi$ies also lea$ to (u&estocs o* noncom!etitive !ro$ucts t(e areeH!orte$ to $evelo!in& countries <also it(
subsi$ies= at $um!in& !rices s(atterin& t(eir$omestic a&ricultural !rices an$ maretsC.
•
J
T(e ric(est nations <(ic( lar&el controlt(e economic !olicies o* t(e IM7 an$
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DTO= @(ave create$ a ne international
tra$in& sstem t(at is ri&&e$ in t(eir*avor. T(e are !reventin& $evelo!in&nations *rom usin& t(e ver tools o*tra$e t(at t(e ric( nations t(emselves
so eQectivel use$ in t(e !ast to!romote t(eir on economic$evelo!ment no at t(e eH!ense o*6:s. Tra$e liberali%ation $oes notnecessaril brin& overall &ain. Event(ere are inners in t(e !rocess t(eir&ains ma not be as lar&e as t(e loses
o* t(e losers C
8aJoon :(an& conclu$es t(at @*reetra$e ors neit(er in !ractice nor in
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t(eor. 6es!ite its absmal recor$ ric(
nations (ave stron&l !romote$ tra$eliberali%ation in $evelo!in& since t(e1532s. T(e secret o* economic$evelo!ment success is a miH o*
!rotection an$ o!en tra$e it( areas o*!rotection constantl c(an&in& as nein*ant tec(nolo&ies are $evelo!e$ an$
ol$ in*ant in$ustries become internallcom!etitive. 7ree tra$e is not t(e best!at( to t(e economic $evelo!ment o*emer&in& economies to$a.C
1. Are t(e loan con$itions set bt( IM7 $ i
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t(e IM7 &oo$ economics or
!olitical me$$lin&Va *orm o*@neocolonialismC,
". Neocolonialism re*ers to an
institutional *orm o* colonialismin (ic( $evelo!in& nations arealle&e$l $ominate$ b &lobal
&overnmental institutions suc(as t(e IM7 DTO rat(er t(anb coloni%in& nations.
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T8E GLOBAL NORT8SOUT8 6I;I6E
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1. T(e $evelo!e$ orl$ maes u!
onl "2 o* t(e orl$>s!o!ulation but (as 32 o* t(etotal ealt(
". T(e Nort(>s econom revolvesaroun$ t(e service sector t(eSout(>s aroun$ manu*acturin&
#. T(e Nort( consumes more t(an it!ro$uces an$ t(e Sout(!ro$uces more t(an it consumes
T<327: 2api&l &evelopingti
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nations
,.;atin America=.'i&&le 3ast>.Africa
?.%hina5.7outheast Asia6.The “<=-” are the largest
&eveloping nations in the worl&inclu&ing %hina @rail B 7outh
Africa
EBRASF Un$er$evelo!e$ nationsit( sta&nant economic &rot(
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it( sta&nant economic &rot(
1. T(e @G52C are t(e 52 !oorest nations int(e orl$ locate$ !re$ominatel in A*rica t(e Mi$$le East but also in !arts o* LatinAmerica Sout(east Asia.
". T(ese least$evelo!e$ nations arelabele$ as %ebras because lie t(e
stri!!e$ A*rican (orse t(e are vulnerable
to !re$ators <Go$%illa ca!italism=
$e!en$ent on t(e (er$ <resourceric(
nations= a&ricultural <(i&(ris lo
return economies=.
@TracC on t(e Go$%illa si$e o*
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Trac on t(e Go$%illa si$e o*t(e bri$&e smboli%es Destern@im!erialistic ca!italismC bein&eH!orte$ into Ti&er nationsF DTO IM7 !ro)tmaHimi%ationi$eolo& im!ort substitution&lobal ecienc man$ate etc.=
Doul$ t(e orl$ be better oQ i*
t(e @bri$&eC came $on,
@D(en (u&e billboar$s *orSeH an$ t(e :it are
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SeH an$ t(e :it are
*oun$ in t(e mi$$le o*Israel it is obvious t(at
t(e culture o* celebritemanatin& *rom t(eUnite$ States (as becomea currenc t(at is tra$e$t(rou&(out t(e orl$.C
NATIONS DIT8 T8E GREATEST ;OTINGPODER IN T8E IM7F
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1. USA <&reatest votin& !oer=
". GermanJa!an <e4ual vote=
#. 7rance Britain
'. Belïe$ consortium o* EasternEuro nations
+. Net(erlan$sle$ consortium o* UralMountain nations
-. MeHico Latin nation consortium
/. Ital Me$ Sea consortium
T8E @PARIS :LUBC O7:RE6ITOR NATIONS <G/=
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:RE6ITOR NATIONS <G /=1. G/ nations <USA :ana$a Britain 7rance
German Ital Ja!an= control over (al* o*IM7 loan votes
". Russia is sometimes an in*ormal member o*t(e G/ but # nations <:(ina In$ia Sout(
Korea= t(at (ave muc( stron&er economiest(an Russia ant to become !art o* t(eParis :lub
#. T(e USA (as t(e &reatest IM7 votin& !oer
<1/= !uttin& it in t(e !oer seat on mostissues t(at re4uire an 3+ IM7 ma0orit
'. :ritics conten$ t(at t(e IM7 caters to an$is controlle$ b America>s economic
a&en$a
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AGEN6A
T(e orl$s> most aYuent nations
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T(e orl$s> most aYuent nations
$e!en$ on innovative &lobalservice sector !ro$ucts *or most o*t(eir &rot( so t(e antintellectual !ro!ert !rotection on
!atents co!ri&(ts etc. T(ust(ese Go$%illas are most intereste$in t(e DTO>s GATS <General
A&reement on Tra$e in Services=tra$e !ro&ram TRIP <Tra$eRelate$ as!ects o* Intellectual
Pro!ert=
)01 70*C;D T03 <*D;;A7 %A23A@*CT T03 42*@;3'7 *8 T03
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T<327
1.8umanitarian concern
".Global !olitical stabilit
#.Smoot(er &lobal tra$e
'.Marets *or Desterncom!anies
T8E TIGER
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T8E TIGER EBRA
TRA6EAGEN6A
T8E 8A;ENOT SOUT8ERN8EMISP8ERE NATIONS 8A;E A LOT
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LESS O7F
1.Per ca!ita income".7orei&n 6irect Investment
<76I=
#.In*rastructure
'.Tec(nolo&
+.Re!resentative stable&overnments
TDO STRIKES AGAINST6E;ELOPING NATIONS
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1.Dea $emocracies
". Internal civil ars
#.Et(nic stri*e
'.Over!o!ulation
+.Le&ac o* colonialism
<economic !oliticaleH!loitation=
-.A&riculturebase$ economies
GLOBAL DEALT8 6ISTORTION At t(e start o* :"1 t(e ealt(iest
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At t(e start o* :"1 t(e ealt(iest
"2 o* nations (a$F
1. 3- o* t(e &lobal G6P <vs. 1 *ort(e !oorest "2=
". 3" o* total &lobal eH!orts <vs. 1*or t(e bottom "2=
#. -3 o* total &lobal *orei&n $irectinvestment <vs. 1 *or t(e bottom"2=
'. /' o* &lobal !(one lines <vs. 1.+*or t(e bottom "2=
T(e DTO>s 6o(a <atar=6E;ELOPMENT AGEN6A <"221"22-=F
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6E;ELOPMENT AGEN6A <"221 "22-=F
1. Im!act o* *ree tra$ea&reements on t(e GeneralSstem o* Pre*erences <Go$%illa
nations a&ree to en&a&e inim!ort substitutionVto im!orte Ti&er !ro$ucts instea$ o*
main& t(em at (ome=".Less Destern !olitical me$$lin&
into Ti&er aQairs
IN T8E GENE;A TALKS </2'=T8EUSA EU AGREE6 TOF
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1. Re$uce *arm subsi$ies<33B annuall *or t(e USA +"B *or t(e EU=Vt(e
@*rameor *or establis(in&mo$alities in a&ricultureC
". Loer tariQs on e Ti&ereH!orts t(at Go$%illanations alrea$ mae at
(ome
AG SUBSI6IES AS O7 7ARMOUTPUT "22#
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OUTPUT "22#
1.AustraliaF subsi$ies ere1.2 o* total Australian*arm out!ut
".:ana$aF +.-
#.USAF #3.5
'.Ja!anF ''./
+.EUF 1"1.'
Doul$ Go$%illa nations
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be able to avoi$im!ort substitutionit(out a&ricultural
subsi$ies,
T8E @GREEN ROOMC PROBLEM1 T(e @' ua$C DTO members
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1. T(e @' ua$C DTO members
<USA :ana$a EU Ja!an= o*tenbroer !rivateclose$ tra$e $ealsit( select ot(er nations
b!assin& Ti&er nations i&norin& t(eir nee$s
". T(e DTO *avors *ormin& a
steerin& committee o* aQecte$nations to coor$inate tra$e$ialo&ues in a *air trans!arent
an$ re!resentative manner
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@7air tra$e is commerce it( acommitment to $evelo!in& e4uitable!artners(i!s beteen mareters in
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!artners(i!s beteen mareters in(i&(l in$ustriali%e$ nations an$ loincome !ro$ucers in $evelo!in& re&ionso* t(e orl$. 7air tra$e creates t(eo!!ortunit *or businesses to increase
t(eir !ro)ts t(rou&( sociallres!onsible business !ractices *orconsumers to vote it( ever !urc(ase*or a more e4uitable orl$ an$ *or*armers to vie t(emselves not as ananonmous co& in t(e orl$ maret butas a valuable contributor to a &lobal
communit C
@7air tra$e coo!eratives !ro$uce a(ealt( alternative to lar&escalemanu*acturin& orin& mainl it(
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manu*acturin& orin& mainl it(small businesses (ere orers earn a&reater return on t(eir labor an$!ro)ts are $istribute$ more e4uitablan$ o*ten reinveste$ into t(e local
communit in (ealt( clinics c(il$ caree$ucation sa*e orin& con$itions.Dorers learn lea$ers(i! an$or&ani%in& sills enablin& sel*relianteconomic $evelo!ment. Pro$ucers &ain&reater control an$ $ecisionmain&!oer over t(e use o* local resources.C
IS INSTANT 7REE TRA6E 7AIR,It as com!etitivel necessar *or most
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o* t(e orl$>s ric(est <@Go$%illaC=
nations to &o t(ou&( !rotracte$!rotecte$ <non*ree= tra$e eras earlin t(eir (istor. T(e ere not stron&enou&( economicall or militaril toit(stan$ @*reeC tra$e. Man$evelo!in& <CebraC= nations com!laint(at *ree tra$e (as been !rematurel
*oiste$ on t(em b t(e DTO IM7be*ore t(e are rea$ &eneratin&economic (ar$s(i! !olitical
instabilit
@Ric( nations no (ector t(e !oor on t(eim!ortance o* *ree tra$e res!ect *orintellectual !ro!ert an$ (os!italit to
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intellectual !ro!ert an$ (os!italit to*orei&n investors et avoi$e$ an$
re0ecte$ suc( !ractices (en t(e ric(nations ere climbin& t(e la$$er toar$s!ros!erit. T(e (!ocriticall tell t(e
!oor orl$ to $o as e sa not as e $i$.T(e Dest>s neoliberals <!rivateca!italists= (ave eit(er *or&otten orreritten t(eir secret (istor arm
tistin& to$a>s $evelo!in& nations to too!en u! to t(e *ree tra$e re&ime in t(emistaen belie* t(at *ree tra$e secure$t(e Dest>s current !ros!erit.C
6O DE NEE6 MORE 7REE TRA6E OR MORE 7AIR TRA6E,
1 International tra$e is ort( 12 million a
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1. International tra$e is ort( 12 million aminute.
". Poor countries account *or onl 2.' !ercento* orl$ tra$e. Since 1532 t(eir s(are (asbeen cut in (al*.
#. T(e Unite$ Nations estimates t(at un*airtra$e rules $en !oor countries /22 billionever ear aQectin& #2 million !eo!le.
'. Income !er !erson in t(e !oorest countriesin A*rica (as *allen b "+ in t(e last "2
ears.+. T(e t(ree ric(est !eo!le in t(e orl$
control more ealt( t(an all -22 million int(e orl$>s !oorest countries.
-. Nearl (al* t(e orl$>s !o!ulation <".3billion !eo!le= lives on less t(an US" !er$a.
/ T(e !rices o* man !oor countries> e
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/. T(e !rices o* man !oor countries> eeH!orts are at a 1+2ear lo.
3. At t(e last *ull meetin& o* t(e DTO t(eEuro!ean Union (a$ +22 ne&otiators an$8aiti (a$ none.
5. A*ter t(e last roun$ o* tra$e ne&otiations
ric( countries estimate$ t(at t(e oul$&ain b 1'1.3 billion !er ear an$ A*ricaoul$ be ".- billion !er ear orse oQ.
12.Global tra$e is re&ulate$ t(rou&( !rioritiesan$ !olicies set b international institutions
inclu$in& rules ma$e at t(e Dorl$ Tra$eOr&ani%ation an$ con$itions attac(e$ toloans !rovi$e$ b t(e Dorl$ Ban an$International Monetar 7un$. T(ese bo$iesare controlle$ b &overnments.
D8EN PROTE:TIONISM ISEPLOITATI;E NATIONALISMF
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1. EPLOITATI;E
PROTE:TIONISMF One nationtries to raise its stan$ar$ o*livin& b loerin& anot(er
nation>s stan$ar$ o* livin&.". 6E7ENSI;E PROTE:TIONISMF
use$ to !revent *orei&ncom!anies *rom stealin&business *rom $omesticcom!anies
T8E 7AIR TRA6E MO;EMENT1. 7air tra$e is virtuall t(e onl
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or&ani%e$ social movement t(at
strives to im!rove t(e economicsel*sucienc o* orers in$evelo!in& <communit ca!italism=
nations em!oer t(em to becomestae(ol$ers in &lobal tra$e.
". T(e *ree movement is bace$ b a
coalition o* international reli&ious$evelo!ment ai$ environmental social 0ustice or&ani%ations.
#. T(e *air tra$e &lobal coalition sees tore$uce !overt !romote sustainableeconomic $evelo!ment t(rou&( t(e *air
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! &tra$e minimum !rice !ro&ram <$esi&ne$ to
!rice &oo$s (i&( enou&( to !a *or t(eir$irect cost !lus a contribution tosustainin& t(eir *uture !ro$uction=.
'. T(e 7airtra$e Labelin& Or&ani%ation <7LO=be&un in 155/ set stan$ar$s *or labelin&!ro$ucts as 7airtra$e :erti)e$. T(e(i&(est volume *airtra$e certi)cation
!ro$ucts inclu$e bananas (one coQeeoran&es cocoa cotton $rie$ *res( *ruits ve&etables 0uices nuts oil see$s4uinoa rice s!ices su&ar tea an$ ine.
+. 7LO:ERT <7airtra$e Labelin&Or&ani%ation :erti)cation= coor$inatest(e certi)cation maretin&
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t(e certi)cation maretin& ins!ection o* *airtra$e !ro$ucts
t(rou&( a netor o* in$e!en$entins!ectors (o travel t(e orl$ asliaisons beteen *amilies tra$ers sellers.
-. T(e International 7airtra$eAssociation <I7AT= create$ in 1535 isa &lobal coalition o* a&ricultural
coo!s eH!ort mareters im!ortersretailers re&ional *airtra$e netors su!!ort or&ani%ations. I7AT (as #22member or&ani%ations in -2 nations.
/. In a$$ition to sustainable economic$evelo!ment !ricin& core *airtra$evalues inclu$e sa*e orin& con$itions
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& &en$er e4uit environmental
!rotection orer !artici!ation in$ecisionmain& &eneral a$(erenceto t(e Unite$ Nations c(arter o* (umanri&(ts.
3. 7airtra$e certi)e$ sales in "22+ ereestimate$ at over 1B less t(an one(un$re$t( o* one !ercent o* total orl$
tra$e. As o* "22- 1.+M economicall$isa$vanta&e$ orers $irectl!artici!ate$ in *airtra$e initiatives +M bene)te$ *rom commerce.
5. T(e a$$itional !ro)t &enerate$ (en!ro$ucers b!ass interme$iate buersinstea$ sellin& $irectl to international buers
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can be (i&(l si&ni)cant. 7or eHam!le in
1555 :entral American coQee &roers (osol$ to tra$itional mi$$le men buersavera&e$ #3 cents !er !oun$ com!are$ to1."- earne$ b *armers sellin& t(ou&( t(e
*air tra$e institutions.12. T(e *air tra$e sstem !laces a (i&( !riorit
on communit $evelo!ment in a$$ition to&uaranteein& *air !rices *or *armers. Dorers
it(in a communit !artici!ate in $eterminin&t(eir on economic $evelo!ment !rioritiesinclu$in& e$ucation clean ater (ealt( care in*rastructure $evelo!ment.
M:6ONAL6>S 7AIRTRA6E 6EAL DIT8TOMATO PI:KERS
1 In "22/ Mc6onal$>s nearl $ouble$ t(e
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1. In "22/ Mc6onal$>s nearl $ouble$ t(e
a&es o* its 7lori$a mi&rant tomato !icersb increasin& t(e a&es !ai$ *or a bucet o*!ice$ tomatoes *rom '2 cents to /" cents.
". T(e $eal as ma$e in an arran&ement it(
t(e :oalition o* Immoalee Dorers (ic((as also broere$ a *air tra$e $eal it(Taco Bell.
#. @T(e Mc6onal$>s $eal sen$s a stron&
messa&e to t(e rest o* t(e *ast*oo$in$ustr t(at t(e lea$ers o* t(e in$ustr aretain& concrete ste!s to im!rove t(e liveso* orers o* (uman bein&s.C
7AIRTRA6E PRIN:IPLES<*rom t(e Americas Pro&ram
Inter(emis!(eric :enter=
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1.Local an$ re&ional !ro$ucers an$service !rovi$ers s(oul$ be in control sobene)ts remain in t(eir communities.
".Laborers s(oul$ earn a *air a&e an$or in a (ealt( sa*e environment.
#.Interme$iar or&ani%ations t(at soa u!an$ eH!atriate !ro)ts s(oul$ beremove$ *rom t(e e4uation alloin&!ro$ucers to ee! a lar&er s(are o*
sales revenues it(out !assin& oneHcessive costs to consumers.'.Goo$s an$ services s(oul$ be
environmentall *rien$l an$ sociallres!onsible.
+. :ommunit $evelo!ment nee$s asell as environmental an$ socialcriteria s(oul$ be taen into
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criteria s(oul$ be taen intoaccount in business $ecisions.
-. Pro$uct an$ !ro$ucer $iversits(oul$ be su!!orte$ an$increase$ o!!ortunities *or omen
s(oul$ be a !riorit./. D(en !ossible interme$iaries t(at
bu !ro$ucts $irectl *rom
!ro$ucers s(oul$ !rovi$e )nancialassistance suc( as $irect loans!re!aments or linin& !ro$ucersit( sources o* )nancin&.
3. T(e )nances mana&ement!olicies an$ business !racticeso* *air tra$e enter!rises s(o l$
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o* *air tra$e enter!rises s(oul$
be o!en to !ublic scrutin.5. :onsumers (o are e$ucate$
re&ar$in& t(e im!ortance o*
!urc(asin& !ro$ucts an$services t(at su!!ort livin&a&es (ealt( orin&con$itions an$ environmental!rotection ill be illin& to !asli&(tl (i&(er !rices.
12. Gen$er e4ualit11. :a!acit buil$in&
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! &
<$evelo!in& t(e ca!acit o*!ro$ucers to (el!t(emselves=.
1". Environmental !rotectiont(rou&( res!onsible!ro$uction !ractices t(atsustain !(sical (umanassets *or successive
&enerations
KE9 PROBLEMS O7 7AIR TRA6E<*rom t(e Americas Pro&ram
Inter(emis!(eric :enter=
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1.7ree tra$e *avors lar&e cor!orationsnot MeHico>s man smallscale*armers artisans an$ businesses.
".Smaller !ro$ucers an$ service!rovi$ers lac ca!ital or access tocre$it tec(nical an$ maretin&assistance an$ $eliver sstems.
#.T(e eH!ort orientation o* MeHico>seconom calls *or t(e !ro$uction o*
basic commo$ities (ic( *ace stee!com!etition *rom *orei&n subsi$i%e$!ro$ucts are (i&(l vulnerable to&lobal !rice uctuations an$ &enerate
minimal !ro)t mar&ins
'.7orei&n sales are usuallmana&e$ b nonlocal
i i i i i
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com!anies minimi%in&
bene)ts *or !ro$ucercommunities.
+.A&riculture manu*acturin&an$ tourism o!erations un$er!ressure to com!ete accor$in&
to t(e terms o* *ree tra$eoverloo soun$ naturalresource mana&ement
!ractices
T8E SIE
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SU::ESS O7
T8E 7AIR
TRA6E
MO;EMENT
T8E LI7ELINE O7 ::s
1 7amil small local
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1. 7amil small localbusinesses
". Sustainable incomes!rovi$e$ b t(e ;A:
#. Protection *rom TReH cor!s
'. Subsi$*ree
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com!etition*rom Go$%illa
nations
+. 7louris(in&@*air tra$eC
In "22- 7air tra$e &lobal revenues ere".#B but re!resente$ less t(an one(un$re$t( o* a !ercenta&e !oint in total
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! & !orl$ tra$e o* !(sical !ro$ucts. Over1.+M !ro$ucers ore$ in *air tra$eor&ani%ations but +M more members o**air tra$e communities also bene)te$.
In "22" *air tra$e sales in t(e USA:ana$a t(e Paci)c Rim ere "+1Mit( t(e &reatest sales &rot( o*coQee. #"22 !eo!le ere em!loe$ in
t(ese re&ions. In "222 t(ere ere -22*air tra$e (olesalers in t(e USA :ana$a an$ over /222 retailers.
AN IMPOSSIBLE 6REAM,Man Desterners oul$ !robabl
$ i* i t( t it t
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res!on$ i* &iven t(e o!!ortunit to
!a a +12 surc(ar&e on !ro$uctsma$e in lo a&e ca!italist nations.BUT no suc( o!!ortunit is *easible
un$er t(e invisible ca!italist sstemo* su!!l c(ain cor!orate$ominators <DalMart &iant *oo$
con&lomerates a&riculture