Developing Countries

00-cov2.qxd 11/22/2000 1:51 PM Page 2 The United Nations University is an organ of the United Nations established by the General Assembly in 1972 to be an international community of scholars engaged in research, advanced training, and the dissemination of knowledge related to the pressing global problems of human survival, development, and welfare. Its activities focus mainly on the areas of peace and governance, environment and sustainable development, and science and technology in relation to human welfare. The University operates through a worldwide network of research and postgraduate training centres, with its planning and coordinating headquarters in Tokyo. The United Nations University Press, the publishing division of the UNU, publishes scholarly and policy-oriented books and periodicals in areas related to the University’s research. 00-upfr.qxd 11/22/2000 8:04 AM Page i The Role of the World Trade Organization in Global Governance 00-upfr.qxd 11/22/2000 8:04 AM Page ii The Role of the World Trade Organization in Global Governance reflects the core mission of the United Nations University Institute of Advanced Studies (UNU/IAS). In April 1996, the UN Secretary-General inaugurated the UNU/IAS as an in-house community of scholars established vigorously to pursue knowledge at the inter- section between societal and natural systems. The programmatic theme of the IAS was created to be dynamic and flexible, focusing on finding creative solutions to the pressing global issues arising at this nexus. As a first overarching theme, the IAS adopted the concept of eco-restructuring, an approach to sustainable development that envisions shifting technological and societal systems towards a greater equity between developing and developed countries, between humankind and the environment, and between current and future generations. An integral component of the UNU/IAS eco-restructuring dynamic involves the examination of global institu- tions, regimes, values, and policies relating to sustainable development. These issues are dealt with under the programmatic sub-theme of Multilateralism and Sustainable Development (MSD). Within this programme, in-depth theoretical research is combined with relevant policy studies and the formulation of practical policy options. A strong capacity-building component that seeks to enhance the participation of policy actors in global environmental negotiations has also been built into the programme. This book has been the result of collaboration between the Multilateralism and Sustainable Development programme and the Ford Foundation. The IAS has strategi- cally focused upon trade, sustainable development, and related issues because it believes that this will constitute a crucial aspect of global governance policy at the start of the new millennium. Other books coming out of the research of MSD include Trade, Environment, and the Millennium (UNU Press, 1999) and Trade, Environment, and Sustainable Development: Views from Sub-Saharan Africa and Latin America (Environment and Multilateral Diplomacy Series, No. 1). 00-upfr.qxd 11/22/2000 8:04 AM Page iii The Role of the World Trade Organization in Global Governance Edited by GARY P. SAMPSON 00-upfr.qxd 11/22/2000 8:04 AM Page iv © The United Nations University, 2001 The views expressed in this publication are those of the authors and do not necessarily reflect the views of the United Nations University. United Nations University Press The United Nations University, 53-70, Jingumae 5-chome, Shibuya-ku, Tokyo 150-8925, Japan Tel: +81-3-3499-2811 Fax: +81-3-3406-7345 E-mail: [email protected] http://www.unu.edu United Nations University Office in North America 2 United Nations Plaza, Room DC2-1462-70, New York, NY 10017, USA Tel: +1-212-963-6387 Fax: +1-212-371-9454 E-mail: [email protected] United Nations University Press is the publishing division of the United Nations University. Cover design by Joyce C. Weston Cover photography by Pacific Press Service Printed in Hong Kong UNUP-1055 ISBN 92-808-1055-3 Library of Congress Cataloging-in-Publication Data The role of the World Trade Organization in global governance / edited by Gary P. Sampson. p. cm. Includes bibliographical references and index. ISBN 92-808-1055-3 1. World Trade Organization. 2. World Trade Organization— Developing countries. 3. Foreign trade regulation. 4. Commercial policy. 5. Free trade—Environmental aspects. 6. Free trade— Social aspects. 7. International economic relations. 8. Globalization. I. Sampson, Gary P. HF1385.R65 2001 382′.92—dc21 00-012453 00-upfr.qxd 11/22/2000 8:04 AM Page v Contents PREFACE . .vii Hans van Ginkel, Rector of the UNU LIST OF ABBREVIATIONS . .ix OVERVIEW . .1 Gary P. Sampson 1 LAYING THE FOUNDATIONS OF A FAIR AND FREE WORLD TRADE SYSTEM . .19 Kofi Annan 2 BALANCING COMPETING INTERESTS: THE FUTURE ROLE OF THE WTO . .29 Supachai Panitchpakdi 3 REBUILDING CONFIDENCE IN THE MULTILATERAL TRADING SYSTEM: CLOSING THE “LEGITIMACY GAP” . .37 Rubens Ricupero 4 MAKING THE DEVELOPMENT ROUND A REALITY . .59 Clare Short 5 CHALLENGES FACING THE WTO AND POLICIES TO ADDRESS GLOBAL GOVERNANCE . .81 Peter Sutherland, John Sewell, and David Weiner 6 PUBLIC PARTICIPATION IN THE WORLD TRADE ORGANIZATION . .113 Frank Loy 00-upfr.qxd 11/22/2000 8:04 AM Page vi vi Contents 7 THE RELATIONSHIP BETWEEN TRADE AND ENVIRONMENT REGIMES: WHAT NEEDS TO CHANGE? . .137 Claude Martin 8 TRADE AND ENVIRONMENT AT THE WORLD TRADE ORGANIZATION: THE NEED FOR A CONSTRUCTIVE DIALOGUE . .155 José María Figueres Olsen, José Manuel Salazar-Xirinachs, and Mónica Ara 9 WHAT THE WORLD NEEDS FROM THE MULTILATERAL TRADING SYSTEM . .183 Martin Wolf 10 MAKING THE GLOBAL ECONOMY WORK FOR HUMAN RIGHTS . .209 Mary Robinson 11 HEALTH, EQUITY, AND TRADE: A FAILURE IN GLOBAL GOVERNANCE . .223 James Orbinski 12 BUILDING A WTO THAT CAN CONTRIBUTE EFFECTIVELY TO ECONOMIC AND SOCIAL DEVELOPMENT WORLDWIDE . .243 Bill Jordan 13 TRADE RULES AFTER SEATTLE: A BUSINESS PERSPECTIVE . .259 Maria Livanos Cattaui LIST OF CONTRIBUTORS . .271 INDEX . .279 00-upfr.qxd 11/22/2000 8:04 AM Page vii Preface There are many views as to the sources and characteristics of globalization and the actors responsible for the shape it takes. Differing views over its merits and de-merits have led to many passionate debates in recent years. However, one common element permeates these debates: it is agreed that the process of globalization is charac- terized by a greater degree of interdependence between nations. Equally well accepted is that international trade is an important fea- ture of this interdependence. As trade in goods and services has been progressively liberalized over the past half-century, international trade has increased dramatically and so has the interdependence of nations and the process of globalization. The rules that govern trade, and therefore the role of the World Trade Organization in global governance, have proliferated accordingly. The world spotlight was on the WTO at its third meeting of trade ministers in Seattle in December 1999. Many had hoped a new round of multilateral trade negotiations—the Millennium Round— would be launched at this meeting. Not only were the new negotiations not launched, but the meeting ended in disarray, with the WTO facing criticism from many quarters. Conducting world trade according to multilaterally agreed rules has been a major contributor not only to the enormous expansion of the world economy over the half-century, but also to the avoidance of international conflict. Thus, if there is to be reform of the current trading system, it should be done with care in order to preserve the many strengths of the system while responding to legitimate concerns. Carefully guiding the process of globalization-with-a- human-face is a challenging task. This, indeed, is one of the most important challenges facing policy makers at the international level today. In the aftermath of Seattle, it became increasingly apparent that many varying views were held by prominent personalities regarding the current and future role of the WTO in international affairs. A number of these personalities represent bodies of the United Na- tions and other intergovernmental organizations, government min- 00-upfr.qxd 11/22/2000 8:04 AM Page viii viii Preface istries, and non-governmental organizations. Some present the views of private corporations, think tanks, and the press. It is timely to bring together the views of a number of these prominent people in one volume. The intention is to provide an opportu- nity for contributors to state clearly their interests in a well-function- ing WTO trading system and to offer suggestions about what the WTO can do to meet the challenges it faces in areas of particular interest to them. A clear statement of these concerns and proposed solutions should assist the debate to proceed in a positive manner. This volume has been prepared in conjunction with the Ford Foundation with the aim of assisting this debate. I thank the Ford Foundation for its support and all the authors for their thoughtful contributions. I sincerely hope that the ideas developed, and the insights and views proffered, may help us to move forward towards a better and safer life for all. Hans van Ginkel 00-upfr.qxd 11/22/2000 8:04 AM Page ix Abbreviations APEC Asia-Pacific Economic Cooperation ASEAN Association of South East Asian Nations CFCs chlorofluorocarbons CICC Coalition for an International Criminal Court CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora CSD Commission

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