Altering World Order: The Alter-Globalization Movement and the World Trade Organization University of Stirling Department of Politics William B. Paterson Submitted for the Degree of PhD December 2006 Abstract This thesis analyses the relationship between the World Trade Organization (WTO) and the alter-globalization movement through the theoretical framework of Robert W. Cox. A Coxian perspective highlights that the WTO is a central international organization of the current nebuleuse, and one integral to enforcing, promoting and defending transnational corporate hegemony. The emergence of the protest movement inaccurately labelled the ‘anti- globalization movement’ can be described as a Coxian counter-hegemonic structure. From the plethora of protesters making up this ‘anti-globalization movement’ who dispute the legitimacy of the WTO, a distinct alter-globalization movement can be identified. It prescribes the alternative principles of public accountability, the rights of people and the protection of the environment as guides to reforming the WTO towards a Coxian ‘new multilateralism’. This thesis asks: to what extent has this alter-globalisation movement succeeded in altering the policies and processes of the WTO in accordance with these principles? In Coxian terms the questions of how far the campaign for ‘new multilateralism’ has successfully altered the hegemony of the current world order and avoided trasformismo are asserted. After illustrating corporate structural power within the WTO’s policies and procedures, the alter-globalisation movement is defined as an entity of overlapping social movements and Non-Governmental Organizations (Alter-NGOs). The thesis identifies and evaluates three strategies employed by the alter-globalisation movement to place its values at the heart of the WTO: demonstrations on the street; assisting developing states during negotiations; and submitting amicus briefs to the WTO’s Dispute Settlement Body (DSB). The obstacles presented by the WTO’s policy of trasformismo are then detailed, namely: political elites coopting the alter-globalization movement’s principles into their own rhetoric; the cooption of NGOs by political elites from the developing world, and the cooption of NGOs and the fierce rejection of any NGO influence within the WTO. In its conclusions the thesis details the manner in which trasformismo is a significant tool in the armoury of corporate hegemony for resisting reform, and thereby informs existing literature on the problems faced by all social movements and NGOs engaging with reforming the world order. i Dedication This thesis is dedicated to my wife Lesley and my son Calum. Work like you don't need the money. Love like you've never been hurt. Dance like nobody's watching. Sing like nobody's listening. Live like it's Heaven on Earth. Another world is possible. ii Acknowledgements This thesis would never have been written if it had not been for my meeting with Professor Barry Gills at the University of Newcastle in November 2003. In the year that Barry agreed to be my external supervisor he was instrumental in making me believe in my academic ability. Since then he has selflessly given his precious time and support, and I will always be indebted. I must also thank Professor Graham Timmins for acting as a supervisor. Dr Peter Lynch, at Stirling University, must be warmly thanked for his crucial role in the process of addressing the corrections. A very big thank you to my external examiners, Dr Donna Lee and Professor Jan Aart Scholte, for giving their valuable time and their patience during the examination of this thesis. Dr Laura Cleary has to be acknowledged for sparking my obsession with International Relations as an undergraduate. The friendship, camaraderie, laughter, never-ending support and encouragement from Dr Natalie Bormann will always be appreciated. Dr Scott Vietch’s ability to smuggle me in to Glasgow University’s Law Faculty to participate with the heavyweights: Stephen Gills, Boaventura de Sousa Santos, Claire Cutler, and Upendra Baxi, to name a few, requires grateful acknowledgement. My dearest friends Innes and Linda are thanked for helping to shape my political ideals, not least by calling me offensive names, such as a ‘neoliberal’! Ian, Jock, Davy and Burkie all need to be thanked for being friends, and having to listen to me constantly whining about how hard it is to write whilst paying for my lunch. Obviously, none of this would have been possible without my mum and dad, but my brothers and sister also need to be thanked for their support and love throughout this work. My ‘in-laws’, Dan and Pat, have been both patient and supportive of a PhD they thought would never end. Pat’s time away from bowling to proof read was greatly appreciated. And, yes, I will get a job now. I take no responsibility for Kenny’s decision to write a PhD at Hull. Florence Faucher advised me six years ago in a deep French accent: “Do not do a PhD unless you are willing to invite madness into your life because a PhD is madness”. In my six years of post-graduate studies I have yet to come across a more truthful statement of fact – be warned Kenny! Finally, none of this would have been possible without my wife and soul mate Lesley, and she ought to be formally thanked for putting up with being ignored, but still giving her patience, support, love, and constant belief in me. I am truly blessed. iii Table of Contents Abstract p. i Dedications p. ii Acknowledgements p. iii Table of Contents p. iv-vii List of Abbreviations p. viii-x Chapter One Introduction p. 1-26 1.1 The Subject and Nature of the Problem p. 1 1.2 The Research Question p. 8 1.3 Methodology p. 8 1.4 Measuring the Success of the Alter-globalisation Movement p. 14 1.5 Contribution to Knowledge and Literature Review p. 18 Chapter Two A Coxian Perspective on Change and Continuity in Multilateralism p. 27-79 2.1 Introduction and Aims p. 27 2.2 Robert W. Cox – A Conceptual Framework p. 29 2.3 Coxian Hegemony and Nebuleuse in the Current World Order p. 37 2.4 Criticisms of Cox p. 50 2.5 Mainstream Multilateralism and the ‘Dissident’ Coxian New Multilateralism p. 58 2.6 New Multilateralism and Complex Multilateralism within MEIs p. 67 2.7 Conclusion p. 77 iv Chapter Three The World Trade Organization in the Current Nebuleuse p. 80-126 3.1. Introduction and Aims p. 80 3.2 The WTO’s centrality in the Nebuleuse p. 82 3.3 The WTO’s DSB: The Teeth of the Nebuleuse p. 88 3.4 A Lack of Critical Analysis in the Creation of the WTO p. 100 3.5 Transnational Social Forces and Forms of States p. 104 3.6 The Transnational Historical Structure in the Creation of WTO Policies p. 114 3.7 Conclusion p. 125 Chapter Four The Contradiction of the World Trade Organization p. 127-167 4.1 Introduction and Aims p. 127 4.2 WTO Ideology – The Rule of Law and 19th Century Liberalism p. 129 4.3 Sovereign Equality at the WTO p. 137 4.4 Non-Discrimination in the WTO Charter p. 143 4.5 Enforcement – Equality Before the Law p. 146 4.6 Uruguay Negotiations: The undermining of Sovereign Equality and Non-Discrimination p. 149 4.7 Undermining Decision-Making at the WTO p. 155 4.8 Undermining Dispute Settlement at the WTO p. 163 4.9 Conclusion p. 165 v Chapter Five Alter-Globalization Movement: Hegemonic Distortion and Cooption p. 168-223 5.1 Introduction and Aims p. 168 5.2 Transnational Protest and the Counter-Hegemonic Forces p. 170 5.3 Social Movement Theory: Why Transnational Protest? p. 174 5.4 Counter-hegemony and the WTO p. 180 5.5 Counter-hegemony: Typology and Continuum p. 189 5.6 The Reaction of Corporate Hegemony: Distortion p. 202 5.7 Hegemonic Cooption p. 208 5.8 Conclusion p. 221 Chapter Six ‘Alter-NGO’: Legitimising or Altering the World Trade Organisation. p. 224-280 6.1 Introduction and Aims p. 224 6.2 Democratic Deficit: To NGO or not to NGOs that is the Question p. 227 6.3 Alter-NGOs: Advocacy, Cooption or Depoliticising p. 236 6.4 After Seattle: The Limits of Official NGO Engagement at the WTO p. 249 6.5 Unofficial Channels: Transnational Advocacy Networks p. 256 6.6 Influencing Dispute Settlement: NGOs and Amicus curiae briefs p. 264 6.7 Conclusions p. 279 Chapter Seven Conclusion p. 281-307 7.1. A Brief Summary p. 281 7.2 Answering the Research Question p. 286 7.3 The Original Contribution of the Thesis p. 298 7.4 The Implications of the Thesis for Wider Knowledge p 299 vi 7.5 A Critical Reflection on the Limitations of the Thesis p. 302 7.6 A Specification of Questions and Directions for Future Research p. 305 Bibliography p. 308-351 Books and Articles p. 308 World Trade Organization Documents p. 332 Electronic Resources p. 337 Interviews p. 351 vii List of Abbreviations AFL-CIO American Federation of Labour-Congress of Industrial Organization Alter-NGO Alter-globalization Non-Governmental Organization ART Alliance for Responsible Trade ATTAC Association for the Taxation of Financial Transactions for the Aid of Citizens BIAC Business and Industry Advisory Committee CAP Common Agricultural Policy CEO Chief Executive Officer CIEL Centre for International Environmental Law CONGOs Coopted Non-Governmental Organizations CMC Centre for Marine Conservation DG Director-General DSB Dispute Settlement Body DSU Dispute Settlement Understanding EC European Community EU European Union FDI Foreign Direct Investment G7 Group of Seven G8 Group of Eight G20 Group of Twenty G90 Group of Ninety GATS General Agreements on Trade in Services GATT General Agreement on Tariffs and Trade GDP Gross Domestic Product ICPS International Centre for Policy Studies