Global Trade Regulation

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Global Trade Regulation

• Who regulates
• trade?

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World Bank/International Monetary Fund

• The World Bank provides
• 20 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 lends to
troubled economies when they need it
IMFs Washington, DC Headquarters
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Criticisms of World Bank/IMF

• Their loans/grants are often linked to making
  dramatic free market changes in a countrys
  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 Banks 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.npr.org/player/v2/mediaPlayer.html?acti
on1t3islisttrueid3d04-17-2012
John Stewart on the World Bank (4 min.)
New World Bank Pres.
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North American Free Trade Agreement (NAFTA)

• 1993 U.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

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Was/Is NAFTA controversial?
Film clips from Commanding Heights (9
minutes) (1010-1900)2 clicks in
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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
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Negative Effects of NAFTA

• Massive dislocation of people, impoverishment of
  farmers

U.S. Agribusiness

• weakening of environmental
• labor laws

Battery recycling
Displaced Mexican farmers protesting in Mexico
City
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World Trade Organization

• Controversy over the WTO

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Who is in Charge?
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WTO as Dictator?
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Road to Globalization
Collapse of Communism (1990)
World movement towards Capitalism
Free Trade requires a set of rules
WTO becomes Global Referee
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WTO HISTORY

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

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WTO Functions

• Provides a negotiating forum for nations to work
  
• toward lowering trade barriers (tariffs,
  quotas)

• Handles trade disputes through its Dispute
  Settlement Body

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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 WTOs Dispute Settlement Body can
  require that a
• government change its laws immediately or receive
  sanctions

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Who is watching the Environment?
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1999 Seattle protest against the WTO
Film clip Commanding Heights (11 minutesfull
clip) 11427 --- 12546 (15 clicks in)