By Denis D. Gray
February 15, 2000
Bangkok, Thailand -Prospects for a quick resumption of world trade talks dimmed Tuesday as leaders at a major U.N. conference warned of a backlash against economic globalization. Organizers of the U.N. Conference on Trade and Development meeting had hoped the gathering would resolve disputes that sank negotiations at last year's World Trade Organization summit in Seattle.
But uneven benefits of globalization have proved the major worry of the 190 countries represented at the UNCTAD meeting, a fear underscored Monday by the world's top labor boss. Juan Somavia of Chile, the first director-general of the U.N.'s International Labor Organization who is from a developing nation, said globalization in its current form would collapse unless policy-makers found ways to "make markets work for everybody."
"The benefits of the global economy are not delivering enough to enough people - hence the backlash," Somavia said. "I find the situation frankly dangerous, politically."
The UNCTAD summit, which promotes trade as a tool for development in poor countries, failed to attract high-powered delegations from any other trading nation except Japan. Washington is represented by Harriet C. Babbitt, deputy administrator of the U.S. Agency for International Development. She echoed European Union officials in dismissing hopes of a breakthrough. The WTO, not UNCTAD, is the proper forum for resolving trade disputes, Babbitt said Monday. She said Washington was "eager" to launch a new round of trade talks but declined to comment on a British proposal to get them under way this year.
The United States suffered a major embarrassment in Seattle when President Clinton was confronted by violent street protests and a revolt by developing countries over what they said were closed-door dealings by the major powers. A consensus is growing among developing countries that their needs must be fully included before they are willing to agree to any new trade talks. Babbitt said the United States is committed to helping countries gain access to the world trading system.
Many developing countries share the view that the WTO has been dominated by the rich and that current trade agreements are unfair to poor nations. They complain the WTO has left tariffs high on goods exported by many poor countries, such as textiles and farm products, while allowing rich countries to subsidize agricultural exports.
Poor countries also complained Tuesday that efforts to reform the world's financial system have slowed in the past year and should be accelerated again to prevent another financial crisis like the one that devastated Asia in 1997. The strong recovery of Asian countries has reduced the sense of urgency for many reforms, while entrenched interests have blocked others, the countries said.
Developed countries are still balking at a proposal by WTO Director-General Mike Moore that they remove all trade barriers for products from the world's 48 poorest countries. The United States and Japan, among others, are concerned about the damage to their own producers if they open their markets entirely to products such as rice and textiles.
About 500 Thai farmers demonstrated peacefully outside the conference site Tuesday, claiming trade liberalization will force them to become dependent on foreign markets, imported seeds, technologies and chemicals. They presented a basket of organic vegetables to UNCTAD secretary Awni Behnem, who has received daily petitions from Thai protesters at the conference since it began Saturday.
Earlier Tuesday, 300 laid-off workers protested the Thai government's sale last year of 12 state-owned distilleries. The sale, which cost 10,000 jobs, was hailed by the IMF and foreign investors as evidence Thailand is committed to free markets and trade.
Thailand has been praised by wealthy countries and the International Monetary Fund for continuing to open its markets despite the Asian economic crisis. Thailand rebounded quickly and posted 5 percent growth last year, but critics have said the human price was too high.
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