At 50 Why Not Also Celebrate the Future? 
by Robert Chiappetta

In a few weeks, the world will gather in Geneva to celebrate the fiftieth anniversary of the system that has develop through the adoption of the General Agreement on Tariffs and Trade (GATT) and the agreements of the subsequent seven multilateral rounds of trade negotiations, encompassed now in the World Trade Organization (WTO). The Golden Jubilee of this increasingly important multilateral institution is certainly an appropriate time to look back at what has been achieved—and there is much to be applauded. But this occasion also offers a marvelous opportunity for WTO Member countries to further consider how the organization should develop to meet the challenges of the next fifty years. In fact, given the swelling criticisms and fears regarding the emergence of a truly global economy, it is perhaps critical that this event be used both to acknowledge all that has been achieved and to demonstrate the determination to make those achievements last by appropriately addressing the new problems ahead.

The WTO is at the center of the process of globalization. It provides the legal foundation and framework for the liberal trade policies that have helped foster the deepening interconnections between economies. In doing so, it has done much more than just improve the flow of trade. Today, more than ever, we are witnessing greater allocative efficiencies and greater opportunities for economic growth and development. In addition, the GATT/WTO system has helped make the world a safer place; it has nurtured the exchange of ideas, technology diffusion, democratic processes, and mutal reliances.

Ironically, however, it is the process of globalization that also exacerbates the organization's most challenging problems. As the level of globalization continues to intensify, we are observing profound changes in society that are creating uneasiness about the ecology, employment, laborstandards, the distribution of income, and human rights. These types of so-called "social issues" are now at the heart of globalization and there is an urgent need to address them.

Member countries would harm the WTO if they deliberately chose to avoid or even delay addressing the related questions. Doing so, would only expose the organization to greater and harsher criticisms. More importantly, the problems at hand would only worsen, setting the stage for greater more intense conflict later on. The difficulty, however, lies in determining how and to what extent the WTO can solve certain problems. Like the nature of globalization itself, the nature of these problems is complex, cutting across borders and
jurisdictions, and may involve solutions beyond the scope of the WTO.

The GATT/WTO system should not be jeopardized by forcing it to address issues it is not adequately prepared to deal with, particularly ones that were not resolvable in other fora. Doing so will only hurt both the trade and social causes and push back the advances made so far.

The goal for WTO Members should be to strike the correct problem solving posture in order to move the various agenda forward incrementally. This process is currently under way; but the Member countries have not yet demonstrated the appropriate amount of resolve and efforts are waddling.

Allow me to explain further using the example of the environment.

Nations took a bold step when they chose to includes in the preamble to the agreement establishing the WTO the reference to sustainable development and to the preservation and protection of the environment. Until then, the world trade regime did not explicitly acknowledge the need for trade to be conducted in a manner that would support sustainable growth and development and only peripherally did it mention the right of nations to preserve and protect their ownenvironment. In addition, they went as far as to establish the WTO Committee on Trade and Environment (CTE) with a mandate to examine the interaction between trade measures and environmental measures and to recommend any appropriate changes to the WTO system.

Most of the ten specific items currently under review by the CTE are related to determining the proper relationship between WTO rules and internationally-negotiated environmental rules. The fear is that conflicts will arise if nations try to use trade law to override environmental objectives or environmental laws to override commercial objectives. This type of discussion is precisely the appropriate one for the WTO. But after a full three years of extensive debate, the committee is yet to come to even one conclusion. If the WTO is to gain any credibility in this area it must eventually take action. The process so far has been about introducing positions and concerns. The impetus needed to bring about closure is lacking. As a result, public dissatisfaction with the WTO is growing. 

In addition to solving the micro issues related to globalization, there are a number of macro problems that deserve attention as well. From the outset, the GATT/WTO system has been criticized by some as geared too much toward and l dominated too much by rich countries. While its system of rules, based on nondiscrimination, seeks to bring the world economy as close as possible to free trade, free trade and the economic activity it generates does not guarantee the equal distribution of wealth globally. As a result, still today, the distance between rich nations and poor nations is intolerably great.

The WTO should, therefore, continue to encourage greater and more effective participation in the system by the developing world. It is a good sign that developing countries are making greater use of the WTO's dispute settlement procedures to defend their commercial interests and that the WTO isproviding technical assistance to the least-developed countries so that they can build the trade policy expertise needed to become more effective participants.

Also, accession into the WTO by the 32 countries currently on the waiting list must proceed to ensure the system moves towards universal membership. As long as the WTO principles are not compromised, more countries at the negotiating table should result in agreements that are more appropriate for the entire globe community.

As we approach the new millennium, issues related to globalization will dominate international and national agenda. Now is the time for the WTO to demonstrate the necessary resolve to foster a just, participatory, and sustainable global civil society.