It wasn't the Seattle riot that derailed WTO

The problems began when President Clinton put in mollifying language about labor and environmental standards. They soon became reasons for alarm by less-developed countries, and free trade has yet to recover its momentum.

The "Battle in Seattle" in 1999. (HistoryLink.org)

The "Battle in Seattle" in 1999. (HistoryLink.org)

Numerous Seattle writers and analysts have offered looking-back pieces in recent days regarding the World Trade Organization fiasco here 10 years ago. I have a somewhat different take on the matter.

First, as regards the riot itself, one of our weaknesses locally is a provincialism and lack of knowledge about developments elsewhere. The WTO demonstrators who came to Seattle had done their thing in other places; their objectives and tactics were well known. Yet our mayor, Paul Schell, and his police chief misread them badly. Schell, in a famous statement, asked, "Why are we afraid of our children?" — as if the WTO demonstrators were merely '60s-era flower children coming to Seattle to plead for humanity. The resulting debacle, and subsequent Mardi Gras violence, cost Schell his mayoralty.

Time-tested tactics for dealing with violence-prone demonstrators call for a strong police presence, overwhelming the demonstrators in number, and forceful and preemptive response at the first sign of disorder. Instead, Seattle police held back and, predictably, the demonstrators' planned disruptions and violence took place. They quite literally shut the meeting down.

Now, as to the trade policy context. The so-called Seattle Round of global trade negotiations, which were expected to flow from the WTO meeting 10 years ago, was to be only the most recent of several rounds that had liberalized global international trade since President Kennedy's 1962 Trade Expansion Act had led to the first Kennedy Round negotiation. The purpose of such negotiations was to reduce barriers to international commerce on a global basis: That is, all countries would lower their barriers together rather than striking bilateral or regional deals which would leave some countries on the outside looking in.

A departure took place when President Bush the Elder proposed a North American Free Trade Agreement melding the economies and financial systems of the United States, Canada, and Mexico. A NAFTA had been proposed before but dismissed as a bad idea because 1) it would meld two advanced, open-trading economies, the U.S. and Canada, with a less advanced, highly protected economy, Mexico, causing dislocations; and 2) it would break the steady path toward global liberalization by setting up a regional arrangement involving the world's most powerful economy, the United States. Countries outside a NAFTA, such as neighboring Caribbean countries, would immediately be hurt as their products were discriminated against.

NAFTA became a prime issue in the 1992 presidential election campaign. Arkansas Gov. Bill Clinton, the Democratic candidate, was undecided whether to support or oppose it. In the end, however, he came down on the positive side because NAFTA (unjustifiably, in my judgment) had become a litmus test of whether a candidate was a free trader or protectionist. Clinton wanted to be seen as a free-trader.

As it turned out, Clinton was able to get congressional approval for a NAFTA deal only with Republican support. At the last stages of negotiation, to mollify labor-union and environmentalist objections to NAFTA, Clinton tossed in sweeteners. The U.S. thereafter would include labor and environmental standards in trade negotations. (Opponents of NAFTA said lower environmental and labor standards would provide Mexico with competitive advantage over U.S. and Canadian producers). NAFTA would have gotten done without these sweeteners, and these issues had never before been included in major trade negotiations, in part because there were other major international forums in which to deal with them. But, short term, these concessions gave Clinton some breathing room with important constituencies. He did not recognize that, thereafter, they would become major impediments to future global liberalization.

The WTO and global trade liberalization have been slowed in large part because developing and industrializing countries have simply refused to retard their own growth by agreeing to labor and environmental standards under which their economies could not be competitive. (We have seen the same reaction — for instance, by China and India — to global-warming initiatives which second- and third-world economies have seen as disguised rich-country attempts to slow their growth.)

Politically correct doctrine currently holds that Juan Valdez and his poor-country counterparts have stolid champions among U.S. adherents of labor and environmental standards. Why should they not enjoy the same pay and working conditions as their American counterparts? Trouble is, their economies have not developed to the degree that their employers can give them the same pay and working conditions — anymore than American employers could have done so during 19th century growth of our own economy. The leaders of their governments, not incorrrectly, perceive labor/environmental standards as disguised protectionist devices designed to give rich-country competitors an unfair advantage.

Additionally, since NAFTA many bilateral and small regional trade deals have taken place, each discriminating against those who are not part of the deals. A global WTO deal has not been possible.

Some recent commentary argues that the WTO meeting breakup 10 years ago was justified and that the protesters were, in fact, foresighted tribunes of the future who now should be heeded. This is interesting analysis, but it overlooks the previous 100 years of international economic and trade-policy history.

The real reason WTO and global trade liberalization are stalemated is the interests of the players in the game have become quite different. So long as the United States and its major rich-country partners insist on standards less developed countries cannot reasonably meet, the less developed are not going to play. To put it in everyday terms: The underdogs see the U.S. and other developed countries as Junior League housewives telling their less affluent neighbors that they cannot live in the neighborhood unless their yards meet beautification standards.

This, no doubt, will unsettle consumers of Fair Trade coffee and other politically correct products who see themselves as progressive, forward-looking advocates of a new international economic order. What they are doing, though, is fronting for disguised protectionism which is retarding the living standards of both rich and poor.

In our current financial/economic malaise, one of the greatest risks is a general fallback toward protectionism by the world's major economies. We've already reached the point where no major trade deal, today, could get congressional approval. Even modest bilateral deals are on the shelf.

In one sense the WTO riots of 10 years have figuratively never stopped. There was nothing positive about them. They were bad news then; the thinking they represented remains bad news now.


About the Author

Ted Van Dyk has been involved in, and written about, national policy and politics since 1961. His memoir of public life, Heroes, Hacks and Fools, was published by University of Washington Press. You can reach him in care of editor@crosscut.com.

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Comments:

Posted Tue, Dec 1, 11:32 a.m. Inappropriate

Come on Ted: "...consumers of Fair Trade coffee ... are fronting for disguised protectionism" etc? Talk about a straw man !!

I appreciate your essay. But please don't confuse the issues. Us misty-eyed, politically correct consumers of fair trade products are simply willing pay a little more to support progressive business models. We're not willing to wait for 100 years for the benefits of macroeconomic development to reach the most disposable members of the supply chain in the developing world. I guess we're just impatient.

As individual consumers, we're not promoting protectionism, and we're not taking a broad policy stance. And we're not confused about that. We are, however, supporting higher standards in our own small way, and we're putting a little money where our values are. I suppose you could argue that I'm retarding my own standard of living by paying 50 cents more for a pound of coffee, but that argument to me is, well, go ahead and fill in the blank.

jsperry

Posted Tue, Dec 1, 2:34 p.m. Inappropriate

I have not confused the issues. The fact is that mixing up environmental and labor standards with trade policy has retarded trade liberalization globally. It was difficult enough to negotiate big, global trade deals when tariffs and other barriers to trade were on the table. With these additional issues, it has become nearly impossible. The next step, of course, is to demand that emerging economies also adopt our tax, income-support, antitrust, and other policies---so that everything will be equalized. That would truly block their exports to us. Both rich and poor are being damaged by the impasse which has existed in WTO and global trade liberalization over what has become a period of years. We are sliding backward into a damaging protectionism, often supported by people who unknowingly think they are doing the right thing.

Posted Tue, Dec 1, 3:18 p.m. Inappropriate

Ted, the sole purpose of your trade liberalization is to deflect more profits to the coffers of the transnational corporations. by exploiting the lack of environmentsl standards they impose a cost of environmental degredation on all of us. The most obvious example is the Chinese air pollution which circles the globe and poisons all of us. The only winners in these agreements are the corpoations who destroy the recipients countryside and impose poverty wages world wide.
Donebe

donebe

Posted Tue, Dec 1, 5:29 p.m. Inappropriate

"often supported by people who unknowingly think they are doing the right thing."

As opposed to people who knowingly think they are doing the right thing?

Glad you put that adjective in front of "protectionism."

afreeman

Posted Wed, Dec 2, 7:53 a.m. Inappropriate

Mr. Van Dyke: I don't get the impression that you were there. For one thing, it was a protest, not a riot. The reason the TV news kept looping that same shot of the Weekly box crashing through the Starbucks window (or whatever window it was) is that there wasn't a lot else in the way of mayhem to film, at least not until the police started firing rubber pellets and using gas. The protests were mainly nonviolent with some exceptions when it came to property damage and threatening behavior. In a riot, there's widespread disorganized violence. If the tens of thousands of protesters had rioted, instead of sticking to mainly nonviolent, organized protesting, there would have been much more violence and destruction.

And to suggest that the problem here was that anyone dared to propose labor and environmental standards should be linked to trade agreements--have you not noticed that the world economic system is in a state of near-collapse, and that the poles are melting? Maybe what we've been doing isn't working so well. Maybe democracy should involve people being passionate about the policies that shape our lives and our children's. Your suggestion that the only problem at WTO was that the cops didn't suppress democracy by busting more heads or using Singapore-style police-state tactics--is laughably uninformed. As someone who was there that day, I think the problem was that the police vastly underestimated the size of the crowds coming to town that day, and then had to overreact in a panic. If they'd planned for the size of crowds, I think the police could have helped maintain order without having to endanger officers or react violently to suppress democratic speech and protest.

Posted Wed, Dec 2, 10:11 a.m. Inappropriate

The police presence should've been strong enough to allow the 'breaking of rank' in order to get the looters at the first acts of vandalism. Both Reichert and Stamper share the blame equally for that, and I think Schell very little.

FWIW, George Bush has shown us just exactly what the reactionary global corporates are worth and they make the anarchists look better and better with every major financial decision in Washington D.C. and NYC.

Posted Thu, Dec 3, 9:45 a.m. Inappropriate

Ted's offered a useful piece of history here, but his analysis would benefit from a more complete exploration of current progressive thinking on this issue.

The global financial system, and its structures like the WTO, hurt developing economies by moving profits (and capital) away from the people and natural resources that produce it. Even Adam Smith theorized that capitalist economies only work when the profits are reinvested in the same system that produced it. In other words, the current system is creating a permanent lower class in every nation, a small rich global upper class, and an gradual movement toward lower living standards and a meaner existance for everyone.

Locally, we are blessed with some remarkable minds on this subject. Dr. David Korten on Bainbridge Island would be my first stop for a better understanding of what is behind the world wide civil society movement that is crossing borders to confront the issues that this article doesn't acknowledge, but which were front and center in the minds of the Demonstrators (Not Rioters). Promoting labor and environmental standards, local economies, laws against monopoly, genuine democracy, and capital formations that benefit the "real economy" are some of the ways to create a sustainable global trading system.

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