WWF Logo


WWF Press Release






Back to the News Room

Related Information:

Dispute Settlement in the WTO: A Crisis for Sustainable Development



WTO Dispute Settlement Undermines RIO Earth Summit

May 18th, 1998

Bananas being loaded for export: is the WTO pushing these people into poverty?

GENEVA, Switzerland -- Four years after the creation of its Trade and Environment Committee, the World Trade Organization (WTO) is striking down national policies and undermining the Rio Earth Summit (1992) accords  promoting sustainable development, the  conservation organization WWF said here today.

  A joint study released today by four NGOs - Oxfam-GB, Center for International Environmental Law (US), Community Nutrition Institute (US) and WWF examines the recent WTO rulings in the three trade disputes related to shrimps, bananas and beef. The case studies entitled "Dispute Settlement in the WTO: A Crisis for Sustainable Development" underline the need for urgent reforms in the world trade body to accommodate policies aimed at protecting human health and peoples' livelihoods and conserving the global environment.

"The euphoria of the Uruguay Round has given way to serious concern about the way international trade is being promoted at the expense of environmental, social and developmental priorities," said Charles Arden-Clarke, Head of WWF International's Trade and Investment Unit at the start of the Ministerial meeting to celebrate 50 years of the world trade body.  "Three recent WTO dispute panel rulings show clear disregard to people being pushed to poverty (EU's banana regime), health fears raised by the European Commission being overruled (beef hormones), and endangered sea turtles being pushed further to extinction (shrimp-turtle)."

The Shrimp-Turtle dispute arose from a challenge by India, Malaysia, Pakistan and Thailand to US trade measures designed to protect endangered sea turtles. About 150,000 highly migratory sea turtles are killed worldwide every year by shrimp nets fitted without "turtle excluder devices" (TEDs). The WTO dispute panel ruled against any US trade restriction, using an interpretation of WTO rules which virtually wipe out the limited environmental safeguards.

In the banana case, the European Union, upon complaints filed by multinational banana trade companies, is having to do away with its preferential treatment to banana imports from the Caribbean region. The loss of the banana trade with the EU would have devastating consequences for  thousands of people across the Caribbean who depend solely on bananas. Mass poverty, high unemployment and instability in the region are inevitable - thanks to the WTO ruling.

The WTO's ruling on the EU-US Beef Growth Hormone dispute maintains that the burden of proof rests on policy makers seeking to protect human health, rather than those seeking to promote liberalized trade.  The WTO also takes upon itself the job of determining what is an appropriate risk assessment, and overturns a standard that is a clear result of consumer choice in the EU and the democratic process of setting health regulations.

"These are just a few instances of lopsided WTO rulings," said Mr Arden-Clarke. "There are many more potential conflicts waiting in the wings - bound to arouse the NGO community and the affected people in general. The best solution may be to create a new, less partisan body to adjudicate on international trade disputes with social and environmental ramifications."                              

Contact:
Charles Arden-Clarke at 079 326 8762 or
Someshwar Singh at 079 310 8102