May 18th, 1998

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