WTO to shut down, refound under new charter

[Anna Balint]

From: World Trade Organisation Public Relations <communications at gatt.org>


[NOTE: On May 21, information regarding the WTO's restructuring was
released prematurely at a special luncheon of CPA Australia, Sydney
(http://www.aapmedianet.com.au/scripts/DisplayRelease.dll?id=304601).
The early release of this information, which met with overwhelming
approval, has accelerated this announcement, originally scheduled for
next Friday.]
May 23, 2002
FOR IMMEDIATE RELEASE
WORLD TRADE ORGANIZATION WILL DISBAND, REFOUND UNDER NEW CHARTER
After a protracted and detailed review of current trade policy and its
effects on developing countries, the World Trade Organization has
decided to effect a cessation of all operations, to be accomplished
over a period of four months, culminating in September. The WTO will
reintegrate as a new trade body whose charter will be to ensure that
trade benefits the poor.
As of September, agreements reached under the WTO will be suspended
pending ratification by the new organization, tentatively referred to
as the Trade Regulation Organization. Many existing agreements are
likely to be re-ratified, but each will be subject to individual
review for compliance with the TRO's charter, which is based upon the
Universal Declaration of Human Rights.
The restructuring has come in response to numerous studies
(http://www.gatt.org/trastat_e/) indicating that current trade
liberalisation rules and policies have led to increased poverty and
inequality, and have eroded democratic principles, with a
disproportionately large effect on the poorest countries.
Under the restructuring, the GATS agreement will be scrapped entirely,
and a new agreement regulating services will be forged after an
assessment of the effects of past services liberalisation, and when
there has been adequate opportunity for governments and civil society
to analyse and debate new proposals.
In addition, all aspects of TRIPS, TRIMS, AoA, and other agreements
will be reviewed with humanitarian and other considerations in mind,
and will be progressively replaced with corresponding versions under
the TRO.
Proposals and resolutions for the foundation of the TRO will be
evaluated beginning in June according to their likelihood of
furthering the TRO charter. Specifically this will mean redressing the
imbalances of existing trade agreements; providing access for
developing countries to developed countries’ markets; assessing the
effects past trade liberalization and redressing problems where
possible; and developing an enforceable framework for special and
differential treatment guaranteeing that development policies are not
undermined by trade agreements.
The immediate necessity, besides fixing core problems, will be to
build a new regime of trust among members (notably between HIC and LDC
members), with civil society organizations (NGOs), and with members of
the public. The core goal is to establish rules whose priority is to
benefit the poor, improve the environment, and strengthen democratic
principles--in a pragmatic and immediate rather than theoretical and
longterm sense.
In order to provide greater access to the Least Developed Countries
who will most benefit from the existence of the TRO, the
organisation's headquarters will be moved from their current location
in Geneva to the capital of one of the LDCs. Proposals for final
location are currently being solicited.
CONTACTS:
World Trade Organization Public Relations: communications at gatt.org
CPA Australia Public Relations: barbara.magee at cpaaustralia.com.au
United Nations Universal Declaration of Human Rights:
http://www.un.org/Overview/rights.html
Studies page: http://www.gatt.org/trastat_e/
This release online: http://www.gatt.org/
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