The General Agreement on
Tariffs and Trade
In 1994, while the campaign was going on,
there was a Senate hearing on the G.A.T.T. C-Span televised that
hearing. There were law professors from Yale and Harvard talking
about the constitutional considerations of the agreement, and
though I was not watching that part, one of the senators made
the remark that the Harvard professor had opined that the agreement
was not constitutional.
There was also a representative from the A.B.A. there to extol
the virtues of the agreement. I did see that, and it was my impression
that she didn't really believe what she was saying. It was as
though she was very nervous about the prospect that someone might
hear what she was saying. In any event, she was not convincing,
without much consideration for what she was saying.
Ralph Nader was also at the hearing, and he gave a rebuttal
to the argument of the A.B.A. In a word, he took that little
lady apart by the numbers! I am not normally a Nader fan, but
that day he was as good as I ever saw him in expressing his opposition
to the plan. I made an outline of the argument he presented for
the information of a candidate I was working with who was running
for the Third District Congressional seat of Kentucky. Aside
from the information about the W.T.O., and the fact that the
United States would be just another of the 124 members, with
only 1 vote, and no veto power, he spoke of some clauses included
in the enabling legislation which I thought at the time had nothing
at all to do with our membership in a world trade agreement.
There was a clause he labelled a "sweetheart deal"
which gave about $2-billion to a consortium of about 10 newspapers
with which they would be able to gain control of a telecommunications
system which would be forthcoming in the near future. He also
mentioned a clause which would reduce the floor of interest
the government could give on savings bonds to under 4%. There
was a third clause which would require that every baby born in
the United States be assigned a serial number at birth. Using
that serial number, the baby could be tracked throughout its
life, to be sure it got all its shots, and where it was educated,
etc. The lowered interest section was enacted in less than 6
months, and the telecommunications part took a little more than
a year. The section on the babies has been enacted too, evidently
as apart of another bill.
Exactly why those three provisions were included in the enabling
legislation of a trade agreement is unclear. Perhaps there were
provisions which benefitted Congressional patrons which we were
not supposed to know about. Certainly the first thing which comes
to mind when covert dealings are done is that someone is going
to be advantaged in a way the public would not be happy to hear
about.
But let's go back to the G.A.T.T. The original agreement is
22,000 pages long! Notice something here. This, like NAFTA, was
not handled as a treaty. Sometime ago, someone in Congress came
up with a term which is like Madison Avenue merchandizing. They
started calling an executive agreement a "fast track treaty";
a souped-up term that makes people think a treaty is being ratified,
when in truth it is not. A "fast track treaty" is nothing
more than an executive agreement. What's the difference?
In the Constitution, a treaty is described as an agreement which
may be negotiated by the president or his representatives; it
is further negotiable through the advice and consent of the Senate.
Then, for it to be ratified, the Senate must approve it by a
2/3 vote. An executive agreement (which is what both NAFTA and
the G.A.T.T. are) is also an agreement negotiated by the president,
but without the possibility of further amendment by the Congress,
and which may only be approved by a straight up or down vote
by both chambers, requiring a simple majority for approval. This
has been merchandized as a "fast track treaty". It
is not any kind of treaty!
If you don't know it already, the first G.A.T.T came along in
1947, just after the end of World War II. It was handled as a
treaty, and was not ratified by the Senate. There was much "confusion"
by the media as to whether the current agreement is the seventh
or eighth in the series. It is the eighth. It is also the first
which did not offer the United States the protection of a veto
power.
What is a veto power, and what is its value to us? If you are
at all familiar with the organization of the United Nations,
you know that there is a Security Council, and a General Assembly.
All nations are represented in the General Assembly, and no nation
has a veto power in it. The Security Council, however, has only
13 members, and five of them are permanent members, each with
a veto power. Serious matters of security must go through the
Security Council, and any one of those 5 nations can reject action
by a single vote. Those nations are the United States, England,
France, the Soviet Union, and China. You might be reminded that
U.N. action to prevent subversion by the Soviets was vetoed at
least 98 times by the Soviet Union in the first decades after
the end of World War II. The only reason the U.N. was able to
act against the invasion by the North Koreans in 1950 was because
the Russians had walked out in a huff, and were not present to
veto the action.
In all the previous G.A.T.T. agreements to which we have been
involved, we always had the protection of a veto power. Why is
that important? Now, we are but 1 of 124 nations who are members
of the World Trade Organization, and without a veto power, we
have only one vote, just like Cuba, Angola, or Pakistan. We have
less than 1% of the "say" about what happens, but we
are expected to pay for at least 20% of the costs! Isn't that
interesting!
You should also be aware that there is to be a Tribunal within
the W.T.O. to which member nations can lodge complaints against
other members. This tribunal is to be made up of 3 people selected,
not necessarily with consideration of their possible conflict
of interest, and those three people may operate entirely in secret.
The accused nation is obliged to prove its innocence when facing
complaints by other members, which is contrary to our practice
of the accused being innocent until proven guilty.
What happens if a nation brings charges against another? The
accused nation is guilty until it proves itself innocent. The
Tribunal conducts its investigation in secret. If the Tribunal
finds against the accused nation, that nation must obey the ruling
of the Tribunal, or pay a fine which may be levied by the Tribunal
until the accused nation complies, or the accused nation must
"harmonize" its laws and/or standards with the rules
of the W.T.O., which would result in the loss of sovereignty
by the accused nation. There is no appeal!
The enabling legislation which was considered by our Congress
was more than 1,400 pages long. Many members of Congress did
not even read the legislation before they approved it! The House
reduced the time for debate from 20 hours to only 3! After the
elections of 1994, there was a "lame-duck" session
of Congress to act on this legislation. They met the 30th of
November, and the 1st of December. That meant that 92 members
who would not be in the Congress in the following term were allowed
to vote on it! And the newly elected members, considered a "revolution"
in the majority, were not allowed to vote on the legislation!
Why the sense of urgency? No one seems to know, because we didn't
have to make a decision of any kind until June, 1995. If you
"understand" what was going on, you will realize that
had they waited until the new Congress was seated, the measure
might not have passed!
There have already been several complaints lodged against the
United States in the Tribunal. It is interesting that one of
the complaints involved Japan, and we had a complaint against
them on the same subject. Both our nations settled the complaint
outside the W.T.O., and we were chastised for not honoring the
decisions of the Tribunal! It is also interesting that the W.T.O.
ordered the United States to cease its trade embargo against
Cuba! And we have no means to counter the order, except to ignore
it, and the fine that goes with our inattention to the order.
The most objectionable thing about this whole matter is that
the American public is not sufficiently well informed about what
is going on. All we know is that we have lost more than 3.5 million
jobs over the last 15 years or so, and our average take-home
pay has been reduced from about $320 a week to about $215 in
the same period. There is supposed to be an escape clause in
our agreement, but our representation in Congress has not seen
fit to use it. The plain fact is both the major parties are working
together on this matter, and it is not to the advantage of the
American people! The obvious answer to that is find some new
faces to represent us in Congress...preferably from some other
party!