New Report Reveals E.U.'s Abuse of Power in WTO Talks

A new report released today documents the European Union's systematic use of inappropriate tactics to pursue its agenda inside the World Trade Organisation (WTO). Published on the eve of the 5th WTO Ministerial Conference (in Cancun, Mexico, 10th-14th September), the 20-page report reveals the cynicism of the European Union's "development-friendly" rhetoric.

"Rather than supporting the positions of developing countries, the European Union time after time bullies these nations with self-serving power politics aimed at furthering EU ambitions," says Steven Kelk, researcher at Corporate Europe Observatory (CEO).

The report concludes that in the light of the EU's record, "Cancun could well become an arm-twisting and dirty tricks cesspit". The report "The Cunning Bully - EU Bribery and Arm-twisting at the WTO" is written by Fatoumata Jawara (a Geneva-based international trade and development analyst) and jointly published by CEO and Transnational Institute (TNI).

Analyses of power politics in WTO negotiations most often focus on the openly aggressive tactics used by US negotiators (such as threatening to economically blacklist WTO members that do not toe the US line), which in comparison makes the EU seem like a fairer player.

The new report is the first comprehensive overview of the EU's more subtle, but no less problematic "carrot and stick" negotiating behaviour. The report (which is based on interviews with WTO negotiators) quotes a developing country negotiator as follows: "Both the United States and European Communities trade negotiators take us to the slaughter house at the end of the day, the latter might be more subtle and polite about it, however the end result is the same;we get slaughtered. I do prefer dealing with the US; at least you know exactly where you stand with them."

The EU's subtle (and not so subtle) arm-twisting and divide-and-rule tactics take place in the context of what are generally deeply undemocratic negotiating processes both at WTO summits (during which large parts of the WTO membership are de facto excluded from crucial decision-making processes) and the preparatory periods for these summits. The EU also routinely uses inducements like preferential trading agreements and financial incentives to make developing countries fall into line.

"Despite unconvincing noises from Trade Commissioner Pascal Lamy about a code of conduct to ensure more acceptable negotiating behaviour within the WTO, the EU makes no substantial effort to fix the WTO's internal procedures which at present allow power politics to rule the day", says Steven Kelk.

An eight-page summary and the full text of the report are available at:
http://www.corporateeurope.org/cunningbully/index.html

Notes

Fatoumata Jawara is a freelance researcher working on the political dynamics of the World Trade Organization and its impact on poverty reduction. She co-authored the book "Behind the Scenes at the WTO: The Real World of International Trade Negotiations" (Zed Books, August 2003). http://www.zedbooks.demon.co.uk/

Transnational Institute (TNI) is a worldwide fellowship of committed scholar-activists which seeks to create and promote international co-operation in analysing and finding possible solutions to such global problems as militarism and conflict, poverty and marginalisation, social injustice and environmental degradation. See also: http://www.tni.org

Corporate Europe Observatory (CEO) is an Amsterdam-based research and campaign group targeting the threats to democracy, equity, social justice and the environment posed by the economic and political power of corporations and their lobby groups. See also: http://www.corporateeurope.org

Visit the EC's Hall of Shame! In the run-up to the decisive WTO summit in Cancun (September 10-14), CEO has launched a new website exposing the shameful record of the European Commission (EC) and Trade Commissioner Lamy in WTO negotiations.
http://www.wtocancun.com/ features ten case studies, each with a cartoon caricature of Commissioner Lamy in action.

Please also see:
Corporate Conquistadors in Cancun
The EU offensive for WTO-Investment negotiations;
http://www.corporateeurope.org/mai/conquistadors.html


Corporate Europe Observatory (CEO) ceo@corporateeurope.org