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Washington State VOTER

Fall 2001

10

The United States should continue to participate in
multilateral negotiations of trade agreements, and
the benefits of these agreements should be extended
to our trading partners through " most-favored
nation" treatment or "normal" trade treatment. In
recognition of the gross disparity in trading
positions between the developed and the developing
countries, adjustments in trade agreements should
be permitted that are aimed at opening our markets
to those countries so they are able to broaden their
economic bases and improve their peoples' standard
of living, In view of our environmental
interdependence, strong consideration should be
given to providing any necessary assistance to
prevent destructive environmental practices.

The League also supports long-range presidential
authority (Trade Promotion Authority or "fast
track") to negotiate trade agreements, but believes
that such authority should include clear parameters
and standards that require that new trade
agreements be consistent with environmental
protection goals and core ILO principles. The
authority granted to the President should ensure that
there is adequate consultation with and
accountability to members of Congress during the
trade negotiation process. In all negotiations
conducted under "fast track" procedures the
President should be required to keep the appropriate
Congressional leaders informed of progress toward
negotiating directives. The League is convinced that
such presidential authority necessitates the inclusion
in the negotiating teams for international trade and
investment treaties of people with competencies in
all the needed areas including scientific knowledge
and social policy as well as economic, labor and
business expertise.

MO: In determining whether a given issue should
be handled under "Fast Track" procedure, relevant
experts or spokespersons in areas of social policy,
sciences, governance, cultures, emerging issues,
etc. should be involved. "Fast Track" should be
used primarily in fairly routine application of
already agreed-upon guidelines to specific
industries, products or nations. A clear distinction
should be made between routine trade negotiations
and non-routine policy development with very large
implications – such as establishment of trade

organizations such as WTO, NAFTA, FTAA, etc.
and relation to other national bodies, including
observance of their core standards, etc.

The League also believes that the government
should inform the public of the basic issues subject
to current trade proposals and should be required to
report to the public periodically.

FT: INFORMATION ABOUT GOVERNMENT
AGENCY PREDICTED AND ACTUAL
IMPACTS OF SPECIFIC TRADE
REGULATIONS, AGREEMENTS, AND
DISPUTE RESOLUTIONS SHOULD BE
PERMANENTLY AVAILABLE FOR
EXAMINATION BY THE PUBLIC.

Implicit in the League's support of expanded trade
is opposition to measures that impede trade:
restrictive administrative procedures, quotas, "Buy
American" provisions and similar measures. An
exception should be made for measures that are
clearly intended only to ensure "food security"
(domestic protection of staple foods) for all nations.
The League favors the application of US health,
safety and environmental protection regulations to
imports. Our domestic measures should, at a
minimum, conform to existing internationals
standards. We should encourage efforts to
strengthen such standards by incorporating "best
practices" and the "precautionary principle" but
they should not be used to as a pretext for restricting
the flow of trade. Protection for those purposes
should be sought through multilateral health, labor
and environmental agreements. The US should urge
that multilateral trade organizations recognize those
agreements. Actions taken in conformity with core
multilateral environmental agreements (MEA's)
should be safe harbored from challenge in the WTO
or in dispute settlement processes created in other
trade agreements, provided that there is an impartial
mechanism for determining whether such actions
are consistent with the MEA's. The determination
whether particular MEA's have core status should
be made in consultation with UNEP.

MO: As a temporary device while waiting for ILO,
UNEP or other relevant international bodies to
develop effective means of enforcement of core

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Washington State VOTER

Fall 2001

11

labor and environmental standards, WTO, to
prevent abuses, should support these through its
trade agreements and appeals process. An
additional avenue for insuring that trade
agreements do not ignore core standards would be
to make export-import bank credits contingent on a
firm's observing OECD/ILO/UNEP or other
multilaterally adopted codes and standards.

Consumers should have a right to know how a
product is produced and voluntary labeling should
be encouraged.

The League also believes that customs procedures
should be simplified.

IV FURTHER GUIDELINES

Convinced that national and international remedies
for the U.S. balance-of payments deficit in goods
and services should be aimed generally in the
direction of enhancing export promotion and away
from narrow, short-range, restrictionist palliatives,
the League supports such positive remedies as:

efforts by U.S industries to improve product
quality;
government policies designed to promote
expansion of US exports, encourage
industrial research and development and
promote tourism from other countries to the
United States;
government policies to enhance trade should
be universally available and not targeted at
any specific industry or firm

The League recognizes that although the free flow
of investment and technology plays an important
role in fostering economic development and the
improvement of living standards throughout the
world, it can also result in environmental and social
damage. The interests of citizens in both host and
parent countries should be guarded by:

international standards and agreements to
regulateinvestment policies and practices;
making foreign investment subject to
general regulation only by the host country
through treaty;
making foreign or multi-national investment
in the US subject to US law.
taxing cross boundarytrade and currency
transactions to help fund development in
LDCs such as schools, adult literacy, health
clinics, safe water systems, local

government training, and micro lending
institutions under domestic control;
increasing international investment funds to
get long-term capital into developing nations
taking into consideration social and
environmental impacts.

FT:REQUIRING THAT EXPORT
CREDITS, DESIGNED TO PROMOTE
INVESTMENT, BE MADE
CONDITIONAL ON MULTINATIONALS
PROVING THAT THEY RESPECT
OECD/ILO/UNEP OR OTHER
MULTILATERALLY ADOPTED CODES
AND STANDARDS.

The League recognizes the need for appropriate
debt relief in the poorestcountries and believes that
additional sources and forms of assistance need to
be developed, possibly including grants or the
provision of technical assistance.

The League recognizes that the establishment of the
WTO and the enforcement mechanisms included in
the North American Free Trade Agreement, as well
as those that may be agreed upon in future
multilateral trade treaties, has added a new
dimension to what used to be a relatively simple
system of resolving trade disputes. The new
enforcement powers now existing in the trade arena
are not matched by similar developments in other
areas governed by multilateral treaties. In view of
this disparity the League recommends the
following:

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Washington State VOTER

Fall 2001

12

that the U S government work toward an
enforcement and appeals process within
multilateral trade agreements and
organizationssuch as the WTO in which
hearings are conducted before, and decisions
are made by, panels composed of specialists
in various governmental, business, financial,
cultural and scientific aspects of each case;

that the government similarly encourages
mandatory open sessions of trade agreement
negotiations on the context and essentials –
allowing closed sessions on details only
from the point of tentative agreement on to
the final form.

The LWV recognizes that while international trade
and foreign investment expand our economy,
including employment, specific jobs are lost in the
always- changing patterns of commerce and
industry. Trade adjustment assistance should be
provided workers, industries and firms to encourage
economic adaptation through self-help on a short-
term, phase-out basis.

WORKERS: In addition to providing adequate
adjustment assistance to displaced workers, any
retraining necessary should be central to the
program and better related to job opportunities
by being linked to national training programs
and to an early warning system for identifying
employment trends. Relocation expenses should
also be provided.

FIRMS: Adjustment assistance to firms for
retooling or conversions should take the form of
tax incentives or government loans.

INDUSTRIES:If an industry is found to be
severely injured by extensive and rapid influx of
imports, temporary trade restrictions might be
needed to allow time for adjustment. Any such
safeguard measures must be multilaterally
negotiated and short term, with specific phase-
out provisions.

FT:COMMUNITIES: IF A SIGNIFICANTLY
LARGE PROPORTION OF A
COMMUNITY'S WORKERS OR FIRMS

QUALIFY FOR ADJUSTMENT
ASSISTANCE, THE COMMUNITY ITSELF
SHOULD ALSO RECEIVE SUCH
ASSISTANCE IN RECOGNITION THAT
MANY ADDITIONAL FIRMS AND
HOUSEHOLDS NOT QUALIFED FOR
DIRECT ASSISTANCE SUFER
SECONDARY DAMAGE AND REQUIRE
COMMUNITY HELP.

The LWV supports strengthening and enforcing
labor standards established under the International
Labor Organization. The US should work toward
enforcement through its economic aid programs.
The UNEP should be helped to enforce labor
standards through its agreements.

The League believes that the area of human rights
can no longer be entirely separated from trade
issues. The Universal Declaration of Human Rights
and other pertinent declarations, covenants and
conventions should be recognized by the WTO, and
regional trade agreements like NAFTA.

FT:IN ORDER TO ENHANCE THE LDCs'
ACTUAL PROSPECTS FOR DEVELOPMENT,
THE US SHOULD URGE INTERNATIONAL
TRADE AUTHORITIES TO CONSIDER GIVING
THEM A STRONGER BARGAINING POSITION
IN RELATION TO THE INDUSTRIALIZED
WORLD. THIS COULD REDUCE THE LDC's
NEED TO TAKE ON UNMANGEABLE DEBT
BURDENS OR TO HOPE FOR CHARITY. ONE
POSSIBILITY WOULD BE TO PERMIT LDCs
TO EXERCISE CHOICE AND JUDGMENT AS
TO WHETHER TO OBSERVE THE LETTER OF
WTO REGULATIONS AS REQUIRED OF THE
INDUSTRIAL NATIONS.THIS COULD LET
THEM PROTECT INFANT INDUSTRIES FROM
INJURIOUS COMPETITION. IT COULD ALSO
LET THEM RECEIVE INTERNATIONAL HELP
IN BARGAINING FOR HIGHER RESOURCE
PRICES AND IN REQUIRING SUSTAINABLE
METHODS OF USE OR HARVESTING TO
SAFEGUARD THEIR RAW MATERIALS FROM
ABUSE AND EXPLOITATION, OR ARRANGE
INTERNATIONAL PAYMENTS FOR LDC
STEWARDSHIP SERVICES FOR

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