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November
8, 2003
Robert Zoellick and
"Wise Blood"
The
Hazel Motes Approach to International Trade
By TONI SOLO
It takes one bizarre fiction to understand another.
Flannery O'Connor's 1952 novel "Wise
Blood" is full of insight into its not so distant relation
"Free Trade". Hazel Motes, O'Connor's would-be nihilist
protagonist, preaches a "Church without Christ" with
all the zealous fervour of Zoellick's devotion to "Free
Trade" without free trade. Lurking in the the novel is Zoellick's
real doppelganger, Asa Hawkes, the fake-blind preacher who cons
people into parting with their money, believing he blinded himself
for his faith.
Like Hawkes, Zoellick is a superb and
practised faith-based con-man. Preaching free trade, he trails
a long history of private business interests in predatory multinational
corporations like Vivendi, Enron, Goldman Sachs, Alliance Capital
and SAID Holdings, the Bermuda-based South African patent and
copyright security specialists. His outlook melds seamlessly
into the Bush regime's deliberate confusion of the wishes of
their rule-bending plutocrat buddies with the interests of the
United States people.
Never mind the evangelism,
feel the Clausewitz
Zoellick's pronouncements deserve attention.
Like the other mercenary fanatics surrounding George W. Bush,
his evangelism is one of arrogant candour. A member of Bush's
Cabinet with the rank of Ambassador, he assumed office as 13th
U.S. Trade Representative on February 7, 2001, unanimously confirmed
by the Senate. In fact, as Bush's principal trade policy adviser
and chief trade negotiator, he puts big business first and the
United States people last.
In the early 1990s, Zoellick worked as
an economics undersecretary for George Bush the Elder and led
negotiations for the State Department in the North American Free
Trade Agreement (NAFTA). During the 1997-1998 academic year,
he was the Olin Professor of National Security at the U.S. Naval
Academy. This interest in security is natural for a man who sees
aggressive trade negotiation as the furtherance of war aims by
other means.
The unvarying tenet in Zoellick's creed
is the manifest US destiny to dominate world trade. A multilateral
approach incorporating US pre-eminence seemed possible in the
early 1990s during the Uruguay Round of trade talks when poorer
developing countries were less able to defend their interests.
The 2001 Doha meeting showed the limitations of that approach
from the point of view of the US.
This year's failure of the Cancun talks
has probably nailed down the coffin lid on any serious US commitment
to making the World Trade Organization work, so long as the Bush
regime occupies the White House. Ahead of the Cancun debacle,
Zoellick was clear that the United States would go ahead with
bilateral and regional free trade agreements regardless, if the
WTO talks collapsed. Saying, "We're not stopping. We're
moving with the countries that are willing to go," 1 Zoellick
committed to negotiating global preferential trade deals for
the US on a bilateral or regional basis.
US trade strategy
after Cancun
Congressional approval for a Trade Promotion
Authority (TPA) made that strategy possible. But the TPA was
only secured at the price of concessions to domestic trade interests,
like steel and agriculture, creating inherent contradictions
for foreign free trade deals. Nonetheless, through other legislation
like the Caribbean Basin Trade Partnership Act, the Andean Trade
Preference Act and the African Growth and Opportunity Act (AGOA),
Bush hopes to tie the US to foreign trade agreements that benefit
his corporate power base.
Bilateral deals mean that the wider complications
involved in multilateral negotiations through the WTO can be
either sidelined and forgotten or else prioritized, as needs
dictate. For example, environmental concerns can be entirely
left out, while telecommunications and financial services can
be brought centre stage. Bilateral deals also allow the integration
of political and security matters enabling the US to bully weaker
countries into following its foreign policy needs for the sake
of potentially beneficial trade.
In a widely reported speech in May this
year to the Institute for International Economics, Zoellick said,
"The U.S. seeks cooperation--or better--on foreign policy
and security...Given that the U.S. has international interests
beyond trade, why not try to urge people to support our overall
policies? Negotiating a free-trade agreement with the U.S. is
not something one has a right to--it's a privilege." This
callow brand of intimidation and bribery is nothing new. The
Reagan administration used PL480 agricultural aid and other concessions
to bribe and cajole Honduras into serving as a military base
for illegal terrorist aggression against Nicaragua throughout
the 1980s.
Zoellick tries to put a benevolent gloss
on the strategy, alluding to the not so altruistic Marshall program
in post-World War Two Europe, "American trade policies are
connected to our broader economic, political and security aims.
This intellectual integration may confound some trade scholars,
but it follows in the footsteps of reconstruction after 1945."
2 But the consistent nitty gritty of the US "free trade"
message is "do what we want--or else..."
Imposing the "Free
trade" catechism
Many components in these deals are damaging
to the target countries. Investor-State and expropriation provisions
allow US firms to sue a government for money they might potentially
have made but for local law. The Harken Energy company recently
tried that in the US against Costa Rica to the tune of US$57bn,
even without such a bilateral trade framework. For the moment,
they have had to backtrack and negotiate a settlement directly
with the Costa Rican government. Should Costa Rica sign up to
the Central American Free Trade agreement, the country will certainly
lose such cases in the future.
Clauses on capital controls render a
country helpless to regulate damaging large scale speculative
currency transactions. Other clauses force countries to treat
giant international companies on exactly the same terms as small
local ones. National economic and social planning is curtailed
through clauses restricting performance criteria such as non-discriminatory
employment codes or environmental protection and worker health
and safety measures. 3
When brow beating evangelism fails, Zoellick
can call on his US government colleagues to elicit appropriate
measures from the ever cooperative IMF and World Bank to help
reluctant converts see the light and speak in "free trade"
tongues. Under Bush, "free trade" has been carried
the world over by Zoellick and his apostles. In 2000 Jordan became
the first Arab country to sign a deal with the US. Similar agreements
have been reached recently with Singapore and Chile. A deal with
Morocco is in the offing. Bahrain is next in line. Occupied Iraq
is another obvious candidate.
When things need spelling out, Zoellick
is very clear. With China, he urges "to keep U.S. markets
open, we need a two-way street to try to expand U.S. exports
to China and operate in fair, transparent ways." His comments
on patent and copyright are especially interesting, "You
need some prosecutions and (to) put some people away...If it
just becomes a fine or a cost of doing business, then you're
not going to be able to stop intellectual property piracy."
It is interesting to note these remarks on criminal prosecution
come from one of fraudulent Enron's most influential former paid
advisers.4
In Africa, Zoellick waves a threat for
would-be beneficiaries of the African Growth and Opportunity
Act (AGOA). This preferential deal allows some 6000 items from
eligible African countries to enter the US duty free. Zoellick
observes, "While that is a good start in terms of development
it runs certain risks because when Congress passes a piece of
preferential legislation like AGOA, it means Congress can also
change it." Zoellick and his propagandists neglect to mention
that most of those 6000 products will have to be manufactured
using US supplied materials. AGOA expires in 2008.5
Free trade is a very blunt instrument
in Zoellick's hands. In July this year his officials pulled the
rug out from under visiting Egyptian trade delegates. Zoellick`s
acolytes told them the US was suspending moves towards free trade
talks with Egypt in response to Cairo's refusal to support the
US against Europe on genetically modified foods. Earlier at a
World Economic Forum meeting in Jordan on 23 June, Zoellick said:
"We see glimmers of light [in Egypt] but I'm not going to
sugar-coat it for people. Egypt has some work to do." Putting
the boot in, he added, "We know Egypt is the traditional
heart of the Arab world, but this isn't going to be handed to
them just because it is a big and important country."6
Galileo would recognise
the deal
The Zoellick doctrine of universal "free
trade" without free trade brooks no heresy and has no time
for genuine science. In March this year Zoellick announced he
was building a "coalition"--funny how they keep cropping
up--to force the EU to lift its moratorium on GM foods and biotech
products. Zoellick told the Senate Finance Committee March 5.
"I don't want this to be just the U.S. versus EU."
7
At a May 13th press briefing on the matter
he claimed the EU moratorium was stalling biotechnology development
and blocking its "benefits", especially in developing
countries. "In places where food is scarce or climates can
be harsh, increased agricultural productivity through biotechnology
can spell the difference between life and death, between health
and disease, for millions of the world's poorest people."
Through the crocodile tears and against available scientific
evidence Zoellick argues that biotechnology increases crop yields
but still miraculously benefits the environment. Unfortunately
for him, results of scrupulously conducted recent British field
trials tell a different story.8
In the US, writer Mark Schapiro has followed
transgenic crops from their beginnings. He writes, "Monsanto
alone poured at least a billion dollars into biotech research,
according to NPR technology correspondent Daniel Charles in his
book Lords of the Harvest, "before it had a single genetically
engineered plant to sell." Other companies--DuPont, Dow,
Aventis and Syngenta--spent billions more on research and on
a seed-company buying spree that lasted well into the 1990s.
The stakes for these companies are huge." 9 Zoellick works
to benefit giant US agri-business biotech companies while ruthlessly
pursuing policies that impoverish millions of African farmers.
Massive Ordnance Air
Burst hypocrisy
Prior to the 2001 Doha trade summit,
Zoellick said, "Given America's relative openness, we can
only maintain domestic support for trade if we retain strong,
effective laws against unfair practices. ... So we will continue
to insist that any consideration of WTO rules focus on getting
the practices of others up to U.S. standards so that American
businesses and workers can compete on a level playing field."
10 This hypocrisy is so enormous it can only be meant to inspire
shock and awe.
To take just one example, in 2001 the
US subsidised its cotton producers by a total of around US$1bn
more than the world market value of their crop. As Kevin Watkins
of Oxfam has noted, African cotton producers "lost some
$200m in 2001 as a direct consequence of American farm subsidies.
To put this figure in context, it dwarfs the amount that governments
in the region receive in the form of US aid or debt relief under
the Heavily Indebted Poor Countries (HIPC) Initiative."
11 And still in 2002 the US increased farm subsisidies by 10%
compared to 2001.
Watkins also notes that import taxes
accruing to the US from impoverished Bangladesh are generally
the same or greater than those collected from wealthy France
because the US tariff regime favours its European trading partners
over poorer developing countries. This puts much needed context
around another of Zoellick's disingenuous claims, that average
US tariffs are the lowest among the OECD rich country world elite.
That is true only because the US can afford to club and mug defenceless
poorer nations, but is forced to trade more fairly with the stronger
economies of its major trading partners like the EU.
Costa Rica takes the
brunt
Costa Rica is the latest Latin American
recipient of the Zoellick treatment. Telecommunications, electricity
and insurance are all state monopolies in Costa Rica. They represent
desirable acquisitions for Zoellick's friends in big multinational
companies like Vivendi. But Costa Rica has a long tradition of
defending the country's patrimony. President Pacheco, probably
against his own inclinations but under relentless pressure from
local political rivals, has held out against US pressure to privatize
public companies.
Unable to prise open telecoms in Costa
Rica, Zoellick shifted to rifling other targets, "I know
it is a sensitive issue, but we are going to have to find a way
to deal with the issue in some fashion." 12 Pacheco is insisting
for now that Costa Rica will stay outside CAFTA rather than privatize
its major public companies.
With substantial funding from US backed
organizations like the US-Costa Rica Foundation, the pro-"free
trade" Costa Rican elite, typified by Nobel Prize winner
Oscar Arias, are doing their best to push for Costa Rica to sign
the Central American Free Trade Agreement. But political opposition
across the spectrum is strong. The main objections are to the
secrecy of the negotiations under conditions imposed by the United
States and Zoellick's team's insistence on a fixed timetable.
Calling for a slow down and more transparent negotiations, one
opposition group has the slogan, "Another Costa Rica is
possible. Another world is possible."
Sick of being kept in the dark, Costa
Rican legislators are demanding to review the negotiated texts
before the talks are completed and they find themselves presented
with a fait accompli. "We are the ones who are going to
have to approve this treaty and we want to be responsible starting
now by learning what the texts say. We still don't know what
has been negotiated thus far."13
This gives the lie to Zoellick's claim
that, "We value public input, which we will seek to take
into consideration".14Like the rest of the Bush ideologues,
Zoellick despises anyone who disagrees with him. But he can turn
on the mechanical, cynical language of "transparency"
almost as well as his EU counterpart Pascal Lamy. The US continues
working relentlessy on completing a continent wide free trade
agreement in Latin America by 2005.
Telecoms tall tales
and downright fraud
Glib lies come easily to Zoellick and
his team, whether they are blagging biotechnology or puffing
privatised telecoms. They know very well phone charges for users
in Nicaragua and El Salvador have soared since privatization.
In Nicaragua, where half of the former state monopoly remains
to be sold, controversy surrounds the holding company of the
monopoly's residuary body, Uretel, in the run up to the final
sell off.
Dodgy book keeping seems to have stripped
out benefits that should have gone to the government. Mysterious
losses have been alleged of up to US$9m. Equally mysteriously,
the book value of the company's capital equipment seems to have
fallen by US$16m. Telecom workers union leaders fear manoeuvres
to lower the value of the company prior to the sale so as to
increase profits for the eventual buyers.
After the sale, the true value of the
company will no doubt be revealed as a stupendous transformation
thanks to the miracle-working free market. But union leaders
reckon the company has made US$50m since privatization and about
half of that is owed to the State. The company has yet to render
accounts to the residuary body since the company was part-privatized
in 2000.15
In El Salvador, people are further down
the privatization road and regret the turn they took. El Salvador's
Antel telecoms company and CAESS energy distribution company
have already been privatized, with other state firms being made
ready. Phone charges are up to three times those in Costa Rica.
Apostles of free trade insist privatization
invariably increases efficiency and lowers costs. Generally,
the opposite happens. Utility charges rise and efficiency falls
as infrastructure investment declines, while shareholders get
their dividend and corporate managers pull inflated salaries.
Currently in El Salvador a basic residential
telephone costs 274% of the cost in Costa Rica. The cost per
call by minute is 43% dearer in El Salvador for normal rate calls.
In Costa Rica the state monopoly charges by the second whereas
in El Salvador the charge is rounded up to the next minute.16
The thing to remember about most of these
bilateral and regional "free trade" deals is that they
are not primarily trade deals. They are primarily political deals
using economic crow bars and hammers to break countries open
for powerful US investment and political interests while apparently
talking about trade. Zoellick's membership of the Precursor investment
research group is a clue as to why the private investment emphasis
is always pre-eminent in these deals, invariably to the detriment
of the public interest.17
Breaking eggs for
the globalized corporate omelette
The deals are not just bad for their
foreign victims, they are bad for ordinary people in the US.
They will encourage even further a low wage service economy in
the US while the corporate elite make their fortunes even more
vast than they are already by investing in weak economies overseas.
In the past those investments were enforced and protected using
US military muscle, as in Latin America throughout the last century.
In the new millenium, trying to extend
and consolidate US global reach, Zoellick is using trade more
intricately than ever to underpin US foreign strategy in a cost-effective
way through bilateral and regional deals. The deals are characterised
by secrecy, intense political pressure and fierce resistance
to attempts at addressing local concerns that may limit the rewards
for US corporate investors, especially in relation to health
and safety and to the environment.
The zealot Hazel Motes may be the public
negotiating persona of Robert Zoellick. But Zoellick is neither
blind nor crazy. He simply has no interest in the massive human
cost, whether in the United States or abroad, of his lucrative
global evangelical mission on behalf of corporate monopoly capitalism.
Toni Solo
is an activist based in Central America. He can be reached at:
tonisolo52@yahoo.com
NOTES
1 Zoellick wants WTO deal by 2005. <CNN.com>
September 4, 2003.
2 'Unleashing the trade winds', The Economist,
December 5, 2002. Quoted in "Freeing trade or trading in
trade?" K. Subramanian. Financial Daily (from THE HINDU
publications group) Dec 24, 2002
3 "Property (Rights) is Theft"
Gabriela Bocagrande, Texas Observer, 8/17/2001
4 "Trade official says U.S. needs
`fair opportunity' to export to China" By Tim Johnson, Knight
Ridder NewspapersOct 27, 2003
5 "USTR Zoellick Says Free Trade
is About Freedom Holds Johhannesburg Press Conference" By
Charles W. Corey Washington File Correspondent. Thursday 21 February
2002 (usinfo.state.gov).
6 AL-AHRAM On line, 3-9 July 2003 Issue
No. 645
7 "U.S. Seeks Partners for WTO Challenge
to EU Biotech Moratorium", By Berta Gomez. Washington File
Staff Writer March 5, 2003, U.S. Department of State's Bureau
of International Information Programs,
8 "GM crops fail key trials amid
environment fears. Two out of three strains 'should not be grown'
Paul Brown, environment correspondent Guardian. October 2, 2003
9 "Sowing disaster?" Mark Schapiro.
The Nation. October 2002.
10 "WTO-USTR Says Other Nations
Must 'Compromise' Or WTO Meeting in Doha Could End in Failure",
International Trade Daily, October 31, 2001
11 "Trade hypocrisy: the problem
with Robert Zoellick" Kevin Watkins, 20-12-2002, www.opendemocracy.net
12 "Markets Must Open, U.S. Warns"
by Tim Rogers and Fabian Borges, Tico Times October 7, 2003
13 Congresswoman Aida Faingenzicht, of
the ruling Social Christian Unity Party. Quoted in Tico Times
San Jose, Costa Rica, October 31, 2003
14 "U.S. To Pursue Number of Objectives
at November FTAA Meeting in Quito" 15 October 2002 Washington
File, Office of International Information Programs, U.S. Department
of State.
15 El Nuevo Diario, Managua Nicaragua
23 October 2003 & 28 October 2003
16 "Cuzcatlecos alertan a los ticos:
Salvadorenos pagan hasta 300% mas que en Costa Rica por servicios
telefonicos" by Alonso Gomez Vargas 22 October 2003 www.rebelion.org
17 January 8th Press release. www.precursorgroup.com
Weekend
Edition Features for Oct. 25 / 26, 2003
Saul Landau
Cui
Bono? The Cuba Embargo as Rip Off
Noam Chomsky
Empire of the Men of Best Quality
Bruce
Jackson
Midge Decter and the Taxi Driver
Brian Cloughley
"Mow the Whole Place Down"
John Stanton
The Pentagon's Love Affair with Land Mines
William S. Lind
Bush's Bizarre Korean Gambit
Ben Tripp
The Brown Paste on Bush's Shoes
Christopher Brauchli
Divine Hatred
Dave Zirin
An Interview with John Carlos
Agustin Velloso
Oil in Equatorial Guinea: Where Trickle Down Doesn't Trickle
Josh Frank
Howard Dean and Affirmative Action
Ron Jacobs
Standing Up to El Diablo: the 1981 Blockade of Diablo Canyon
Strickler
/ Hermach
Liar, Liar Forests on Fire
David Vest
Jimmy T99 Nelson, a Blues Legend and the Songs that Made Him
Famous
Adam Engel
America, What It Is
Dr. Susan Block
Christy Canyon, a Life in Porn
Poets'
Basement
Greeder, Albert & Guthrie
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