FacebookTwitterGoogle+RedditEmail

Taking on the Big Bully at the WTO

by NORMAN GIRVAN

Remember that great story you learnt at Sunday School, about the little guy with the slingshot who took down the big bully with a single stone to a part of his anatomy where it really hurts? Well, its happening right here in the Caribbean.

In the 21st century Caribbean version of the timeless Biblical story, the little guy is Antigua and Barbuda; the big bully is the United States; the slingshot is the World Trade Organisation and the stone is international trade law.

And the place that really hurts could be the multi-billion dollar US music and film industry.

On January 28 the WTO  Disputes Settlement Body agreed to a petition from Antigua and Barbuda to suspend application of US Intellectual Property laws in retaliation for the failure of the United States to comply with WTO rulings on the illegality of US prohibitions of Internet gambling (see following story).

The US actions have devastated what used to be a thriving offshore gaming industry that earned Antigua and Barbuda thousands of jobs and millions of dollars in government revenues.

“The irony is rich, rich, rich”, Ms. Lori Wallach, a leading consumer rights advocate in the United States, is quoted as saying by the New York Times.

How so? Well back in 1994, when the WTO was being set up, it was the United States who insisted on the inclusion of the cross-retaliation provision that Antigua and Barbuda is now using against it.

The effect of this provision is that countries that are found to be in violation of WTO rules, and which refuse to comply with the rulings of the WTO DSB, can be punished by the aggrieved country with trade sanctions in another area of their commercial relations.

Its like telling a student that is found to be cheating in his Chemistry exam that he can’t play on the school football team, even if he is the star player—and the only thing that football and Chemistry examinations have in common is that they are both governed by school rules.

As the world’s largest economy, the United States was uniquely positioned to impose punitive trade sanctions on other WTO members, secure in the knowledge that the ability of other nations to hurt it in return was moderated by the realities of asymmetrical trade power.

The US successfully used cross-retaliation against the EU, for instance, to force  the latter to comply with WTO rulings on bananas; rulings that pretty much destroyed the banana industries in the Eastern Caribbean—so that US multinationals could get access to the EU market.

Who would have thought that the tiny nation of Antigua and Barbuda, with one of the world’s smallest economies, could hurt the economy of the United States?

After all, its economy is 1/13409th the size of the US’s. (Its easier to say that the US economy is 13,409 times that of Antigua and Barbuda’s).

But Antigua and Barbuda have found a way of hitting back. Copyright industries is one of the biggest earners for the US economy. The Internet is ubiquitous, and its power grows, exponentially, every single day. Enforcement of US copyright law by foreign countries is a major issue for the US—remember that “Warning Notice” at the beginning of the last DVD movie that you watched, threatening you with fines and imprisonment?

US officials are warning of all kinds of dire consequences. But Antigua and Barbuda officials believe that they have right—and international trade law—on their side. They are planning to use the latest DSB ruling to pressure the US into serious negotiations.

David has found the right slingshot and a stone that, if not lethal, has the potential to cause serious haemorrhage. And he is winding it up; looking Goliath square in the face; and saying he is prepared to use it, if Goliath doesn’t play by the rules.

And Goliath is fuming. But the fact is, the slingshot and the stone have been approved by the referees—and the rules were Goliath’s own idea.

Norman Girvan is a Professor Emeritus at UWI (Trinidad). He can be reached through his website.

This article originally appeared on 1804 Caribvoices.

More articles by:

CounterPunch Magazine

minimag-edit

bernie-the-sandernistas-cover-344x550

zen economics

Weekend Edition
March 24, 2017
Friday - Sunday
Michael Hudson
Trump is Obama’s Legacy: Will this Break up the Democratic Party?
Eric Draitser
Donald Trump and the Triumph of White Identity Politics
Jeffrey St. Clair
Roaming Charges: Nothing Was Delivered
Andrew Levine
Ryan’s Choice
Joshua Frank
Global Coal in Freefall, Tar Sands Development Drying Up (Bad News for Keystone XL)
Anthony DiMaggio
Ditching the “Deep State”: The Rise of a New Conspiracy Theory in American Politics
Rob Urie
Boris and Natasha Visit Fantasy Island
John Wight
London and the Dreary Ritual of Terrorist Attacks
Paul Buhle
The CIA and the Intellectuals…Again
David Rosen
Why Did Trump Target Transgender Youth?
Vijay Prashad
Inventing Enemies
Ben Debney
Outrage From the Imperial Playbook
Michael J. Sainato
Bernie Sanders’ Economic Advisor Shreds Trumponomics
Bill Willers
Volunteerism; Charisma; the Ivy League Stranglehold: a Very Brief Trilogy
Lawrence Davidson
Moral Failure at the UN
Pete Dolack
World Bank Declares Itself Above the Law
Nicola Perugini - Neve Gordon
Israel’s Human Rights Spies
Patrick Cockburn
From Paris to London: Another City, Another Attack
Ralph Nader
Reason and Justice Address Realities
Ramzy Baroud
‘Decolonizing the Mind’: Using Hollywood Celebrities to Validate Islam
Colin Todhunter
Monsanto in India: The Sacred and the Profane
Louisa Willcox
Grizzlies Under the Endangered Species Act: How Have They Fared?
Norman Pollack
Militarization of American Fascism: Trump the Usurper
Pepe Escobar
North Korea: The Real Serious Options on the Table
Brian Cloughley
“These Things Are Done”: Eavesdropping on Trump
Sheldon Richman
You Can’t Blame Trump’s Military Budget on NATO
Carol Wolman
Trump vs the People: a Psychiatrist’s Analysis
Stanley L. Cohen
The White House . . . Denial and Cover-ups
Farhang Jahanpour
America’s Woes, Europe’s Responsibilities
Joseph Natoli
March Madness Outside the Basketball Court
Bruce Mastron
Slaughtered Arabs Don’t Count
Ayesha Khan
The Headscarf is Not an Islamic Compulsion
Pauline Murphy
Unburied Truth: Exposing the Church’s Iron Chains on Ireland
Ron Jacobs
Music is Love, Music is Politics
Christopher Brauchli
Prisoners as Captive Customers
M. Shadee Malaklou
An Open Letter to Duke University’s Class of 2007, About Your Open Letter to Stephen Miller
Robert Koehler
The Mosque That Disappeared
Franklin Lamb
Update from Madaya
Dan Bacher
Federal Scientists Find Delta Tunnels Plan Will Devastate Salmon
Barbara Nimri Aziz
The Gig Economy: Which Side Are You On?
Kollibri terre Sonnenblume
Marines to Kill Desert Tortoises
Louis Proyect
What Caused the Holodomor?
Max Mastellone
Seeking Left Unity Through a Definition of Progressivism
Charles R. Larson
Review: David Bellos’s “Novel of the Century: the Extraordinary Adventure of Les Misérables”
David Yearsley
Ear of Darkness: the Soundtracks of Steve Bannon’s Films
FacebookTwitterGoogle+RedditEmail