THE WORLD TRADE ORGANIZATION

Seven Key Points

1. The WTO will have the same status as the UN, IMF, and World Bank.

Article VIII of the Agreement (pg.13) states the WTO "shall have legal personality and shall be accorded by each of its members such privileges and immunities as are necessary for the exercise of its functions." The existing GATT organization will disappear.

2. Under WTO, Congress agrees to change US laws to meet WTO obligations.

Articles XVI, paragraph four (pg.18) states :"Each Member shall ensure the conformity of its laws, regulations, and administrative procedures with its obligations as provided in the annexed Agreements."

3. The Congress must raise $43 Billion to pay for this Agreement.

To replace the US revenues lost because of this Agreement, Congress must either raise taxes, cut existing programs or adopt a combination of taxes and cuts.

4. All WTO decisions will be made by the votes of the WTO Members.

One country, one vote, no veto. Article IX, paragraph one, (pg13) states that decisions "shall be taken by a majority of the votes cast, unless otherwise proved in this agreement or the Multilateral Trade Agreements...each Member of the WTO shall have one vote." In the WTO, Antigua's vote will have equal weight with that of the US. Developing nations will have 83 percent of the WTO votes.

5. The WTO will be the global Supreme Court of Trade Disputes.

As per Section 2 of the Dispute Settlement Understanding, the WTO will adjudicate global trade disputes, monitor national responses, and compel enforcement of its decisions. WTO rulings are final. The WTO can impose trade sanctions and fines on the US if we do not abide by its decisions. The WTO can authorize cross-sector retaliation. If the US loses a WTO dispute panel decision, for example, the World Trade Organization can give the plaintiff nation(s) authority to select which US industries, or combination of US industries, must bear the burden of the WTO trade sanctions. Under WTO, innocent bystander industries can be drawn into any trade fight.

6. Trade Agreements can be changed by a vote of the WTO Members.

Article X, paragraph 4 (pg.15) states that amendments to the substance of global trade agreements shall take effect for all Members acceptance by two-thirds of the WTO Members. Article IX (pg.13) gives the WTO the exclusive authority to interpret the provisions of the Agreement. Any "decisions to adopt an interpretation shall be taken by a three fourths majority of the members." It will be very difficult for the US to change any adverse WTO interpretation.

7. Congress cannot "fix" the Agreement in the implementing legislation.

Article XVI, paragraph (pg.18) states, "No reservations may be made in respect to any provisions of this Agreement." Thus, Congress cannot fix any offending provision in this Agreement.