arch/ive/ief (2000 - 2005)

US Reconstruction of Iraq plans violate WTO rules
by Attac workgroup on International Treaties Wednesday May 21, 2003 at 05:09 PM
Omc.marseille@attac.org

US commentators point out that the additional budget amendment for the war in Iraq, according to which Russia, Germany and France would be excluded from contracts for the reconstruction of the country because of their opposition to the war, violates the rules of the WTO.

US commentators point out that the additional budget amendment for the war in Iraq, according to which Russia, Germany and France would be excluded from contracts for the reconstruction of the country because of their opposition to the war, violates the rules of the WTO, which
prohibit this type of political discrimination giving an advantage to certain parties.

Even if Russia, not at present a member of the WTO,
cannot lodge a complaint with the DSB, the EU could certainly do so in the name of the two other countries.

Other comments concern the blocked negotiations at the WTO on the reduction of agricultural subsidies. An article in the New York Times states that "there is general agreement that these subsidies are among the main trade obstacles for poor countries." However, according to the World Bank, even the total suppression of agricultural trade barriers for developing countries would only increase their income by
an average of O.6 % (Global Economic Prospects and the Developing Countries 2000). Thus, the per capita income of Ethiopia would rise from a yearly average of $600 to $603.60 if all the rich countries suppressed all their subsidies and other trade obstacles.