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WTO Legislative Action

As of March 18, 2001


The WTO and Massachusetts
THE GLOBALIZATION IMPACT BILL

Nobody elected the World Trade Organization (WTO) to the Massachusetts legislature.

Nevertheless, the WTO has the authority to undermine state laws and regulations that promote and protect our economy, health & safety, and environment. Global trade agreements prioritize the goal of "free trade" over all other values, such as clean air, living wages, and consumer protection. In the interest of eliminating "barriers to trade," the WTO and other global trade agreements threaten the sovereignty of Massachusetts lawmakers and the citizens who elect them.

Under the WTO, state policies and programs that could be challenged as "barriers to trade" include:

  • bans on toxic substances
  • state funding for local economic development
  • purchasing preferences for small businesses, or businesses owned by minorities, veterans, or women
  • product labeling requirements

A 1994 study by Georgetown University identified over 80 California laws that could be challenged under the WTO, and that doesn't include the potential for complaints under NAFTA. The Massachusetts Burma Law was challenged by both the European Commission and the Japanese government at the WTO. Similar to sanctions imposed against apartheid South Africa, the Burma Law restricted purchases from companies doing business in the military- led nation.

Challenges to state laws brought by foreign governments are heard by dispute resolution panels. But state attorneys can't participate in the proceedings; it is left to the federal government to defend the authority of state lawmakers. And the price of losing can be high: a Canadian manufacturer of MTBE, a toxic gasoline additive, is seeking $970 million in damages due to California's decision to ban the substance.

Massachusetts lawmakers and citizens have a strong stake in global trade negotiations. But in order to have an effective voice, we need to know which Commonwealth laws and regulations are at risk. The Globalization Impact Bill (H. 2119) would provide this essential information. The bill establishes a state commission to study the impact of the WTO and other trade agreements on Massachusetts laws and regulations. The commission will regularly report to the legislature on these impacts, and advise the Commonwealth on when to oppose provisions in global trade agreements.

Legislative sponsors and supporters: Rep. Byron Rushing (chief sponsor), Rep. Pat Jehlen, Rep. Paul Demakis, and Sen. Dianne Wilkerson

Endorsing Organizations: Massachusetts Peace Action, Boston Global Action Network, and the New England Burma Roundtable


WHAT YOU CAN DO

1. Invite any organizations you're involved with to endorse the bill.

2. Publish an article in your organization's newsletter about the bill.

3. Write letters to your state representative and state senator, asking them to support the bill.


Contact Eric Weltman, Organizing Director for more information:

Citizens for Participation in Political Action (CPPAX)
25 West Street, Boston, MA
Tel: (617) 426-3040, Fax: (617) 426-8389
[email protected]

© 2001
Boston Global Action Network

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