[news] Venezuela declares war on WTO

[resist]

-----Forwarded Message-----
From: michael a. lebowitz <mlebowit at sfu.ca>
To: project-x at lists.resist.ca
Subject: [pr-x] Fwd: Venezuela declares war on WTO
Date: 06 Sep 2003 08:59:37 -0700


Say no at WTO, Venezuela tells developing nations
Friday, September 5, 2003 Posted: 2346 GMT ( 7:46 AM HKT)



CARACAS, Venezuela (Reuters) -- Venezuela declared war on Friday against what it called an unfair
world trade system and urged developing nations not to subscribe to any new agreements at upcoming
global trade talks next week.

The world's No. 5 oil exporter made clear it would take an aggressive stance at September 10-14 World
Trade Organization negotiations in Cancun, Mexico, which aim to lower barriers to world trade.

Venezuela's chief trade negotiator Victor Alvarez said the world's poorest countries had only a tiny
share of world exports, which were hogged by rich nations: "It's clear who are the winners and losers
of today's world trade system."

"We'll be taking the fight to inside the WTO," he said.

Alvarez said President Hugo Chavez's left-wing government would not negotiate over its demand, shared
with other developing countries, that rich industrialized nations end "ruinous subsidies" for their
farm products.

Challenging what he called the "pro-market fundamentalism" of the United States and other rich
nations, he insisted on the right of Third World states to intervene heavily in their economies to
promote development and fight poverty.

"Venezuela is going to propose that no new commitments be adopted (at the Cancun talks)," Alvarez
said.

"It makes no sense for countries like ours to add new points to the WTO agenda when there's such a
long list of issues that haven't been satisfied," he added.

Venezuela's apparent spoiling strategy flew in the face of urgent calls from the United States and
Europe for concrete agreements during the Cancun meeting.

It also reflected repeated verbal attacks by populist former paratrooper Chavez against world bodies
like the WTO, the International Monetary Fund and the World Bank.

The Venezuelan leader, who is accused by his foes of trying to introduce Cuba-style communism at home,
has pilloried these organizations as "institutions created by empires to continue dominating the
world."

Echoes of Cuba's Castro Alvarez said Venezuela's position was shared by major developing nations like
Brazil and India. But it seemed to echo views expressed by Cuban President Fidel Castro, a friend and
ideological ally of the Venezuelan president.

Alvarez presented a 10-point list dismissing free trade demands by industrialized nations.

For example, he rejected calls for transnational companies to be given equal treatment with national
firms in bidding for state contracts. "We're not going to negotiate our government purchases," he
said.

While demanding a reduction in the subsidies of rich nations, Alvarez said developing countries should
be given more time and special treatment, including financing and debt-forgiveness, to develop their
farm sectors to face fierce competition in world markets.

He rejected suggestions that tough foreign exchange controls adopted by Chavez's government earlier
this year and Venezuela's active membership of the oil exporters' cartel OPEC were against the spirit
of free trade.

Alvarez described these as legitimate protection mechanisms. "They (the rich nations) want us to give
away our resources for free," he said.

---------------------
Michael A. Lebowitz
Professor Emeritus
Economics Department
Simon Fraser University
Burnaby, B.C., Canada V5A 1S6
Office Fax:   (604) 291-5944
Home:   Phone (604) 689-9510



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