1. The WTO will have the same status as the UN, IMF, and World Bank.Article VIII of the Agreement (p.5) 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.Article XVI (P. 10) states: "Each Member shall ensure the conformity of its laws, regulations, and administrative procedures with its obligations as provided in the annexed Agreements."
3. All WTO decisions will be made by the votes of the WTO Members. One country, one vote, no veto. Article IX (p.5) states that decisions "shall be taken by a majority of the votes cast, unless otherwise provided 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.
4. 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.
5. Trade Agreements can be changed by a vote of the WTO Members. Article X, paragraph 4 (p. 7) states that amendments to the substance of global trade agreements shall take effect for all Members upon acceptance by two-thirds of the WTO Members. Article IX (p. 5) gives the WTO the exclusive authority to interpret the provisions of the Agreement. Any "decision 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.
6. Congress cannot "fix" the Agreement in the implementing legislation.Article XVI, paragraph 5 (p. 10) states, "No reservations may be made in respect to any provisions of this Agreement." Thus, Congress cannot fix any offending provision in this Agreement.
By any measure, the World Trade Organization severely diminishes U.S. sovereignty. Any Congressional leader that approved this agreement either did not read it, or did not have America’s best interests in mind
Pat Choate is an economist, author of seven books and was the 1996 Vice Presidential running-mate of Ross Perot for the Reform Party. Choate received his PH.D. in economics from the University of Oklahoma.
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