World Issues: Free Trade FTAA & WTO: The Other Side of the Coin by Eric 1. What are the main issues for this topic? This piece attempts to give a basic synopsis of The Free Trade Area of the Americas (FTAA) from the perspective of some of its innovators and propagaters; namely, the Canadian Government, specifically the Department of Foreign Affairs and International Development (DFAIT), and the World Trade Organization (WTO). "Why Trade Matters?" &endash; I have attempted to summarize and make clear some of the fundamental reasons why the Canadian Government supports the FTAA. My sources were the DFAIT web page as well as the WTO web page. This, in short, is the other side of the coin. Basically, trade enhances the quality of life. Not only does it enrich our existence by bringing foreign products to our doorstep, but it also fuels our domestic economy. By way of international trade new products ranging from foods to technology to automobiles to medicine have been introduced into our lives. These have, in turn, encouraged competitive pricing, promoted and widened education, enhanced cultural relations, stimulated technological advances and created jobs. To reap the benefits of international trade, however, all the players must know, accepts and play by the same rules. And these rules must take ecology and social justice, among many other things into consideration. "The WTO is the only international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible." The WTO encourages countries to lower their trade barriers and to allow trade to flow more freely, since all countries benefit from increased trade. The WTO objective isn't for "free trade at any cost" but more for "fair trade... non-discrimination, and making sure the conditions for trade are stable, predictable and transparent." 2. What are some regional examples of these issues? In 1998 Canada exported $234 billion to the United States alone. And for each billion exported, there are on average 6000 jobs needed. That's over 1.4 million jobs which depend solely on Canada's trade with our neighbours to the south. One example of a Canadian company which has benefitted from free trade is the publishing firm Douglas and McIntyre. They estimate that 31% of their total revenue comes from exports and 80% of their exports are the US. More than 40% of everything produced in Canada is exported. In 1998 Canada exported $368 billion in goods and services to countries throughout the world - more than a billion a day. Canada's population is relatively small, and when one considers that only one of every 200 people on the earth is Canadian, one realizes Canada's dependance on others to buy our products. 3. How does this issue affect me (at the personal level)? This issue affects me both directly and indirectly on several levels, most of which are addressed in the other sections. 4. How does this issue affect youth in my community? Some argue that globalization helps to reduce, if not annihilate, cultural individuality. In Canada, our identity is sustained by its diversity. The revenue created by international trade helps to create and sustain cultural and social programs, as well as insure the longevity of our health and educational systems. Without trade, would life be as good as it is now? 5. How does this issue affect youth in the Americas? According the WTO "trade can be a powerful force for creating jobs and reducing poverty." The freer trade is, the higher the potential to create jobs and ultimately reduce poverty becomes. Admittedly, there is sometimes a period of adjustment where job loss occurs, but ultimately jobs are created and "national incomes and personal incomes... increase." In addition to jobs creation and a general rise in the standard of living, the rules enforced by the WTO and necessarily adhered to by FTAA would give "smaller countries more voice... and increased bargaining power" and subsequently the ability to deal and be dealt with fairly. Smaller countries (Canada being a "medium sized country," according to DFAIT) can perform more effectively if they make use of the opportunities to form alliances and to pool resources, and in the end, operate on a level playing field. In the end, freer trade has "sustainable development (as its) principal objective" and youth in several countries in the Americas will undoubtedly be affected by it. Lastly, the WTO and the FTAA directly address environmental concerns. Article 20 of the General Agreement on Tariffs and Trade states that countries "take actions to protect human, animal or plant life or health, and to conserve exhaustible natural resources." The WTO points to equivocal evidence which demonstrates their unwavering support for the environment, or "pro-green" stance as their web site has it, by naming examples where "the system (free trade) and its rules (has) help(ed) countries allocate scarce resources more efficiently and less wastefully... lead(ing) to reductions in industrial and agricultural subsidies, which in turn (have) reduced wasteful over-production." The protection and conservation of the environment should be a concern of every citizen in the world and it is within the WTO's mandate to ensure that countries and manufacturers and producer therein abide by their rules. Sources used in the creation of this article: 1: World Trade Organization www.wto.org/english/thewto_e/whatis_e/10ben_e/10b00_e.htm 2. Department of Foreign Affairs International Trade www.dfait-maeci.gc.ca/tna-nac/why-e.asp 3.