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Trade as Counterterrorism

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					   Trade as
Counterterrorism?
     Julie A. Sokol
  U.S. & Global Trade
       Fall 2008
                  Overview
   2001- “Global War on Terror”

   This strategy merged counterterrorism
    with free trade initiatives.

   Resulted in a confused and over-
    reaching policy served to undermine
    U.S. credibility and national security.
    Pre 9/11 U.S. Trade Policy Goals
   remove trade barriers in foreign markets

   further liberalize domestic markets

   reestablish the bipartisan Executive-
    Congressional negotiating partnership

   reestablish trade promotion authority for the
    President

   shape the international trading order, or be left
    behind.
     Post 9/11 U.S. Trade Policy Goals
    Economic strength at home and abroad as
     the foundation of America's hard and soft
     power.

    Re-establish American trade leadership by
     moving on multiple fronts: globally,
     regionally and with individual countries

    “Trade is about more than economic
     efficiency. It promotes the values at the
     heart of this protracted struggle”
“The terrorists deliberately chose the World Trade towers as their target.
  While their blow toppled the towers, it cannot and will not shake the
                 foundation of world trade and freedom.
                             – R. Zoellick 2003
        The Debate over Effective
        Counterterrorism Strategy
   Some argue that an overly aggressive strategy
    plays into the hands of the terrorist agenda.

   Others maintain that nothing less than a “Global
    War on Terror” can be effective.

   Most parties can agree on is that the root causes
    of terrorism lie in socio-economic disparity more
    than any other cause

   This perspective justifies the goal of economic
    empowerment within counterterrorist doctrine,
    but does not guarantee the effectiveness of free
    trade principles in particular.
                  President Bush
                 Monterrey, Mexico
                  March 22, 2002
―When nations close their markets and
  opportunity is hoarded by a privileged few, no
  amount—no amount—of development aid is
  ever enough.

When nations respect their people, open
 markets, invest in better health and education,
 every dollar of aid, every dollar of trade
 revenue and domestic capital is used more
 effectively.‖
    Unfinished business as of 2008
   Middle East Free Trade Agreement (MEFTA)

   South African Customs Union (Botswana,
    Lesotho, Namibia, South Africa and Swaziland)

   Thailand

   United Arab Emirates

   Free Trade Agreement of the Americas (FTAA) to
    include Mercosur, Venezuela and Ecuador.
        Candidates’ Views on Trade
                                   Obama                      McCain
   Enforcement              Pressure the World
                            Trade Organization to
                                                        Pursue multilateral,
                                                        regional and bilateral
                            enforce trade               efforts to build
                            agreements                  effective enforcement
                                                        of global trading rules

   Goal of Trade            Opens up foreign
                            markets to support
                                                        Committed To
                                                        Pursuing Free Trade
      Policy                good American jobs.         Agreements With Our
                                                        World Trading
                                                        Partners.

         CAFTA              Stand firm against
                            agreements that fail to
                                                        Push To Ratify

                            live up to important
                            benchmarks.

―The stability of Colombia is more critical than ever as others in the region seek to
turn Latin America away from democracy and away from our country.‖ –McCain 2008
              Main problem:
   The United States has maintained a
    confused and over-reaching policy
    involving free trade and counterterrorism
    which is undermining U.S. credibility and
    national security.

   The root causes of this problem can be
    organized as those related to the practice
    of free-trade and those related to
    diminished U.S. credibility in regions of
    strategic importance related to terrorism.
      Problems related to FTA’s
   “Neither plague nor panacea”- debate
    over effectiveness

   Weak countries “lack the capacity to
    adjust, retool and relocate with changing
    market conditions”

   Were it not for foreign policy interests,
    these nations would never be considered
    as viable trading partners
             MEFTA as an example
     Pressing internal issues:
      • massive population increases
      • youth “explosion” of males
      • the integration of women into the workplace
      • failed or inadequate growth in infrastructure
        and in key areas like housing and education
      • scarcity of water
      • a decline in non-petroleum exports
      • the lack of precedent of regional trade in the
        Middle East
―A contest for the soul of Islam" is raging, and the United States can
help ―by striking trade deals that generate jobs and reduce poverty‖
                                                    –Robert Zoellick 2004
   Excerpts from 2005 Bahrain
Conference on the Topic of MEFTA
   "If Arab countries can integrate with the United
    States (through FTA’s), it will be easy for them to
    integrate with each other." -US Rep. Lawrence

   "FTA’s are not the ultimate solution for this
    region ... I see FTA’s as a catalyst for change and
    reform rather than promoting trade." –Rashid,
    Egypt’s minister of foreign trade and industry

   "I really fail to understand the logic that if you
    want to do Arab integration, you have to go to
    the US," -Sharif Al Zubi, Jordan’s minister of
    industry and trade
               Policy Proposal
   A new global trade and development
    policy that realigns bilateral negotiations
    with measures that support development
    and regional security for weak and failed
    states

   This policy would streamline trade
    agreements and aid programs.

   Possible oversight provided by the United
    Nations Conference on Trade and
    Development (UNCTAD).
           What is UNCTAD?
   Established in 1964 by the UN to deal with
    trade, investment and development issues

   Created the New International Economic
    Order (NIEO) to replace the Bretton
    Woods system

   Favored greater participation and
    safeguards for developing countries

   Would present guiding principles for
    negotiations and institutions
           Positive Outcomes
   The U.S. would become less of a target to
    terrorist groups.

   As trade agreements are filtered through
    the UN, labor, health, and environmental
    standards would be upheld in this realm
    which could even increase the use of free
    trade principles.

   As weak states are nurtured by aid
    programs and UNCTAD-based trade
    practices, they become less threatening to
    the United States to improve global
    security overall.
        Forces working against this
                proposal
   The U.S. has never been willing to abdicate its
    own power on issues that directly affect its own
    economy and security.

   A rejuvenation of the UN’s presence in the field of
    global economics would have to occur in order to
    guide trade practices.

   Business leaders would not welcome new
    bureaucracy to contend with.

   Tremendous upheaval would be involved to
    implement this proposal, along with almost
    perfect human behavior.
                 Final Thoughts
―In the initial years, UNCTAD used to attract the best talents
   among economists in the world, who used to come
   motivated by the idealism to serve the vast majority of
   mankind living in the developing world and to contribute to
   the shaping of a world economic order which was just, fair
   and equitable- a goal that was in the interest of both
   developed and developing worlds.

Experts committed to such idealism have been sidelined or
  eased out of UNCTAD by a variety of means adopted for
  this purpose. The reoriented mandate and programmes,
  and the kind of environment it has created do not provide
  scope or incentive to attract new bright original talents
  committed to an ideal.

This has increasingly turned the UNCTAD Secretariat into an
  uninspiring place.‖
                             -Boutros Boutros-Ghali 2006
                                Works Cited
Bardhan, Pranab. 2006. Does Globalization Help or Hurt the World’s Poor?
http://www.sciam.com/article.cfm?id=does-globalization-help-o (accessed September 14, 2008).

Boutros-Ghali, Boutros. 2006. Reinventing UNCTAD.
http://www.globalpolicy.org/socecon/trade/unctad/2006/0220revitalizing.pdf (accessed September 14,
    2008).

Looney, Robert. 2005. U.S. Middle East Economic Policy: Are Trade-Based Initiatives an Effective Tool in
    the War o Terrorism? http://www.ccc.nps.navy.mil/si/2005/Jan/looneyJan05.asp (accessed
    September 14, 2008).

Moore, Michael O. and Alissa Bellotti. 2007. Initiating U.S. Free Trade Agreements: How Do Potential
   Partners Stack Up? http://home.gwu.edu/~mom/ftarank.pdf (accessed September 14, 2008).

Samuelson, Robert J. 2008. Goodbye, Free Trade; Hello, Mercantilism.
   http://www.newsweek.com/id/81372 (accessed September 14, 2008).

Schott, Jeffrey J. 2001. Understanding US Trade Policy: Circa 2001.
    http://www.iie.com/publications/papers/schott1001-2.pdf (accessed September 14, 2008).

Stern, Paula. 2002. Making Trade Policy While Pursuing the
War on Terrorism. http://www.sterngroup.biz/speakers/nabe.pdf (accessed September 14, 2008).

The White House. 2002. The National Security Strategy
of the United States of America. http://www.whitehouse.gov/nsc/nss.pdf (accessed September 14,
     2008).

The White House. 2003. The National Strategy for Combating
    Terrorism.http://www.whitehouse.gov/news/releases/2003/02/counter_terrorism/counter_terroris
    m_strategy.pdf (accessed September 14, 2008).

Zoellick, By Robert B. 2001. Countering Terror with Trade.
    http://www.ustr.gov/Document_Library/Op-eds/2001/Countering_Terror_with_Trade.html
      (accessed September 14, 2008).

				
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