And now:Ish <[EMAIL PROTECTED]> writes:

via: [EMAIL PROTECTED]
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The Progressive Response  26 February 1999   Vol. 3, No. 6
Editor: Tom Barry
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The Progressive Response is a publication of Foreign Policy In Focus, a joint
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Table of Contents

*** 130 TO 5 ON BIOSAFETY TREATY: GUESS WHICH SIDE U.S. IS ON ***

*** INTELLECTUAL PROPERTY RIGHTS AND THE PRIVATIZATION OF LIFE ***
by Kristen Dawkins

*** MILITARY BUDGET INCREASE: PAYING THE TROOPS OR PAYING OFF SPECIAL
INTERESTS ***
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*** 130 TO 5 ON BIOSAFETY TREATY: GUESS WHICH SIDE U.S. IS ON ***

"It's five against the world," said Joseph M. Goto, the delegate from Zimbabwe
to the recently concluded conference on the Biosafety Protocol of the
Convention on Biological Diversity. The U.S. delegation led the opposition to
the protocol, which would have required exporters of genetically altered
plants, seeds, or other organisms to obtain advance approval by importing
nations. "The United States is holding the world at ransom," Goto told the New
York Times (U.S. and Allies Block Treaty on Genetically Altered Goods, Feb.
25). Joining the U.S. were Canada, Australia, Chile, Argentina, and Uruguay.
Some 25 percent to 45 percent of major crops grown in the United States are
genetically modified, and U.S. negotiators feared that the proposal would
create obstacles for U.S. agricultural exports, one of the few economic
sectors that enjoys a trade surplus. The U.S. was also determined to stop dead
in its tracks any measure that would undermine the authority of the World
Trade Organization to set the rules for global commerce. 

Kristin Dawkins of the Institute for Agricultural and Trade Policy, author of
an FPIF policy brief on Intellectual Property Rights and the Privatization of
Life, notes that the Convention on Biological Diversity provides a framework
for the development of credible multilateral regimes that regulate the
operations of transnational corporations while enabling local and regional

resource management to evolve. The convention, which the U.S. has not
ratified, mandated negotiations for a protocol on biosafety. "The U.S. is
acting as a brake on progress, insisting there is no need to regulate trade in
genetically engineered organisms," writes Dawkins.
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*** INTELLECTUAL PROPERTY RIGHTS AND THE PRIVATIZATION OF LIFE ***

(Ed. Note: Kristin Dawkins, an analyst with the Institute for Agriculture and
Trade Policy, takes the U.S. to task for its aggressive promotion of
intellectual property rights, including those that effectively privatize life,
in a new FPIF policy brief, which is excerpted below and available with full
text at: 

http://www.foreignpolicy-infocus.org/briefs/vol4/v4n04tra.html)

Intellectual Property Rights and the Privatization of Life
Kristin Dawkins, Institute for Agriculture and Trade Policy

The U.S. government has made the rigorous enforcement of intellectual property
rights (IPR) a top priority of its foreign policy, using international trade
negotiations as the means of continually ratcheting up the terms. Washington
has made it clear to other governments that the global agreement on Trade-
Related Aspects of Intellectual Property Rights (TRIPS)--one part of the 1994
Uruguay Round of the General Agreement on Tariffs and Trade (GATT)--is not
sufficient. In every ongoing trade negotiation, the U.S. is seeking stronger
"TRIPS-plus" terms. 

Most developing countries find current TRIPS to be onerous
enough--facilitating transnational corporations' access to their internal
markets and resources and limiting their own capacity to develop. These
governments succeeded in writing into the final TRIPS agreement a "review" in
1999 of the most onerous terms and biennial reviews thereafter. Thus, the
debate over what constitutes appropriate public policy governing IPR will
continue to be of concern well into the next century.

IPRs assign to inventors and artists (or more often, their corporate sponsors)
the option to monopolize novel forms of commercially valuable knowledge--such
as a new drug, software, graphic design, or musical recording--for extended
periods of time, usually 20 years. They generally take the form of patents,
trademarks, or copyrights and have traditionally fallen under the domain of
national law. Over the years, different countries have produced different IPR
laws, each one a balance between the desire of innovators to be rewarded for
their efforts and the right of society to benefit from useful innovations.
India, for example, distinguishes between food and drug processing--the
formulae and mechanics of which are patentable--and the final foods and drug
products available to consumers, which are not. 

With the advent of TRIPS, virtually all the world's nations have lost their
right to determine the balance of private and public benefits designed to meet
national  development goals. Instead, they must comply with a single
international standard designed to open their markets to transnational
corporate interests. During the negotiations, a self-appointed Intellectual

Property Committee consisting of Bristol Myers, DuPont, General Electric,
General Motors, Hewlett Packard, IBM, Johnson and Johnson, Merck, Monsanto,
Pfizer, Rockwell, and Time-Warner lobbied GATT negotiators extensively.
Diplomats in Geneva concede that the pharmaceutical industry actually drafted
much of the TRIPS text, and the industry's lead advocate inside the
negotiating room was the U.S. government. 

The "life industry," as Monsanto and other leading agrochemical-pharmaceutical
conglomerates now call themselves, asserts that IPR are essential for research
and development. Without royalties guaranteed through IPR, they say, they
could not afford to invest in the search for plants whose active ingredients
may be the source of new life-saving drugs. Nor could they conduct research in
genetic engineering, with which they will "feed the world." But public health
advocates point out that patented drugs are far more expensive than their
generic counterparts, generating windfall profits well beyond the actual costs
of development. Public interest scientists worry that researchers are
increasingly reluctant to publish early discoveries in order to increase the
likelihood that they (or, more often, their companies or universities) will be
the first to patent a commercial result. Critics point out that investments in
genetic research to date have yielded little agronomic value but have instead
resulted in crops that tolerate high doses of herbicides. The result is
increased insect resistance to organic pesticides--in effect, creating
superweeds and superbugs that in turn lead to new blights of damaging insects
and the demand for ever more chemicals. 

In conjunction with other trade and investment policies, the global marketing
of expensive patented medicines and seeds limits many communities' access to
food and health. Furthermore, there are profound ethical and moral questions
about trade policies that convert seeds, plants, and other forms of life into
private property. 

In 1999, members of the World Trade Organization (WTO) are scheduled to review
the TRIPS clauses relating to the patenting of plants, animals, genetically
engineered organisms, and other forms of life. In 2000, developing countries
are scheduled to bring their national laws into conformity with TRIPS rules;
least developed countries have until 2005 to do so. Every two years from 2000
on, the entire TRIPS agreement will be reviewed. Meanwhile, Washington is
exercising intense diplomatic pressure to force developing countries to comply
with or even to surpass TRIPS requirements ahead of schedule.

Problems With Current U.S. Policy

Every six months, the Office of the U.S. Trade Representative (USTR) releases
an updated "Watch List" of a dozen or more countries against which the U.S.
might impose trade sanctions in the future if they don't improve their IPR
enforcement. The threats are issued under the infamous Super 301 clause within
the Omnibus Trade and Competitiveness Act of 1974. According to the WTO, such
unilateral exercise of trade sanctions is illegal but no country has as yet
challenged the frequent U.S. application of this law. 


Occasionally, threats of trade sanctions--which are almost always effective,
due to their potential economic impact--are made on behalf of the auto, steel,
or other manufacturing industries, but with the advent of the "information
age," the protection of IPR is paramount. Though much of this effort is
directed toward the computer and entertainment industries, the U.S. has also
exercised considerable diplomatic pressure to bully other countries about the
patenting of plants. 

In 1997, the U.S. unilaterally reimposed import duties on $260 million of
Argentine exports in retaliation for Argentina's refusal to rewrite its patent
legislation to the satisfaction of the USTR Office. In the past several years,
Washington has repeatedly threatened Ecuador with the possible loss of $80
million worth of income from its fish exports to the U.S. in order to force
ratification of a bilateral agreement on IPR. India, Pakistan, Ethiopia,
Brazil, and many other countries have similarly faced Super 301 threats about
their patent laws.

In April 1997, the U.S. State Department sent a letter to the Royal Thai
Government (RTG) regarding draft Thai legislation allowing Thai healers to
register traditional medicines, thus keeping them within the public domain.
The letter advised the RTG that "Washington believes that such a registration
system could constitute a possible violation of TRIPS and hamper medical
research into these compounds." The State Department requested official
responses to 11 questions, beginning with: "What is the relationship of the
proposal to the granting of patent protection in Thailand?" and ending with:
"Does the RTG envision a contractual system to handle relationships between
Thai healers and foreign researchers in the future?" 

In response, more than 120 nongovernmental organizations (NGOs) from around
the world--including farmers' organizations, advocates of social justice,
environmental groups, consumer coalitions, and so on--wrote U.S. Secretary of
State Madeleine Albright. They pointed out that the State Department's letter
implies an interest on the part of the U.S. government to transfer traditional
Thai knowledge to U.S. researchers for eventual patenting--ironically denying
Thailand the right to protect that knowledge. The NGOs agreed that governments
should conform with international agreements to which they subscribe, but they
noted that it is neither "the United States' responsibility nor its right to
interfere with their national democratic processes for doing so."

A number of nations have contested patents granted by the U.S. Patent and
Trademarks Office (PTO) for biological materials, especially plants, taken
from their peoples. In May 1998, Bolivians successfully defeated Colorado
State University's application for a U.S. patent on quinoa, a valuable food
grain native to villages throughout the Andes. The Indian government
successfully overturned a U.S. patent awarded for turmeric, a common spice
used for healing minor wounds in addition to cooking. India has objected to
numerous U.S. patents on uses of neem, a tree growing in virtually every
Indian village, which is used as a natural biocide for brushing teeth, washing

clothes, shampooing, and other daily chores. India, Pakistan, and Thailand
are
currently mounting campaigns against U.S. patents awarded to a Texas company
for Basmati and Jasmine rice strains perfected by peasant farmers over
thousands of years. There are many such cases. 

This biopiracy, as it is often called, yields new profits for U.1S. companies,
which take the raw material, alter it in the laboratory to claim an invention,
and win the patent. For source countries, this represents double trouble for
their economies. First, their natural resource has been appropriated by a
foreign corporation, and they are prohibited from further developing the
resource domestically. Second, there will be a net outflow of foreign
exchange, as licensing fees and royalties are paid on any commercial products
eventually exported back to their domestic markets. Indeed, the expressed
goals of IPR--to encourage innovation and promote the transfer of
technology--are turned on their heads. 

A third major problem resulting from the patenting of plants is genetic
pollution and the loss of biodiversity. Once a commercially viable product has
been patented, companies invest in massive marketing campaigns and do not
hesitate to enlist governments in promoting the product through the
international financial institutions, rural extension services, and special
loans and grants tied to designated seed-and-chemical packages. 

As a result, vast monocultures are planted with genetically identical seed,
which in turn leads to thriving blights and the disappearance of local plant
varieties. Furthermore, bees and other pollinators transfer the genes of
transgenic crops to wild relatives, affecting local ecosystems in significant,
potentially catastrophic ways. This genetic pollution, as it is being called,
becomes part of the gene pool and can never be remediated. Extinction is
forever.

Toward a New Foreign Policy

The U.S. should cease its campaign to outlaw the a priori rights of
communities to the resources that sustain them. The U.S. should also cease
utilizing Super 301 and other bullying tactics and instead join the world
community of nations in finding multilateral solutions to the struggle over
valuable natural resources. 

U.S. negotiators have lobbied for the weakest possible terms of a biosafety
protocol of the Convention on Biological Diversity. Simultaneously, the USTR
and the U.S. Secretary of Agriculture have announced (as loudly as possible)
that they consider European regulations on genetically engineered foods to be
barriers to trade that the U.S. will fight in every forum available at the
WTO. The tactics include ongoing dispute settlement processes, the current
review of the Sanitary and Phytosanitary Agreement, and reconsideration of the
Agriculture Agreement in 2000. 

The U.S. should cease this irresponsible behavior and, consistent with the
precautionary principle established at the 1992 Earth Summit, support a
careful regulatory regime--including ecosystem-specific testing and extensive
adult human trials, subject to their prior informed consent--before unleashing
transgenic foods and seeds into open markets.


Researchers with the U.S. Department of Agriculture (USDA) and the quasi-
public Consultative Group on International Agricultural Research (CGIAR),
which coordinates activities among 16 gene banks around the world, should be
directed to develop on-farm genetic diversification projects and other
alternatives to industrial production at least as actively as they invest in
genetic engineering. All agricultural research should be devoted to food
security instead of corporate marketing strategies. 

The USDA should divest itself entirely of projects like the "terminator
technology," so dubbed by the Rural Advancement Foundation International
(RAFI), which discovered that U.S. taxpayers had subsidized this research. The
terminator is a genetic engineering technique that causes plants to release a
fatal toxin in the second generation of seed, so they cannot reproduce
themselves. The U.S. PTO should revoke the terminator patent. So, too, patent
offices in the other 77 countries where it is now pending should reject this
abomination.

Indeed, governments everywhere should ensure their citizens' democratic right
to legislate protection of the rights of farmers and traditional communities.
If the WTO is to negotiate any revisions to TRIPS next year, let prohibitions
on the patenting of life prevail. The U.S. Congress should instruct the U.S.
Patents and Trademarks Office and the Office of the Trade Representative to
about-face and join the rest of the world.

Kristin Dawkins, an analyst at the Institute for Agriculture and Trade Policy,
is author of Gene Wars (New York: Seven Stories Press, 1997).


Sources for More Information

Center for Technology Assessment (CTA)
Email: [EMAIL PROTECTED]
Website: http://www.icta.org

Consumer Project on Technology
Email: [EMAIL PROTECTED]
Website: http://www.cptech.org

Council for Responsible Genetics (CRG)
Email: [EMAIL PROTECTED]
Website: http://www.essential.org/crg/

Edmonds Institute
Email: [EMAIL PROTECTED]

Gaia Foundation
Email: [EMAIL PROTECTED] 
Website: http://www.coama.org.co/GFOUN-I.TXT

Genetic Resources Action International (GRAIN)
Email: [EMAIL PROTECTED]
Website: http://www.grain.org/

Institute for Agriculture and Trade Policy
Email: [EMAIL PROTECTED]
Website: http://www.iatp.org

Institute for Sustainable Development (ISD)
Email: [EMAIL PROTECTED]

Rural Advancement Foundation International-USA (RAFI)
Email: [EMAIL PROTECTED]

Third World Network (TWN)
Email: [EMAIL PROTECTED] or [EMAIL PROTECTED]
Website: http://www.southside.org.sg/souths/twn/twn.htm

Union of Concerned Scientists (UCS)
Email: [EMAIL PROTECTED]
Website: http://www.ucsusa.org/
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*** MILITARY BUDGET INCREASE: PAYING THE TROOPS OR PAYING OFF SPECIAL
INTERESTS ***

With Congress upping the ante, by literally billions of dollars, on Clinton's
proposed military pay and pensions increase, the question is who will benefit.
Clinton and Congress both contend that the money is needed to increase
salaries for troops in the field. The reality is that it will be the military
top brass and defense contractors who will benefit. This military pay

increase, together with a bill sponsored by Sen. Thad Cochran (R-MS), which
calls for the deployment of a National Missile Defense--or Star Wars--system
"as soon as technologically possible," are the most expensive items on
Congress's agenda. 

"Both President Clinton and his Republican counterparts on Capitol Hill have
tried to present their proposals for a multi-billion dollar weapons buildup as
essential for 'military readiness' and the well-being of our men and women in
uniform," notes William D. Hartung. Hartung is the President's Fellow at the
World Policy Institute at the New School and the author of a recent Foreign
Policy In Focus report, The Military Industrial Complex Revisited: How Weapons
Makers are Shaping U.S. Foreign and Military Policies. "But if you look at the
fine print, the main beneficiaries of this unnecessary buildup are not the men
and women of the Army, Navy, Air Force, and Marines, but the executives and
shareholders of the Big Three weapons makers--Boeing, Lockheed Martin, and
Raytheon."    
  
The Pentagon is favoring "toys over boys" (weapons over personnel) in its
newly announced six-year military budget plan, Hartung says. He cites the
Pentagon's own figures: weapons procurement is slated to increase by 53%, from
$49 billion now to $75 billion in 2005, while personnel spending is scheduled
for only a 22% increase over that same time period. 

To add insult to injury, the pay increases that are being granted may be going
to the wrong people. As Defense Week reported on February 22nd, the biggest
raises will go to mid-level officers who are "more or less satisfied with
their pay," not to enlisted personnel who are "dissatisfied with the pay they
are getting."

And if pay increases are needed, the money should come from cutting waste in
other parts of the Pentagon budget. Sen. Tom Harkin (D-IA) noted in a recent
letter to President Clinton that the $3 billion price tag of the Pentagon's
proposed pay package for F.Y. 2000 is equal to the value of the inventory that
the Navy has lost--or cannot account for--in recent years. 

"If Bill Clinton and Al Gore really want to reinvent government, why are they
rewarding mismanagement by throwing more money at the Pentagon before it has
been forced to clean up its act?" wonders Hartung. "And the most mismanaged
program of all is Star Wars, which has eaten up $55 billion in taxpayer money
since 1983 without producing a single workable device. By boosting funding for
this dangerous and unworkable program, President Clinton is jeopardizing the
future of nuclear arms control to curry favor with a motley coalition of
defense contractors and conservative true believers who are the core
supporters of this misguided project." (For a profile of the Star Wars lobby,
see "Military Industrial Complex Revisited," p. 13).

The President's generosity to the Pentagon is coming at the expense of our
fundamental security needs here at home: "a good education for our kids, safe
air and drinking water, and investments in civilian technologies that can
create high-paying jobs for the next generation," notes Miriam Pemberton, a
senior analyst at the Institute for Policy Studies and the author of A Tale of

Two Markets: Trade in Arms and Environmental Technologies. The tradeoffs are
stark. This year's $12 billion increase for the Pentagon is three times the
entire annual budget for the Environmental Protection Agency. As the Council
for a Livable World noted in a recent analysis, the President's proposed $112
billion, six year increase for the Pentagon would be enough to repair the
majority of our nation's dilapidated school facilities, and the $3 billion set
aside for the redundant F/A-18E/F fighter for the Navy would be enough to fund
the unmet health care needs of our nation's veterans. "Before Congress signs
off on the largest military budget increase since the Reagan era, they should
make sure we are cutting the fat at the Pentagon and making the investments we
need to ensure a strong economy and society here at home," argues Pemberton.


Sources for More Information

Foreign Policy In Focus 

http://www.foreignpolicy-infocus.org/topics/ifmp.html

Military/ Industrial Complex Revisited by William Hartung

http://www.foreignpolicy-infocus.org/papers/micr/

World Policy Institute, New School for Social Research 

http://www.worldpolicy.org 

Council for a Livable World and Education Fund 

http://www.clw.org
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