DECEMBER 13, 1999 VOL. 154 NO. 23

Talking Trade: Negotiating a world full of conflicts

	ALSO IN TIME
	Cover: Rage Against The Machine Despite, and because of, violence, anti-WTO protesters were heard The Battle in Seattle Never mind the riots. The real threat to the WTO's free-trade agenda lies in discord among member nations Talking Trade Negotiating a world full of conflicts Who's Afraid of Frankenfood? So far, the movement against g.m. crops has been confined to Europe. But thanks to a little uncertainty and a lot of agitprop, that's changing
	RELATED STORIES
	Anatomy of a WTO Deal Bluffs and brinksmanship kept both sides guessing until the U.S. and China finally signed the trade pact China's WTO Deal May Leave Hong Kong Out in the Cold The People's Republic's likely accession into the World Trade Organization may make Hong Kong's lucrative role obsolete Barshefsky: 'It is political legitimacy' TIME speaks with Charlene Barshefsky, U.S. Trade Representative, in this online-only, extended interview ASIAWEEK WTO China's deal with the U.S. is just the beginning Seattle What to expect from WTO's global negotiations

Agriculture
The Players: Europe and Japan vs. the U.S. and the Third World
The Issue: European and Japanese farmers are swaddled in subsidies. The U.S. and the Third World want access to those markets. Europe and Japan say the U.S. also aids farmers; they oppose the U.S.'s genetically modified food.
The likely outcome: Look for subsidies to subside but unhealthy-food fears to grow.

Labor
The Players: The U.S. and the European Union vs. the Third World
The Issue: Low-cost Third World labor, which threatens jobs in the West. The U.S. proposes a WTO study group on labor issues. Some European Union countries are supportive. Developing nations don't want outside interference in their labor markets.
The likely outcome: Don't expect much progress here.

Environment
The Players: The U.S. and E.U. vs. the Third World
The Issue: The U.S. and E.U. want to enforce environmental pacts--such as a treaty restricting endangered-species trade--without WTO challenge. But the U.S. seeks to slash wood tariffs, thus increasing deforestation. Third World opposes "enviro" restrictions.
The likely outcome: Progress may come on less controversial issues, such as fishing subsidies.

Services
The Players: The U.S. vs. everyone else
The Issue: The U.S. wants to slash barriers to several key industries, including health care, banking, education, insurance and e-commerce. But a huge battle looms.
The likely outcome: WTO members have already agreed to negotiate over services. The U.S. will drive hard to get some concessions from the global trade community.

Exports
The Players: U.S. vs. Japan and the Third World
The Issue: U.S. laws block countries from "dumping" subsidized products--steel, semiconductors, textiles--on the American market. Third World nations say the laws are protectionist and the U.S. should import more.
The likely outcome: With an election year coming and so many jobs at stake, the U.S. will not give ground.