Showing posts with label subjective criteria. Show all posts
Showing posts with label subjective criteria. Show all posts

Saturday, June 14, 2008

Princeton University Global Governance Advocate Calls for New Wave of American Regulatory Socialism in the Image of European Protectionism

http://www.nytimes.com/2008/06/13/opinion/13krugman.html?em&ex=1213502400&en=a52b0be721dfaf26&ei=5087


Bad Cow Disease


By PAUL KRUGMAN


NEW YORK TIMES


June 13, 2008


“Mary had a little lamb / And when she saw it sicken / She shipped it off to Packingtown / And now it’s labeled chicken.”

That little ditty famously summarized the message of “The Jungle,” Upton Sinclair’s 1906 exposé of conditions in America’s meat-packing industry. Sinclair’s muckraking helped Theodore Roosevelt pass the Pure Food and Drug Act and the Meat Inspection Act — and for most of the next century, Americans trusted government inspectors to keep their food safe.


[WE MIGHT SUGGEST ANOTHER MORE APPROPRIATE 'LITTLE DITTY' THAT REFLECTS THE ESSENCE OF WHAT MR. KRUGMAN IS CALLING FOR - A RETURN TO EARLY 20TH CENTURY SOCIALISM: “Democracy and socialism have nothing in common but one word, equality. But notice the difference: while democracy seeks equality in liberty, socialism seeks equality in restraint and servitude.” Alexis de Tocqueville].

[MIGHT WE REMIND READERS THAT UPTON SINCLAIR WAS A MEMBER OF THE SOCIALIST PARTY AND WAS INFLUENCED BY EUROPEAN MARXIST POLITICAL THINKING. "The Jungle is a classic work of socialist realism. Critic Christopher Hitchens has described it as ‘the most fully realized instance of the genre, more telling and more moving than even the works of Dickens and Zola’. Sinclair’s objective was to expose the ways in which the capitalist class, in pursuit of maximum profit, exploits and discards the working people. Jack London called the book ‘the Uncle Tom’s Cabin of wage-slavery’...The Jungle was a bestseller in the United States and Britain, and its translation into 17 languages made Sinclair an international literary figure. The Jungle inspired scores of other successful social protest writers, including Iceland’s Halldor Kiljan Laxness (1902–98)...Upton Sinclair was born in Baltimore, Maryland, United States, on 20 September 1878. His father, an alcoholic, moved the family to New York in 1888. His parents were extremely poor but his grandparents, with whom he spent extended periods, were wealthy. He claimed that experiencing these extremes pointed him in the socialist direction. His outlook was influenced by the books of English Fabian Robert Blatchford, Russian anarchist Peter Kropotkin, American radicals Jack London and Frank Norris, and the investigative journalism of proud ‘muckrakers’ Ida M. Tarbell, Lincoln Steffens and Ray Stannard Baker...In 1915, Sinclair moved to California with his wife, Mary Craig, and in 1934 he won the Democratic Party’s pre-selection to contest the state’s election [FOR GOVERNOR]. For most of his life Sinclair defended communists, but his socialism was in the social-democratic mould. He parted company with Marxists in his belief that socialism could be achieved through electoral processes in America, without the need for the revolutionary overthrow of capitalism." See: Aiming for the Heart - Barry York describes how Upton Sinclair’s novel, The Jungle, shocked the American public and forced changes in legislation, National Library of Australia News (Jan. 2006), at:
http://www.nla.gov.au/pub/nlanews/2006/jan06/article3.html . READERS SHOULD NOTE THAT THE EUROPEAN UNION NOW REFERS TO ITSELF AS BEING IN THE 'SOCIAL-DEMOCRATIC MOULD'.]


Lately, however, there always seems to be at least one food-safety crisis in the headlines — tainted spinach, poisonous peanut butter and, currently, the attack of the killer tomatoes.


[IT IS ALWAYS HELPFUL THAT PUBLICITY-SEEKING CONSUMER & ENVIRONMENTAL GROUPS PROVIDE MEDIA WITH THE SENSATIONAL HEADLINES THAT WORRY THE AMERICAN PUBLIC ABOUT PRACTICALLY EVERYTHING IN THEIR DAILY LIVES. MR. KRUGMAN, WHY NOT ADMIT THAT THIS IS WHAT OCCURS? PLEASE ALSO BE HONEST ABOUT HOW SENSATIONALIST FEAR CAMPAIGNS SERVE THE INTERESTS OF SUCH GROUPS - i.e. IT PERMITS THEM TO 'POSTURE' TO ATTRACT FUNDING. FUNDING FLOWS IF THEY ARE SEEN AS 'SERVING THE PUBLIC INTEREST' BY PROVIDING IT WITH INFORMATION. ALTHOUGH CONSUMERS OFTEN HAVE LEGITIMATE CONCERNS ABOUT WHERE THEIR FOOD COMES FROM & HOW ITS SAFETY IS ASSURED, HOWEVER, WE QUESTION WHETHER THESE GROUPS PROVIDE MORE INFORMATION THAN DISINFORMATION.]


The declining credibility of U.S. food regulation has even led to a foreign-policy crisis: there have been mass demonstrations in South Korea protesting the pro-American prime minister’s decision to allow imports of U.S. beef, banned after mad cow disease was detected in 2003.


[MR. KRUGMAN CONVENIENTLY LEAVES OUT SOME IMPORTANT FACTS HERE, NAMELY, THAT THE KOREAN BEEF INDUSTRY AND NGO COMMUNITY DO NOT HAVE 'CLEAN HANDS'. KOREA'S BEEF INDUSTRY WAS PREVIOUSLY FOUND BY THE WTO TRIBUNALS TO VIOLATE INTERNATIONAL TRADE LAW THROUGH IMPOSITION OF 'FOOD SAFETY' REGULATIONS DEEMED TO ACTUALLY CONSTITUTE 'DISGUISED REGULATORY TRADE BARRIERS'. IN ADDITION, KOREAN NGOs HAVE BEEN STEADILY INFLUENCED BY THE EUROPEAN SOCIALIST NGOs TO BLOCK ALL KINDS OF FOODS, EVEN WHEN SCIENTIFIC RISK ASSESSMENTS HAVE PROVEN THE FOOD is 'SAFE'. HORMONE-INJECTED BEEF, IS ONE EXAMPLE THAT TIES BACK TO THE EUROPEAN BAN ON U.S. BEEF, IN PLACE SINCE THE MID '90's, NOTWITHSTANDING THE WTO'S RULINGS AGAINST THE EU CITING THEIR BAN AS ILLEGAL 'TRADE PROTECTIONISM'. IN ADDITION, KOREAN NGOs, WITH THE HELP OF EUROPEAN SOCIALIST-GREEN GROUPS, HAVE WORKED TO BLOCK THE INTRODUCTION OF GENETICALLY MODIFIED FOODS, FEEDS & SEEDS, NOTWITHSTANDING THE SCIENTIFIC RISK ASSESSMENTS IN BOTH THE U.S. & THE EU SHOWING THE PRODUCTS TO BE 'SAFE', AND THE WTO TRIBUNAL RULING FINDING THAT THE EU MORATORIA ON 'GMOs' WAS AN ILLEGAL DISGUISED PROTECTIONIST BARRIER TO TRADE. See: Lawrence A. Kogan, Discerning the Forest From the Trees: How Governments Use Ostensibly Private and Voluntary Standards to Avoid WTO Culpability, Global Trade and Customs Journal (Sept. 2007), at: http://www.itssd.org/GTCJ_03-offprints%20KOGAN%20-%20Discerning%20the%20Forest%20from%20the%20Trees.pdf ; Lawrence A. Kogan, World Trade Organization Biotech Decision Clarifies Central Role of Science in Evaluating Health and Environmental Risks for Regulation Purposes, Global Trade and Customs Journal (March 2007) at: http://www.itssd.org/Publications/GTCJ_04-offprints_Kogan[2].pdf .]


How did America find itself back in The Jungle? It started with ideology. Hard-core American conservatives have long idealized the Gilded Age, regarding everything that followed — not just the New Deal, but even the Progressive Era — as a great diversion from the true path of capitalism.


Thus, when Grover Norquist, the anti-tax advocate, was asked about his ultimate goal, he replied that he wanted a restoration of the way America was “up until Teddy Roosevelt, when the socialists took over. The income tax, the death tax, regulation, all that.”


The late Milton Friedman agreed, calling for the abolition of the Food and Drug Administration. It was unnecessary, he argued: private companies would avoid taking risks with public health to safeguard their reputations and to avoid damaging class-action lawsuits. (Friedman, unlike almost every other conservative I can think of, viewed lawyers as the guardians of free-market capitalism.)


[MR. FRIEDMAN WAS CORRECT IN HIS ASSESSMENT OF THE ROLE THAT TRIAL LAWYERS CAN CONSTRUCTIVELY PLAY IN A SYSTEM SHAPED BY FREE MARKET CAPITALISM. WE DON'T AGREE, HOWEVER, THAT GOVERNMENTAL REGULATORY BODIES, SUCH AS THE FDA, SHOULD BE DISMEMBERED AND/OR ABOLISHED. BUT, REGULATORY BODIES SHOULD BE CONSTRAINED BY PRAGMATIC OBJECTIVE BENCHMARKS OF GOVERNMENTAL ACCOUNTABILITY & DUE PROCESS, INCLUDING ECONOMIC CONSIDERATIONS OF THEIR PROPOSED PROMULGATIONS. THE 'SOCIALIST' APPROACH ADVOCATED BY MR. KRUGMAN WOULD PROVIDE GOVERNMENTAL REGULATORY AGENCIES UNFETTERED DISCRETION TO EXERCISE THEIR 'GATEKEEPER' AUTHORITY ON BEHALF OF THE 'PUBLIC INTEREST' THEY ARE 'CHARGED TO PROTECT'. BUT, WHO WILL WATCH THE GATEKEEPERS & HOLD THEM ACCOUNTABLE??]


Such hard-core opponents of regulation were once part of the political fringe, but with the rise of modern movement conservatism they moved into the corridors of power. They never had enough votes to abolish the F.D.A. or eliminate meat inspections, but they could and did set about making the agencies charged with ensuring food safety ineffective.


[THIS DISTORTION-PRONE AD HOMINEM RHETORIC DOES NO ONE ANY GOOD. IT EXAGGERATES THINGS FOR THE PURPOSE OF PROMOTING 'PET' POLITICAL/POLICY GOALS & PERSUADING THOSE UNFAMILIAR WITH THE MECHANISMS OF THE 'WASHINGTON ESTABLISHMENT' THAT THOSE GOALS AND POLICIES ARE 'GOOD'. THIS SOUNDS SO MUCH LIKE PLATO PHILOSOPHER KING-'TALK'.]


They did this in part by simply denying these agencies enough resources to do the job. For example, the work of the F.D.A. has become vastly more complex over time thanks to the combination of scientific advances and globalization. Yet the agency has a substantially smaller work force now than it did in 1994, the year Republicans took over Congress.


[MR. KRUGMAN, ONCE AGAIN, YOU DISTORT THE TRUTH. IS 'BIGGER' ALWAYS 'BETTER', CONSIDERING ALL OF THE BUREAUCRATIC WASTE, MISAPPROPRIATION, INEFFICIENCY & CORRUPTION THAT COMES ALONG WITH BIGGER GOVERNMENT??]


Perhaps even more important, however, was the systematic appointment of foxes to guard henhouses. Thus, when mad cow disease was detected in the U.S. in 2003, the Department of Agriculture was headed by Ann M. Veneman, a former food-industry lobbyist. And the department’s response to the crisis — which amounted to consistently downplaying the threat and rejecting calls for more extensive testing — seemed driven by the industry’s agenda.


[MR. KRUGMAN, ONCE AGAIN, DISTORTS THE TRUTH BY LEAVING OUT PERTINENT FACTS. CALLS FOR MORE EXTENSIVE CASE-BY-CASE TESTING & ANALYSIS WILL DETERMINE WHETHER PARTICULAR FOODS PRESENT PROBABLE HEALTH 'RISKS' TO CONSUMERS. GOVERNMENT MUST UTILIZE TOOLS THAT PROVIDE IT WITH METRICS & USEFUL INFORMATION THAT CAN THEN TRANSLATE INTO PRACTICES & PROCEDURES FOR INDUSTRY THAT WILL ENSURE GREATER FOOD SAFETY WITHOUT CAUSING COMPANIES (THE FOOD PROVIDERS) TO GO BANKRUPT, TO PASS THE HIGHER COSTS OF REGULATION TO CONSUMERS THROUGH PRICE INCREASES, OR TO OTHERWISE DEMAND HIDDEN GOVERNMENT TAXPAYER -FUNDED SUBSIDIES. MR. KRUGMAN'S PREFERRED REGULATORY 'FIX' WOULD BE TO PERMIT A CHANGE IN REGULATION THAT DISPENSES WITH THE EXTRA TESTING AND REPLACES IT WITH A A GENERAL RULE BASED ON A REGULATORY PRESUMPTION OF POSSIBLE FOOD 'HAZARDS', EVEN WHERE NONE ARE SHOWN TO EXIST. THAT FUNDAMENTALLY TRANSLATES INTO MORE UNNECESSARY COSTS, DELAYS & A MUCH BIGGER GOVERNMENT, AS IN THE EUROPEAN UNION. FISCALLY CONSERVATIVE POLITICIANS ON BOTH SIDES OF THE AISLE ARE CORRECT ABOUT ONE THING THAT ESCAPES MR. KRUGMAN - BIGGER GOVERNMENT IS USUALLY NOT THE ANSWER.]


One amazing decision came in 2004, when a Kansas producer asked for permission to test its own cows, so that it could resume exports to Japan. You might have expected the Bush administration to applaud this example of self-regulation. But permission was denied, because other beef producers feared consumer demands that they follow suit.


[MR. KRUGMAN, YET AGAIN, LEAVES OUT IMPORTANT FACTS. THE U.S. GOVERNMENT WAS OPPOSED TO PERMITTING U.S. INDUSTRY TO 'SELF-REGULATE' (i.e., to BYPASS U.S. DEPARTMENT OF AGRICULTURE HEALTH & SAFETY REGULATIONS BY HAVING EACH HEAD OF CATTLE INSPECTED & LABELED AS 'SAFE' & MAD COW-FREE), BECAUSE IN MANY CASES THE CATTLEMEN DID NOT HAVE ADEQUATE SAFETY LABORATORIES TO UNDERTAKE THE NECESSARY SAFETY ASSESSMENT AND TO ENSURE THE ACCURACY OF THEIR DESIRED MARKETING CLAIM THAT THEIR BEEF PRESENTED ZERO RISK, AND THUS WAS 'SAFE'. IN ADDITION, IT IS THE REGULATORY PHILOSOPHY OF THE UNITED STATES NOT TO ADOPT THE EUROPEAN PRECAUTIONARY PRINCIPLE, WHICH WOULD REQUIRE THAT EACH HEAD OF CATTLE BE TESTED WITHOUT REFERENCE TO TELLTALE SIGNS OF DISEASE. THE IMPOSITION OF THIS EXTRA COST & BURDEN UPON EUROPEAN BEEF EXPORTERS HAS MADE THEM LARGELY NONCOMPETITIVE WITH EXPORTERS FROM OTHER COUNTRIES, WITHOUT MAKING THE BEEF ANY 'SAFER'. MR. KRUGMAN WOULD LIKE TO HAVE THE EXPENSIVE & INEFFICIENT FOOD SAFETY SYSTEM IMPORTED INTO THE U.S.]


When push comes to shove, it seems, the imperatives of crony capitalism trump professed faith in free markets. Eventually, the department did expand its testing, and at this point most countries that initially banned U.S. beef have allowed it back into their markets.


[THE U.S. DEPARTMENT OF AGRICULTURE, LIKE OTHER U.S. AGENCIES, CONTINUALLY UPDATES ITS SCIENTIFIC EVALUATIONS, PROCEDURES & PRACTICES, TO REFLECT MORE CURRENT KNOWLEDGE, JUST AS THEY SHOULD. THIS RESULTED IN MORE EXTENSIVE & EFFICIENT TESTING.]


But the South Koreans still don’t trust us. And while some of that distrust may be irrational — the beef issue has become entangled with questions of Korean national pride, which has been insulted by clumsy American diplomacy — it’s hard to blame them.


[MR. KRUGMAN, THE GLOBALIST, TAKES IT UPON HIMSELF TO APOLOGIZE TO THE KOREAN GOVERNMENT AND THE KOREAN PEOPLE FOR THE AMERICAN OFFENSE OF TRYING TO HOLD THE KOREAN GOVERNMENT TO THE WTO RULES WHICH THEY HAVE AGREED TO FOLLOW, AND OF NOT HONORING THEIR 'CULTURAL PREFERENCE' FOR 'PURE' KOREAN BEEF & DISGUISED PROTECTIONISM . APOLOGY UNNECESSARY & INAPPROPRIATE. See: Lawrence A. Kogan, Looking Behind the Curtain: The Growth of Foreign Trade Barriers that Ignore Sound Science, National Foreign Trade Council (May 2003), at pp. 8, 12-13, at: http://www.wto.org/english/forums_e/ngo_e/posp47_nftc_looking_behind_e.pdf .]

[MR. KRUGMAN PREVIOUSLY LAUDED THE SOCIALIST REGULATORY SYSTEM OF THE EUROPEAN UNION THAT SEEMS TO PROVIDE A MODEL FOR KOREA AND OTHER COUNTRIES FROM TIME TO TIME, IN HIS PREVIOUS NEW YORK TIMES ARTICLE ENTITLED, The Comeback Continent. See: Why Has an Avowed Multilateralist Princeton Academic Been Recruited as a 'Spin-Doctor' to Improve Europe's Image Among Americans???, ITSSD Journal on Economic Freedom (Jan. 12, 2008) at: http://itssdeconomicfreedom.blogspot.com/2008/01/why-has-avowed-multilateralist.html .]


The ironic thing is that the Agriculture Department’s deference to the beef industry actually ended up backfiring: because potential foreign buyers didn’t trust our safety measures, beef producers spent years excluded from their most important overseas markets.But then, the same thing can be said of other cases in which the administration stood in the way of effective regulation. Most notably, the administration’s refusal to countenance any restraints on predatory lending helped prepare the ground for the subprime crisis, which has cost the financial industry far more than it ever made on overpriced loans.


The moral of this story is that failure to regulate effectively isn’t just bad for consumers, it’s bad for business. And in the case of food, what we need to do now — for the sake of both our health and our export markets — is to go back to the way it was after Teddy Roosevelt, when the Socialists took over. It’s time to get back to the business of ensuring that American food is safe.


[MIGHT WE REMIND MR. KRUGMAN AND HIS FELLOW 'SOCIALISTS' ABOUT A FAMOUS QUOTE FROM NONE OTHER THAN SIR WINSTON CHURCHILL? “Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery.”]

Wednesday, March 5, 2008

EU Has Long Held Developing World Hostage to Non-Scienced-Based Health & Environmental Standards Deemed Economically & Socially Harmful

http://www.itssd.org/Res%20Ipsa%20Loquitor/Res%20Ipsa%20Loquitor%20-%20Studies%20showing%20impact%20of%20overly%20stringent%20stds%20on%20developing%20countries.pdf


ITSSD Main Website Issues - Studies Evaluating Negative Impacts of Overly Stringent EU Standards on Developing Countries


I. Generally


II. World Bank and Other Studies Quantifying the Impacts of Technical Barriers to Trade


III. World Bank and Other Studies Examining EU Standards Relating to Aflatoxins, in Nuts, Dried Fruits and Cereals


IV. World Bank Study Evaluating EU Maximum Residue Level (MRL) Standards Relating to Tetracyline Use in Beef


V. World Bank Study Evaluating EU MRL Standards For Bananas


VI. World Bank Study Evaluating Impact of Trade on Air Pollution Standards in Developing Countries


VII. World Bank Study Evaluating How Environmental Standards Affect Developing Country Export Competition


VIII. World Bank Study Quantifying the Trade Impact of Sanitary and Phytosanitary (SPS) Standards on Sub-Saharan Africa

Monday, January 28, 2008

The French Protection: The Resurgence of Colbertian Statist Economics

http://www.pinr.com/report.php?ac=view_report&report_id=367


Economic Brief: French Protectionism


Report Drafted By:


Erich Marquardt, Dr. Federico Bordonaro


15 September 2005


On August 31, France announced that it would protect from buyouts by foreign companies domestic industries it considers as strategic. French Finance Minister Thierry Breton stated that the country's "very sensitive sectors" would be shielded from foreign bids. While the complete list of protected industries has not been made public yet, some of the protected industries were leaked to the media. As reported by Les Echos, the protected industries include defense, biotechnology, space technology, telecommunication companies, casinos, encryption, IT security, and antidote production.



France's turn toward protectionism follows a global pattern where states with advanced economies are shielding their domestic industries from foreign competition and from potential state rivals.


French Protectionism Returns


For many observers, the ongoing wave of "economic patriotism" advocated by French Prime Minister Dominique de Villepin is nothing else but the renewal of French-style protectionism marked by the Colbertian tradition of statist direction of the national economy.


After rumors circulated in the summer of 2005 about a possible bid from U.S. drinks giant PepsiCo Inc. for French food giant Danone, and a Wal-Mart bid on supermarket chain Carrefour, many in the French political landscape called for an immediate reaction by the current administration so that France's industrial gems could be saved from American takeover. Therefore, on July 27, de Villepin announced that he would gather all available forces to launch a new economic patriotism.


Additionally, France bailed out its major engineering company Alstom in order to promote the French idea of creating "national champions," and avoided Switzerland's Novartis from buying out the French and German pharmaceutical company Aventis by backing Sanofi's merger with Aventis to create Sanofi-Aventis.


E.U. Concern


Protectionist acts from one of the leading states of the European Union have caused justifiable concern in Brussels. Gregor Kreuzhuber, spokesman for the E.U. Commission, told the press that the E.U. does not "want to see any disguised protectionism" and that the E.U. would review France's proposed economic policy.


Paris, predicting the concern in Brussels, quickly argued that its actions would comply with E.U. economic laws. French Budget Minister Jean-Francois Cope explained to the press, "Our move is completely consistent with community law. … Each country is allowed to define 'strategic' sectors in accordance with national interests -- for example in the defense or sensitive technology sectors." Cope further stated, "It's strictly within this framework that the government is considering measures which would be comparable to those in other European Union countries."


While it is obvious that France will try to argue that its protectionist measures abide by E.U. rules and regulations, there is concern that Paris' actions could set an example for other E.U. states to take similar protectionist measures. The fact that the French have casinos listed as one of their strategic industries -- under the notion that casinos could be used for money laundering -- exemplifies E.U. concern that France's actions are "disguised protectionism."


In its attempt to avoid the E.U. from blocking the passage of the new legislation, France will no doubt try to protect only its most vital industries so as to not draw the scorn of Brussels, but also to protect enough industries so as to appeal to domestic interests at home.


Why Protectionism?


French protectionism partly emanates from Paris' concern with foreign companies purchasing major firms in strategic or pivotal industries. Similar to the way that the U.S. Congress reacted to China National Offshore Oil Corporation's attempted purchase of the U.S. energy company Unocal, Paris does not want to see vital industries owned by outside companies tied to the governments of foreign states.


Additionally, however, Paris also wants to protect its domestic industries so that the country does not sustain a loss of jobs, such as factories closing down and moving operations to Eastern Europe or Asia. It provides the French government popularity in time for the upcoming presidential and parliamentary elections in 2007; tackling unemployment and successfully coping with globalization's challenges are vital to enhance the administration's credibility. In fact, without appreciable results in reducing the jobless figure in the country, de Villepin will hardly get the necessary support to achieve his ambitious industrial and energy policy. [See: "Intelligence Brief: French Energy Policy"]


As previously mentioned, de Villepin made the protection of French manufacturers a major policy goal after the PepsiCo Inc. bid was announced. After the bid was presented, President Jacques Chirac was reported saying that "the splitting up and the instability of the capital of certain large French businesses are risk factors for employment and for our industrial strength." It was then that de Villepin boldly announced it was time for France to display "real economic patriotism," or, in other words, economic nationalism. He argued, "When times are hard, when the world is changing, it is a question of gathering our strengths … and defending France and things French."


While Paris' rhetoric is very bold, in the end the French policy is similar to unspoken protectionist policies in other states with advanced economies, as was most recently seen in the protectionist bid by the U.S. and the E.U. against Chinese textile imports.


The important difference, however, is that the protectionist actions in the face of increased Chinese textile imports were taken by the E.U. as a whole, whereas Paris' "economic patriotism" idea is distinctly French. [See: "Economic Brief: Textile Quotas"]


Despite this concern, Les Echos reported that the list of protected industries it acquired did not list any food companies or, for instance, oil companies. However, the French Industry Ministry did state that it would reserve the right to prevent foreign takeovers of companies that had subsidiaries involved in any of the listed "sensitive sectors" and that the government would make the decision to bar a foreign takeover on a case-by-case basis.


The Bottom Line


After decades of dominating political discourse, economic liberalism looks now in a crisis because important decision-makers (such as in France) perceive it as fiction that conceals the hard reality of economic warfare and power relations among states. If France's republican and social-democratic traditions form an axis with the neo-Gaullist right-wing and prevail in the short/medium term over the neo-liberal reformists, look for a new social and political bloc to take shape around the "economic patriotism" policy in France, with considerable consequences for the European Union as a whole.

Sunday, January 27, 2008

India and Pakistan Make Effort to Avoid Using Geographical Indicators for Pashmina Shawls as Protectionist Cloak

http://spicyipindia.blogspot.com/2007/12/basmati-redux-pashmina-story.html


Basmati redux: the Pashmina story


You can see them being sold everywhere: in the open-air stalls of Dilli Haat in the capital; in the crowded, winding lanes of Chinatown in Singapore; in the fashionable streets by the Hotel de Ville in Paris… Pashmina shawls, both real and fake, have become a global fashion statement, and can be found draped around every neck this winter. But where exactly do they originate?


In a replay of the Super Basmati yarn, troubles between India and Pakistan have been raging over the registration of the Geographical Indication (GI) tag for Kashmir-made Pashmina wool. HT reports that while Pakistan is “open to a joint GI tag”, India has said that this would be possible only if Pakistani Pashmina is proven to be of the same quality as the Indian variety.


The dispute originated when the Srinagar-based Craft Development Institute filed an application with the Geographical Indications Registry in Chennai to protect Pashmina weavers from others claiming to be authentic (See this earlier SpicyIP post). The Rawalpindi Chamber of Commerce and Industry immediately challenged this on grounds that Pashmina shawls are also woven in Pakistan’s Gilgit Baltistan region and that India could not solely claim the GI, Mint reported a few months ago.


Pashmina is not the sole case in point of a GI being disputed by different countries; Basmati has received more media attention. But there are several obvious examples that emerge, particularly in the arts and crafts, where antecedents of origin lie along the border lines in the sub-continent: Kutchi-work in Gujarat and Kantha embroidery, Madhubani paintings in Bihar…


While all of these have not been registered as GIs, there remains the nagging question: how are these entities to be treated? Neither TRIPS nor the national legislation provides for the joint registration of GIs. At best, such an arrangement will have to be arrived at through bilateral or plurilateral agreements, as the case may be.


In disputes with Pakistan over GIs, the problem is twofold, as Spicy IP’s Prashant Reddy reported earlier: the political state of affairs in the country has beset legislators with more immediate concerns; and Pakistan is yet to have a GI law in place.


One suggested solution is that of countries simultaneously registering homonymous GIs, similar to the provision under section 3, Art 22.3 of TRIPs (‘homonyms’ are names which consist of, or contain, the same identifier for different geographical places):


In the case of homonymous geographical indications for wines, protection shall be accorded to each indication, subject to the provisions of paragraph 4 of Article 22. Each Member shall determine the practical conditions under which the homonymous indications in question will be differentiated from each other, taking into account the need to ensure equitable treatment of the producers concerned and that consumers are not misled.


In Beijing earlier this year, at the International Symposium on GIs, the International Trademark Association (INTA) recommended a multilateral registry for GIs along the lines of the Patent Cooperation Treaty and the Madrid System for the International Registration of Marks.


The conflict resolution mechanism recommended by INTA is in-built in the principles of territoriality, priority and exclusivity that the PCT and the Madrid system espouse. The paper cites the example of Veracruz coffee beans, and Budweiser beer, illustrating that national offices and courts were best positioned to undertake an IPR priority examination. This model assumes that the question of priority of an IPR registration will differ from one country to another and prior IPR will not be registered in all countries where protection of the conflicting geographical indication is sought.



Lack of precedent makes it hard to evaluate whether the INTA model is workable; or if a joint-homonymous GI is feasible. There is little consensus between WTO member countries on GIs such as these; and clearly, there is an urgent need to evolve and implement a working model before the GI protection system loses legitimacy in the wake of such issues.


http://www.wto.org/english/tratop_e/trips_e/gi_background_e.htm


TRIPS: GEOGRAPHICAL INDICATIONS


Background and the current situation


A product’s quality, reputation or other characteristics can be determined by where it comes from. Geographical indications are place names (in some countries also words associated with a place) used to identify products that come from these places and have these characteristics (for example, “Champagne”, “Tequila” or “Roquefort”).


Two issues are debated in the TRIPS Council under the Doha mandate: creating a multilateral register for wines and spirits; and extending the higher (Article 23) level of protection beyond wines and spirits.