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Of Geese, Ganders, and Globalism
by William Norman Grigg
April 23, 2005
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The World Trade Organization's ruling against Utah's gambling laws is a small but telling illustration of the ongoing globalist assault on American sovereignty.
Gambling is illegal in Utah, Hawaii, and a number of other states. Whether this policy is wise or whimsical, it is indisputably constitutional. The powers reserved to the states, described by James Madison as "numerous and indefinite," certainly include the power to regulate or criminalize gambling and other vices.
On April 7, the Geneva-based World Trade Organization (WTO) upheld a complaint by Antigua that state laws against gambling are an impermissible impediment to the tiny island nation's Internet gambling industry. At one point, Antigua had a reasonably robust agricultural sector, producing primarily bananas and sugar. Those industries were decimated, in large measure, because of an earlier WTO ruling. As was the case for Nevada when the Comstock lode played out, Antigua turned to gambling (as well as dodgy off-shore banking) as a revenue source.
Last November, the WTO's dispute panel upheld Antigua's claim that U.S. efforts to crack down on internet gambling violated the General Agreement on Trade in Services (GATS), which supposedly covers not only legitimate trades, but also gambling and betting services. On April 7, the WTO's appellate body rejected a U.S. appeal. (In the WTO, as with the United Nations' International Criminal Court, appeals are heard by essentially the same body that handed down the original ruling.)
Utah state laws against gambling figured prominently in Antigua's case before the WTO. Lori Wallach of Ralph Nader's Public Citizen Global Trade Watch correctly states that the WTO's ruling in favor of Antigua represents "the place where federalism and the WTO go head-to-head in a record collision." The logical consequence of this decision, she warns, is that the federal government, and all states, will either change laws prohibiting Internet gambling, or face trade sanctions.
Following the April 7 WTO decision, Utah's Deseret Morning News, which has been -- and continues to be -- an enthusiastic supporter of globalist "free trade" pacts, fulminated in a house editorial: "It Utah can't pass laws prohibiting Internet gambling, it will have lost a large measure of its ability to define what people in this part of the country consider to be proper conduct…. That's why the Bush administration needs to demand a renegotiation of trade agreements that concern international gambling."
"Utah's official aversion to gambling is not just a quaint holdover from some by-gone Puritan era," continued the editorial. "It is backed by sound logic and a desire to avoid the societal costs and economic squandering brought on by games of chance." More importantly, once again, Utah's laws –- whatever one thinks of their practicality or wisdom –- are protected by the U.S. Constitution, or at least they should be.
By approving creation of the WTO, and U.S. membership in the body, Congress effectively nullified elements of the Constitution intended to protect the reserved powers of the states. It also abdicated its constitutional power to regulate trade and commerce with foreign nations, surrendering it to an un-elected, unaccountable synod of foreign bureaucrats.
During the December 1994 lame-duck session of Congress in which the WTO was approved, Republican House Leader Newt Gingrich –- a backer of the WTO –- admitted that membership in the global trade body was a surrender of U.S. sovereignty:
I am just saying that we need to be honest about the fact that we are transferring from the United States at a practical level significant authority to a new organization. This is a transformational moment. I would feel better if the people who favor this would just be honest about the scale of change.... This is not just another trade agreement. This is adopting something which twice, once in the 1940s and once in the 1950s, the U.S. Congress rejected. I am not even saying that we should reject it; I, in fact, lean toward it. But I think we have to be very careful, because it is a very big transfer of power.
In a house editorial published shortly before the April 7 WTO ruling, the Deseret Morning News observed: "In many ways, Utah should have seen this coming. More than five years ago, the World Trade Organization interfered with a state law in Massachusetts that discouraged any company with a state contract from doing business with Myanmar…. Now the WTO is on the verge of deciding, in effect, whether Utah's prohibition on Internet gambling is a similar violation [of global trade laws]."
"The culprit here is not necessarily the WTO," the paper hastened to add. "It is the U.S. negotiation team that hammered out international trade agreements years ago without any thought for states' rights…. The WTO is an important organization. It has nudged countries such as China and Russia toward democratic reforms in order to enjoy the benefits of membership…. But for the WTO to prohibit a state from enacting laws on what it considers basic questions of right and wrong is simply unacceptable."
Why, exactly, is it worthwhile for the WTO to "nudge" Russia, but "unacceptable" for the same body to push Utah around? Apparently, the Deseret News's editorial board doesn't understand –- or is unwilling to admit -- that what's sauce for the goose is sauce for the gander as well.
The Deseret News is edited by former UN undersecretary general John Hughes, a member of the globalist Council on Foreign Relations (CFR). He is certainly acquainted with Fareed Zakaria, the former editor of the CFR flagship journal Foreign Affairs and current editor of Newsweek's international edition. In a recent column, Zakaria pointed out that the WTO is, in effect, a UN with teeth.
"Unlike the United Nations, the WTO can actually require that a country change its laws, regulations and precedents -– not simply national laws but often state and local laws," comments Zakaria, approvingly. "Its rulings on disputes between nations are binding. It is undemocratic and filled with technocrats. And it was an American creation that [many] conservatives supported wholeheartedly."
Some of those conservatives –- the Deseret News editorial board among them -– have become disenchanted with the WTO now that it has started to hand down rulings adverse to their interests. While going out of its way to exempt the WTO from its criticism, the News has suggested that it may be necessary for the Bush administration to "tear up the general trade agreement and renegotiate it with states' rights in mind."
As the Old Testament prophet Elijah might say: How long will the Deseret News halt between two opinions? Supporting the WTO, which was created through the General Agreement on Tariffs and Trade (GATT), of necessity entails a surrender of national sovereignty and states' rights; it's inescapably a package deal.
Furthermore, it's hardly necessary to "renegotiate" a trade agreement that protects states' rights, since one already exists: The U.S. Constitution. Tearing up the GATT would mean leaving the WTO and restoring Congress's role in regulating international trade. As it happens, Reps. Ron Paul (R-Texas) and Bernie Sanders (I-Vt.) have submitted a resolution (House Joint Resolution 27) to withdraw our country from the WTO.
Residents of Utah and other states seeking to protect their distinctive cultural values should enlist in the effort to get our nation out of the WTO. If the John Hughes-led Deseret News editorial board is serious in pressing its complaint against the WTO, endorsing H. J. Res. 27 would be the only intellectually honest course of action.
Of Geese, Ganders, and Globalism
by William Norman Grigg
April 23, 2005
Email this article
Printer friendly page
The World Trade Organization's ruling against Utah's gambling laws is a small but telling illustration of the ongoing globalist assault on American sovereignty.
Gambling is illegal in Utah, Hawaii, and a number of other states. Whether this policy is wise or whimsical, it is indisputably constitutional. The powers reserved to the states, described by James Madison as "numerous and indefinite," certainly include the power to regulate or criminalize gambling and other vices.
On April 7, the Geneva-based World Trade Organization (WTO) upheld a complaint by Antigua that state laws against gambling are an impermissible impediment to the tiny island nation's Internet gambling industry. At one point, Antigua had a reasonably robust agricultural sector, producing primarily bananas and sugar. Those industries were decimated, in large measure, because of an earlier WTO ruling. As was the case for Nevada when the Comstock lode played out, Antigua turned to gambling (as well as dodgy off-shore banking) as a revenue source.
Last November, the WTO's dispute panel upheld Antigua's claim that U.S. efforts to crack down on internet gambling violated the General Agreement on Trade in Services (GATS), which supposedly covers not only legitimate trades, but also gambling and betting services. On April 7, the WTO's appellate body rejected a U.S. appeal. (In the WTO, as with the United Nations' International Criminal Court, appeals are heard by essentially the same body that handed down the original ruling.)
Utah state laws against gambling figured prominently in Antigua's case before the WTO. Lori Wallach of Ralph Nader's Public Citizen Global Trade Watch correctly states that the WTO's ruling in favor of Antigua represents "the place where federalism and the WTO go head-to-head in a record collision." The logical consequence of this decision, she warns, is that the federal government, and all states, will either change laws prohibiting Internet gambling, or face trade sanctions.
Following the April 7 WTO decision, Utah's Deseret Morning News, which has been -- and continues to be -- an enthusiastic supporter of globalist "free trade" pacts, fulminated in a house editorial: "It Utah can't pass laws prohibiting Internet gambling, it will have lost a large measure of its ability to define what people in this part of the country consider to be proper conduct…. That's why the Bush administration needs to demand a renegotiation of trade agreements that concern international gambling."
"Utah's official aversion to gambling is not just a quaint holdover from some by-gone Puritan era," continued the editorial. "It is backed by sound logic and a desire to avoid the societal costs and economic squandering brought on by games of chance." More importantly, once again, Utah's laws –- whatever one thinks of their practicality or wisdom –- are protected by the U.S. Constitution, or at least they should be.
By approving creation of the WTO, and U.S. membership in the body, Congress effectively nullified elements of the Constitution intended to protect the reserved powers of the states. It also abdicated its constitutional power to regulate trade and commerce with foreign nations, surrendering it to an un-elected, unaccountable synod of foreign bureaucrats.
During the December 1994 lame-duck session of Congress in which the WTO was approved, Republican House Leader Newt Gingrich –- a backer of the WTO –- admitted that membership in the global trade body was a surrender of U.S. sovereignty:
I am just saying that we need to be honest about the fact that we are transferring from the United States at a practical level significant authority to a new organization. This is a transformational moment. I would feel better if the people who favor this would just be honest about the scale of change.... This is not just another trade agreement. This is adopting something which twice, once in the 1940s and once in the 1950s, the U.S. Congress rejected. I am not even saying that we should reject it; I, in fact, lean toward it. But I think we have to be very careful, because it is a very big transfer of power.
In a house editorial published shortly before the April 7 WTO ruling, the Deseret Morning News observed: "In many ways, Utah should have seen this coming. More than five years ago, the World Trade Organization interfered with a state law in Massachusetts that discouraged any company with a state contract from doing business with Myanmar…. Now the WTO is on the verge of deciding, in effect, whether Utah's prohibition on Internet gambling is a similar violation [of global trade laws]."
"The culprit here is not necessarily the WTO," the paper hastened to add. "It is the U.S. negotiation team that hammered out international trade agreements years ago without any thought for states' rights…. The WTO is an important organization. It has nudged countries such as China and Russia toward democratic reforms in order to enjoy the benefits of membership…. But for the WTO to prohibit a state from enacting laws on what it considers basic questions of right and wrong is simply unacceptable."
Why, exactly, is it worthwhile for the WTO to "nudge" Russia, but "unacceptable" for the same body to push Utah around? Apparently, the Deseret News's editorial board doesn't understand –- or is unwilling to admit -- that what's sauce for the goose is sauce for the gander as well.
The Deseret News is edited by former UN undersecretary general John Hughes, a member of the globalist Council on Foreign Relations (CFR). He is certainly acquainted with Fareed Zakaria, the former editor of the CFR flagship journal Foreign Affairs and current editor of Newsweek's international edition. In a recent column, Zakaria pointed out that the WTO is, in effect, a UN with teeth.
"Unlike the United Nations, the WTO can actually require that a country change its laws, regulations and precedents -– not simply national laws but often state and local laws," comments Zakaria, approvingly. "Its rulings on disputes between nations are binding. It is undemocratic and filled with technocrats. And it was an American creation that [many] conservatives supported wholeheartedly."
Some of those conservatives –- the Deseret News editorial board among them -– have become disenchanted with the WTO now that it has started to hand down rulings adverse to their interests. While going out of its way to exempt the WTO from its criticism, the News has suggested that it may be necessary for the Bush administration to "tear up the general trade agreement and renegotiate it with states' rights in mind."
As the Old Testament prophet Elijah might say: How long will the Deseret News halt between two opinions? Supporting the WTO, which was created through the General Agreement on Tariffs and Trade (GATT), of necessity entails a surrender of national sovereignty and states' rights; it's inescapably a package deal.
Furthermore, it's hardly necessary to "renegotiate" a trade agreement that protects states' rights, since one already exists: The U.S. Constitution. Tearing up the GATT would mean leaving the WTO and restoring Congress's role in regulating international trade. As it happens, Reps. Ron Paul (R-Texas) and Bernie Sanders (I-Vt.) have submitted a resolution (House Joint Resolution 27) to withdraw our country from the WTO.
Residents of Utah and other states seeking to protect their distinctive cultural values should enlist in the effort to get our nation out of the WTO. If the John Hughes-led Deseret News editorial board is serious in pressing its complaint against the WTO, endorsing H. J. Res. 27 would be the only intellectually honest course of action.