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Winston's Column


Secret Treaty?
Is the US negotiating a secret anti-counterfeiting treaty? Should diplomatic negotiations be subject to FOIA lawsuits? The answers are: no and no.

The blogosphere is all a-twitter over a "secret international treaty" being negotiated by the United States, the European Union, New Zealand and other industrialized countries to protect intellectual property. It would be a great secret except for the fact that the US Trade Representative not only announced last year that the U.S. "and some of its key trading partners will seek to negotiate an Anti-Counterfeiting Trade Agreement (ACTA)" but also sought public comments on the issue through a Federal Register notice.

As is the case for virtually all diplomatic negotiations by every country, the US has not released the specific details of their ongoing discussions. According to a senior USTR official, no draft agreement has been released because not yet exists. Nonetheless, two NGOs, the Electronic Frontier Foundation and Public Knowledge, have gone to court in an attempt to force public disclosure of confidential diplomatic documents.

While the lawsuit has little chance of succeeding, the notion that diplomatic discussions should be subject to FOIA is peculiar and disturbing. If EFF and PK were to have their way, US participation in serious international negotiations on all subjects would be effectively halted, resulting in an economic, political and national security catastrophe of unimaginable proportions.

EFF and PK have the right to disagree with USTR’s view that "global counterfeiting and piracy steal billions of dollars from workers, artists and entrepreneurs each year and jeopardize the health and safety of citizens across the world." The NGOs do not, however, have the right to sabotage the very mechanism of diplomacy.

See USTR Press Release

See PC World article


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  • Updated Tuesday, Friday, Sunday

    Trying to Fuel the Banking Crisis
    What’s the proper government response to a financial situation characterized by an over-indebted public, mortgage defaults, and a resulting slow down in the credit markets? Encourage consumers to take on even more debt while discouraging consumer lending according to Public Citizen and Consumer Watchdog.

    The joint recommendations of the two NGOs include capping "interest rates on credit cards and mortgage rates at a level based about 3 percentage points above the Federal Reserve's Discount Window, which is presently 2.25 percent."

    While placing price controls on consumer interest rates sounds like a real crowd pleaser, the result would be to encourage consumers to get even more deeply in debt while discouraging savings and investment. Moreover, the price caps would discourage institutions from extending credit, thus limiting consumer credit and spurring demand a.k.a. creating a new credit crunch. Since lending institutions would allocate their limited credit resources to the safest borrowers, lower income consumers would be particularly hard hit by the Public Citizen/Consumer Watchdog proposal.

    The sad history of price controls has repeatedly demonstrated that they lead only to economic misery. As the administrator of President Nixon’s price control scheme later explained, "…the kindest thing I can say about it is that it was a disaster." If interest rate price controls were actually enacted, the biggest victims would be the very consumers PC and CW purport to protect.

    See NGO press release

    See speech by the Director of the FTC’s Bureau of Economics

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