Trade Union work on trade

TURIN 16 July 2007

ITUC work on trade

Trade union positions Interaction with WTO, negotiators,

UNCTAD, OECD Information and briefing notes Updates Technical assistance Training research

ITUC positions

Positions are prepared on all elements of the negotiations

Prepared in the TILS group (Trade, Investment and Labour Standards)

Historical focus on trade and labour standards

Increasing importance given to trade and Decent Work, trade and employment and the development impacts of trade and investment agreements

TILS

Taskforce on Trade, Investment and Labour Standards

Meetings 1-2 per year Developed and developing country

trade unionists Preparation of statements, setting of

priorities, areas of action NAMA main focus at the moment

General Council

ITUC General Council meeting Sets overall policy framework Important that TILS conclusions and

recommendations are taken up or are confirmed in the ITUC meeting

GC members are not always adequately briefed on outcomes of TILS meetings

Doha Round statements

Cancun Hong Kong Summary statement Hong Kong Statement post-Hong Kong Latest version adapted recently

Position on NAMA

Governments should not adopt or promote a NAMA package such as that presently under negotiation, but ensure that developing countries can apply a tariff reduction that is in line with their stage of development.

Governments should ensure that developing countries’ “paragraph 8” flexibilities, as currently set out in the July 2004 framework, are expanded substantially

Position on NAMA

Developed countries should make unconditional offers of greater market access in Agriculture, which must not be linked with NAMA: No trade-off

Sectoral negotiations should be non-mandatory. countries should be required to conduct an ex ante

impact assessment, of the effects of these negotiations on development, decent work and standards of living

Mark-up for binding has to be high to retain policy space

Preference erosion to be addressed Paragraph 24 of HK to be respected as well as the

principle of less than full reciprocity

Position on Agriculture

The Agreement on Agriculture must be revised to ensure that developing countries may make use of the policy tools necessary to defend and develop national and local systems of food production, protect the rights of agricultural workers and their trade unions as well as small producers (most of whom are women), raise rural living standards and enhance food security, i.e. universal access to adequate levels of food at affordable prices

Domestic agricultural subsidies must be reduced and reoriented and disciplines should avoid box-shifting

Cotton subsidies have to be eliminated Developing countries should get special products and

a special safeguard mechanism

Position on Services

GATS negotiations should not undermine universal service obligations of governments. Access to quality services should be guaranteed

Public services and services of general interest should be excluded from further GATS negotiations

Governments that do make commitments must include the strongest possible limitations (i.e. explicit exemptions from GATS commitments) to protect their right to regulate

Position on Services

The “positive list” approach to legally-binding GATS commitments must be maintained. No attempts for benchmarking or other minimum commitments should be made.

More transparency and inclusiveness around the negotiations is a necessity

offers on Mode IV must be preceded by formal trade union consultation and refer to respect for national labour law and existing collective agreements in receiving countries, as well as fundamental workers’ rights, in order to ensure that migrant workers receive employment conditions no less favourable than those of nationals.

Position on Development and Employment Determining the impact of trade

liberalisation on the level and quality of employment is essential

A more comprehensive set of transition and adjustment policies needs to be developed, including adequate social protection

Export processing zones, where workers’ rights are significantly repressed with a particularly negative effect on women workers, constitute a distortion of trade and such production should be ruled impermissible under WTO rules.

Position on development and employment Industrial development needs to play

a more crucial role in development strategies in developing country economies. This requires a clear identification of industrial production needs as well as a strategic use of tariff policies. Such instruments should not be undermined by trade liberalization.

Process issues

further improvements in transparency of WTO working methods and procedures in order to enable smaller countries to participate effectively in future WTO decision-making

The negotiations on S&D should not be left until the very end of the Doha Round

“Aid for Trade” should provide new money and should not be provided as a trade-off for obtaining concessions from developing countries in the negotiations. Neither must it be used as a substitute for achieving adequate trade benefits for developing countries from the Doha Round.

Process issues

give scope for representation of workers’ interests in the WTO, possibly through the creation of a formal consultative structure such as the trade union advisory committee (TUAC) to the OECD.

the WTO should now take steps to ensure the full involvement and assistance of key UN agencies including the ILO in WTO processes and in the current negotiations

establish a work programme on Trade and Employment to be overseen by a WTO committee or working group

Bilateral and regional trade and investment agreements

GURN website www.gurn.info EPAs Labour standards in trade agreements WTO plus provisions Trade union guide on bilaterals

ILO and Trade

Adjustment Skills Social protection Global Employment Agenda (GEA) Social dialogue Standards in trade agreements

TILS List serve

Discussion list Information list Info on negotiations/reports Background information Research Trade related issues Meeting information and documents esther.busser@ituc-csi.org

National experiences

Trade taskforce in Argentina NEDLAC in South Africa International: lobby work: link national with

global level Research work in India and Brazil Latin American unions on NAMA and FTAs Similar regional approach in Asia as in Latin

America

Build national capacity

Responsible person to be identified Technical knowledge needs to be

build and shared Share responsibilities if possible Agriculture, services, industry, Trips

and health Involve sectoral trade unions Identify a coordinator

Increase knowledge within the union Make sure leaders are aware of the

importance and provide regular briefings and updates

Inform affiliates with popular material Ensure wider awareness so that

mobilization is possible when required Reach out to other groups such as NGOs

working on the issues Conduct research

Leadership role

Leadership backing is crucial Participation in high level meetings

where trade issues are raised Leaders need to be well informed Leaders need to play a proactive role

on trade issues

Reach out to other trade unions in the region Set up a network, for example an e-mail list

to which information is sent and on which strategies can be discussed

Conduct telephone conferences at regular interval, or when negotiations require to do so

Coordinate actions and distribute tasks Use of model letters Joint letters and articles to the press

Government

Request regular meetings with government to get an update on negotiations and the positions that the government takes

Use internationally acquired information in exchanges with the government

Prepare alternative proposals and support these with research

Establish tripartite consultations that are institutionalised and regular

Be aware that regular consultations with the government require serious engagement

Regional level

Use the regional office for training, workshops and coordination

Latin American region is excellent example of effective engagement

Quick coordination and active participation

Language barriers can be a problem

International level

Ask for international support-ITUC Write (joint) letter with outline of specific

requests for information and for support Coordinate with Geneva negotiators or EU

negotiators Coordinate research within the GURN and

GLU frameworks Coordinate positions internationally within

TILS and within ITUC-GC

Some results

Public services out of GATS and trade negotiations

Mode 4 and protection of workers TRIPS and Public Health NAMA Trade and Employment

NAMA campaign

TILS meetings, gradual, need for affiliates inputs Simulations NAMA 11 trade unions Latin American unions Responses to proposals Declarations Individual research on flexibilities Press coverage Attention from negotiators (meeting with NAMA chair,

Lamy, NAMA 11 ministers) General Council meeting: ITUC Resolution Model letters Analysis of negotiating text

INTERNATIONAL TRADE UNION CONFEDERATION

GENERAL COUNCILBrussels, 20-22 June 2007

RESOLUTION ON THE TRADE NEGOTIATIONS AT THE WTOThe ITUC General Council, meeting at its 2rd Session in Brussels on 20-22 June 2007

CONCERNED that the conclusion of the Doha Round on its current basis will not achieve the WTO’s objectives of increasing living standards, raising employment and achieving sustainable growth and development, but instead stand to worsen poverty and inequalities and exacerbate abuses of fundamental workers’ rights;

DEPLORING proposals on NAMA (Non-agricultural market access) in which developing countries are being pressured to accept very high tariff reductions that will lead to job losses in labour intensive industries, social disruption, pressure on wages and working conditions, and low tariff levels that stand to prevent them from developing their industries and diversifying their economies;

RECOGNISING that many developing countries are being asked to make far greater concessions than developed countries, and with reductions asked for in NAMA far higher than those in agriculture;

DEMANDS that developing countries not be pressured to trade off NAMA for agriculture and to make tariff reductions that will negatively affect their economies, employment and future industrial development, when they should be able to retain a sufficiently high coefficient in line with each country’s level of development;

INSISTS that the paragraph 8 flexibilities in NAMA now under discussion should be expanded upon substantially, allowing both the exemption of certain tariff lines and for lower tariff cuts on other tariff lines, and for countries to be allowed to make changes in their choice of flexibilities over time based on future industrial development needs;

CALLS FOR a profound ex ante analysis by the WTO and ILO of the consequences of proposed Doha Round trade liberalisation on the level of decent work, as part of a fully-fledged work programme that incorporates attention to the impact of trade on the attainment of decent work, including respect for core labour standards, and derives recommendations for national and intergovernmental action;

CALLS UPON the ITUC secretariat and its affiliates, and regional trade union organisations, to increase action and lobbying on NAMA in support of developing country affiliates and the NAMA-11 trade unions, with particular attention to the time preceding a possible end of July NAMA agreement._____________

Asia Pacific region main challenges in WTO NAMA tariff reductions and flexibilities for

Para 8 countries NAMA tariff reductions and flexibilities for

SVEs NAMA tariff binding for LDCs and Para 6

countries Special products and Special Safeguard

Mechanism in Agriculture Services commitments

Asia Pacific region main challenges in EPAs Tariff reductions in Agriculture and

manufacturing Services liberalization TRIPS plus Investment, Competition and Government

procurement Intransparency and lack of consultation Lack of Decent Work

Conclusions

It takes time and engagement to build up capacity on trade but it is necessary

Joint work and strategies make it easier, tasks can be distributed and experiences can be shared

Current agreements are not delivering for the majority of people

Change does not come on its own: it’s a struggle