25 February, 2010The International Metalworkers' Federation's Working Party on Trade, Employment and Development discusses the social and economic impacts of Free Trade Agreements and their potential challenge to solidarity.
INDIA: As the importance of Free Trade Agreements (FTAs) increases during this crisis of multilateral mechanisms, trade unions must ensure that bilateral agreements do not become a dangerously divisive issue and a cause of weakness for workers, concluded a meeting of the International Metalworkers' Federation's Working Party on Trade, Employment and Development (WP).
Meeting in New Delhi, India, on February 10 to 12, 2010, WP members from all regions urged the IMF and its affiliates to further develop joint work and a transparent debate on possible FTA-related conflicts of interests between countries/sectors, with mutual consultation between the concerned unions.
Among various examples, the possible EU/South Korea FTA was seen as a potential step in the right direction, but without real monitoring and implementation tools on workers' rights. Serious doubts are raised about the potential development benefits and the repercussions on democracy in South Korea with the possible undermining of regulations on transnational companies. In this and other FTAs, the lack of transparency and of consultation of social actors, as well as of adequate assessment of the potential impact on jobs in different industries and countries, especially in labour intensive sectors, were identified as major risks that require much stronger trade union commitment.
At a round table with the Indian Joint Secretary of Commerce, the trade policy of India was discussed from a labour perspective and concerns were raised about the loss of good jobs while trade generated employment, mostly under Export Processing Zones' poor conditions, can hardly promote sustainable development.
The WP unanimously rejected the possible ratification by the European Parliament of an EU/Colombia FTA as unacceptable on the grounds of the tragic Colombian record on human and trade union rights.
A joint seminar of the IMF and the International Textile, Garment & Leather Workers' Federation (ITGLWF) followed the WP meeting, with the participation of the leadership of Indian unions that organize workers in the metal and textile sectors. The impacts of trade liberalization and investments on jobs, development and workers' rights in India were analysed. Recommendations were agreed upon for closer systematic collaboration between the Indian affiliates of the two Global Union Federationss and with Non-Governmental Organizations to jointly voice the workers' concerns on India's trade policy.
Copies of all the presentations made by participants at the meeting of the WP are posted in the right hand column of the page on the IMF website here.