IMF publishes report on FTAA

GENEVA: The IMF has just published a report entitled "Metalworkers and the Free Trade Area of the Americas", which gives an overview of the proposed Free Trade Area of the Americas (FTAA) and analyses the potential impact of the FTAA on the metal industry in the Western hemisphere. The proposed agreement for the FTAA - which accounts for approximately 40 per cent of the world GNP and is scheduled for completion in 2005 - is a major challenge for the labour movement. It is part of a larger agenda of deregulation, privatisation of public services, destruction of collective bargaining and dismantling of social safety nets. Calling the FTAA "a new agreement for the rich", IMF General Secretary Marcello Malentacchi questions the spirit in which the agreement is being negotiated. Although he says that fair trade is one of the best instruments for development, "certain fundamental conditions must be fulfilled for this purpose, such as a clause guaranteeing minimum labour and environmental standards, and increased purchasing power, particularly in developing countries, so that people are able to buy what they produce." Whilst recognising that the FTAA would affect all workers in the region and beyond, the IMF felt it could bring a sectoral perspective into the union debate and raise points of specific interest to the metal industry. Consequently, the IMF set up an IMF FTAA Working Group in 2000/2001, and the report is the outcome of their work. "Metalworkers and the Free Trade Area of the Americas" - available in English or Spanish - may be downloaded on the IMF website under "Publications". Hard copies may be ordered from IMF headquarters on [email protected] or by fax (41/22) 3085055.