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WTO NAMA proposals bad for development

24 July, 2007Trade unions reject latest NAMA proposal, which threatens employment and sustainable development in developing countries by lowering tariffs too far.

GLOBAL: Trade unions opposed new proposals in World Trade Organisation (WTO) talks on manufactured goods in the last week, arguing the new "coefficient" for developing countries would seriously impact on employment and sustainable development.

In a joint statement of trade unions from 12 countries in Latin America and regional trade union organisations, including the regional office of the International Metalworkers' Federation (IMF), and in an earlier statement from the International Trade Union Confederation (ITUC), unions expressed their opposition to the proposed new text.

The proposal, put by the chair of the Non- Agricultural Market Access (NAMA) Group on July 17, would lead to average tariff cuts of around 60 per cent for developing countries, bringing the average tariff levels down to 12 per cent, a level so low as to undermine prospects for industrial development in many developing country economies.

In addition, the proposed flexibilities on tariffs that would allow developing countries to shield and develop specific labour intensive sectors, such as textiles and clothing, leather and footwear, plastics, paper, rubber, metals, automobile and furniture, are so minimal they would provide little employment protection for vulnerable workers, further reducing development prospects.

"The disconnect between the discussions on development strategies and the creation of decent work in developing countries on the one hand and the NAMA proposals is enormous and cannot result in a pro-development outcome of the Doha Round," said the trade unions.

A copy of the joint statement of Latin American trade unions is published on the IMF website and the ITUC statement can be seen at the following link: http://www.ituc-csi.org/spip.php?article1322