7 March, 2008NAMA negotiations enter a crucial phase: trade unions need to react
GLOBAL: Trade unions, in particular from developing countries, have been campaigning on the NAMA negotiations since the Hong Kong Ministerial. Concrete demands have been made by the unions for a balanced outcome of the negotiations, but so far proposals on the table have not taken into account the concerns of the trade unions and their governments. On the contrary, the proposals would lead to very high (60% on average) cuts in the bound tariffs of developing countries therefore restricting policy space and the ability of developing countries to develop their industries. Moreover, these proposals of 60% cuts would also reduce the applied tariffs in many sectors, including the metalsector, of developing countries which will directly have an impact on domestic production and employment.
Developing country trade unions have come together in the NAMA 11 trade union group, with trade unions from Argentina, Brazil, South Africa and India a.o., to defend their industries and future industrial development. They are not prepared to trade off industrial jobs against more agriculture exports, as both sectors are important for the development of their economies.
The negotiations are now entering a crucial phase. A second modalities text was tabled recently, which still proposes high tariff cuts. New proposals on flexibilities that came out last week are unlikely to change the level of ambition that is currently on the table and would therefore do little to accommodate the trade union concerns. A strong push to finalize negotiations this year and to get modalities on NAMA and Agriculture this spring will put pressure on countries to negotiate on the basis of the current proposals. Ministers will be called upon to negotiate this final deal. However, what is on the table will require developing countries to sacrifice their industries.
The proposals are unfair and put the burden of adjustment on developing countries. They do not take into account any of the trade union concerns or proposals regarding the coefficient and flexibilities. Nor do they take into account the need for fundamental workers and trade union rights to be incorporated for trade to produce productive employment and sustainable development. Now is the time to mobilize against the draft modalities and to campaign for the trade union proposals to be taken on board.