Metal workers concern over WTO agreement 06- 28 - 06

Statement by metalworkers unions in Angola, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Zambia, and Zimbabwe, participating in the Workshop on Trade and Development organised by the International Metalworkers Federation (IMF) Durban, South Africa, 26-27 June 2006

We are extremely concerned about the proposals being currently discussed at the WTO in the framework of the Doha 'Development' Round, which will have a negative impact on developing countries and undermine development, in particular in Africa and, in turn, will increase the pressure on workers in the more industrialised nations.

We therefore join the IMF, the ICFTU and other sister organisations in urging all trade unions, especially in developed countries, to take effective action to influence the ongoing negotiations, in particular on NAMA, and to prevent their completion on their current basis, ahead of the end-July deadline.

We ask our comrades in the North and in the South to join forces and intervene with our respective governments to ensure that the Doha round of WTO negotiations genuinely contributes to development, establishing a fair trading system that suits the needs of developing countries and ensures that their share of the world's trade contributes to creating employment, reducing poverty and increasing people's welfare.

On NAMA, the current proposals for the formula will lead to extensive cuts in tariffs by middle-income developing countries, making it virtually impossible for them to industrialise further. We are particularly worried that the formula approach prevents developing countries from adopting an industrial strategy that would enable them to diversify their economies. We would be doomed, again, to production of raw materials, cheap manufactures and tourist spots, while conditions would be undercut for workers all over the world.

Most countries have higher tariffs either to protect vulnerable industries, where increased imports would cause substantial job losses, or to support new, infant industries that could potentially create employment. The formula currently proposed by developed countries would cut tariffs hardest precisely in those industries. Furthermore, tariffs are a key element of active industrial policies that are much needed to create quality employment and promote development. The adoption of the formula would be irreversible in taking policy space away.

On agriculture the current proposals would have minimal impact on access by developing countries, especially for African farmers who lack the marketing resources to expand export productions. At the same time those proposals would allow the dumping of foreign goods on African markets and destroy local productions.

On services experience suggests that the current proposals will bring to a dangerous opening of basic services that would make it harder to maintain a strong public sector and guarantee access for the poor.

All of these proposals taken together would make it impossible for developing countries to pursue a strong development strategy that would benefit workers and the poor. Extraordinary levels of un- and underemployment would persist in affecting women in particular, poverty would worsen, and increased precarisation with downward pressure on wages and union organisation would threaten workers in the North and in the South.

We therefore ask trade unions in all countries to mobilise their membership, in alliance with other social movements, to ensure that the Doha round is indeed a developmental round. In particular:

NAMA must provide space for developing countries to pursue an active industrial policy. For this to be possible we support a coefficient of at least 40 and exemption of 15% of imports.
The EU and the USA must make genuine concessions in agriculture, while taking measures to ensure that the adjustment costs in their countries do not fall on the back of workers and the poor; and all governments must ensure that the agreement contain commitments on assistance to, promotion of, and protection for small holders in the South.
On GATS, basic services must not be tabled by any party, and any agreement on services must explicitly ensure access for poor and working people in the South and respect their development needs.

The governments of rich countries are trying to divide and rule the South by trading off the interests of agricultural exporters against the interests of middle-income countries. Several studies show that the current proposals would have a negative impact on African economies. As African trade unions we have the responsibility to bring these issues to the attention of our governments and demand from them not to give in particularly to unacceptable demands on NAMA.