Trade Union strategies

ITGLWF / TWARO

Post MFA

5-9 September Bangkok

By Esther Busser, ICFTU

Trade union strategies with regard to trade

Whether employed in production for the domestic market or for exports, trade affects both

Domestic markets can be affected by cheap imports, whereas export industries have to compete on foreign markets

Both imports and exports are affected by trade rules and trade barriers, whether in a positive or negative way, and trade unions should therefore be aware of the consequences of the different barriers and rules

Trade union strategies

Trade rules in textiles and clothing have changed, and new changes can be expected in the near future

Therefore there is a need to adjust to the new rules and to prepare for future developments

Less barriers to trade also increases competition, in particular costs competition

It leads to consolidation of the supply chain and stronger position of buyers

Future rules

Future changes in trade rules, such as tariff reductions and the use of safeguards can further change the picture

Safeguards will allow the smaller developing countries to protect their domestic industries and to have access to developed country markets

Tariff reductions will have the same effect as quota reduction. It takes away barriers and will positively affect competitive countries, and negatively the preference receiving countries

Trade union strategies

Strategies should focus on responses to the new trade rules and the impacts of new trade rules

Responses should prepare for future changes in trade rules

Responses should make use of all possible channels available

Trade Union strategies

Focus should be on: Preferential trade agreements Costs The Decent Work Agenda Buyers WTO lobby work

Preferential agreements Where possible, preferential trade agreements

should be used There is a new EU-GSP system The Canadian GSP has extended rules of origin

(25%) Rules of origin are critical in determining if it is

advantageous to use preferences. They might be softened for the EU GSP

They involve an administrative burden The advantages depend on current tariff levels in

developed countries

Rules of Origin

Bilateral cumulation: between the EU and the exporting country

Regional cumulation: between the beneficiary country and a regional trading bloc

Asia: 2 groups; Latin America: 1 group Group 1: Brunei-Darussalam, Cambodia, Indonesia,

Laos, Malaysia, Philippines, Singapore, Thailand, Vietnam

Group 2: Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka

Rules of origin

China is not part of either group Many countries source inputs from China Sourcing from other countries makes

products more expensive Sourcing from China excludes use of the

preferential access Rules of origin might be extended to a larger

range of countries to make the GSP more attractive

Costs

Costs are an important factor in increased competitive environment

Trade unions should identify high cost factors other than labour such as energy, water and transport

Costs of labour (related to productivity), training, and health and safety measures increase competitiveness

Decent Work Agenda

Promotion of the Decent work agenda Will increase competitiveness Responds to consumer demands ILO Decent Work programme in textiles and

clothing Better factories project in Cambodia

DW programme in Morocco

Pilot programme in Morocco Tripartite, strong social dialogue Identification of problem areas Addressing problems Examples: unstable jobs, poor working conditions,

70% informal jobs, long working hours, poor representation, inefficient management, ineffective social dialogue, wages below minimum wage, gender discrimination and lack of social protection

DW programme in Morocco

Improve competitiveness in TC through decent work Training on collective bargaining and dispute

resolution Training on productivity and safety and health Development of gender strategy Review of existing training programmes to maximize

impact Social management upgrading project Social dialogue is key in such programmes

Buyers

Dialogue with buyers through national centers / international federation

More pressure on buyers Address contradictions of demand for respect

for workers’ right on the one hand versus lower prices and shorter deadlines on the other

Use of consumer pressure in consultation with the trade unions

WTO lobby work

With regard to NAMA negotiations With regard to safeguards With regard to WTO ongoing discussions on

the MFA phase out With regard to national workshops

NAMA negotiations

Lobby trade ministers on: The tariff formula The sectoral negotiations on textiles and

clothing Preference erosion Employment impact assessments Loss of government revenue Loss of policy space

WTO safeguards

In case of cheap imports from China which harm the domestic textile and clothing industry, safeguards can be put in place

Gather import data Make an official request to the government

for investigation and application of safeguards (existing channels available?)

WTO national seminars

Seminars are organised to assist governments with the phase out of quotas

Government requests such seminar Trade unions should insist on participation Trade unions should insist on integrated

approach, including the decent work agenda

ILO and WTO

Closer cooperation needed between the ILO and the WTO through a policy coherence initiative on textiles and clothing

Discussion on employment impacts of the phase out in the Trade and Development committee with participation of the ILO

Closer cooperation between trade and labour ministers nationally and internationally

ILO to take part in the Integrated Framework (WTO, IMF, WB, UNCTAD, UNDP, ITC)