Trade Union strategies

1. Trade Union strategies ITGLWF / TWARO Post MFA 5-9 September Bangkok By Esther Busser, ICFTU

2. 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

3. 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

4. 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

5. 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

6. Trade Union strategies Focus should be on: • Preferential trade agreements • Costs • The Decent Work Agenda • Buyers • WTO lobby work

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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?)

18. 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

19. 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)