Select Committee on Trade and Industry Written Evidence


Annex

TRADE JUSTICE MOVEMENT POLICY ASKS

OCTOBER-DECEMBER 2005

  The Trade Justice Movement believes that the UK must take a leadership role in making trade work for sustainable development and the environment.

    —  The DTI needs seriously and visibly to engage with the development and sustainability aspects of the trade negotiations. This means prioritising truly sustainable development in all trade talks in Brussels and Geneva, as this is mandated to be a development round. This would involve, among other things, carrying out social and environmental impact assessments, and scenario planning for developing countries. It would also include holding the EC to account for conducting proper, thorough sustainable impact assessments as well as integrating the findings properly into trade policy. It also requires examining impacts of trade policy and behaviour originating here in the UK, including the need for corporate accountability, and working with other government departments to deliver the promises made in the UK sustainable development strategy to create a "one planet economy" that does not shift our environmental burden on to other countries.

    —  The UK government should push to ensure that there is coherence between Europe's trade policies with the policies of other institutions, such as the UN.

    —  The UK government—in its EU presidency role—must ensure transparency in the 133 Committee. This means posting detailed agendas on the Council website, as well as minutes with position taken by member states. Names and contact details of full and deputy members and members of 133 working bodies of all member states to be made publicly available, to allow civil society access to the relevant person.[19]

    —  The UK government should continue to push for an end to the imposition of economic policy conditionality, and to ensure that systems are put in place to make sure technical assistance, policy advice and programme work are genuinely country-led and targeted at poverty reduction.

    —  The UK government must produce its action plans for implementing the recommendations on trade made by the Commission for Africa as quickly as possible, and make those available to civil society.

AGRICULTURE

    —  The UK government must actively support the group of 33 proposals for developing countries to have the flexibility to determine for themselves tariff reduction commitments in line with national development priorities; special products in accordance with food security, livelihood security and rural development criteria; and a special safeguard mechanism. This support must be political—led by Defra/DTI in Brussels and the FCO/DTI/Defra in Geneva—and visible, as well as technical.

    —  The UK government must actively push for there to be no sensitive products available to developed countries. Tariff reduction commitments must take into account possible preference erosion and measures must be put in place to counter negative impacts.

    —  At the WTO, Defra must push for a full review of the Green Box to ensure that the criteria of "non- or minimally-trade distorting" subsidies is being adhered to in all cases. In addition, the review should ensure that Green Box payments are only allowed when they provide, for example, clear benefits for small-scale farmers, rural employment and the environment in rural areas.

    —  Defra must also push for the Blue Box criteria not to be expanded.

    —  In Europe, the UK government must start building consensus among other member states in order that the common agricultural policy (CAP) can be reformed at the earliest possible opportunity. This includes creating a set of policy objectives around what a radically reformed CAP would look like, and actively promoting that to other member states.

    —  The UK government must continue to push for export support to be eliminated at the earliest date. As elimination has already been agreed, the UK should also ensure that this is not used as negotiating lever to obtain concessions from developing countries.

NON-AGRICULTURAL MARKET ACCESS (NAMA)

    —  The UK government should deliver on its policy position of "no forced liberalisation" within the NAMA negotiations as contained in the 2005 Labour Party Manifesto and the Commission for Africa report. So far, Government officials have confirmed that they are adopting the opposite approach, pressing for an "ambitious" liberalisation outcome through their representations in Brussels and Geneva. Conversely, the Government has failed to provide any evidence that it is delivering on the "no forced liberalisation" policy.

    —  The UK government should support flexibility for developing countries in binding coverage and levels that are commensurate with each country's level of development. All countries should be able to determine the level at which they bind. There should be no assumption that 100% binding coverage is a requirement for the round. Tariffs bound in this round should—as in past rounds—be exempt from cuts.

    —  There must be public confirmation from the UK government that it will not support calls by the European Commission for "real market access" and "ambitious reductions in applied tariffs" from developing countries.

    —  There must be public acknowledgement by the UK government that rich countries should stop seeking to exclude certain countries from special and differential treatment (SDT) provisions.

    —  The UK government should push for all sectoral approaches to be dropped from the current round.

    —  Preference erosion must be tackled through binding commitments by rich countries to compensate and support countries affected during the transition. The Africa and ACP groups have tabled proposals on this and the UK government should work closely with these groups to arrive at a solution.

    —  There should be at most a Uruguay Round approach to cutting tariffs for developing countries, with a target minimum and average cuts. Line-by-line application of a formula should be retained for developed countries only, and should include a cap in order to cut peak tariffs. The tariff approach should be judged based on coherence with the guiding principles of the talks: less than full reciprocity and SDT. Formulae that do not respect these principles should be rejected by the UK.

    —  The UK government should adopt the stance that there is a mandate to discuss phytosanitary standards and technical barriers to trade measures as they are non-trade barriers. Also, the UK should support progress in agreeing disciplines on use of anti-dumping and should support a call for moratorium on anti-dumping actions against least developed countries.

    —  The environmental impact of removing any non-trade barrier must be accounted for in any such talks.

    —  The UK government should push for all developed countries to provide duty-free, quota-free access for least developed countries, granted immediately on all products and bound at the WTO.

    —  DFID should call upon the DTI to take account of recent research, particularly from UNCTAD, that shows that rapid industrial trade liberalisation, of the kind being pushed in the NAMA negotiations, has already had a devastating impact in many developing countries.

    —  The UK government should push for a full impact assessment of the developmental, environmental and social impacts of the NAMA negotiations at all levels, and the findings of these assessments must be accounted for in UK and EU trade policy. This includes DFID assistance to help developing countries and LDCs to commission impact assessments before they have to take on commitments in NAMA talks. Analysis and technical/financial analysis were promised, but never delivered.

SERVICES

    —  The UK government should support the position of Brazil on Article 6.4 of the GATS: that is that it should be amended to provide greater policy-space for regulators. Brazil has suggested such regulations should be "no more burdensome than necessary to ensure national policy objectives".

  The UK government should send a strong public signal that it does not support creating "common baselines" or setting "benchmarks" in the GATS talks. The UK should work with other EU member states in the Article 133 Committee to stop this proposal going any further and make sure the Commission drops the idea of benchmarking and common baselines once and for all. The UK should also publicly support the right of developing countries to make no GATS offers if they so wish.

  All Trade Justice Movement member organisations support the policy positions outlined in our founding statement "For Whose Benefit? Making trade work for people and the planet" (available online at www.tjm.org.uk).

  The call to stop forced liberalisation represents the Trade Justice Movement's lead call for 2005, as one of the three overall demands in the "Vote for Trade Justice" public campaign action (see below). See also the TJM Policy Briefing June 2005 (update) "Stop Forced Liberalisation: The Trade Justice Movement's 2005 Challenge to the UK Government" (available online at www.tjm.org.uk).

        We believe everyone has the right to feed their families, make a decent living and protect their environment.

        But the rich and powerful are pursuing trade policies that put profits before the needs of people and the planet.

        To end poverty and protect the environment we need trade justice not free trade.

        The UK government should:

—  Fight for rules that ensure governments, particularly in poor countries, can choose the best solutions to end poverty and protect the environment.

—  End export dumping that damages the livelihoods of poor communities around the world.

—  Make laws that stop big business profiting at the expense of people and the environment.



19   This is in line with the EU Ombudsman's Special Remarks in his finding about the Friends of the Earth complaint against the Commission 1286/2003/JMA stating that improving transparency in this area is needed to bring Commission practice into line with the expectations of citizens. Back


 
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