[DEBATE] : NAMA 11 Trade Union response to NAMA draft modalities, COSATU

[Dominic Tweedie]

COSATU Media Release, 18 February 2008


NAMA 11 Trade Union response to NAMA draft modalities


The NAMA 11 trade union group has been following the NAMA negotiations
very closely and has made several declarations with regard to the NAMA
negotiations on a number of occasions.

The revised NAMA modalities that were presented on the 8th of February
by the Chair of the NAMA negotiations, Don Stephenson, require a
response from the NAMA 11 trade union group. We would like to express
our concern in relation to the text on a number of points:

* Like in the July 2007 draft, we consider the proposed range of
coefficients in the Swiss formula for developing countries of between
19 and 23 far too low and unacceptable. These cannot constitute the
basis for further negotiations. First of all because these
coefficients will lead to cuts in applied rates in our countries and
will thus affect employment. Secondly because they will lead to low
bound rates across the board and thus hamper industrialization
processes in our countries. Thirdly because the reductions that
developing countries are asked to make are much higher than the
developed country reductions. And fourthly because the reduction that
developing countries have to make in NAMA are much higher than in
Agriculture.
* Our governments had indicated in July that this range is not
acceptable. However, in the new text, again the same range is
included. The positions of our countries therefore do not seem to be
taken into account.
* We do welcome the fact that the amount of flexibilities is left
open, however, we would like to stress that these flexibilities need
to be much higher than the flexibilities proposed in the July draft
(i.e. higher than 5% and 10%), to enable developing countries to
shield labour intensive industries. Developing countries should also
have the possibility to alter these flexibilities (the tariff lines
chosen) over time as developmental needs will change over time.
* We continue to support the NAMA 11 position of at least 25 point
difference in the coefficients between developed and developing
countries and the need for more flexibilities for our countries.
* At the same time we strongly call upon our governments to reinforce
the NAMA 11 group, to keep unity within the group, to strengthen links
with other developing country groupings, and to keep with the strong
NAMA 11 position that was taken in July 2007.
* We also call upon our governments to clearly identify the tariff
lines and sectors that need additional flexibilities due to their
labour intensity. Competition and unemployment are already too high to
further compromise the position of workers through high tariff cuts in
NAMA.
* Finally we call upon all negotiators to find balance in the NAMA
negotiations that is fair, in line with the mandate, and that would
not put developing countries further into unemployment and social
disruption, while taking away future prospects for development. We
cannot accept an outcome that puts the full burden of adjustment on
the developing countries.

The NAMA 11 trade union group:

COSATU, South Africa
FEDUSA, South Africa
CGT, Argentina
CUT, Brazil
HMS, India
TUCP, Philippines
APL, Philippines
KSBSI, Indonesia
UGTT, Tunisia
NUNW, Namibia


Patrick Craven (National Spokesperson), Congress of South African Trade Unions

By e-mail

546 words

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