The Unionist Issue 32, December 16 2005

The Unionist this week reports on the World Trade Organisation ministerial meeting taking place in Hong Kong.

Download the Unionist here (PDF file, 135 kb)

Trade Ministers from around the world are gathering this week at a World Trade Organisation meeting taking place in Hong Kong. This week's Unionist finds out what's going on?

What is the World Trade Organisation (WTO)?

The WTO is an international organisation that acts as a forum for 148 countries coming together to decide the rules of international trade. This week's meeting is the 6th ministerial conference of the WTO, to discuss how to repair the "Doha round" of trade negotiations (named after a series of meetings that began in 2001 in Doha in the Middle East). The talks cover agriculture, industrial sectors and services. Unions are represented at the WTO meeting this week by Council of Trade Unions Economist Peter Conway, who is part of the wider government delegation.

The WTO was established in 1995, and its goal is to establish global rules for trade between nations, to ensure trade flows freely and predictably and to remove any restrictions such as government regulations that are considered to be 'barriers to trade' in goods or services.

How does the WTO impact on workers?

WTO policies have significant impact on working people in New Zealand and throughout the world. The decisions made at the WTO and through agreements such as the General Agreement on Trade in Services (GATS) impact on a country's ability to set standards (including labour standards), to protect services such as health, education and utilities, and to take measures to protect their national interest. GATS, for example, will make it easier for foreign companies to contract out services work overseas, deliver services across borders over the internet and telephone, and even to bring service workers across borders. To the extent that GATS contributes to privatisation of government services, public sector unions are likely to be replaced with non-unionised workers with lower wages and fewer benefits.

he decisions made at the World Trade Organisation also have major ramifications for developing countries and their ability to alleviate poverty through trade ? the rules of trade are too often weighted against developing countries in favour of the wealthy countries who dominate the trade talks.

Do unions oppose trade rules altogether?

No, many trade unions are in favour of a rules based trading system, including the CTU. It is the content of the rules that is problem, and is what the CTU and others are critical of. The negotiation of rules is often lopsided and advantages already powerful economies, and the CTU thinks important issues are left out of the rules - in particular labour standards.

In some cases, unions have significant concerns with our own government's approach. For example, New Zealand has initiated a group within WTO looking at further liberalisation of export education, and unions are concerned about the implications for this if it undermines public education. In other cases, unions and government have quite similar views; unions support the removal of export subsidies on agricultural products so in that respect, and some other areas where richer countries directly subsidise farm production, we line up with not only developing countries but the New Zealand Government also.

What do unions want?

One of the main thing unions want from the WTO meetings is recognition of the importance of core labour standards that must be adhered to in trade negotiations, including specific reference to standards developed by the International Labour Organisation. The WTO's General Agreement on Trade in Services, like other WTO agreements, does not include any reference to ILO labour standards on child labour, discrimination, and worker rights. This sanctions trade without standards.

Unions are concerned that developing countries may pay too high a price in terms of opening up access to their industrial and services sectors for the advances in agriculture. Unions have also raised particular concerns over protection of public and social services and a range of issues specific to particular sectors. The CTU also believes that any New Zealand government response to GATS must fully acknowledge the status of Te Tiriti o Waitangi and the fundamental right of Maori to the protection of their commercial as well as non-commercial interests.

Shouldn't the WTO be abolished altogether?

The International Confederation of Free Trade Unions doesn't think so. In its factsheet on the latest WTO talks, it said the "the only thing worse than bad trade rules are no trade rules. The alternatives to the WTO are not appealing: one-on-one agreements would give rich countries even more control and undermine the efforts to secure decent work and core labour standards worldwide. Instead of abolishment, the WTO should be reformed."

What events are also happening in Hong Kong? As has been the case in recent years with major trade meetings, outside the main trade talks being held there are a number of other activities organized by trade unions, non governmental organisations and other civil society groups. In Hong Kong, there have been seminars, rallies, education workshops and briefings organised by local and international trade unions and other social movements.

Further information on the WTO The CTU has an information page on the WTO and GATS on our website here. The International Confederation of Free Trade Unions have established a website specifically for the talks in Hong Kong, called Workers Voice At The WTO - www.workersvoiceatwto.org.

You can also get information about the WTO and trade from your local library, or talk to your union office for more information.

Events

Palmerston North combined unions Xmas function Thur 22 December, starts 3.30pm 1st Floor, PSA House, 43 King Street, Palmerston North john.shennan@psa.org.nz

Canterbury Unions social event Fri 16 Dec, 5.30pm onwards Trade Union Centre, 199 Armagh Street, ChCh Karena.Brown@epmu.org.nz