Whether developing countries won or lost at Doha is a hot topic these days. They neither won nor lost; they bargained hard with fair amount of success-to minimise the losses and maximise the gains. However there are concerns among the developing world that their gains might be watered down by inclusion of environment in the agenda, which also leaves an open window for inclusion of labour standards and other non-trade issues in future.

The final Declaration includes some substantive aspects of trade and environment agenda including that of Multilateral Environmental Agreements (MEAs). This in itself might not be against the interests of India or for that matter developing countries, but the way trade talks took a swift turn in Doha, signals a bumpy road ahead. Thedeveloping countries were at the last moment compelled by the European Union and others, to agree on environment as a precondition for negotiation on agriculture. One should bear in mind that labour standards might as well follow the same route in near future.

The trade and environment agenda included WTO rules and specific trade obligations set out in MEAs as well as reduction or elimination of trade barriers in environmental goods and services. Just before the Doha meeting the European Union supported by Switzerland and some other countries pushed hard for their three-point environmental agenda comprising of clarification of WTO rules on MEAs, ecolabelling and precautionary principle. Despite vociferous opposition from developing countries on account of potential for protectionism, the EU succeeded in pushing ahead at least one and the rest are perhaps only a matter of time.

On the other hand some of us are under the impression that the issue of labour standards clauses in trade regime is out and perhaps dead. Nonetheless a close look at the draft ministerial declaration prepared before the meeting and the final declaration after the meeting reveals that there are grey areas.

One has to keep in mind that organisations like International Confederation of Free Trade Unions (ICFTU), with direct or indirect support of many western countries are still pursuing trade-labour linkages. Just before the Doha meeting the ICFTU issued a statement insisting that trade agreements must contain labour standards enforced by the threat of sanctions.

The final declaration of Doha meeting states: "We reaffirm our declaration made at Singapore Ministerial Conference regarding internationally recognised core labour standards. We take note of work under way in the International Labour Organisation (ILO) on the social dimension of globalisation". A careful analysis of the statement, however, divulges that it does not rule out a possible role for the WTO on social dimension of globalisation.

More importantly, a significant line recognising ILO as a more suitable place to discuss labour standards that appeared in the revised draft declaration of 27^th October, 2001 has been removed from the final declaration under the influence of social clause demandeurs. The line stating that "The ILO provides the appropriate forum for a substantive dialogue on various aspects on the issue" would have had a different impact altogether.

On the other hand, there are doubts about issues of developing countries' interest. In the trade and environment debate for instance no serious efforts are being made to resolve the issue of trade in domestically prohibited goods (DPGs) and toxic waste which are threatening lives of millions of people in the poor countries. The commitment made by rich countries during the Earth Summit held at Rio de Janeiro in June 1992 for additional resources of over $480bn, out of which only $2bn has been actually mobilized, is a point worth raising in the debate.

Pradeep S. Mehta, Editor

Global Programme on Linkages

A Report on Symposia on “Linkages: How do We Bridge the Gap?”

The CUTS Centre for International Trade, Economics and Environment has been working on the issue of linkages between trade and labour standards, and trade and environment for quite a long time. Its global programme on linkages is aimed at examining the issue of labour and environment standards from the perspective of trade sanctions in international trade. The focus of this programme is to facilitate effective evidence based dialogue in order to help both the camps of the linkages debate to understand each other’s positions better.

In order to launch this global project CUTS decided to organise a series of international events wherein we could bring both camps on to a common platform to discuss the issues in an unbiased manner.

In this series, CUTS had organised two international symposia on linkages in the month of October. The first event was organised in association with the London School of Economics and Political Science at the Aeonian Training Centre in London, while the second event was organised in association with the Brookings Institution at their premises in Washington DC.

For full report:

www.cuts-international.org/linkgs_symposia_oct.htm#keynote address; www.cuts-international.org/linkgs_symposia_dc.htm#briefevent report

News Roundup

USTR Releases Draft Environmental Review of the US-Chile FTA

The Office of the United States Trade Representative (USTR) released the draft environmental review of the US-Chile Free Trade Agreement (FTA) for public comment. It analyses the environmental impact of the proposed FTA, including possible changes in trade flows and impacts on US environmental regulations. The draft review is part of USTR’s continuing implementation of Executive Order 13141 (Environmental Review of Trade Agreements) and its corresponding guidelines.

The draft environmental review is available on the USTR website at

http://www.ustr.gov/environment/environmental.shtml

Brazil Proposes Swapping Foreign Debt for Environmental Protection

Swapping foreign debt for ecological protections could ease developing countries’ financial burdens and save the rainforests at the same time, Brazil’s environment minister said at the opening of the 13^th Forum of Latin American and Caribbean Environmental Ministers, where ministers from 16 nations are working on a plan of action to take with them to the U.N. sponsored 2002 World Summit for Sustainable Development. He further pointed out that the IMF and World Bank have started to worry about poverty but until now, they haven’t linked debt to the environment. There is a need to reformulate debt-conversion mechanisms to reach forms of environmental activity including the protection of biodiversity, reforestation, and ecotourism.

For more information: http://www.enn.com/extras/printer-friendly.asp?storyid=45352

ILO Governing Body’s 282 Session Targets Fundamental Rights

The International Labour Organisation (ILO) Governing Body ended its 282^nd session with a renewed commitment to eradicating forced labour in Myanmar, a decision to set up a World Commission of 18 eminent persons to examine the social impact of globalisation and a call to end grave and serious violations of freedom of association in Belarus and Venezuela. The ILO Committee on Freedom of Association marked its 50^th year in defence of the principal of workers to organise and engage in collective bargaining.

For more information: http://www.ilo.org/public/english/bureau/inf/pr/2001/49.htm

Event Report

Launch Meeting of the ‘Investment for Development’ Project, 13-14 December 2001, Jaipur, India

CUTS Centre for International Trade, Economics & Environment is conducting a two year research and advocacy project titled “Investment for Development” (IFD) to create awareness and build capacity on investment regimes and international investment issues in selected developing and transition economies. The project is supported by the Department for International Development (DFID), UK and is being conducted by CUTS with collaboration from UNCTAD. The countries selected for the project is India, Bangladesh, Brazil, Hungary, South Africa, Tanzania and Zambia.

The IFD launch meeting held on 13-14 December 2001 at Jaipur, India brought together experts and distinguished guests in the same forum to discuss current investment issues, existing investment policies and future project activities.

For more information: www.cuts-international.org/ifd-index.htm

Emerging Issues and Viewpoints

Nobel Laureate Calls for Decent Work, Basic Labour Rights

This year's Nobel laureate for economics, Joseph E. Stiglitz urged world political and economic leaders to back the ILO goals of “decent work, full employment and better working conditions” and said development requires basic labour rights”. Speaking at the Global Employment Forum of ILO, Professor Stiglitz in his keynote address argued that current international policies often fail to take account of the human value of labour, instead treating it as a commodity.

For more information: http://www.ilo.org/public/english/bureau/inf/pr/2001/45.htm

A Debate on Democrats’ Conditions for Supporting the TPA

Charles Rangel suggests that he and other Democrats would support the Trade Promotion Authority (TPA) only if “it addressed effectively the key issues of labour and the environment”. In response to this suggestion, Aaron Schavey, Policy Analyst, Centre for International Trade and Economics, Heritage Foundation, Washington DC, argued that it undermines the primary purpose of the TPA. Including Mr. Rangel’s labour and environment provisions in trade agreements presents developing countries with a difficult choice – either accept US labour and environmental standards, which will raise their cost of doing business, or fail to obtain reduced trade barriers with the US.

Contrary to Schavey’s view, Mr. Owen Cylke, Senior Adviser, National Environmental Policy Institute, Washington DC, supported Congressman Rangel’s Suggestion. According to Cylke, efforts to exclude environment from the international trading regime are misguided. The Bush administration could transform the debate by introducing a new set of principles, consistent with its worldview, emphasising the linkage between economic growth and environmental quality.

For complete debate:

http://globalarchive.ft.com/globalarchive/article.html?id=011127001093&query=international+labour+conditions+and+environmental+standards

Event Announcement

Training Seminar on Competitiveness of Indian Industries in the WTO Era, January 17-19, 2002.

CUTS Centre for International Trade, Economics & Environment (CUTS-CITEE) in collaboration with the Administrative Staff College of India, Hyderabad will be organising a training seminar on “competitiveness of Indian industries in the WTO era” at the college park campus, Banjara hills, ASCI, Hyderabad on January 17-19, 2002. This programme focuses upon the Agreement on Textiles & Clothing and also the provisions of Anti-Dumping, Safeguards, Rules of Origin and the Dispute Settlement Mechanism.

The objectives of the programme are to develop analytical capacities to comprehend WTO issues, to identify technical assistance and other needs and to facilitate sharing of experiences and learning between and among stakeholders and experts.

For more information, please see: www.cuts-international.org/forthcoming-events.htm#training seminar

About ‘The CUTS-CITEE Linkages Update’

This is a strictly non-commercial and educational service for non-profit organisations and individuals. For subscription please write to:

CUTS Centre for International Trade, Economics & Environment (CUTS-CITEE)

D-217, Bhaskar Marg, Bani Park, Jaipur 302016, India.

Ph: 91.141.2282821, Fax: 91.141.2207486/2203998

E-mail: cutsjpr@sancharnet.in / citee@sancharnet.in

CONTACT US

CUTS Centre For International Trade, Economics & Environment (CITEE)

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