IFWEA JOURNAL JUNE 2003

Global Network-Asia defines issues and responses on the WTO Cancun Ministerial Meeting
by Verna Dinah Viajar, Guest Editor

 

At its 2nd Regional Seminar in Hong Kong, Global Network-Asia defined the issues and responses of the alliance on the 5th WTO Ministerial Meeting slated on September 2003 in Cancun, Mexico. The delegates from all the country affiliates of Global Network Asia as well as from trade unions, NGOs and civil society groups in Hong Kong, resolved to strengthen the Global Network alliance in the region to address the issues relating to the WTO processes.

WTO Issues

The World Trade Organization has been governing the rules and regulations in international trade since its inception in 1995. It is the international institution borne from the General Agreement on Tariffs and Trade Uruguay Round to facilitate and regulate multilateral trade among member countries. The WTO primarily aims to break all forms of barriers to trade such as protectionist policies and barriers to market access. It operates on the assumption that trade should be unhampered thus, economies must be liberalized.

However, the ideal towards liberalization and globalization of economies is a double-edged sword. The impacts of economic liberalization have been benign to others and ruthless to the rest. In the cutthroat competition of a freer market and trade, transnational corporations are becoming giants, developing economies are being stunted and the marginalized are further
disenfranchised. While unbridled trade has created wealth for the corporations and industrial countries, this has engendered
larger social disparity both within and between countries in the North and South.

Despite the alarming consequences of the neo-liberal trade regime propounded by the WTO, trade negotiations and further liberalization of new issues are being readied for the next Ministerial Meeting. New issues such as competition and investment policy, government procurement and trade facilitation are set for discussion and further liberalization. These issues on the WTO agenda signify a whole new round of trade negotiations.

At the Cancun meeting, trade negotiations on the General Agreement on Trade in Services are expected to go forward. Countries have now submitted their requests and commitments on services they want to open up but all these trade negotiations are shrouded in a cloak of secrecy. The lack of transparency at the WTO trade negotiations and decision-making processes is currently the bone of contention of developing countries and the civil society groups towards the WTO Ministerial.

WTO and Asia

In Asia, the seminar delegates observed the lack of extensive knowledge and consciousness about the WTO among the workers and the masses. In consequence, people in Asia lack involvement in the WTO processes and discussions. Numerous areas of concern were identified in relation to the  WTO. These are linked to unemployment, control over natural resources, withdrawal of social services, unrelenting privatization, food security and the WTO’s lack of vision for the future and problematic investment
policies.

During the workshops, the following specific issues were highlighted: 1) lack of transparency in the WTO decision-making processes; 2) threat of discussing some of the new issues that was raised in Doha; 3) unequal trade relationships between developing and developed countries especially in the Agriculture Agreement; 4) impact of liberalization and privatization of services included in the General Agreement on Trade in Services (GATS) for the developing countries; 5) implications of China’s
membership in the WTO on the region and Hong Kong; 6) consequences on India and Bangladesh of the removal of the Most
Favored Nation (MFN) status in the Multilateral Fiber Agreement with the end of tariff schedules by 2005; 7) agriculture agreement
concerns in Thailand; 8) privatization of public utilities in Korea, Hong Kong and Philippines, and 9) structural adjustment
programs being implemented in Pakistan.

Responses on the WTO

Different modes of engagement for Global Network-Asia were firmed up in response to the 5th WTO Ministerial Meeting in Cancun. One option is to focus on specific issues of engagement to project a more credible stance on the public and
media. This suggestion pertains to the strategies the Global Network alliance in Asia is discussing towards Cancun.

Some countries in Asia are already involved in campaigns towards Cancun. For instance, the Global Network-Philippines
is part of the Stop the New Round! Coalition against the 5th WTO Ministerial in Cancun. Vigorous education campaigns are
also happening in Korea and Hong Kong on the privatization issue relating to the WTO. Aside from tackling flexibilization
of work, countries in South Asia and Southeast Asia are gearing up for the impending phase out of the Multi-Fiber Agreement.
Among the specific recommendations outlined in the seminar are:

  • Education of the public, the trade unions and the NGOs about the WTO issues and impacts;
  • Sharing of information between countries about the best and successful campaign practices;
  • Stepping up campaigns, mobilizations and other actions relating to WTO issues through joint regional and international solidarity actions (e.g. international anti-globalization day, anti-war demonstrations);
  • Strengthening the Global Network as an alliance by addressing WTO issues and focusing on concrete issues and demands
    of workers and sectors concerned (i.e. removal of the MFN status on the Multilateral Fiber Agreement in 2005, privatization,
    agricultural subsidies, etc.); and
  • Advocacy for a standing forum at the ILO, WTO and other global institutions to discuss social issues at their level.

Thirty-seven participants representing all the regional organization members namely, BILS (Bangladesh), CLIST (Thailand),
HKCTU (Hong Kong), KLSI (Korea), LEARN (Philippines), PILER (Pakistan), SEWA (India), and UP TWSC (Philippines)
attended the regional seminar, which took place in Hong Kong last February 22, 2003. The Cambodian Labor Organization (CLO), a prospective member of the Global Network Alliance in Asia, participated as observer.


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