Manufacturing Workers’ View EESC Hearing on EU/JP FTA industriAll European Trade Union 15th January 2014

FTA: just about trade? EU’s comprehensive approach to trade policies results in trade agreements regulating topics way beyond trade issues Agreements are motivated by policy objectives unrelated with trade Resulting in poorly drafted texts Chapters remain inapplicable Hastily negotiated agreements regulatory issues IPRs Financial markets “harmonization” ----------- EU/KOR FTA motivated by security situation on the Korean Peninsula “spirit” vs. letter of the agreement text “bad faith” in interpretation vs. poorly thought through language need for adaptation of the texts later, during the application of the agreement  question of democratic legitimization

Automotive Industry Industry adopts contradictory positions on different FTA negotiations Premium segment favoured by liberalized trade Volume segment much less TTIP: industry adopts a rather positive approach JP/EU: industry does not see advantages for EU (but JAMA is very positive about a potential FTA...) Worldwide harmonized regulation is favourable for the industry But is it for workers as well? ACEA’s agenda is basically protectionist, and opportunistic

Automotive: Basic Conflict Motor vehicle manufacturers are truly global organizations, and therefore have strong interests in international harmonization and tariffs (and NTBs) dismantling – while Labour has a very strong regional anchorage (labour markets are regional ones), and therefore have much to fear from international deregulation. regional scope corresponds to human dimension; international relocation motivated by cost savings might become a temptation Suppliers & downstream market! Cultural differences are considered as NTBs (!?) Spaghetti bowl of FTAs with different (diverging, …) rules of origin  global value chains Trade agreements are not submitted to a system of global values, like: general interest; or a system of overarching values so that the “bad-faith” interpretation the Koreans have on language of the EU/Rep. of Korea is not bad faith at all from their perspective, but expected interpretation of the text (given that cost/financial issues are expressly the general goal).

Regulatory dimension Tariffs are not the issue with JP NTBs are the focal point Main potential lies in the regulatory dimension and bilateral harmonization Technical standards and regulation in the EU approach is based on the precautionary principle, in particular on working conditions We are in favour of strengthening these aspects However, a potential creation of a “RCC” is unacceptable cultural differences are “NTB” language (and compulsory translation of technical documents) need for domestic distribution and concessionaries’ networks RCC = Regulatory Cooperation Council lack of legitimacy undemocratic out of the scope of parliaments workers’ representation not part of the concept

Chemical sector REACH... JP rather hostile EU Chemical industry would not be unhappy getting rid of REACH Workers see OSH advantages of REACH Harmonization will affect REACH Harmonization, or “Regulatory cooperation” “associated domestic reforms”

Fundamental rights of workers Japan has not ratified all fundamental ILO conventions Ratification, implementation must be pre-condition for initialling a potential agreement Japan has ratified few up-to-date instruments Ratification of all instruments must be mutual engagement Compulsory, applicable and enforceable SD chapter condition (living up to ITUC/ETUC standards)

Transparency Discovering only the final, already initialled, text of the agreement is unacceptable Scope of the talks goes beyond trade issues: labour has to gain access to drafting proposals Democratic debate on a whole “package” is unsatisfactory Follow-up, interpretation and implementation need democratically legitimate bodies – inter-government only exercise is undemocratic Harmonization, or “Regulatory cooperation” “associated domestic reforms”

Questions? Comments? industriAll Europe: http://www.industriall-europe.eu/ Automotive Industry: Wolf Jäcklein +32 2 226 00 50 cars@industriall-europe.eu Founding Organizations: Former EMF: http://www.emf-fem.org/ Former EMCEF: http://www.emcef.org/ Former ETUF-TCL: http://www.etuf-tcl.org/