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

2. 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

3. 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

4. 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).

5. 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

6. 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”

7. 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)

8. 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”

9. Questions? Comments?
industriAll Europe:
Automotive Industry: Wolf Jäcklein
Founding Organizations:
Former EMF:
Former EMCEF:
Former ETUF-TCL: