1. Trade Union strategies ITGLWF / TWARO Post MFA 5-9 September Bangkok By Esther Busser, ICFTU

2. Trade union strategies with regard to trade Whether employed in production for the domestic market or for exports, trade affects both Domestic markets can be affected by cheap imports, whereas export industries have to compete on foreign markets Both imports and exports are affected by trade rules and trade barriers, whether in a positive or negative way, and trade unions should therefore be aware of the consequences of the different barriers and rules

3. Trade union strategies Trade rules in textiles and clothing have changed, and new changes can be expected in the near future Therefore there is a need to adjust to the new rules and to prepare for future developments Less barriers to trade also increases competition, in particular costs competition It leads to consolidation of the supply chain and stronger position of buyers

4. Future rules Future changes in trade rules, such as tariff reductions and the use of safeguards can further change the picture Safeguards will allow the smaller developing countries to protect their domestic industries and to have access to developed country markets Tariff reductions will have the same effect as quota reduction. It takes away barriers and will positively affect competitive countries, and negatively the preference receiving countries

5. Trade union strategies Strategies should focus on responses to the new trade rules and the impacts of new trade rules Responses should prepare for future changes in trade rules Responses should make use of all possible channels available

6. Trade Union strategies Focus should be on: Preferential trade agreements Costs The Decent Work Agenda Buyers WTO lobby work

7. Preferential agreements Where possible, preferential trade agreements should be used There is a new EU-GSP system The Canadian GSP has extended rules of origin (25%) Rules of origin are critical in determining if it is advantageous to use preferences. They might be softened for the EU GSP They involve an administrative burden The advantages depend on current tariff levels in developed countries

8. Rules of Origin Bilateral cumulation: between the EU and the exporting country Regional cumulation: between the beneficiary country and a regional trading bloc Asia: 2 groups; Latin America: 1 group Group 1: Brunei-Darussalam, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, Vietnam Group 2: Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka

9. Rules of origin China is not part of either group Many countries source inputs from China Sourcing from other countries makes products more expensive Sourcing from China excludes use of the preferential access Rules of origin might be extended to a larger range of countries to make the GSP more attractive

10. Costs Costs are an important factor in increased competitive environment Trade unions should identify high cost factors other than labour such as energy, water and transport Costs of labour (related to productivity), training, and health and safety measures increase competitiveness

11. Decent Work Agenda Promotion of the Decent work agenda Will increase competitiveness Responds to consumer demands ILO Decent Work programme in textiles and clothing Better factories project in Cambodia

12. DW programme in Morocco Pilot programme in Morocco Tripartite, strong social dialogue Identification of problem areas Addressing problems Examples: unstable jobs, poor working conditions, 70% informal jobs, long working hours, poor representation, inefficient management, ineffective social dialogue, wages below minimum wage, gender discrimination and lack of social protection

13. DW programme in Morocco Improve competitiveness in TC through decent work Training on collective bargaining and dispute resolution Training on productivity and safety and health Development of gender strategy Review of existing training programmes to maximize impact Social management upgrading project Social dialogue is key in such programmes

14. Buyers Dialogue with buyers through national centers / international federation More pressure on buyers Address contradictions of demand for respect for workers’ right on the one hand versus lower prices and shorter deadlines on the other Use of consumer pressure in consultation with the trade unions

15. WTO lobby work With regard to NAMA negotiations With regard to safeguards With regard to WTO ongoing discussions on the MFA phase out With regard to national workshops

16. NAMA negotiations Lobby trade ministers on: The tariff formula The sectoral negotiations on textiles and clothing Preference erosion Employment impact assessments Loss of government revenue Loss of policy space

17. WTO safeguards In case of cheap imports from China which harm the domestic textile and clothing industry, safeguards can be put in place Gather import data Make an official request to the government for investigation and application of safeguards (existing channels available?)

18. WTO national seminars Seminars are organised to assist governments with the phase out of quotas Government requests such seminar Trade unions should insist on participation Trade unions should insist on integrated approach, including the decent work agenda

19. ILO and WTO Closer cooperation needed between the ILO and the WTO through a policy coherence initiative on textiles and clothing Discussion on employment impacts of the phase out in the Trade and Development committee with participation of the ILO Closer cooperation between trade and labour ministers nationally and internationally ILO to take part in the Integrated Framework (WTO, IMF, WB, UNCTAD, UNDP, ITC)