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Cosatu: Statement from the Congress of South African Trade Unions on organized labour’s view on Pascal Lamy’s “arrogance” (31/07/2009)

31st July 2009

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South African organised labour disgusted by Pascal Lamy's arrogance

COSATU, FEDUSA and NACTU would like to reject with contempt the attitude displayed by the Director General of the WTO, Mr Pascal Lamy, who has blatantly refused to meet Nedlac constituencies to listen to labour's concerns on the Doha round of WTO trade negotiations.

The Doha round has adverse implications for the workers and will result in massive job losses. It is extremely unacceptable for Lamy to refuse to meet with the constituency that will be negatively affected by the WTO's trade liberalisation agreements.

Labour demands from Pascal Lamy to tell South Africa why rich countries are unrepentant in destroying poor countries' economies through their anti-developmental liberalization agreements which include:
Ø Demanding that poor countries reduce their tariffs which will result in loss of jobs and destruction of industries;
Ø Liberalisation of public services which will result in privatisation of basic services;
Ø Liberalisation of financial services which has resulted in the economic crisis which is severely affecting poor countries' economies;
Ø Huge subsidies to their agricultural sectors and in the process destroyed developing countries' agricultural industries and thus their food security.

Labour demands:
Ø We reject a low coefficient and flexibilities for SA.
Ø The current Doha text on non-agricultural market access (NAMA) must be rewritten to take into account developing countries' concerns and needs.
Ø Developing countries must be allowed policy space to develop their industries in terms of the special and differential treatment provisions of the WTO rules.
Ø SA must be allowed more flexibilities, because it took deep tariff cuts during the Uruguay round.
Ø Commitments on services or GATS should be member driven and be based on a member's economic needs.
Ø SA should be allowed to withdraw its commitments on financial services, in particular on hedge funds and derivatives. The London G20 has resolved that this area should be re-regulated.
Ø An end to trade distorting subsidies by developed countries.
Ø Special Products (SP) and Special Safeguard Mechanisms (SSM) should only be used by developing countries to promote food security and farmers' livelihoods and rural development in accordance with the special and differential treatment principle
Ø Mr Lamy should condemn the European Union in forcing anti -developmental Economic Partnership Agreements on developing countries and forcing these countries to commit to issues that are subject to deadlock at WTO, in particular the Singapore issues - government procurement, trade and investment and trade and competition.

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