/ 2 July 2006

Cosatu: The poor must not be further burdened

Any agreement reached at faltering World Trade Organisation (WTO) Doha Round talks on liberalising global commerce had to meet developmental needs while not further burdening poor countries, the Congress of South African Trade Unions (Cosatu) said on Saturday.

It has rejected the idea that developing countries accept deep cuts in tariffs in exchange for an end to unfair trade practices in the north.

”Any solution must protect the ability of poor countries to implement policies to develop their economies and meet the needs of their people,” said Cosatu spokesperson Patrick Craven.

”No sustainable solution can involve deepening poverty and unemployment in countries that already suffer from joblessness and hunger.

”Ultimately, too, any agreement that undermines development in the South will also undermine conditions for working people in the North.”

After three days of fruitless WTO negotiations, European Union Trade Commissioner Peter Mandelson warned on Saturday of failure unless there was a breakthrough in the next two weeks.

The WTO’s 149 members had given themselves until the end of June to reach an interim deal on calculations to cut rich countries’ farm subsidies and customs duties, and import tariffs levied on manufactured goods by emerging economies such as Brazil and India.

”The key pieces of the jigsaw will have to be in place by the end of July,” when members plan to hold a new session, said Mandelson.

It was critical that a way forward be found at the talks, said Craven.

Although inclusive consultation between the deeply divided parties will be slow, it can do more to narrow differences than premature efforts to ”split the difference”, which ignored the threat posed to equitable and sustainable development in the economies of the South by the existing proposals of the EU and United States, he said.

It is critical that the parties avoid unrealistically tight deadlines.

”Clearly, it was a mistake to insist on trying to finalise negotiations this week, when the parties were still far apart from each other,” said Craven.

Broad consultation has to take place to identify the needs, concerns and ideas of all the parties.

Craven said apparent compromises, which would undermine the developmental impact of the round, had to be rejected.

”No compromise proposals should be tabled by the director general until the parties have considerably narrowed their differences through broad, open consultation and discussion.” — Sapa