CUTS CITEE LInkages Update No.13

No.13, June-July 2002

CUTS CITEE LINKAGES UPDATE No.13

Contents

Editor’s Note
It’s Implementation Again

News Roundup
Poor countries at the point of disaster
Legal suit for importing hazardous waste
ILO launches first “World Day Against Child Labour”

European Parliament acts to tackle child labour in the sports goods industry

Studies and Reports
A Future without Child Labour
Does Globalisation Increase Child Labour?
On National and International Trade in Greenhouse Gas Emission Permits

Event Reports
Scoping Workshop on WTO Issues Under EU-India Network on Trade and Development (EINTAD), Brussels, 21-22 May 2002
Trade and Social Development: A Southern Viewpoint, 1^st May 2002, Geneva, Switzerland
“Linkages: How Do We Bridge the Gap?”, Brussels, 21^st May 2002

Editor’s Note

It’s Implementation Again

Just before the fourth Ministerial Conference of the WTO at Doha last year, the issue of implementation was at its peak. In the run-up to the World Summit on Sustainable Development (WSSD) at Johannesburg, the focus is once again on implementation. The difference is that in the case of Doha, developing countries’ demands were implementation of the Uruguay Round Agreements, but at Johannesburg the target is unfulfilled commitment under Agenda 21.

The first Earth Summit, held in Rio de Janeiro in June 1992, laid out in massive detail an action plan for achieving sustainable development, Agenda 21. It is essentially a programme of action covering 40 different sectors and topics. It pays particular attention to national legislation, measures, plans, programmes and standards, and to the use of legal and economic instruments for planning and management.

Since the Earth Summit, official international financing for sustainable development has remained well below the level considered necessary to implement Agenda 21. The United Nations Conference on Environment and Development (UNCED) Secretariat estimated that implementing Agenda 21 in low-income countries would cost an average of more than US$600,000mn annually between 1993 and 2000, of which US$125,000mn would have to come in the form of international donations or concessions. At the Earth Summit, high-income countries reaffirmed their commitment to reach the UN target of providing 0.7 percent of their GNP for Official Development Assistance (ODA). Some agreed to reach this target by the year 2000. But, so far only four nations – Denmark, the Netherlands, Norway and Sweden – have met the 0.7 percent target.

The recently concluded Bali PrepCom, the last one before the WSSD in August-September 2002, produced agreement on three quarters of the 77-page draft “plan of implementation” document. Countries agreed on a host of actions needed to improve living conditions for billions of people and to protect the environment, but could not agree on a range of important provisions like establishing a world solidarity fund for eradicating poverty, provide assistance to income generating employment opportunities, phasing out of environmentally harmful and trade distorting subsidies in developed countries etc.

Planned as an “Implementation Summit,” the Johannesburg Summit is intended to find ways to generate actions that bring about real improvement in peoples’ lives and the natural ecosystems that support them. Resolution of the outstanding issues including ODA, the elimination of subsidies, achieving the goals of the United Nations Millennium Summit and adhering to the principle of “common but differentiated responsibilities” are some of the contentious issues which have been left for Johannesburg.

Pradeep S. Mehta, Editor

News Roundup

Poor countries at the point of disaster

UNEP has warned poorer countries against the devastating effects of the unrestricted fishing by the subsidised fishing fleets from EU and Asia. The inclusion of fisheries in WTO may bring in new opportunities for the countries facing the problem of extreme poverty. It will promote reduction of tariffs, which will encourage the fishing. But this should not come at the expense of the environment. Some safeguards should be there to avoid the problems of nations like Argentina, Senegal that had allowed in foreign fleets. To maximise the gains from fishing, developing countries must follow the path of sustainability.

For more: http://www.planetark.org/dailynewsstory.cfm?newsid+15052&newsdate+18-Mar-2002

Legal suit for importing hazardous waste

A leading environmentalist of India has filed legal proceedings against the Indian government and a private company for importing hazardous wastes into the country. A Writ Petition is filed in the Supreme Court of India against the government of India and a private company, Bharat Zinc (P) Ltd., Bhopal, for allowing the illegal and highly dangerous import of hazardous waste from industrialised countries into India. The writ seeks to challenge the unconstitutional decision of the Ministry of Environment & Forests permitting import of toxic wastes in India under the cover of recycling. Despite knowing that the real purpose of such export by developed countries is to make India a dumping ground for toxic wastes.

For more: www.twnside.org.sg/title/waste-ch.htm

ILO launches first “World Day Against Child Labour”

The first World Day Against Child Labour was observed worldwide on 12 June 2002. The ILO launched this global day with an event at its Geneva office on the eve of the first World Day. The World Day will be held annually to intensify support for the global campaign against child labour. It will also serve as a catalyst for enhancing the growing worldwide movement against child labour, as reflected in the steadily mounting ratification of ILO Convention 182 (on its worst forms) and 138 (on minimum age), as well as the work of the ILO International Programme on the Elimination of Child Labour (IPEC).

For More: http://www.ilo.org/public/english/bureau/inf/pr/2002/27.htm

European Parliament acts to tackle child labour in the sports goods industry

The European Parliament takes into account that use of child labour in the football industry is still a common practice, in spite of the fact that sporting goods companies have entered into contract with FIFA, signed in 1998, that includes Code of Labour Practice, prohibiting the use of child labour in licensed products. The Parliament calls on European Union and its Member Nations to take action in this field, in order to ensure that all children removed from labour are rehabilitated and given the opportunity to receive an education, health care and food.

For More: http://www.europa.eu.int

Studies and Reports

A Future without Child Labour

ILO has come up with a report on child labour, which shows that despite major steps taken to eliminate the child labour, a large number of children are still subject to it. This report found that 246 million children – one in every six children aged 5 to 17- are involved in child labour. The report also emphasises that about 111 million children of age less than 15 which are trapped in hazardous work should be immediately withdrawn from this work. An additional 59 million youths aged 15-17 requires immediate protection from hazards at work.

For more: http://ilo.org/public/english/standards/decl/publ/reports/report.htm

Does Globalisation Increase Child Labour?

There is no empirical evidence that trade exposure per se increases child labour. As trade theory and household economies lead us to expect, the cross-country evidence seems to indicate that trade reduces or, at worst, has no significant effect on child labour. This is the finding of recent discussion paper of Alessandro Cigno, Furio C. Rosati and Lorenzo Guracello, published by The Institute for the Study of Labour (IZA), Bonn. Consistently with the theory, a comparatively well educated labour force, and active social policies, appear to be conducive to a reduction in child labour. For countries with a largely uneducated workforce, the problem is not so much globalisation, as being allowed to take part in it.

For complete paper: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=310344

On National and International Trade in Greenhouse Gas Emission Permits

This paper written by Katrin Rehdanz and Richard S.J. Tol of University of Hamburg, considers the question under what conditions domestic markets of emission permits would and should merge to become an international market. Emission permits are licenses, and so governments would need to recognize other countries' permits. In a two-county model, the authors find that it is in both countries' interests to form an international market, and it may even be beneficial to the environment. Three different policy instruments of the importing country are examined, namely a price instrument (tariff) and two quantity instruments (discount and import quota). All instruments restrict trade.

The importing country (and regulator) prefers an import tariff and an import quota to a carbon discount. If the exporting country releases additional permits, the importing country should not try to keep total emissions constant, as that would be ineffective if not counterproductive. Instead, the importing country should aim to keep the total import constant; this would impose costs on the exporting country that are independent of the policy instrument; an import quota would be the cheapest option for the importing country. Compliance and liability issues constrain the market further. However, both the importing and the exporting country would prefer that the permit seller is liable in case of non-compliance, as sellers' liability would less constrain the market.

For Complete Paper: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=315739

Event Reports

Scoping Workshop on WTO Issues Under EU-India Network on Trade and Development (EINTAD), Brussels, 21-22 May 2002

CUTS Centre for International Trade, Economics & Environment (CUTS-CITEE), India in association with the European Institute for Asian Studies (EIAS), Brussels, organised a two-day scoping workshop on WTO issues under the EU-India Network on Trade and Development at Brussels on 21-22^nd May 2002.

The meeting attracted participants from both European Union and India, which included government officials, academicians, journalists and civil society members. One of the main objectives of this network is to do joint research and feed the outputs to trade negotiators well before the next WTO Ministerial Conference. The fifth WTO Ministerial Conference will be held at Cancun, Mexico, on 10-14 September 2003.

Pascal Lamy, the EU Trade Commissioner, addressed the inaugural session, which was followed by presentations by individual researchers. The five topics selected for research are: mobility of labour, anti-dumping, textiles & clothing, competition policy and investment. The day two event started with group discussions, followed by feedback and discussions.

For Complete Report: www.cuts-international.org/EINTAD_BRUSSELS_REPORT_MAY02.htm

Trade and Social Development: A Southern Viewpoint, 1^st May 2002, Geneva, Switzerland

CUTS Centre for International Trade, Economics & Environment (CUTS-CITEE), India, organised a session on 1^st May 2002, titled “Trade and Social Development: A Southern Viewpoint” on the sidelines of the WTO Symposium, “The Doha Development Agenda and Beyond” which was held in Geneva during 29^th April to 1^st May 2002. More than 45 delegates attended the event, including members of the Indian, South African, German, Egyptian and other national permanent missions to the WTO, representatives from NGOs all over the world, the WTO and other international organisations, academics and interested individuals. Prof. Robert Baldwin, University of Wisconsin, USA, James Howard, International Confederation of Free Trade Unions (ICFTU) and Beatrice Chaytor of Foundation for International Environment Law and Development, UK were among some of the eminent speakers and participants, who attended the meeting.

For complete report: http://www.cuts-international.org/T&SD_geneva_1May02.htm

“Linkages: How Do We Bridge the Gap?”, Brussels, 21^st May 2002

CUTS Centre for International Trade, Economics & Environment, (CUTS-CITEE), India in association with the European Institute for Asian Studies (EIAS), Brussels, organised an half-a-day panel discussion on “Linkages: How Do We Bridge the Gap?” at Brussels on 21^st May 2002. Participants, which included trade unions’ representatives, academicians, journalists, civil society members and government officials from Europe discussed issues surrounding trade and labour standards as they affect both developed and developing countries.

Speaking at the inaugural session Prof. Alan Winters, noted trade economist from Sussex University said that some believe that this issue has dropped out of the trade debate as it is not part of the negotiating agenda at the WTO but it is still being pursued by the EU and the US in their preferential trading arrangements and bilateral treaties with developing countries. While participating in discussion, Prof. T N Srinivasan from Yale University, USA said that using trade measures to force countries to raise labour standards may end up hurting the people. He further emphasised that policy makers and activists should constantly keep in mind the goal of reducing poverty when they are making recommendations so that policies do not backfire.

For more: http://www.cuts-international.org/news-cuts.htm#Trade measures

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