India stumps US on labour link-up

India stumps US on labour link-up
SHEFALI MISRA

SEATTLE, DEC 3: India and other developing countries appeared to be succeeding in staving off dramatic and strong-arm US tactics to forge a link between core labour standards and trade under the World Trade Organisation (WTO), by which Washington wants to placate its labour unions in the run-up to the US presidential election next year.

After President Bill Clinton dropped a bombshell on developing-country delegations on Thursday by telling a Seattle newspaper that he looked forward to eventually having trade sanctions against labour standard violations, another semi-clandestine US effort at labour standards was aborted by developing-country delegations.

Late on Friday afternoon, United States Trade Representative Charlene Barshefsky abruptly set up a ministerial group on trade, globalisation and labour issues. At this group, chaired by Costa Rica, the US circulated a draft declaration on labour that called for the establishment of a joint WTO-International Labour Organisation (ILO) standing forum onlabour issues.

But this group was "broken up" after India, Pakistan and Morocco among others angrily declared that this committee was illegitimate, having been formed without their consent. Therefore, they said, there was no question of any US draft declaration circulated here having any legitimacy. The meeting then broke up.

The next word on this hotly contentious issue is only expected early Saturday morning at a meeting of the so-called committee of the whole, which means all 134 trade ministers here.

But sources said US damage control was apparent on an issue on which it appeared to have failed in spite of its best efforts. India, for its part, is steadfastly making it clear that it will countenance no link whatsoever between labour and trade issues inside the WTO, though some harmless language on labour standards outside the WTO may not be objectionable.

This could be something the US may seek as a way of saving face on an issue on which it has staked a lot at this meeting.

Clinton's speech,which was itself a stronger than anticipated pitch for labour and environment standards in the WTO, made no reference to trade sanctions for labour standard violations.

This he reserved for a Seattle newspaper but his remarks caused no less unease in the developing-country delegations here for that only hardened their already strong opposition.

The European Union and Japan on Friday hastened to distance themselves from the US statement about trade sanctions, saying they only favoured core labour standards and were clearly against any talk for sanctions.

Meanwhile, Organisation for African Unity issued an angry declaration expressing its severe disappointment with the non-transparent way the WTO meeting was being conducted. It alleged that African countries were being forced to agree to things that were not in their interest.

Indian officials were not yet writing off further American machinations, but they have clearly and strongly told members about the Prime Minister's statement in Parliament thatnegotiations on labour and environmental standards are not acceptable to India and nor were those on investment and competition rules or NGO participation in WTO negotiations.