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Great attention was paid to a conference of the Social Democrats in the European Parliament, which focussed on the inclusion of human rights in the EU trade policy. Apart from EU Trade Commissioner Karel De Gucht and a number of other speakers, AK expert Éva Dessewffy had also been invited to present the position of the Austrian Federal Chamber of Labour on trade policy.
In front of about 150 participants, representatives of EU institutions, social partners and non-governmental organisations presented their ideas on the future trade policy of the European Union.

EU Commissioner de Gucht outlined what the Commission had done so far and what kind of plans it had: trade policy would increase the standard of living. For example, developing countries with trade agreements had grown three times as much as had countries without such an agreement. In respect of human rights, the Commission had already achieved something. The Generalised Scheme of Tariff Preferences (GSP), which would apply to some countries, would provide the option of taking measures, if for example Core Labour Standards (for example the freedom of association, the opportunity to negotiate collective agreement and the ban on child labour) are not complied with. Belarus and Sri Lanka for example had advantages of the Generalised Scheme of Tariff Preferences withdrawn because they did not comply with the Core Labour Standards. However, De Gucht is against respective clauses in bilateral trade agreements, which have to be renegotiated. He also would support the inclusion of human rights in trade policy. Unfortunately in practice, studies by ILO and UNICEF would also show the drawbacks. In Bangladesh the ban on child labour had resulted in the children migrating from the formal to the informal sector, which made the situation even worse.

The Austrian Federal Chamber of Labour had a critical approach to liberalisation, because the current trade policy had not created more wealth for the countries, said AK expert Éva Dessewffy. This result was also confirmed by the International Labour Organisation (IAO) and the World Bank. In some cases one had to take note of the fact that liberalisation had caused more poverty and higher unemployment.

The best option to promote human rights, was the multilateral level with the World Trade Organisation (WTO), as the WTO was able to enforce its policy via dispute settlement procedures. That is why AK would support the idea to integrate Core Labour Standards in the WTO regulations. In respect of the current negotiations for bilateral trade agreements, one had to welcome the inclusion of environmental and social standards; however, these had to be binding. With regard to integrating Core Labour Standards in trade agreements it had to be guaranteed that these would apply to all geographical zones in a country. Otherwise there would be a danger that special production zones would be established, which would not be subject to any labour law. The option to impose penalties in cases of non-compliance had to exist. Éva Dessewffy replied to the question whether trade policy could improve human rights: "Yes, but there must be a will for it."

In his opening comments, Francois Cantier, representative of Lawyers Without Borders, explained that his organisation would represent citizens, whose fundamental rights were under threat. Unfortunately, the situation in some countries was absolutely dreadful. He had experiences a lot of misery and crime. It is his wish to include relevant clauses in trade agreements. It also had to be clarified, which (international) Courts of Justice would be competent. Murderers of committed citizens' representatives, as happened in a case in the Republic of Congo, should not be allowed to escape punishment. Finally, Cantier also suggested a framework agreement with major companies, which should strengthen social responsibility.

Further information:

AK EUROPA position paper: Yes to a binding sustainability chapter