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LABOUR
Cosatu campaigns against WTO deal
Posted Wed, 12 Apr 2006

The Congress of SA Trade Unions (Cosatu) was launching a "massive campaign" against the World Trade Organisation's Non-Agricultural Market Access (Nama) proposals, Cosatu said on Tuesday.

The trade union federation said it was also against the proposed further liberalisation of services through WTO negotiations.

"Cosatu, and many other union federations and NGOs around the world, see the proposed Nama agreement leading to a catastrophe," it said in a media statement.

"It is an agreement designed solely to benefit the rich and powerful Northern nations, which will have devastating consequences for the majority of the world's population in the poor Southern nations."

Developed countries were expected to cut agricultural subsidies and to open up their markets for developing countries.

"However, developed countries have failed to extend a hand of solidarity to the poor."

The trade-off offered is that agricultural subsidies in rich countries would be reduced, in return for significant market liberalisation in developing countries, particularly for industrial products.

"Their current proposals could result in massive job loss and de-industrialisation in South Africa, and many other developing countries."

The cuts in subsidies were "extremely modest", Cosatu said, which meant that small uncompetitive farmers would still be subsidised.

"They have not offered adequate market access in agricultural goods to developing countries and will still be able to block significant agricultural products from these countries.

"At the same time they expect developing countries such as South Africa, to make significant cuts into our... tariffs for non-agricultural goods."

The proposed tariff cuts would harm South Africa's labour intensive sectors, Cosatu said.

Actions taken by Cosatu on the issue included urgent letters to President Thabo Mbeki, his deputy and Trade and Industry Minister Mandisi Mpahlwa "urging government to continue to work to strengthen coalitions of the developing countries in opposition to the proposals of developed countries on Nama and services, and to continue to promote development".

Sapa

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