To defend the interests of the working people and to highlight their interest in WTO-NAMA negotiations, about 400 trade unions representatives and labour organisations jointly signed a memorandum in New Delhi on 25 July 2006. The memorandum called upon the Prime Minister to defend the interests of the working class or else to dump the Doha Round. The position taken by the unions was justified in the context of the failure of the WTO talks.

Without taking into account development, employment and working conditions of millions of workers in India and other developing countries, the WTO committee has proposed the NAMA modalities, leading to far-reaching tariff liberalisation. Expressing grave concern on these issues, the signatories also stressed the importance of Non-Agricultural Trade to India. Of India’s total exports, about 74 per cent is the share of manufactured goods, whereas the share of agricultural products in only a meagre 16.8 per cent. A huge workforce, which moves away from the agricultural sector, is absorbed by the manufacturing sector. A study conducted by the International Confederation of Free Trade Unions (ICFTU) calculated that India will have to make an average reduction of 70 per cent in bound tariff rates compared to 20 per cent for industrialised countries. This would cause bound tariff rates to be reduced by between 14 per cent and 73 per cent. The sectors that will be hardest hit in India would be textiles, paper products, plastic products, rubber products, metals and metal products and transport equipment.

To link NAMA to the Agreement on Agriculture, in line with the suggestions of the Hong Kong Ministerial Declaration, will be highly disproportionate and against India’s interests. The Memorandum cautioned the government about falling into this disguised trap. Since policy flexibility is essential for industrial development, it demanded the government ensure flexibility in line-by-line commitments with the option of raising tariffs on a selective basis. It also demanded that the government ensure that there is simultaneous progress in negotiations on Non-Tariff Barriers along with negotiations on tariff reductions. The trade unions also demanded that the government should desist from making commitments on tariff reduction in environmentally sensitive sectors such as fishery and forestry, which otherwise jeopardise the sustainable livelihood sources of millions of people. Further, the unions appealed to categorically reject the Swiss formula if it does not ensure the principle of less than full reciprocity and Special and Differential Treatment for the benefit of developing countries and LDCs.

While appreciating the stern stand taken by India at the Geneva (24 July 2006) talks, the trade unions urged the government of India to follow an uncompromising stand in the defense of the interests of the developing countries. Unions further cautioned the government against bilateral trade agreements with developed countries that might harm the interests of farmers and workers in India. “The developing countries led by India should continue to be united in their support to a ‘rule-based, multilateral trading regime’. Big players should not be allowed to treat the WTO as their private domain,” they said.

The trade unions will take this issue forward by meeting the Prime Minister towards the end of the month and handing him a memorandum. They also propose to invite the Minister for Commerce and Industry for a dialogue on the issue.