COSATU+slams+state+on+China+trade,+Brown,+Mde,+Business+Day

Business Day, Johannesburg, 12 April 2006
=Cosatu slams state on China trade deal=


 * Vukani Mde and Karima Brown**

GOVERNMENT and the Congress of South African Trade Unions (Cosatu) are set to clash over SA’s proposed trade agreement with China, which the union federation believes will be “disastrous” for the local textiles sector.

The looming clash comes against the backdrop of further divisions expected over World Trade Organisation (WTO) talks aimed at ending farm subsidies in developed countries.

Yesterday Cosatu took a broadside at Trade and Industry Minister Mandisi Mpahlwa, castigating him for a lacklustre response from government to the challenge posed by the WTO’s moves to force poorer countries to drastically cut import tariffs on manufactured goods. Cosatu announced a campaign against the WTO’s proposed tariff agreement, likely to be signed later this month at the global trade body’s Geneva meeting.

“We are disappointed that he (Mpahlwa) is not leading us in this. He has not even responded to calls. We’ve written to the minister to tell him that he is doing damage to our common cause,” said Cosatu general secretary Zwelinzima Vavi.

The fallout between Cosatu and government over trade policy is in stark contrast to their close co-operation at the WTO’s Hong Kong ministerial round of talks late last year.

At the time SA’s government led initiatives by governments of developing nations and nongovernmental organisations to secure a favourable trade deal.

What appears to have soured relations is government’s determination to pursue a bilateral trade agreement with China.

President Thabo Mbeki caught everyone off guard in February when he said in his state of the nation address that a trade deal had been reached but government later had to backtrack and call the document a “memorandum of understanding” when it emerged that the status of the agreement was unclear.

“This (the China deal) is an example of how things should not be done. We have been told that the draft agreement will work to the advantage of China and be bad for us,” said Vavi.

Cosatu also accused the trade and industry department of acting unilaterally in its dealings with China. Vavi said neither unions nor the textiles industry, which would be most affected by a deal with China, had been involved in drafting the deal.

But trade and industry acting director-general Tshediso Matona disputed Vavi’s version, saying Cosatu’s clothing and textiles affiliate, Sactwu, was integral in talks with China.

“They know what has been the process and they’ve been involved, although they didn’t get everything they wanted. I don’t think you can get anything from the Chinese anyway.” Matoma said SA had extracted significant concessions in the negotiations. China would “effect a voluntary restraint on export of clothing”, he said.

Responding to questions about the status of the document, Matoma said it “was all but signed”, hence Mbeki’s announcement in February.

The chasm between Cosatu and government is likely to grow later this month as negotiators gather in Geneva to thrash out a new global trade regime.

At issue in this month’s round of WTO negotiations will be an attempt by developing countries to reduce significantly the agricultural subsidies offered by rich states to their farmers.

Cosatu said yesterday that the current proposals could result in massive job losses and deindustrialisation in SA and many other developing states.

However, chief negotiator Xavier Carim said government was keen to see a WTO deal signed later this month, despite Cosatu’s reservations.


 * From: http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A184959 **

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