Opinion of the Economic and Social Committee on "Transparency and the participation of civil society organisations in the WTO Millennium Round"

(1999/C 368/15)

On 27 May 1999 the Economic and Social Committee, acting under the third paragraph of rule 23 of its rules of procedure, decided to draw up an opinion on "Transparency and the participation of civil society organisations in the WTO Millennium Round."

The Section for External Relations, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 6 October 1999. The rapporteur was Mr van Dijk.

At its 367th plenary session (meeting of 20 October 1999), the Economic and Social Committee adopted the following opinion by 103 votes to one with five abstentions.

1. Involvement of socio-economic organisations

1.1. The interest of NGOs and social partners in international trade has increased considerably in recent years(1). This interest was already expressed in negotiations for the GATT Uruguay Round. The involvement reached a peak in the discussions on the Multilateral Agreement on Investment. Above all, many NGOs complained of a lack of transparency on the part of the negotiators with regard to the subjects under discussion and the consequences of the forthcoming agreement for the various countries and groupings. The feeling of mistrust was increased in the course of the negotiations by the discouraging reaction of the government representatives. There was also a feeling that only the industrialised countries benefited from the agreements.

1.2. The NGOs' interest in international trade is now largely tinged with suspicion. Many organisations have a sceptical attitude towards the negotiations, and are afraid that the governments of the participating countries do not take sufficient account of the interests represented by the socio-economic organisations and groupings and those of the under-developed countries. This found its clearest expression in the OECD negotiations on the MAI. Lack of information and of possibilities to exercise influence appeared to be the main causes for the NGOs' suspicious attitude. In order to avoid such a reaction in the coming WTO negotiations, the ESC takes the view that the involvement of socio-economic organisations must be organised as far as possible in an optimum way. This opinion will deal mainly with the involvement of socio-economic organisations in the process leading to new agreements. The ESC will not express a view in this opinion on the possibility for socio-economic organisations to be involved also in the implementation of the agreements reached.

1.3. The ESC has a long tradition of taking an interest in international trade. It has issued many opinions, including own-initiative opinions, on the subject. In these it has always endeavoured to stress the importance of this subject for social and economic interest groups. The most recent ESC opinions in this area are:

- the global challenge of international trade(2);

- Proposal for a Council Regulation (EC) applying a multiannual scheme of generalised tariff preferences for the period 1 January 1999 to 31 December 2001(3);

- Proposal for a Council Decision concerning the conclusion on behalf of the European Community, as regards matters within its competence, of the results of the World Trade Organisation negotiations on financial services(4);

- the World Trade Organisation(5).

1.4. At the same time the ESC values the interest shown by many NGOs in international trade. Many organisations are now realising that international agreements in this field can have far-reaching consequences.

1.4.1. The ESC has issued opinions on a number of these subjects, e.g. those listed in point 1.3.

1.5. The ESC regards the involvement of socio-economic organisations in WTO activities as very important. Any agreements reached can have far-reaching effects for certain sectors (e.g. the services sector), for the continuation of the CAP, Community development policy (ACP), contacts with non-Community countries and compliance with international standards (labour, animal welfare and environment standards). They also affect employment, consumer interests and incomes.

1.6. In all these areas many socio-economic organisations are active. Their involvement in the negotiations can help to broaden the social bases for the agreements. In addition, negotiators can make use of the expertise available in the various organisations. Finally, governments can be made aware of interest groups' views on international trade.(6)

1.7. The ESC intends in this opinion to indicate how the involvement of socio-economic organisations in the WTO negotiations can best be achieved. A distinction is made between different levels. Chapter two deals with the world level. How should the WTO secretariat ensure that socio-economic organisations are sufficiently informed and consulted? Chapter 3 deals with the national level. Decision-making within the WTO must be on the basis of consensus. Therefore it is important for economic and social interest groups and NGOs that their lobbying of national governments should be well organised. The EU, which has exclusive competence in relation to international trade, is in a special situation. An important task has, therefore, been assigned to the European level. Chapter 4 deals with this in more detail.

2. Involvement of socio-economic organisations with the WTO

2.1. As stated in point 1.6, the WTO secretariat will have to be concerned mainly with the proper provision of information to those economic and social interest groups and NGOs operating at international level. The WTO must give them adequate information. Transparency can eliminate and prevent mistrust and suspicion.

2.2. Information can be provided in two ways. The most accessible way is to disseminate it through the Internet. The WTO could place the information on its website. In addition, interested organisations can be kept informed of latest developments through e-mail subscriptions. This is a rapid and effective means of keeping every interested organisation up to date on the latest development.

2.3. The second way of providing information is the organisation of meetings, in the course of which the secretariat could give information on the latest stage reached in the negotiations to interested organisations. The organisations taking part can then give their initial reaction to the information provided and possibly ask more detailed questions on that information. There are advantages and disadvantages to this approach. One advantage is the possibility for interaction: through discussion a compromise can be reached or standpoints can be brought closer together. One disadvantage is financial: organisations must send people to Geneva to receive information and express their views. In many cases these organisations are not based in Geneva, so that travel costs may constitute an obstacle to participation in meetings.

2.4. In order to ensure good relations between the WTO and the socio-economic organisations it is important for mutual trust to develop. To that end there should be a permanent flow of information between the two sides. In addition, this can contribute to a dialogue between the various socio-economic organisations. In order to promote this ongoing liaison, the WTO could consider setting up a permanent platform for socio-economic organisations. This should meet regularly, at least annually, and could provide the secretariat with advice on the various subjects on the (forthcoming) negotiating agenda and perhaps make practical recommendations with regard to implementation.

2.5. The most difficult questions in setting up such a platform concern the costs (who will pay for it) and the selection of participant organisations. It should not be too difficult to find a solution to the first question. Participating organisations must pay their own travel and subsistence costs. The Committee realises that this approach will pose problems for some organisations. It will for example make it more difficult for organisations from less developed countries to participate in meetings. In order to avoid a situation where meetings are attended only by western organisations, space should be reserved for organisations from less developed countries in the process of accrediting participants.

2.5.1. The WTO secretariat must have sufficient capacity available to prepare properly for meetings with socio-economic organisations. This new approach will therefore have a financial impact.

2.6. The second question, namely which organisations will take part in the platform, is much more difficult to answer. It must be made clear that it is mainly international organisations represented in all continents which can be members of such a platform. Secondly, it must be ascertained for which organisations it can be relevant. They must be organisations representing a specific interest group, which can reasonably be expected to be affected by agreements reached in a WTO context. The secretariat will need, in the first place, to draw up a list of organisations which meet these two criteria. If there is a large number of organisations, they will have to agree among themselves on speaking rights to ensure that there is sufficient time for discussion.

3. Involvement of socio-economic organisations at national level

3.1. Decisions in the WTO are taken by the government representatives. There has to be a high degree of consensus on these decisions. It can therefore be assumed that an effective way for socio-economic organisations to set up a lobby is to approach the governments of the participating countries.

3.2. National socio-economic organisations must therefore direct their lobbying mainly towards national governments. Governments must give these organisations sufficient opportunity to express their opinions. Like the WTO they can set up a platform to include various socio-economic organisations. Their most important task could then be to give the governments advice on the various subjects on the agenda of the WTO. It is important for governments to inform and consult socio-economic organisations in good time.

3.2.1. The national socio-economic consultative bodies have a specific responsibility. In many cases they represent the most important socio-economic interest groups. They can make submissions to governments in preparation for WTO meetings. The governments should be able to ask them for an opinion. If no opinion is requested, they could always issue an unsolicited opinion.

3.3. Governments must approach the international negotiations in a spirit of openness. They should therefore provide as much information as possible via the Internet on progress within the WTO.

3.4. Given that the EU has exclusive competence for international trade, the European level is of great importance to EU countries. This also applies to socio-economic organisations within the EU. Thus they will of course have to operate at both national and European level. The following section covers the latter level.

4. Socio-economic organisations at European level and the role of the ESC

4.1. Much of what has been stated above about the national level also applies to the European level. The European Commission must provide a great deal of information through its website on current developments within the WTO. In addition regular information meetings must be held to which economic and social interest groups and NGOs are invited. The Committee could help organise these meetings.

4.2. A special role is set aside for the Economic and Social Committee. It is the European-level representative of economic and social interest groups within the EU. It follows that the European Commission will involve the ESC and consult it on WTO matters, although the Treaty does not require it to do this(7). The Commission is, however, required to consult the ESC on international meetings concerning the services sector(8).

4.3. In recent years the ESC has issued many opinions on this important subject. These showed that the ESC takes great interest in the subject, and it has also stressed the importance of WTO agreements for socio-economic policy within the EU.

4.4. As stated in point 1.4, international trade agreements have more consequences today for employment, incomes, consumers and the environment than ever before. Accordingly, our societies' sensitivities in this regard have grown considerably.

4.5. The Committee therefore considers it vital to monitor negotiations on further liberalisation extremely closely, to take note of the views of the relevant associations and NGOs on the subject and, by submitting opinions at an early stage to the Council, Parliament and Commission, to help in the preparatory work for the EU's negotiating position.

4.6. The Committee therefore proposes setting up a unit within the organisational structure of the ESC which would enable it to make the most of its rich knowledge and experience during the negotiation period.

This unit should comprise a nucleus of foreign trade experts who would draw on experts from other sections depending on the topic under negotiation.

It would be the task of this unit to cultivate close contacts not only with the WTO and the appropriate Commission departments, but also with the relevant European associations and NGOs.

4.7. Building on the additional information acquired in this way, this unit will, in good time prior to the negotiations, submit opinions on individual negotiating issues deemed to be of particular importance from a social policy angle. In so doing, it will also draw on earlier ESC opinions.

4.8. In individual cases, it will be appropriate to hold prior hearings with interested parties.

4.9. In this connection, it is desirable that the relevant Committee members be given the opportunity to attend the critical stages of particularly important negotiations.

4.10. The Committee proposes that the WTO unit monitor in particular the following issues in the light of the Seattle plans:

1. the role of socio-economic organisations in the settlement of disputes;

2. unilateral sanction methods and compensation rights;

3. electronic trade;

4. the WTO and employment;

5. public purchasing contracts;

6. the strengthening of the WTO;

7. agriculture;

8. services;

9. trade and development;

10. trade and environment;

11. trade and international labour standards;

12. competition;

13. investment;

14. intellectual property;

15. tariffs.

Brussels, 20 October 1999.

The President

of the Economic and Social Committee

Beatrice RANGONI MACHIAVELLI

(1) A distinction is made in this opinion between economic and social interest groups and NGOs.

(2) OJ C 56, 24.2.1997.

(3) OJ C 40, 15.2.1999

(4) OJ C 407, 28.12.1998

(5) OJ C 101, 12.4.1999.

(6) B. Reinalda, "NGO's en andere particuliere actoren in de leer der internationale betrekkingen", in Internationale Spectator, 53, July/August 1999, 414-118.

(7) See Article 133 of the EC Treaty.

(8) See Article 52 of the EC Treaty.