WRITTEN QUESTION P-2192/99

by Eija-Riitta Korhola (PPE-DE) to the Council

(23 November 1999)

Subject: Special working party to be proposed at the WTO negotiations to deal with the relationship between the liberalisation of trade and non-commercial policy objectives

Many national organisations feel that they do not have any real opportunities to influence the decision-making agenda or the formation of decisions on social issues. As the importance of national society grows, political decision-makers must think harder about the legitimacy of their decisions. In particular the round of World Trade Organisation (WTO) negotiations which is just beginning has given rise to concern in national organisations, which fear that these negotiations are prepared to sideline principles which are still more important than free trade. There has not been enough discussion yet on how to reconcile commercial objectives with those, for example, of the environment, health and human rights in the non-political field.

Does the Council consider it possible, and in accordance with the interests of the EU, to make it an objective of the EU negotiators to propose the creation at an early stage in the negotiations of a WTO working party:

1. to deal with the relationship between trade liberalisation and non-commercial political aims and possible instruments to achieve those aims, and

2. to investigate the positive environmental effects of trade and the policies needed to make these more effective?

Reply

(31 January 2000)

1. The Honourable Member is certainly aware of the comprehensive character of the Council Conclusions adopted by the Council on 26 October 1999 on the preparation of the WTO Third Ministerial Conference in Seattle. In its conclusions, the Council emphasised the need to ensure that an appropriate balance between the further liberalisation of trade and the strengthening of multilateral rules contributes toward sustainable development, environmental protection, social progress, reduction in poverty and consumer health.

2. The Honourable Member will also be aware that environment and core labour standards featured very high on the EU's agenda for Seattle. As to the former, the Council reasserted during the Ministerial Conference that environmental considerations should be taken into account throughout the negotiations with a view to achieving by the end of the round an overall outcome whose environmentally-friendly consequences could be identified in the relevant parts of the final package. The Council thereby adhered to its chosen course of action as set out in paragraph 11(g) of the conclusions it adopted at its meeting on 26 October 1999 in preparation for the WTO Third Ministerial Conference. The Council would invite the Honourable Member to refer to those conclusions.

Regarding core labour standards, the Council strongly supports their protection and throughout the Ministerial Conference advocated their inclusion in the Ministerial Declaration. To ensure progress on the issue of trade and workers' rights, the EU proposed the establishment of a Joint ILO/WTO Standing Working Forum on trade, globalisation and labour issues, to promote a better understanding of the issues involved through a substantive dialogue between all interested parties (including Governments, employers, trade unions and other relevant international organisations). That dialogue should include an examination of the relationship between trade policy, trade liberalisation, development and the fundamental rights of workers. Such a Forum would also prepare for a ministerial-level meeting which should take place no later than 2001. The EU offered to host such a meeting.

3. In its conclusions of 26 October 1999 the Council further underlined the need to involve civil society fully in that process, and to that end to continue the dialogue with it in order to take into account its legitimate interests and concerns. The Council also stressed the importance of close contacts with the European Parliament and national parliaments and encouraged dialogue with the organisations of civil society at both national and European level.

4. As to the Honourable Member's last question, attention is drawn to the fact that no consensus was reached at the Ministerial Conference in Seattle on a Ministerial Declaration which would have set the agenda for a new Round and the arrangements for the negotiations. Consultations on the scope and framework of a new Round will continue in Geneva in due course and the issues to be covered are therefore under discussion. It should be noted that Ministers in Seattle widely acknowledged the importance of the social dimension of trade and sustainable development as argued by the EU. Throughout the process which is to follow, the European Union's action will be fully guided by the objectives set out in the Council Conclusions, without prejudice to the instruments considered appropriate to achieve those goals.