By Catherine Sasman
WINDHOEK
The National Union of Namibian Workers (NUNW) on Friday came out in support of the Namibian Government’s position not to initial the interim economic partnership agreement (IEPA) with the European Union (EU) “without protest”.
The Government had last week signed the agreement on condition that its concerns with the EPAs are addressed through further negotiations.
The union also lambasted the EU for forcing African, Caribbean and Pacific (ACP) countries into signing the EPAs as an “ill-founded desire of our former colonial masters” to reverse economic gains made by the developing countries, which threatens to erode the countries’ sovereignty.
“Our support for and to our Government and its endeavour to obtain economic justice and prosperity for all Namibians is cognizant of and therefore stems from the fact that the proposed tariff reductions will cut very heavily into our labour intensive sectors lea-ving the majority of the already languishing Namibians further trapped in poverty,” said NUNW Secretary General Evilastus Kaaronda.
He said it was clear that developed countries want high tariff cuts by developing countries in order to have improved access to their markets, hence the proposal for cuts in the bound tariff levels have to be high to secure a significant cut in the applied tariff rates.
“If a country cuts its applied tariff rates, its imports from other countries can enter it at a lower price,” Kaaronda argued.
He said the trade union fears that this could spell disaster for its members as many jobs could be lost because most companies might not be able to be adequately competitive, and thus forced to cut on production volumes.
“We believe that it is important for Namibia not to narrowly confine itself to the EU agenda of wanting to promote the extraction and exportation of raw materials to their markets, therefore depriving us of our chances to industrialize and also cut our own share in the sunrise industries as per Vision 2030,” Kaaronda said.
He said developing countries have every right to demand less than full reciprocity in terms of market access for their products on much more favourable terms of trade. Developing countries should therefore continue to do so in the next round of negotiations.
“Protecting our infant industries must not be construed as a protectionist attempt by developing nations, but instead as a protective measure aimed at the long-term sustainability of the same,” the trade unionist said.
Kaaronda said under the Swiss formula with a coefficient of 30 – the variable developed countries proposed that influences the steep tariff cuts – on South Africa, from whom Namibia imports more than 80 percent of its trade volume, there would be a significant detrimental long-term effect on the industrialisation of developing countries.
“[The] NUNW, just like most pro-growth, pro-development and pro-poor (unions), believes that increased trade liberalisation would pose a real threat to the industrialisation of poorer nations, like our own,” he said.
He said the meat industry in the country should carry the broader socio-economic interests of the country at heart and “not just those of a single industry or sector”.
The union also called on the Government to seek “real and stronger solidarity” with other developing nations, and to “vehemently reject wholesale trade liberalisation and the ludicrous EC’s demand for the MFN [most favoured nation] treatment for the EU in all future free trade agreement between SADC EPA countries and any third parties”.
The union further called upon the Government to broadly consult with affected stakeholders now and during the negotiations to be representative of the diverse interests in the areas of trade negotiations.