Information Technology Agreement (ITA) - Global Unions and International Civil Society Express Concerns
October 2013
Dear Members of the World Trade Organization (WTO),
We, the undersigned trade unions and civil society organizations, representing hundreds of millions of members across the globe, arewriting to express our deep concern over negotiations in the WTO to expandthe Information Technology Agreement (ITA) to the ITA-II. The international trade union movement and international civil society are concerned about the expansion of ITA because it could further harm workers, particularly in developing countries, that have yet not benefited from the agreement, and possibly deteriorate the developmental prospects for those which participate.
The information and communication technology (ICT) sector has enormous capacity to contribute to domestic industry creation, employment generation, and technological development. Unfortunately, claims of the ITA’s potential benefits have failed to materialize for the majority of workers in participating countries. The necessary diffusion of technology and the need to overcome the digital divide within and across countries requirespolicy space for governmentsin order to implement industrial policies that enable them to develop their own industries or to increase the ownership of production of ICTs in supply chains in which they operate. Instead of promoting industrial capacity, job creation, and technological diffusion, the ITA has erodedpolicy space for the majority of developing country participants. Experiences with the ITA indicate that from the point of view of developing and Least Developed Countries (LDCs), irreversible and binding commitments under the potential ITA-II could likely damage their present and future growth potential.
An expanded ITAmight lead to an erosion of domestic manufacturing and loss of growth potential.ICT is an important manufacturing sector with the potential to generate domestic industries and exports. Unfortunately, ITA tariff reductions have opened the flood gates to imports into the domestic markets of many developing countries, with many local manufacturers being pushed out of the market. In many countries, large numbers of domestic manufacturers have turned into assemblers and traders of ICT products, or haveseen a reduction in the domestic content of ICT goods. Developing countries could give an advantage to their producers if they excluded their ICT markets until their domestic industries become competitive internationally, thus also providingavenues for higher domestic investment in production.
Any negotiations on goods should focus on expanding the potential for decent jobs, which the proposed ITA-II does not. The claimed benefits of economic growth and potential job creation in ICT manufacturing have failed tomaterialize for the majority of ITA members. The creation of new industry is essential for the generation of sustainable decent jobs; yet domestic ICT manufacturing, and thus jobs, have been eroded rather than expanded. Where ICT jobs do exist in developing countries, workers have yet to be able to capture a fair share of the alleged gains. Workers in developing countries are often trapped in performing only low value-added processes in the ICT sector, often in export processing zones (EPZs) and special economic zones (SEZs), where workers do not enjoy the right to unionise and collectively bargain or the right to sick leave and social insurance. EPZs and SEZs are isolated production enclaves with few forward and backward linkages. Lowtaxation and high repatriation of profits further reduce domestic investment in job creation or other development priorities. Negotiations on goods must begin with a focus on decent job creation, to be based on the principles of fairness and equity in order to lift living standards by supporting employment growth, improving social protections and providing for fundamental workers’ rights and environmental standards. Expanding the ITA goes in the wrong direction, and would hinder, rather than contribute to, a resolution of the global jobs crisis.
An expanded ITA will likely benefit Transnational Corporations (TNCs) in countries with advanced technological development, particularly given patent monopolies and the lack of technology transfer. A small number ofTNCs from developed countries reap the largest benefits from the intellect-intensive processes of technological design and marketing. The domination of the global ICT sector by a few corporations poses threats to the utilization of technology to address developmental concerns of developing countries and LDCs. In many countries the effects of mass production have not benefitted consumers and users of technology due to the oligopolistic market settings. Patents on technologies account for the largest part of value added, and have increased disproportionately compared to other industry sectors in both developed and developing top-trading ITA participants. Although several global ICT producers have invested in research and development in developing countries, these countries have enjoyed very limited technology transfer, and consequently have seen only marginal increases in their value added and in employment.
Developing countries should not accept delinking tariffs and Non-Tariff Barriers (NTBs) in any negotiations.The ITAbrought tariffs to zero in 76 countries; unfortunately, the significant amount of NTBs, especially in the form of national standards and regulation, remained unaddressed. The issue of NTBs has exposed inherent weaknesses in the WTO system and the lopsided negotiation process dominated by a few developed countries, even in the plurilateral talks. While there has been much interest in tariff elimination in the ITA and in the proposed ITA-II, there has been no corresponding interest among the leading ITA members to address NTBs – even though three in four NTBs notified to the WTO are implemented in developed countries. The current status of NTBs effectively restricts developing countries’ exports to developed countries, except if developing countries are well-integrated in global production chains owned and operated by developed countries’ corporations. Negotiating parties should strike the right balance in NTBs so as to ensure high-quality products on the one hand and facilitate access to developed markets on the other.
Governments considering engaging in ITA-II negotiations must conduct impact assessments so as to be able to make decisions based on research and assessment rather than unproven claims. It is rather appalling that after 15 years of the ITA, a comprehensive impact assessment has yet to be conducted. Prior to commencing in negotiations to expand the ITA, governments should conduct a comprehensive assessment of the existing agreement’s impact on the environment and on economic and social development, particularly regarding employment in the ICT sector. They should then examine the potential expansion of the agreement in light of financial market weaknesses and instability; a persisting jobs crisis; growing inequalities; and other major challenges. The decision of countries as to whether or not to participate in ITA-II negotiations should be based on actual and projected social, economic and developmental impacts rather than mere claims about the benefits of ITA or ITA-II.
Assessments must take into account the losses of government revenue from tariff reductions. Developing countries are more likely to use tariffs than subsidies in their protection of domestic industries. The reduction of tariffs to zero on ITA-included products by 2005 thus affected developing countries more than developed countries. In addition to impacting levels of employment, tariff elimination reduces revenues which the government could have used for spending on other important developmental activities, such as health care, education, and infrastructure. For some LDCs, tariffs constitute significant source of revenue for the national budget. Thereforecountries should take this into account into their consideration of whether to participate in ITA expansion negotiations.
Developing countries, and particularly LDCs, can enjoy market access benefits on a non-reciprocal basis if they do not join the ITA-II. Signatories to the ITA are mandated to extend the benefits of tariff elimination to all WTO members on a Most Favoured Nation (MFN) basis. Therefore, countries that are not yet competitive in ICT manufacturing can already benefit from market access of other participating member, without having to join the agreement. LDCs already enjoy preferential access to most major markets, and would not gain more by joining the ITA-II.
National security issues should be taken into account.As some products included in the proposed in ITA-II are used in armed forces and intelligence, some countries have raised concerns with regard to national security. The agreement should leave ample space for countries to deal with these issues as they deem appropriate.
Any negotiations should be transparent and accessible. Negotiations with such major implications as the ITA-II should be transparent and accessible by civil society and interest groups so as to increase the probability of a fair, inclusive and relevant agreement for all. In addition, making trade inclusive has been stated as a global goal in several international fora, and should be built into the negotiations process of any international or plurilateral agreement.
Sincerely,
(endorsements as of October 1)
International
1. Arab NGO Network for Development (ANND)
2. International Trade Union Confederation (ITUC)
3. ACP Civil Society Forum
4. Dignity International
5. IBON
6. International Grail Global Justice Network
7. International Union of Food workers (IUF-UITA-IUL)
8. UNI Global Union (UNI)
Africa
Egypt
9. Egyptian Initiative for Personal Rights, Egypt
Mauritius
10. Mauritius Council of Social Service (MACOSS), Mauritius
Rest of Africa
11. Fórum das OrganizaçõesNãoGovernamentaisAngolanas – (FONGA), Angola
12. Groupe de Recherche et d'Action pour la Promotion de l'Agriculture et du Développement (GRAPAD), Benin
13. Botswana Council of Non-Governmental Organisations (BOCONGO), Botswana
14. Civil Society Organization Network for Development (RESOCIDE), Burkina Faso
15. Cadre de concertation des OSC pour le suivi du CSLP (CdC/CSLP), Burkina Faso
16. Action Développement et IntégrationRégionale (ADIR), Burundi
17. Conseil des ONG Agrees Du Cameroun (CONGAC), Cameroon
18. Association Commerciale, Agricole, Industriel et du Service (ACAISA), Cape Verde
19. Conseil Inter-ONG en Centrafrique (CIONGCA), Central African Republic
20. CILONG, Chad
21. Alliance pour la Reconstruction et le Development Post Confit (ARDPC), Cote D’Ivoire
22. Forum des ONG pour le Développement Durable (FONGDD), Equatorial Guinea
23. PANE &Cotonou Task Force, Ethiopia
24. ConcertationNationale Des Organisationspaysannes et des Producteurs (CNOP), Gabon
25. Agricultural Workers Union of TUC, Ghana
26. Ghana Trade and Livelihood Coalition (GTLC), Ghana
27. InstitutoNacional de Estudos e Pesquisa (INEI), Guinea Bisau
28. Federation de Femmes Enterpreneurs et Affairs de la CEDEAO (FEFA), Guinea (Conakry)
29. National Council of NGOs, Kenya
30. Economic Justice Network Lesotho (EJNL), Lesotho
31. Consumers Protection Association (CPA), Lesotho
32. Lesotho Council of NGOs (LCN), Lesotho
33. Policy Analysis and Research Institute of Lesotho (PARIL), Lesotho
34. The Call for Africa Development (CAD), Lesotho
35. African Women Association (WAWA), Liberia
36. Plate-FormeNationale des Organisations de la SocieteCivile de Madagascar, Madagascar
37. Malawi Economic Justice Network (national NGO platform), Malawi
38. ASRAD, Mali
39. Foundation pour le Developpment au Sahel (FDS), Mali
40. Jeunesse Union Africaine du Mali (JUA-Mali), Mali
41. National Forum for Mozambiquan NGOs and CBOs (TEIA), Mozambique
42. Namibia Non-Governmental Organisations Forum Trust, Namibia
43. National du Réseau des Ong de Développement et Associations de Défense des Droits de l'Homme et de la Démocratie (RODADDHD), Niger
44. National Association of Nigerian Traders (NANTS), Nigeria
45. Conseil National des ONG de Développement (CNONGD), RD Congo
46. Conseil de Concertation des ONGs de Développement (CCOD), Congo Brazzaville
47. Rwanda Civil Society Platform, Rwanda
48. Plate-forme des acteurs non étatiques pour le suivi de l'Accord de Cotonou au Sénégal, Senegal
49. Seychelles Civil Society Organisations (Liaison Unit of the non-governmental organisations of Seychelles - LUNGOS), Seychelles
50. Civil Society Movement, Sierra Leone
51. South African NGO Council (SANGOCO), South Africa
52. Forum das ONG de São Tomé e Principe (FONG-STP), St Thomas and Principe
53. Somali Organisation for Community Development Activities (SOCDA), Somalia
54. Council for NGOs (CANGO), Swaziland
55. Tanzania Association of NGOs, Tanzania
56. World View, The Gambia
57. Grouped'Action et de Reflexionsurl'Environnement et le Développement (GARED), Togo
58. Consumer Education Trust, Uganda
59. Zambia Council for Social Development, Zambia
60. National Association of NGOs (NANGO), Zimbabwe
Americas
Canada
61. Council of Canadians
El Salvador
62. Red Accion de CiudadanaFrente al LibreComercio e Inversion, SINTI TECHAN
Dominican Republic
63. Alianza ONG
Guatemala
64. Union Sindical de Trabajadores de Guatemala (UNSITRAGUA), Guatemala
Panama
65. Confederación de Trabajadores de la Republica de Panamá (CTRP), Panamá
Peru
66. Central Autónoma de Trabajadores del Perú
Rest of Americas
67. The Gilbert Agricultural and Rural Development Centre (GARDC), Antigua and Barbuda
68. Confederación General del Trabajo de la República Argentina, Argentina
69. ForoLatinoamericano del Trabajo, la Innivacion e Integración (FLATI), Argentina
70. Civil Society Bahamas, Bahamas
71. National Congress of Trade Unions Bahamas (NCTUB), Bahamas
72. Barbados Association of Non Governmental Organizations, Barbados
73. Belize Enterprise for Sustainable Technology, Belize
74. SociedadEconómica de Amigos del País, Cuba
75. KalingoCarib Council, Dominica
76. Inter-Agency Group of Development Organizations (IAGDO), Grenada
77. Grenada National Organisation of Women, Grenada
78. Women Across Differences (WAD), Guyana
79. Programme de Plaidoyer Pour uneIntégration Alternative (PPIA), Haiti
80. 3rd ACP Civil Society Forum, Jamaica
81. Bia´lii, Asesoría e Investigación, A.C. Mexico
82. GrupoTacuba, Mexico
83. Marco Velazquez, Profesor Universidad Autónoma de la Ciudad de México
84. Iyanola Council for the Advancement of Rastafari Incorporated (ICAR), St. Lucia
85. Windward Islands Farmers’ Association (WINFA), St. Vincent & the Grenadines
86. StichtingProjekta, Suriname
87. Grassroots Organisations of Trinidad & Tobago (GOTT), Trinidad & Tobago
88. Instituto del TercerMundo, Uruguay
Asia Pacific
89. PaxRomana-ICMICA Asia
Australia
90. Australian Council of Trade Unions (ACTU)
91. Australian Fair Trade and Investment Network (AFTINET)
Hong Kong
92. Asia Monitor Resource Centre (AMRC)
India
93. Andhra Pradesh VyavasayaVruthidarula Union (APVVU)
94. BharatiyaKrishakSamaj - Indian Farmers' Organisation (BKS)
95. Cividep, Workers' Rights and Corporate Accountability
96. Intercultural Resources
97. IT for Change
98. Jagrriti- The Awareness (JTA)
99. National Adivasi Alliance
100. National Agricultural Workers Forum (NAWF)
101. National Center for Labour
Indonesia
102. Confederation of Indonesia Prosperous Trade Unions (KSBSI)
103. Institute for Global Justice (IKG)
104. Resistance and Alternatives to Globalization (RAG)
Philippines
105. Alliance of Progressive Labor (APL), Philippines
106. Center of United and Progressive Workers - SentrongmgaNagkakaisa at ProgresibongManggagawa (SENTRO)
107. Confederation of Labor and Allied Social Services (CLASS), Philippines
108. Initiatives for Dialogue and Empowerment through Alternative Legal Services (IDEALS)
109. Mission for Victims of Human Trafficking
110. Overseas Filipino Workers and their Family
111. Promotion of Church People’s Response
112. The United Methodist Church-Philippines
113. Workers Assistance Center, Inc.
Thailand
114. AIDS ACCESS Foundation
115. Alternative Agricultural Network
116. Drug Study Group
117. Drug System Monitoring and Development Program
118. Ecological Alert and Recovery – Thailand (EARTH)
119. Foundation for AIDS Rights
120. Foundation for Consumers
121. FTA Watch
122. Health and Development Foundation
123. Health Consumers Protection Program
124. People's Health System Movement
125. Rural Doctor Society
126. Rural Pharmacists Foundation
127. Social Pharmacy Research Unit, Chulalongkorn University
128. Thai Labour Solidarity Committee (TLSC)
129. Thai Holistic Health Foundation
130. Thai NGO Coalition on AIDS
131. The Thai Network of People living with HIV/AIDS (TNP+)
Malaysia
132. Malaysians Against Death Penalty and Torture (MADPET)
133. Workers Hub For Change (WH4C)
New Zealand
134. New Zealand Council of Trade Unions
Rest of Asia
135. Cooperation for Peace and Development (CPD), Afganistan
136. Cook Islands Association of Non-Governmental Organisations (CIANGO), Cook Islands
137. Pacific Network on Globalisation, Fiji
138. Kiribati Association of Non-Governmental Organisation (KANGO), Kiribati
139. Marshall Islands Council of NGOs (MICNGOS), Marshall Islands
140. FSM Alliance of NGOs (FANGO), Micronesia
141. Nauru Island Association of NGOs (NIANGO), Nauru
142. Global South Initiative, Nepal
143. Niue Island (Umbrella) Association of NGOs (NIUANGO), Niue
144. Social Alternatives for Community Empowerment, Haripur, Pakistan
145. Melanesian NGO Centre for Leadership (MNCL), Papua New Guinea
146. Samoa Umbrella for Non-Governmental Organisations (SUNGO), Samoa
147. Development Service Exchange (DSE), Solomon Islands
148. The Asia Foundation, Timor Leste
149. Civil Society Forum of Tonga (CSFT), Tonga
150. Tuvalu Association of NGOs (TANGO), Tuvalu
151. Vanuatu Assocation of NGOs (VANGO), Vanuatu
152. Al-Jawf Women Organization For Development, Yemen
Europe
European Union
153. European Federation of Public Service Unions (EPSU)
Belgium
154. 11.11.11
155. Centre national de coopération au développement (CNCD)
France
156. Confédérationgénérale du travail (CGT)
Ireland
157. Presentation Justice Network - Ireland
Italy
158. ConfederazioneGeneraleItaliana del Lavoro (CGIL)
Spain
159. ConfederaciónSindical de ComisionesObreras (CCOO)
Switzerland
160. Godly Global
UK
161. Trade Union Congress (TUC)
162. People & Planet
163. Roj Women's Association, UK and Turkey