LIHAM AT PAHAYAG
Philippine Trade Negotiators, Government Must Uphold National Interest in Cancun and Prepare for Reckoning

(The Stop the New Round! Coalition sends a delegation to Cancun, Mexico to monitor the Philippine Government's stance on on-going trade talks and the outcome of the Fifth Ministerial Meeting of the World Trade Organization on September 10-14, 2003.)

IT TOOK country's chief trade negotiator, Secretary Manuel Roxas II, six months to face the Stop the New Round! Coalition and answer basic questions on the ongoing trade talks. Meeting Secretary Roxas was critical to have a relevant consultative process. For one, the pronouncements of his undersecretaries on the ongoing trade negotiations have ranged from a lack of position to vague and cryptic assertions. Public interest groups needed something definite to respond to in order to be sure that their positions were not drowned in pro-forma consultations that some government processes are notorious for. But more importantly, as the country's chief negotiator in the WTO, the Secretary's representation in the upcoming Ministerial Conference in Cancun, Mexico is what will ultimately bind the country to enforceable commitments under the multilateral trading body.

The road to meeting Secretary Roxas was extremely difficult. With so much at stake, the government has refused to disclose its negotiating position and to subject this to an informed debate. The country's top negotiators, Secretary Roxas, Agriculture Secretary Luis Lorenzo and Economic Planning Secretary Romulo Neri, stymied attempts by public interest groups and affected sectors to bring the issue of trade negotiations out in the public arena when the three secretaries requested the House Special Committee on Globalization to hold its inquiry BEHIND CLOSED DOORS when it was their turn to face the committee. Secretary Roxas on August 1 was even quoted by a major newspaper saying "I cannot discuss the specifics of the Philippine position that we will present in Cancun, these have to be kept confidential until we lay them before the negotiating table."

The Stop the New Round! Coalition persevered and kept the call alive. Meeting the negotiators meant more than an opportunity to shake hands with them. The Coalition was particularly concerned about the government's inability to develop a coherent national strategy for Cancun. Despite many complaints from the sectors, it has not undertaken any comprehensive study on the impact of the implementation of its tariff reduction program on agriculture and industry that can be a basis for its positions in the ongoing negotiations. Nor does the government have a clear development or industrial promotion framework to base its negotiating positions on.

There were also indications that the negotiators were not discussing details not because they want to keep their negotiating position confidential, but they did not know what they will bargain for and bargain away in Cancun. A leaked communication from the WTO section of the Permanent Mission of the Philippines in Geneva reveals that as late as July 15, 2003, the Permanent Mission was still looking to the decision-makers in Manila for guidance on the issues under negotiation

On August 20, in the meeting with Secretary Roxas, the Coalition got a rough idea of what government's stand is on key issues being negotiated in the run-up to the Cancun Ministerial. Late last week, and as the major dailies bannered, part of these indications was reaffirmed by the President herself.

On the general framework in the negotiations, the Philippines is supposed to take the view that liberalization should be managed in a way that will help the country develop. On agriculture negotiations, it will protect rice through the proposed strategic products mechanism under the proposed new agreement on agriculture, and will work for the removal of domestic subsidies as well as the increase in market access in developed countries. On industrial tariffs, there is a view that the issue is more internal, the country having lower applied rates than those committed to the WTO, and that the policy will be determined instead in the ongoing tariff review. On the trade related intellectual property rights (TRIPS) agreement, it said it will work to retard efforts to dilute the trigger events for invoking public health ground for the override of intellectual property. On GATS, while not disclosing what requests it has received and what offers it intends to give, the Philippine team said that sectors protected by the Constitution will not be offered for liberalization. Finally, the country is "uncomfortable" with the idea of including new issues of investment, competition policy, transparency in government procurement and trade facilitation in the WTO, and it will work to oppose or retard their inclusion.

We hold Secretary Roxas and the whole Philippine negotiating team accountable to the positions they declared. Following Secretary Roxas' pronouncement that their position is "the position of the President", we will also keep the pressure on President Gloria Macapagal-Arroyo to make sure that our negotiators negotiate for the national interest in Cancun, Mexico.

But while we welcome the clearer positions of the Government, we say that these are not enough. There are crucial issues that remain unaddressed.

The strategic products mechanism is an insufficient vehicle to continue protecting rice. The Coalition calls on the Government to continue the application of quantitative restrictions on rice, or the prohibition of rice importation. The Government is also not clear on whether or not it will agree to new liberalization, in the form of deeper tariff cuts, in agriculture. It is also silent on fisheries, a sector still protected from WTO rules. Small fisherfolk clamor for the exclusion of fisheries from the WTO's jurisdiction. During the dialogue with SNR!, Secretary Roxas said he would look into the possibility of "considering fisheries for the 5% exemption" from binding in the non-agricultural commitments. This route, however, presupposes agreement to the new liberalization in non-agricultural products, which meant more tariff cuts for industry. The Coalition reiterates its call on the Government not to agree to further liberalization in industry. Any commitment to further liberalize industry will put more pressure on the sector, and will preempt the ongoing tariff review process.

Today, as we send off our negotiators to Cancun, we would like to outline our "pasalubong" list. We will be happy to welcome them back to the country if they bring the following news home to us:

that there is no agreement on new liberalization in agriculture;

that the quantitative restriction on rice is extended;

that fisheries is excluded from the WTO's jurisdiction;

that no new liberalization in industry is agreed;

that negotiations on services are frozen;

that there is a strong pro-developing country elaboration of the TRIPS and public health provision; and,

that there is no agreement to include the new issues of investment, competition policy, transparency in government procurement and trade facilitation;

On the home front, these "pasalubong" should be complemented by the careful and purposive review of the country's industrial and agricultural policy. Concretely, the ongoing tariff structure review process should be made transparent, participatory and democratic. It is only in ensuring the integrity of this process that the Government can show sincerity in increasing the stakes of the people, and that the people are real partners in development.

The Stop the New Round! Coalition is sending its own delegation to Cancun to monitor the negotiations and keep the pressure up on our negotiators, and to express solidarity with the thousand other civil society representatives and public interest activists who will be sharing the same goals in Cancun next week.

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For inquiries, please contact the Stop the New Round! Coalition Secretariat at 4333387 and 4330899. You may also contact the Media Team c/o Mary Ann Manahan at 0917-8210694.

STOP THE NEW ROUND COALITION Organizations:Action for Economic Reforms (AER), Akbayan! Citizens Party, Alliance of Progressive Labor, Alternate Forum for Research in Mindanao (AFRIM), AR Now!, Bayanihan International Solidarity Secretariat, Bukluran ng Manggagawang Pilipino (BMP), Bukluran sa ikauunlad ng sosyalistang isip at gawa (BISIG), Center for Agrarian Reform, Empowerment and Transformation (CARET), Confederation of Independent Unions in the Public Sector (CIU), Focus on the Global South, Freedom from Debt Coalition (FDC), Global Network-Philippines, Greenpeace Southeast Asia, Integrated Rural Development Foundation (IRDF), Kalayaan, Katapat, Kilusang Mangingisda (KM), Kilusan para sa Pambansang Demokrasya (KPD), Kilusang Makabansang Ekonomiya (KME), Labor Education and Research Network (LEARN), Pambansang Katipunan ng mga Samahan sa Kanayunan (PKSK), Partnership for Agrarian Reform and Rural Development Services (PARRDS), PATAMABA National Network of Homeworkers, Peoples' Global Exchange (PGX), Philippine Network of Rural Development Institutes (Philnet-RDI), Philippine Peasant Institute (PPI), Philippine Rural Reconstruction Movement (PRRM), Rural Enlightenment and Accretion in Philippine Society (REAPS), Sandigan at Ugnayan ng Magbubukid sa Pilipinas (SUMAPI), Sanlakas, Sarilaya, Southeast Asia Regional Initiatives for Community Empowerment (SEARICE), Tambuyog Development Center (TDC), WomanHealth Philippines Individuals:Jessica Reyes-Cantos, Prof. Rene Ofreneo, Prof. Miriam Coronel Ferrer, Prof. Perlita Frago , Verna Dinah Viajar, Sharon Quinsaat, Provincial and Regional Formations: SNR- Batangas, SNR-Cebu, SNR-Nueva Ecija, SNR-Mindanao


Declaration Endorsed by : Rep. Loretta Ann Rosales, Rep.Mario Aguja Akbayan Partylist, Rep. Del R. de Guzman - Lone District, Marikina City, Rep. Emmanuel Joel Villanueva - CIBAC Partylist, Rep. Herminio Teves-Chairperson of the House Special Committee on Globalization, Rep. JV Bautosta, Sanlakas Partylist, Rep. Renato Magtubo Partido ng Manggagawang Pilipino, Prof. Rosalinda Pineda-Ofreneo, Jaime Tadeo, Federation of Free Workers (FFW), La Liga Policy Institute, MAKALAYA, , Philippine Alliance of Human Rights Advocates (PAHRA),Philippine NGO Liaison Committee on Food Security and Fair Trade (PNLC), Resource Center for Peoples Development (RCPD),Francisco Floro


Email : stop[at]focusphilippines[dot]org

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Tel: (632) 4331673, 433-3387

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