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RENGO endorsed its position on the Japan-Singapore
Free Trade Agreement and the Japan-Korea Investment Pact at the
18th Central Executive Committee Meeting held on January 12.
RENGO will seek that these bilateral agreements encourage sustainable
economic development, improve and promote living and employment
standards, and secure basic legal labor rights and fair labor
standards.
1. The State
of Government Negotiations on the Japan-Singapore Free Trade
Agreement and the Japan-Korea Investment Pact
Since the early 1990s efforts for a multilateral trade framework
have been advanced by organizations such as the World Trade Organization
(WTO) and both developed and developing nations are prioritizing
bilaterally based regional integration. Some major examples include
the European Union (EU), the North American Free Trade Agreement
(NAFTA), Mercado Comun del Cono Sur (MERCOSUR), and the ASEAN
Free Trade Area (AFTA).
Amidst these trends, since around 1998 the Japanese government
has moved toward entering into free trade agreements. The government
is now proceeding with negotiations between Singapore and Korea
to conclude the Japan-Singapore Free Trade Agreement and the
Japan-Korea Investment Pact by Spring of 2001 at the earliest.
(1) The Current State
of the Japan-Singapore Free Trade Agreement
Singapore proposed
a free trade agreement at the December 1999 Japan-Singapore summit
with Prime Ministers from both nations in attendance. As a result,
both countries established a joint study group in March 2000
to research the matter and compiled a report in September. At
the November 2000 summit it was agreed to start negotiations
on the free trade agreement in January 2001 and conclude them
within the year in accordance with the report.
(2) The Current State
of the Japan-Korea Investment Pact
Korea proposed an investment pact at the November 1998 Japan-Korea
Ministers Conference where discussions began. In March 1999,
former Prime Minister Obuchi and President Kim Dae-jung agreed
on an early start and conclusion to negotiations. Subsequently
four rounds of full negotiations and five working-level conferences
were conducted with the goal of concluding negotiations within
the year 2000. The Ministry of Economy, Trade and Industry, which
is in charge of the negotiations, says that the discussions are
now in the final stages.
(3) Questions Regarding
the Free Trade Agreement and Investment Pact
The free trade agreement and investment pact aim to increase
the flow of money, goods, and people between the two nations.
The agreements are expected to have a significant influence on
each nations industrial structure and labor markets. It is necessary,
therefore, to conduct an evaluation of that influence and research
for measures regarding it. The position of labor unions should
be heard especially with regard to the influence on labor issues
and yet no attempt to conduct a hearing with RENGO has made.
2. RENGO's
Activities Thus Far
(1) Approaches to the
Japan-Singapore Free Trade Agreement
RENGO asked the Ministry of Economy, Trade and Industry's division
in charge to explain the current situation of Japan-Singapore
Free Trade Agreement negotiations.
The division head explained that details of the situation could
not be made public as it is a matter of diplomacy, revealing
only the topics and the fact that both parties were hoping to
strike an agreement within the year 2001.
RENGO sent inquiries to the Singapore National Trades Union Congress
(SNTUC) to inquire if it was in favor of the "Japan-Singapore
Free Trade Agreement" and whether its free trade agreements
with New Zealand and Mexico, already signed by Singapore, adhered
to core ILO labor standards.
SNTUC replied that it found no particular problems with the "Japan-Singapore
Free Trade Agreement" and was in favor of it. Further, SNTUC
told RENGO that any agreements already signed do not include
any abidance to the core labor standards.
(2) Approaches to the
Japan-Korea Investment Pact
RENGO asked each presiding division in the Ministry of Foreign
Affairs and the Ministry of Economy, Trade and Industry to explain
the state of negotiations for the Japan-Korea Investment Pact.
The divisions in charge gave no details as it is a foreign negotiation
matter but stated that final accord had yet to be reached on
several points such as labor issues.
On December 22, RENGO held a joint conference with two Korean
national centers, the Korean Confederation of Trade Unions and
the Federation of Korean Trade Unions. At the conference, both
the Confederation and the Federation expressed their basic opinions
against the investment pact. They said that the pact seeks to
protect investors and disadvantage Korean citizens and workers.
Reasons included the idea that it strengthens the dominance of
Japanese firms, common Korean labor practices would not be respected,
and that it would lower environmental standards. They also asked
for RENGO's opinion on the investment pact.
3. RENGO's
Basic Stance on Bilateral Free Trade Agreements
(1) RENGO has been lobbying the Japanese government on international
economic activities including trade and investment to play a
positive role for building an international trade regime based
on fair and transparent free trade along the WTO axis. RENGO
has also been pressuring the government to work for each country
to introduce social clauses ensuring basic legal labor rights
in the WTO agreement.
The ICFTU (International Confederation of Free Trade Unions)
has stated that countries that proceed with bilateral agreements
should support expansion of trade and investment that revitalizes
development and jobs, breaks poverty, and improves everyone's
living standard. Also, the ICFTU has said that agreements should
include a clause that the benefits from trade and investment
should extend everywhere.
(2) RENGO believes that
bilateral agreements should conform to the basic WTO agreements
that promote free and multilateral trade. RENGO seeks a realization
of those that include expanding free, fair, transparent world
economic exchange, improving living standards of each nation's
workers, building basic legal rights of labor and international
fair labor standards.
On these ideas, RENGO will seek the following five points for
bilateral free trade agreements.
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(1) The bilateral free trade
agreement should encourage sustainable economic development,
improve people's lives and jobs, protect the environment, and
improve security and health in both countries.
(2) Ensure basic legal labor rights, stabilize and create jobs,
and see that fair labor standards are enacted.
(3) Respect each other's customary practices (i.e. labor-management
consultations).
(4) Definitely abide by ILO's core labor standards and OECD multinational
business guidelines on labor.
(5) Attain a balance in principle between each nation's labor
force movements and employment and national consensus. |
(3) RENGO will ask each
country to conclude agreements with a full understanding of matters
concerning labor on bilateral agreements, along with information
disclosure to the unions representing each country and listen
to their opinions.
4. RENGO's
Reponses
(1) Japan-Singapore
Free Trade Agreement
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(1) RENGO's Opinion on
the Agreement
RENGO will ask that the Japan-Singapore Free Trade Agreement
conform to WTO principles to reduce tariffs and set safeguard
measures (emergency import restrictions) and abide by core ILO
labor standards and the OECD multinational business' action guide.
As for the deregulation of services, RENGO will ask that the
agreement set clear rules for the labor force movement limited
only to specialist personnel.
(2) RENGO's Future Actions for the Agreements
A) As for the Japan-Singapore Free Trade Agreement, RENGO will
make a proposal to the government as quickly as possible on safeguards
and limits on the liberalization of services in accordance with
said opinions and referring to opinions from related affiliated
organizations.
B) RENGO will continue to work closely with SNTUC on the contents
of this agreement. |
(2) The Japan-Korea
Investment Pact
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(1) RENGO's Opinion on
the Pact
RENGO will seek a Japan-Korea Investment Pact that ensures job
stability and respect for customary practices in labor-management
relations in each country, and a pact that will abide by ILO's
core labor standards and the OECD multinational business' action
guide. RENGO will call on the Korean government to disclose information
to the both Korean Confederation of Trade Unions and the Federation
of Korean Trade Unions, and examine the Pact with sufficient
understanding from both the Confederation and the Federation.
(2) RENGO's Future Actions for the Pact
(A) RENGO will ask the Japanese government to immediately see
that; the Japan-Korea Investment Pact will abide by ILO's core
labor standards and OECD's multinational business' action guide,
secure both nation's environmental protection, and that the Japanese
government will listen to the labor unions' opinions.
(B) RENGO will establish a study group in collaboration with
RIALS (Research Institute for the Advancement of Living Standards
or RENGO SOKEN) and participating scholars studying the influence
of the Japan-Korea Investment Pact and a possible Japan-Korea
Free Trade Agreement on workers in both countries. The examination
is scheduled to take one year.
RENGO will exchange the results in meetings with Korean national
centers. |
(3) Future Response
(1) The Japanese government plans to conclude the Japan-Korea
Free Trade Agreement and the Japan-Mexico Free Trade Agreement
in the near future. RENGO will petition the government that those
agreements include items to improve workers' living standards
in each nation and establish fair international labor standards
such as basic legal labor rights and core ILO labor standards.
(2) RENGO will seek the cooperation of labor unions in each country
at international conferences such as the TUAC (Trade Union Advisory
Committee) in OECD to call on governments to abide by core labor
standards for free trade agreements. |
