Join the 9th Asia-Europe People’s Forum

Join the 9th Asia-Europe People’s Forum

April 27, 2012

A call to social movements, frontline communities and campaigning networks, and progressive NGOs, academics and parliamentarians across Asia and Europe: Join the 9th Asia-Europe People’s Forum

“People’s Solidarity against Poverty and for Sustainable Development: Challenging Unjust and Unequal Development, Building States of Citizens for Citizens”

Vientiane, Laos, 16-19 October, 2012

On 5-6 November, 2012 the 9th Asia Europe Meeting (ASEM9) will take place in Vientiane, Lao PDR. Under the theme ‘Friends for Peace, Partners for Prosperity’, leaders of 49 member states and governments in Asia and Europe will exchange views, priorities and plans on regional and global issues that are of common interest to both regions at the summit.

Download Printable Version

Prior to and in conjunction with ASEM9, the Asia-Europe People’s Forum (AEPF9) will hold its 9th biennial People’s Forum on 16-19 October, 2012 under the title ‘People’s Solidarity against Poverty and for Sustainable Development: Challenging Unjust and Unequal Development, Building States of Citizens for Citizens’.

AEPF9 will tackle four major themes or People’s Visions, which represent AEPF hopes for citizens of ASEM member countries and the communities they live in. These are:

  • Universal Social Protection and Access to Essential Services;
  • Food Sovereignty and Sustainable Land and Natural Resource Management;
  • Sustainable Energy Production and Use; and
  • Just Work and Sustainable Livelihoods.

Progress towards the realisation of these People’s Visions is at the heart of a way out of the multiple crises confronting people, states and institutions globally. The ecological, debt, financial and food crises, which have been caused and compounded by the policies and practices of many governments in both rich and poor countries and their approaches to regulation of business, have caused increasing social polarization between peoples and states. In Asia, the crises are exacerbating poverty and inequality; already widespread before the present crises. In Europe, the crises are creating indebtedness, joblessness and insecurity. We are increasingly experiencing ‘corporate capture’: multinational and national corporations structuring and determining our lives and livelihoods. The responses of citizens are often at local and national levels and to complement these, the AEPF is looking to encourage and strengthen cooperation and solidarity of people’s networks regionally, inter-regionally and globally.

There are three stages that will contribute to building and promoting the Asia-Europe People’s Visions:

Preparation; ensuring that people across ASEM countries have the opportunity to debate, discuss and shape the AEPF9 themes.

The AEPF9 Forum; ensuring that the event is open, dynamic and inclusive and focuses on meaningful and practical discussion for change.

Beyond AEPF9; ensuring that commitments made during AEPF9 are honoured and that a sound platform for AEPF10 is laid.

AEPF9 will be an exciting series of interlinked dialogues, workshops, actions, policy debates and open spaces. You can be part of this event by actively participating in discussions to build the People’s Visions, which will be the basis of declarations from the Forum or by co-organising an event and/or contributing human and financial resources. There will be a call for expressions of interest to organise workshops and events soon.

Interested in joining us? Contribute your knowledge, resources or time to enable AEPF9 to be a success. This is YOUR forum.

Please watch out for announcements on AEPF9 activities and on how to register as a participant or co-organiser of events at the AEPF website (www.aepf.info). For further information, you may contact the following people, depending on your location:

AEPF9 Secretariat in the Lao PDR
Learning House for Development
Secretariat: secretariat@aepf9.info

AEPF9 Focal point/Secretariat in Asia
Institute for Popular Democracy
Tina Ebro: cgebro@gmail.com or Maris dela Cruz: sirmallet@gmail.com

AEPF9 Focal point in Europe
Transnational Institute Contact
Pietje Vervest: pietje.vervest@tni.org

The Asia-Europe People’s Forum (AEPF)

Since its formation in 1996, the AEPF has become the only continuing civil society inter-regional network connecting people’s movements and advancing their voices in ASEM. The AEPF is a people’s forum and it is critical that all people including those with disabilities, from ethnic communities, and from other vulnerable groups representing social diversity across Asia and Europe have access to the forum and the accompanying process.

Not just a one-off biennial event, the AEPF facilitates network-building, solidarity, and joint actions between and among civil society groups in Asia and Europe. It opens up new political spaces for influence, dialogue and cooperation, providing opportunities for social actors in each region to share, build, and strengthen campaigns and develop recommendations and people-centred alternatives at the national, regional, and inter-regional levels. It has also made significant contributions to increasing attention on the importance of influencing (inter) regional integration processes and placing regional network consolidation on the agenda of CSOs as a priority strategy. Its most active, longer-term coalitions and initiatives have been around water privatisation, EU-ASEAN Free Trade Agreements, transformative social protection, and participatory governance in pursuit of alternative regionalism and building states of citizens for citizens.

Now in its sixteenth year, the AEPF has entered a new phase of development where there is a strong consensus across Asia and Europe that the dominant neoliberal economic approach over the last decades – deregulation of markets, privatisation of public services, and trade liberalisation, as well the increasing power of multinational corporations and unaccountable multilateral institutions – is failing in its declared aims of meeting the needs and rights of the people.

Rationale of AEPF9 (Context)

The AEPF9 will be held at critical historical juncture when multiple crises confront people, states and institutions. The ecological, debt, financial and food crises have caused greater inequalities between peoples and between states; pain and impoverishment of the middle classes and destitution of the poor; and progress towards realising the basic social and economic rights for all has been reversed for many citizens across Europe and Asia.

Internationally, the traditional great powers like the USA are in economic decline, with de-industrialization and high unemployment, while giants from the South such as China and India are ascendant, with high growth and as the new manufacturing and consuming hubs. Meanwhile, Europe is in the midst of its deepest crises since World War II and a period of high growth and financial and social security is clearly over as indebtedness, joblessness and insecurity are growing. States are withdrawing subsidies, diminishing social nets and dismantling public utilities that were the result of many historic people’s struggles. Many states are adopting harsh measures to transfer the crises from financial institutions to the people. The international system is evolving into one where the USA, EU, China, India and Russia dominate decision making.

These new trends need to be understood and explained in order to develop appropriate responses from both policy makers and people. These historical changes indicate that Asia and Europe are more inter-dependent than ever before. There is much that the European and Asian social movements, as well as policy makers, can learn from each other. There are many policies that can be reformulated together. Asia can draw lessons on the need for sustainable growth that focuses on human development in order to avert its own financial, food, climate and social crises. Europe can learn how states need to control and regulate their economic and social systems to be inclusive and tolerant. Both need to collectively analyse the changing nature of the capitalist system and the state, in order to enable pro-people and inclusive policies and practices. Europe and Asia have to collectively resist militarization, reject conflict and re-invigorate transparent and truly democratic systems that can become more a reality for citizens where economic and social rights are more respected and are linked to genuine participation and access to services.

In this context, it is important to develop and advance coherent alternatives towards transformative frameworks for people-centred development that is more holistic, just, equitable, participatory and sustainable. Equally important is identifying common and collective strategies to effectively repudiate the failed neoliberal economic-centred model.

The causes of poverty are complex and are not limited to economic and other asset deficits; space for people’s voices to effect change that they value, power relations, personal and communal responsibilities, justice and the fulfillment of basic rights are essential for sustainable development.

Sustainable development must ensure that resource use does not deprive future generations of access to resources for their livelihoods and their well-being. This will require innovative initiatives for the 21st Century. At present we are consuming more than the earth can regenerate. Business as usual will not work.

People’s Solidarity against Poverty and for Sustainable Development

While a number of Asian countries have seen economic growth continue, though at a slower rate over the last two years, two thirds of the world’s poor and hungry are in Asia and struggling to live in dignity. Almost 80 per cent of the workforce in this region are pushed into the informal sector and suffer from extremely low wages and precarious working conditions. Hundreds of millions of women and men in Asia are in extreme poverty. Poverty that is not uni-dimensional and is broader than an economic measure; it includes an individual’s well-being and her/his opportunity to live a life of dignity. The fulfillment of not only civil and political rights, but also of economic, social and cultural rights are factors in addressing this poverty and achieving sustainable development – where future generations are not deprived of access to resources in order to live well.

The response from many governments and policy makers to these changes have been seen as unacceptable by many around the world and this has led to a number of people’s actions globally around issues as diverse as anti-corruption, pro-democracy and social and economic justice; including movements for decent work and universal social protection, including the protection and strengthening of public services especially health, water, education and housing and land rights and protection of the commons.

The social organisations and movements involved in the Asia Europe People’s Forum have continued to prioritise this people’s solidarity against poverty for sustainable development.

The Economic, Social and Fiscal Crises in Europe

2011 witnessed the implementation of some of the most comprehensive structural changes in the European Union since the Lisbon Treaty, greatly affecting European people’s employment, access to public services and social security. Labour market policies are being altered to favour more flexibility and lower wages, and austerity measures are being institutionalized through mandatory limits on public spending. There are linked pressures for the greater privatisation of essential public services including health and education. This is leading to cuts in public services central to European citizens’ lives and livelihoods. Such dramatic changes have been advanced swiftly in an attempt to ‘save or stabilize’ the Eurozone.

As the race to save the euro continues, all EU members, except the UK and the Czech Republic, have signed a Fiscal Treaty which will give a major role to the EC in member states’ fiscal and economic policies. The euro crisis has set the European Union on course for a new model of ‘economic governance’ that puts the European Commission in a position to check and correct member states’ fiscal and economic policies before they are discussed in national parliaments. The change of the norms and rules on which the European Union rests will deeply influence the inter-relationship of the EU with the rest of the world.

It will be vital for citizens in countries outside the European Union to be aware of these changes, assess how they may change the European Union’s relationship with other regional groupings such as ASEAN and ASEM and assess whether the economic, social and financial crisis in Europe will change the resource procurement, investment and marketing strategies and priorities of European based companies, particularly with respect to ASEM member countries from Asia.

Food Sovereignty and the Food Crisis for Citizens in ASEM Member Countries from Asia

For many citizens across Asia, one key challenge for poverty reduction has been the significant increase in food prices over the last five years. For many this had led to problems of access to food. The changes in the financing of food production and the financialisation of food markets at national and international levels have led to distortions in markets for key foods, which have also contributed to increases in price for consumers.

A linked pressure has been from the emerging effects of the liberalisation of trade and investment, often as result of agreed inter-regional, country to region and country to country trade and investment agreements. This is having cumulative, negative effects on food sovereignty and food security for a growing number of communities and countries.

The ‘global land grab’ has captured worldwide attention in recent years with a focus on the explosion of commercial land transactions, land speculation and subsequent dispossession of rural communities, fuelled mainly, but not solely, by the large-scale production and export of food and agro-fuels. Alarm is now also growing that a ‘global water grab’ is under way, with water increasingly described as the next big commodity, a ‘blue gold’’, sought after by states and investors worldwide. Water has become a new object of appropriation at the heart of a range of environmental, energy, food, and development concerns. These trends in land and water grabbing by a variety of means are very visible in a number of Asian ASEM member countries.

Climate Crisis and Sustainable Energy Policies

Parallel to these pressures have been drives across Asia and Europe to increase energy production to support economic development and growth. Several developing countries in Asia and Europe have placed an emphasis on supply side energy planning and as a result they are investing in capital intensive energy production, including production from life-threatening and ecologically destructive sources such as big hydropower, nuclear power or coal and gas-fired power plants. In contrast, through energy saving, energy efficiency practices and demand side management it would be possible to address energy needs, decreasing the requirements for increased energy production. Some approaches to energy production, especially coal and gas fired power plants, are contributing to increases in greenhouse gases which are contributing to negative aspects of climate change. Key issues of environmental sustainability have dominated national and international agendas post-Kyoto. ASEM has held a range of discussions on these issues and the AEPF9 is committed to anchoring these discussions in the daily pressures faced by citizens and commitments to sustainable and environmentally sensitive economic development. These discussions will take place in the aftermath of the Durban Summit on Climate Change and its limited outcomes and commitments.

For many poor countries, addressing the climate crisis is even a matter of life and death or basic survival. Development policies, including energy policies, have to consider not only their economic end, but more importantly how these would contribute to the realization of ecologically sustainable development.

There is great concern over the growing pressures to adopt a ‘Green Economy’ in response to the climate crisis. The Green Economy is an ambitious global project that seeks to de-link economic growth from environmental deterioration through three-dimensional capitalism that includes physical capital, human capital, and natural capital (rivers, wetlands, forests, coral reefs, biological diversity and other elements). For the Green Economy, the food crisis, the climate crisis and the energy crisis share a common characteristic: the failed allocation of capital. As a result, the Green Economy treats nature as capital; ‘natural capital’. Deeper still is the inability of our education system and practices to evoke positive emotions, such as caring and compassion. Instead it is encouraging new generations to become self-centred, contributing to over-consumption and senseless mass production. The Green Economy considers it essential to put a price on the ‘free’ services that plants, animals and ecosystems offer to humanity in order to ‘sustainably manage’ biodiversity, water purification, pollination of plants, the protection of coral reefs and regulation of the climate. For the Green Economy, it is necessary to identify the specific functions of ecosystems and biodiversity and assign them a monetary value, evaluate their current status, set a limit after which they will cease to provide services, and concretise in economic terms the cost of their conservation in order to develop a market for each particular environmental service. For the Green Economy, the instruments of the market are powerful tools for managing the ‘economic invisibility of nature’. The discussions in AEPF 9 will look beyond the veneer of false hope being generated by green growth and the green economy and will look at real alternatives needed to bring about the necessary decrease in global greenhouse gas emissions.

Sustainable Growth and Governance

The current economic, ecological and social crises, and the international governance responses to these, are providing opportunities and imperatives to develop multi-lateral and multi-faceted solutions based on new approaches and principles. The AEPF is concerned that despite this and the pressing need for action that will ensure social justice, human rights and equitable and sustainable growth across the two regions, the agenda and decisions at the ASEM will remain dominated by narrow national and financial interests. AEPF9 will develop ‘People’s Visions’ that will be presented to ASEM and its member states that will provide recommendations for policies and practices that can enable more pro-people, inclusive and sustainable development.

Objectives of AEPF9

AEPF9 seeks to learn from and build on the discourses and recommendations of previous AEPFs and to ensure that the global experiences of people’s forums from around the world inform and shape the AEPF9 agenda. It will take a more integrated and holistic approach to development, which includes people’s well-being at all levels. It is critical that AEPF9 is undertaken in the context of key regional and international fora including the ASEAN People’s Forum and the 4th High Level Forum on Aid Effectiveness in Busan and that AEPF9 process supports national civil society initiatives to meet commitments outlined at these levels.

This mutual understanding will ensure that the event is held in an environment that encourages learning, reflection and sees diversity in opinion as a strength that will lead to people’s solidarity for sustainable development globally. Solidarity is important at the national, regional and international level given the interconnectedness of the world. It stresses harmony, compassion and understanding, whilst recognising strength in diversity and the role diversity plays in strengthening solidarity.

The AEPF9 seeks to reflect and understand the current historical juncture, be able to build and promote a People’s Vision that defines sustainable development from the people’s perspective, and to strengthen people’s solidarity at national, regional and international levels.

Specific Objectives

AEPF9 cannot be viewed as a single event but as an integrated process:

Preparatory stage; ensuring that the AEPF9 agenda is driven by the people and provides space for broad engagement nationally, regionally and internationally in ways that provide ownership of the agenda by the people.

During the AEPF9; encouraging dialogue to look beyond economic-only factors in the creation of a shared understanding of sustainable development and policies and practice to make this a reality. Developing a shared understanding of solidarity and what it means for people, identifying where and how civil society organisations and social movements can play a role in bridging gaps between policy and action and preparing a strong, unified, representative and inclusive statement to ASEM from the people.

Following Up from the AEPF9; ensuring that civil society and governments are accountable to their commitments made at the AEPF and ASEM, sustaining mutually beneficial dialogue, learning and exchange between civil society and social movements nationally, regionally and internationally that link to relevant people’s agendas and form a platform for AEPF10.

Building and Promoting Asia-Europe People’s Visions

With ASEM9 coming in the midst of current social and economic crises, the AEPF provides a unique opportunity to assess how responses to the crisis have affected the lives and livelihoods of citizens in Asia and Europe and to articulate the policy solutions being voiced by civil society from across both regions.

AEPF is committed to working for a more just and equal world. In order to progress towards this reality, and to take forward the commitments expressed in the AEPF9 title, AEPF will be working to deepen knowledge, hold discussions and develop recommendations on four themes which represent what it would like to see as a living reality for the citizens of the ASEM member countries and the communities that they live in.

These themes are:

  • Universal Social Protection and access to Essential Services;
  • Food Sovereignty and Sustainable Land and Natural Resource Management;
  • Sustainable Energy Production and Use; and
  • Just Work and Sustainable Livelihoods.

Building on preceding People’s Forums, there is recognition that there are cross-cutting issues or mechanisms that different approaches to can either contribute to or hinder progress towards the achievement of these themes. Specifically, these cross-cutting issues on trade and investment, including Free Trade Agreements; revenue and tax policies and practice; climate policies; holistic and relevant education; and peace and security programmes, all of which it is hoped will be integrated into the reflections, discussions and recommendations emerging from AEPF9.

The Thematic Workshops are an important part of the People’s Forum, providing an informing context and background to the workshops, open spaces, roundtables and other events, as well as potentially being an important contribution to the Final Declaration of AEPF9. To enable a broad and rich process before the People’s Forum itself, there will be a series of inter-locking activities and processes across Asia and Europe that will contribute to an evolving draft of People’s Visions for each theme. The outcomes of these processes will be brought together as contributions to the Final Declaration of AEPF9.

Download Printable Version

Read More

Position on Double Taxation

Position on Double Taxation

February 23, 2012

Position Paper of the EU-Asean FTA Network on the Double Taxation Agreements signed by the Philippine Government with the governments of Kuwait, Qatar, Sri Lanka and Turkey and submitted to the Senate for Ratification

The EU-Asean FTA Campaign Network-Philippines is network of NGOs and social movements monitoring negotiations for free trade agreements between the European Union and Asean Member States as well as global and regional trade and investment policies and their implications on the Philippines.

The network submits this position paper to the Senate Committee on Foreign Relations with regard to the ratification process of agreements/conventions on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (double taxation treaties or DTTs) signed by the Philippine Government with the governments of Kuwait, Qatar, Sri Lanka and Turkey.

DTTs and FDI: Weighing the Pros and Cons

For resource constrained developing countries like the Philippines, the main premise as we understand it, for entering these double taxation treaties (DTT) is to attract foreign direct investments (FDI). This contention is based on the logic that prevention of double taxation, which really translates to an incentive in the form of tax relief for foreign investors, would facilitate the entry of more investments.

Furthermore as some academics have put it, like bilateral investment treaties or BITS, DTTs also provide parties a certain badge of “international economic respectability,”[i] which in turn would make countries with a network of such treaties more attractive for investors.

The effectiveness however of such tax treaties in inducing higher FDI, as one study pointed out, is still open to debate.[ii] While indeed there are studies that assert that these treaties “create positive environment for foreign investors” particularly on cross-border equity flows[iii], generally the empirical evidence pointing to positive effect of DTTs on FDI “remains inconclusive.”[iv]

According to a report of the International Monetary Fund (IMF), “foreign investors, which are the primary targets of most tax incentives, base their decisions to enter a country on a whole host of factors, of which tax incentives are frequently far from being the most important.”[v]

A United Nations (UN) report on Tax Incentives and FDI: A Global Survey (2000) concluded that “it is generally recognised that investment incentives have only moderate importance in attracting FDI.”[vi]

Furthermore, there are also some legal experts who assert that “ubiquitous treaties are not necessary for preventing double taxation”, and may in fact have “much more cynical consequences, particularly redistributing tax revenues from the poorer to the richer signatory countries.”[vii]

While there may be supposed benefits from these treaties, there are also a number of costs and negative effects associated with them. A 2009 study by Barthel, Busse, and Neumayer on the Impact of DTTS on FDI outlined these effects as:[viii]

Administrative cost of negotiating and ratifying the contract. Given the length and labor intensity of the negotiations process and the additional effort of matching versions in different languages, the costs can be substantial especially, but not only, for smaller or developing countries.

Curtailment of national fiscal sovereignty, if provisions in the treaty conflict with domestic tax laws, which have to be adapted as a consequence.

Potential loss of tax revenues. DTTS that use the model of the Organization for Economic Cooperation and Development (OECD) regularly favor residence over source taxation. Entering a DTT therefore often leads to a loss of tax revenue in developing countries that is why capital importing developing countries tend to favor more the UN model treaty, which allows source taxation of short-term business activities.[ix]

The study concludes that “alongside the favourable impact of DTTS on FDI stocks, the potential negative effects of DTTs also have to be considered. Likewise, depending on the final outcome of the negotiations on the DTT, host countries potentially face losses in tax revenues. For many developing countries, these losses are not offset by tax reductions for domestic investors abroad due to the prevailing asymmetry in FDI stocks. As a consequence, EACH COUNTRY SHOULD CAREFULLY PONDER THE PROS AND CONS OF NEGOTIATING DTT.”

Questions for the Philippine Government

To date, the Philippines has concluded around 35 (39 including the four treaties submitted to the Senate for ratification) such tax agreements with a diverse mix of countries.

We are in the dark however whether the Philippine government has an over-all framework for negotiating these agreements. What is the basis for example in having agreements with these 35 select countries? And what is the basis for the new agreements with Sri Lanka, Kuwait, Qatar and Turkey?

What DTT model was followed in the negotiations for these four new agreements? And what were the bases for preference over one model or aspects of one model to another?

While there are aspects of the four new agreements for instance that are akin to the UN model treaty particularly with regards to the duration test for determining permanent establishment (Article 5), some other aspects such as those pertaining to Dividends (Article 10), Interest (Article 11) and Royalties (Article 12) which states specific range of taxes allowed (from 10-15 % for the newer treaties with Kuwait, Qatar and Turkey concluded in 2009 and 15-25 % for the agreement with Sri Lanka concluded in 2000), are more in keeping with the OECD Model which is preferred by developed countries.

What role do DTTs play in the country’s foreign investment policy and how does this policy square with our over-all development goals?

Has the government undergone studies to look in to the effects of the 35 DTTs signed and in force on the country’s FDI stock? Are there studies on these four new agreements?

Does the government have an estimate how much revenues have been foregone as a result of these agreements?

These are some of the questions which we hope the representatives of the Executive branch through the concerned agencies would be able to shed light on in the course of these Senate deliberations on these four new agreements.

The answers would confirm whether or not the government exercised due diligence in entering into these agreements.

Broader Issues and Concerns

The discussions on DTTs and FDIs should also be situated in the context of broader issues and concerns that have a bearing on the Philippines long term development objectives.

The issue of illicit capital outflows and the hollowing out effect on the Philippine economy- A study by Global Finance Integrity on the tax revenue loss from trade mispricing (2010) listed the Philippines as among the top countries with largest tax revenue loss in percent of government revenues. According to the study, from the period 2002-2006 the Philippines loss an average of around US$4.2 billion in tax revenues, representing 30 % of government revenues.[x] A more recent study by GFI summed up the total revenue loss from 2000-2008 to US$109 billion.[xi]

Trends in investment regimes favouring more investor protection and the contentious issue of investor state dispute settlement mechanism. The EU for example has recently approved negotiating mandates for investment protection measures under proposed free trade agreements (FTAs) with India, Singapore, Canada which seeks higher standards of market access and investor protection including among others provisions for unqualified national treatment, free transfer of capital, umbrella clause, and investor to state dispute settlement mechanism.[xii] The Philippine government is eyeing a bilateral trade agreement with the EU, negotiations for which would most likely be launched this year. The enhanced investment chapter is likewise expected to be an integral part of the negotiating agenda.

The investor to state dispute settlement (ISDS) mechanism stands out as one of the most contentious issues in the global investments regime. ISDS affords “investors the right to bring claims to governments before a panel of arbitrators with hardly any public participation or accountability.”[xiii] In the case of the Philippines, at least three foreign companies have filed claims against the Philippine government under the International Centre for the Settlement of Investment Disputes (ICSID) demanding compensation amounting to hundreds of millions of dollars.

Lack of Information and the need for further discussion

Our network is likewise concerned with the lack of consultations and discussions on these agreements. We learned of these agreements only in the context of the hearings being conducted by the Senate Foreign Relations Committee. These agreements/conventions have been negotiated and signed by the Executive since 2000 in the case of the agreement with Sri Lanka, and 2009 for the agreements with Kuwait, Qatar and Turkey yet we have not heard of any public consultation conducted

In light of the above considerations, our network puts forward its position that international agreements such as these, which would have implications on national policies affecting particularly fiscal incentives and government revenues are matters of national interest and would necessitate broader public consultations, and a serious consideration of the pros and cons of entering these agreements. This more cautious and deliberate approach to negotiating DTTs and other such economic agreements is especially significant in light of the current context of a global investment regime that pushes investment liberalization and greater standards of investor protection on the one hand amidst the increasing resource constraints facing developing countries like the Philippines.

[i] Rosenbloom (1982) as cited in Barthel, Busse and Neumayer, The impact of DTTS on FDI: Evidence from Large Dyadic Panel Date. Western Economic Association International. 2009.

[ii] Barthel, Busse and Neumayer, The impact of DTTS on FDI: Evidence from Large Dyadic Panel Date. Western Economic Association International. 2009.

[iii] Parikh, B et al. The Impact of Double Taxation Treaties on Cross Border Equity Flows, Valuations and Cost of Capital. 2011.

[iv] Parikh, B et al. The Impact of Double Taxation Treaties on Cross Border Equity Flows, Valuations and Cost of Capital. 2011

[v] Tanzi, V and Zee, H (2001), Tax policy for developing countries. IMF Economic issue 27, Washington. See http://bit.ly/tcsR9

[vi] UNCTAD (2000), Tax incentives and foreign direct investment: a global survey. United Nations, New York/Geneva, 2000, p.11 See http://bit.ly/4tRWsA

[vii] Dagan, T. The Tax Treaties Myth. NYU Journal of International Law and Politics. 939 (2000)

[viii] Barthel, Busse and Neumayer, The impact of DTTS on FDI: Evidence from Large Dyadic Panel Date. Western Economic Association International. 2009.

[ix] Tax Justice Briefing on Source and Residence Taxation. September 2005.

[x] Hollingshead, A. The Implied Tax Revenue Loss from Trade Mispricing.Global Financial Integrity. February 2010.

[xi]Kar, D and Curcio Karly.Illicit Financial Flows from Developing Countries :2000-2009. Update with a Focus on Asia. Global Financial Integrity. January 2011.

[xii]Llge, B., and Singh, K. Protecting Investors Rights:An assessment of EU’s New Mandate on International Investments. Madhyam Briefing Paper. October 2011. Available at http://www.madhyam.org.in/admin/tender/Madhyam%20BP4.pdf. Last visited 21 February 2012.

[xiii] Llge, B., and Singh, K. Protecting Investors Rights: An Assessment of EU’s New Mandate on International Investments. Madhyam Briefing Paper. October 2011. Available at http://www.madhyam.org.in/admin/tender/Madhyam%20BP4.pdf. Last visited 21 February 2012.

To the Senate Committee on Foreign Relations
23 February 2012

Read More

15 years of the Asia-Europe People’s Forum

15 years of the Asia-Europe People’s Forum

February 9, 2012

A review and reflection with recommendations for strengthening for the future

There has been a clear affirmation by the vast majority of the people who have contributed to the review that AEPF is both a relevant network and that it has unfulfilled potential. In the context of the continuing social and economic injustices that deprive millions of women and men across Asia of their rights and the growing social and economic exclusion of millions in Europe and the role of the ASEM member states in perpetuating this situation through their financial, economic and social policies and practice, there is a great need to both strengthen and give focus to the campaigns and lobbying of the movements and networks involved in the AEPF.

Read More

Defend The Right to Health and Access to Affordable Medicines! No To Trips Plus Provisions In Bilateral FTAs!

DEFEND THE RIGHT TO HEALTH AND ACCESS TO AFFORDABLE MEDICINES! NO TO TRIPS PLUS PROVISIONS IN BILATERAL FTAs!

October 1, 2011

(A Joint Position Paper on bilateral free trade agreements and their impact on the right to health and access to affordable medicines published by the Medicines Transparency Alliance (MeTA) Philippines, Inc., Coalition for Health Advocacy and Transparency (CHAT) and the EU-ASEAN FTA Campaign Network, October 2011)

ACCESS TO MEDICINES IN THE PHILIPPINES: SOME STATISTICS

The Philippines is a lower middle income country where total health expenditures (THE) account for only 3.7% of Gross Domestic Product (GDP). Filipino households bear the heaviest burden in terms of spending for their health needs, with private out-of-pocket (OOP) expenditures reaching 56% of THE. (Philippine National Health Accounts, 2006)

(In order to move towards universal coverage, the World Health Organization (WHO) believes that countries would need to spend 4-5% of GDP on health, and keep OOP expenditures below 30-40% of THE.)

In terms of access to medicines, consider the following:

  • At least 30% of our population lacks regular and sustainable access to essential medicines. The Philippines has been identified as one of 64 countries worldwide where access to medicines is classified as low to medium, at best. (World Medicines Situation Report, 2004)
  • Pharmaceuticals account for 46% of total household spending on health, making medicine purchases the largest single item of health care expenditures. (Family Income and Expenditures Survey, 2000)
  • About a third (31%) of all reimbursements made through the National Health Insurance Program (NHIP) are for medicines, making medicines the second largest item in payments made by Philhealth. (PHIC Report, 2010)
  • A 2005 drug price survey revealed that, in the Philippines, prices for originator brand medicines sold through private retail outlets were, on average, 15 times greater than international reference prices, while lowest-price generic equivalents were more than 6 times the reference price. (Batangan, 2005)
  • In a 2009 health facility survey, it was reported that, on a list of 44 essential medicines, mean availability of innovator and generic medicines in the public sector 8% and 27%, and in the private sector, 14.7% and 19.7%, respectively. (2009 WHO Health Facility Survey on Medicines)
  • A study conducted by the European Commission in 2010 revealed that the level of availability of essential drugs in public health facilities at all levels was only 25.3%. (EC-TA Report on performance indicators for the Health Sector Policy Support Programme II, 2010)

DOHA DECLARATION ON THE TRIPS AGREEMENT AND PUBLIC HEALTH[1]

The Declaration on the TRIPS Agreement and Public Health – adopted by the member-countries of the World Trade Organization (WTO) during its Ministerial Conference in Doha in November 2001 – upheld the primacy of public health to promote access to medicines.

“We agree that the TRIPS Agreement does not and should not prevent Members from taking measures to protect public health. Accordingly, while reiterating our commitment to the TRIPS Agreement, we affirm that the Agreement can and should be interpreted and implemented in a manner supportive of WTO Members’ right to protect public health and, in particular, to promote access to medicines for all.

In this connection, we reaffirm the right of WTO Members to use, to the full, the provisions in the TRIPS Agreement, which provide flexibility for this purpose.”

By setting minimum standards on IPR protection, the TRIPS Agreement has resulted in the “significant loss of policy flexibilities especially for developing countries in regulating the grant and use of pharmaceutical patents and controlling the cost of medicines. The Agreement, however, has left some room for countries to put in place public interest measures, including measures to protect public health.”[2]

The Declaration underscored the right of countries to use flexibilities that are built into the TRIPS Agreement such as

  • The right to grant compulsory licenses and the freedom to determine the grounds on which such licenses are granted
  • The right to determine what constitutes a national emergency or circumstances of extreme urgency
  • The right to establish a regime for exhaustion of intellectual property rights without challenge

In its 2005 study, the Commission on Intellectual Property Rights, Innovation and Public Health (CIPIH) found that the use of these TRIPS flexibilities can promote access to medicines in developing countries.

Notably, the CIPIH also study states that, from a public health perspective, developed and developing countries not only have the flexibility to utilize and/or facilitate the utilization of TRIPS flexibilities for public health purposes, but they, in fact, HAVE AN OBLIGATION TO DO SO.

UNIVERSALLY ACCESSIBLE CHEAPER AND QUALITY MEDICINES ACT OF 2008 (REPUBLIC ACT NO. 9502, S. 2008)

Also known as the Cheaper Medicines Law, RA 9502 is considered a landmark legislation that upholds the people’s right to health and access to affordable and quality medicines. Through this law, the government affirmed its mandate “ . . . to protect public health, and when the public interest or circumstances of extreme urgency so require, . . . adopt appropriate measures to promote and ensure access to affordable quality drugs and medicines for all[3].”

Like the DOHA Declaration, the Cheaper Medicines Law clearly tilted in favor of public health against patent protection when it stated that: “(A)ll doubts in the implementation and interpretation of the provisions of this Act, including its implementing rules and regulations, shall be resolved in favor of protecting public health[4].”

The Cheaper Medicines Law likewise incorporated TRIPs flexibilities in domestic policy to provide for effective market competition as a means to drive down drug prices. Through amendments to the Intellectual Property Code of the Philippines to

  • Allow parallel importation of patented medicines from other countries where these are more affordable;
  • Prohibit the grant of new patents based only on newly discovered uses of a known drug substance;
  • Allow local generics firms to test, produce and register their generic versions of patented drugs even before the patent of the innovator drug expires; and
  • Allow the government use of patented drugs when the public interest is at stake,

the Law clearly expresses the State’s commitment and obligation to public health as an overriding development concern.

While many are impatient that the Law has not been used to the full, certain inroads have been made. Reports show that the Law has:

  • Paved the way for government to intervene through the imposition of price ceilings on selected medicines, and consequently influenced market players to voluntarily reduce prices on certain drugs as well;
  • Helped raise awareness about generics, encouraged their use, and provided patients with a wider range of choices. With lower priced alternatives available, patients’ compliance to treatment regimens has likewise improved; and
  • Reduced applications of frivolous patents on the ground of ‘new use’, as reported by the Intellectual Property Office[5].

These gains notwithstanding, the public has expressed impatience over the failure to attain the full potential of RA 9502. We therefore urge the full use of the flexibilities allowed therein, as they are in the TRIPS Agreement; and maximize use of measures to encourage greater market competition as the most effective and sustainable means to further drive down medicine prices.

TRIPS PLUS PROVISIONS

We are concerned over reports that drafts of several regional and bilateral Free Trade Agreements (FTAs) that are currently being negotiated may contain provisions that will effectively require the Philippines to enforce even higher levels of protection of intellectual property rights (IPRs) for medicines than those mandated under the TRIPS Agreement (TRIPS- plus provisions).

The Philippines should not allow itself to be bound to accept standards of protection that go beyond what had been consented to at the multilateral level. Higher standards will, by their very nature, delay or restrict competition, and eventually impede greater access to medicines.

LEARNING FROM THE EXPERIENCE OF OTHER COUNTRIES

According to the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), FTAs with TRIPS-plus provisions are usually those involving the United States, the European Union and, to an extent, Japan.

Before entering into FTAs that may contain (even implicitly) TRIPS-plus provisions especially with developed countries like the US and the EU, the Philippines should seriously study their potential impact on public health, as well as on ongoing efforts to improve access to medicines (use of measures in RA 9502, for example). Impact assessment surveys (like those on FTAs negotiated by Jordan and Colombia that contain TRIPS-plus provisions) have shown the detrimental effects of such provisions on medicine prices and health spending.

US-Jordan FTA

A study by Oxfam International on the effects of the US-Jordan FTA on access to medicines[6] concluded that TRIPS-plus rules introduced into Jordan’s IP framework had a negative impact on access to medicines:

  • TRIPS-plus rules, particularly data exclusivity, independently prevent generic competition for 79 per cent of medicines launched by 21 multinational pharmaceutical companies since 2001.
  • Additional expenditures for medicines with no generic competitor, as a result of enforcement of data exclusivity, were between $6.3m and $22.04m.
  • There has been nearly no FDI by foreign drug companies into Jordan since 2001 to synthesize or manufacture medicines in partnership with local generics companies, and this has harmed public health. The only FDI into Jordan by foreign drug companies has been to expand scientific offices, which use aggressive sales tactics to ensure that expensive patented medicines are used in lieu of inexpensive generics.
  • Stricter intellectual property rules have not encouraged companies in Jordan to engage in R&D for medicines since the passage of the FTA, and these companies have not developed any new medicines.
  • New product launches in Jordan are only a fraction of total product launches in the USA and the EU. Many new medicines launched in Jordan are exorbitantly priced and unaffordable for ordinary people. Few or no units of these recently launched medicines have actually been purchased on the local market.

EU-Colombia FTA

A study on the foreseen impact of the EU-ANDEAN FTA on access to medicines in Colombia, particularly the impact of increasing the effective duration of pharmaceutical patents and test data protection, for example, showed the following results:

  • Increase of protected active ingredients from 4% to 30% of the market
  • Increase in medicine prices by 46%
  • Increase in health spending of up to US$ 1 billion annually
  • 5 millions Colombians would lose access
  • 12,000 AIDS/HIV patients would see their life expectancy decrease between 5.3 and 9.9 years

The study further concludes that the (TRIPS-plus) provisions promote an increase in the market share for protected products, thus extending periods of monopoly prices. This, in turn, hinders access to new pharmaceutical products.[7]

These and similar impact assessment studies done on various bilateral FTAs provide evidence that point to the serious negative impact of TRIPS-plus provisions on access to medicines and public health.

OTHER TRIPS PROVISIONS AFFECTING HEALTH OUTCOMES

In addition to the IPR provisions contained in FTAs, we recognize that there are others which will impact as well on the delivery of public health services and the attainment of health targets. These include:

Trade in Services

Based on the 2006 World Health Report, an optimum ratio of 2-3 health workers (doctors, nurses, midwives) per 1000 population is needed for a health system to be able to deliver at least 80% of its essential public health services.

The Philippines is far from achieving this. There is an imbalance in the supply of and demand for health professionals. While there is an excess in the national supply of nurses, there is an evident dearth in the number of health workers in far-flung communities.

The liberalization of the services sector allowed under FTAs may, in the case of the health sector, prove detrimental to efforts to address the evident inequities. Allowing the entry of foreign health professionals will result in stiff competition for limited posts in the urban areas, and a slide in the number of health workers seeking jobs in the rural communities. Filipinos must be given preference in an already congested labor market.

Investments

FTAs usually define “investments” rather broadly, with intellectual property covered under the said definition. In the EU-India and US-Malaysia FTAs, for instance, the inclusion of IPRs under the broad definition will allow foreign investors to take Government to court over disputes concerning investments, including the failure of government to protect their intellectual property.

Investment rules in FTAs and bilateral investment treaties have been frequently used by large companies to influence the legal and policy environments in the countries where they operate.[8]

NO TO TRIPS-PLUS PROVISIONS!

If adopted by the Philippines, regional and bilateral FTAs with TRIPs-plus provisions would render nugatory the Cheaper Medicines Law and compromise access to medicines.

These provisions would:

  • Expand the Philippines’ obligations in patent protection. As a party to bilateral FTAs, the Philippines will be compelled to adhere to other international IP treaties beyond those which it has already signed, and those that are not required under TRIPS. This includes the Patent Law Treaty (PLT) – to which the Philippines is not a part – which aims to streamline and harmonize formal requirements for the filing of national or regional patent applications and pave the way for more patents for medicines. The provisions on the revocation conditions in Article 10 and the addition of the priority claims in Article 13 of the PLT are extra TRIPs requirements that may lead to an increase in patent claims and to evergreening patents[9].
  • Increase the number of medicines being eligible for patents[10] by allowing patents on plants and animals, new uses of existing medicines and diagnostic, therapeutic and surgical methods. Patent protection for plants will not only be disadvantageous to our farmers but will also allow the exploitation of our rich biodiversity by parties other than Filipinos[11].
  • Lead to granting of more patents by curtailing pre-grant opposition to patents. Any opposition to patents would have to be made, therefore, after the patent has already been granted and through court proceedings which are typically more expensive and time-consuming. With patents in force, and pending court decisions on cases, generic versions of these medicines cannot be made available.
  • Extend patent protection beyond 20 years in order to compensate for delays in granting the patent or in registering the medicine. It is important to note that there is no obligation, from an international/legal perspective, to grant such extensions.[12]
  • Stifle competition from more affordable generic medicines. FTA provisions pertaining to data exclusivity will have the effect of expanding the originator companies’ “exclusive rights” over test data, and would cause significant delays in the marketing of generics, as generic companies will now be required to submit their own data to prove safety and efficacy. This will bar competition and impede price reductions that would have resulted from the availability of equivalents.
  • Establish the linkage between registration and patent status. Such a linkage provision in the FTA would oblige the Philippine Government to enforce protection of the rights of pharmaceutical companies, effectively transforming regulatory institutions like the Food and Drugs Administration (FDA) into a patent police.

We assert that TRIPS-plus provisions that are incorporated in FTAs are inimical to our national interest because they would undermine the Philippines’ health and development objectives.

DEFEND THE RIGHT TO HEALTH AND ACCESS TO MEDICINES!

We assert further that TRIPS-plus provisions would:

Violate the right to health enshrined in the Constitution

TRIPS-plus provisions in regional and bilateral FTAs violate the Filipino’s right to health – a basic human right enshrined in the Philippine Constitution. Article II, Section 15 thereof provides that “. . . the State shall protect and promote the right to health of the people and instill health consciousness among them.”

These provisions would likewise undermine state policy on health development and affordable health services, as defined under Article XIII, Section 11 of the Constitution which states “(T)he State shall adopt an integrated and comprehensive approach to health development which shall endeavor to make essential goods, health and other social services available to all the people at affordable cost.”

Impede the commitment to attain the Millennium Development Goals (MDGs) pertaining to health, as well as targets that have been set in the Philippine Development Plan 2011-2016

The Philippine Development Plan 2011-2016 (PDP) has declared that “No Filipino will be denied health care, even those without the means to pay[13].” The PDP also states the commitment of President Benigno C. Aquino III to attain Universal Health Care by 2016. Efforts shall be directed towards ensuring the achievement of better health outcomes, fair health financing and a responsive health system that will provide all Filipinos, especially the disadvantaged groups, with equitable access to quality health care.

Access to medicines is a vital component. The Plan has set a clear target to increase access to affordable medicines from a baseline of 73 % (2009) of the population to 85% by 2015, and to 95% by the end of Aquino’s term in 2016.

To support the attainment of these goals, the Administration should not only use flexibilities provided under the TRIPS Agreement, but safeguard these as well.

USE AND SAFEGUARD THE FLEXIBILITIES!

Despite the incorporation into our domestic law of the TRIPs flexibilities (as contained in the Intellectual Property Code and the Cheaper Medicines Law, among others), the Philippines has not made full use of them.

We should, for example, explore the use of compulsory licensing or resort to parallel importation, both TRIPS flexibilities, to provide our citizens access to essential medicines that are currently not available or manufactured in the country, or are available but only at exorbitant prices. The experience of two (2) ASEAN countries come to mind – the use of compulsory licensing in Thailand for patented antiretrovirals (ARVs) to address the emerging HIV/AIDS problem, and Malaysia’s exercise of government use provisions.

Noting these, we urge all concerned stakeholders to work together not only on pushing for the use of TRIPS flexibilities that have long been available to us, but in safeguarding these as well.

[1] Paragraph 4, Doha Declaration on the TRIPS Agreement and Public Health. World Trade Organization. Adopted 14 November 2001
[2] Musungu, S. and Oh, C., The Use of Flexibilities in TRIPS by Developing Countries: Can They Promote Access to Medicines?, Study 4C, Commission on Intellectual Property Rights, Innovation and Public Health (CIPIH), August 2005. Available at http://www.who.int/intellectualproperty/studies/TRIPSFLEXI.pdf
[3] Section 2, R.A. 9502
[4] Section 3, supra.
[5] As reported during the 23 August 2011 Hearing of the Committee on Trade and Industry of the House of Representatives
[6] All Costs, No Benefits: How TRIPS-Plus Intellectual Property Rules in the US-Jordan FTA Affect Access to Medicines. Oxfam International Briefing Paper. 2007
[7] Regional and Bilateral Trade Agreements, investment treaties and IPR. Presentation by Zenpei X., Director of Trade and Investment Division, UNESCAP. Available at http://www.unescap.org/tid/projects/iptrade_s5xuan.pdf
[8] India-EU FTA: Inclusion of IPR in Investment Chapter – Another Threat to Public Health. 2005. Available at http://donttradeourlivesaway.wordpress.com/2011/04/15/india-eu-fta-inclusion-of-ipr-in-investment-chapter-%E2%80%93-another-threat-to-public-health/
[9] Limpananont, Jiraporn. Krikorian, Gaelle. Impact of IP Provisions from EC Draft Trade Agreement with ASEAN on Access to Medicines. 2009.
[10] Reid Smith, S., Intellectual Property in Free Trade Agreements. Third World Network. 2008
[11] FTAs provide for a national treatment clause which gives nationals of the other party the same preferences and benefits as Filipinos.
[12] Data Exclusivity and Other TRIPs Plus Measures, Briefing Note. World Health Organization. March 2006.
[13] Philippine Development Plan (2011-2016). Chapter 8 on Social Development. Available at http://www.neda.gov.ph/PDP/2011-2016/CHAPTER%208.pdf

Read More

AEPF statement on xenophobic killings in Norway

AEPF statement on xenophobic killings in Norway

July 11, 2011

The Asia-Europe People’s Forum (AEPF) grieves and condoles with the families and friends of the people, many of them very young, who lost their lives in the horrific and senseless massacre in Norway last July 22. The anguish and sadness this atrocity has caused the people of Norway, Europe, and the world is difficult to put in words. Nevertheless, we need to analyse and look within ourselves and our societies if we do not want such barbarism repeated.

The Norway massacre by Anders Behring Breivik was no spontaneous act of a mentally deranged man. This bombing in the city of Oslo and shootings in the island of Utøya were, in Breivik’s own words, politically motivated planned attacks carried out by a right wing xenophobic ideologue on a people who are mostly known to value liberal secularism and multiculturalism.

Unfortunately the ideology that fed Breivik’s act of terror tried to use the Norway tragedy to justify hatred for a people associated with the Islamic faith. The knee-jerk reaction of some governments and global media was to blame Al-Queda and to link the act of terror to Islam. Breivik’s fundamentalist and chauvinist nationalism was spawned by right wing ideas.

These false — and dangerous — nationalist and right wing currents have been increasingly evident in the West and in many other parts of the world. The only way to counter these trends that lead to such senseless violence is by combating xenophobia and racist ideologies. A truly liberal secular multicultural tradition and political system and environment based on tolerance are the only counter-strategy.

In the face of the massacre, the people and government of Norway have vowed to continue to be an open, democratic, and inclusive society. We in the AEPF welcome this response even as we also challenge ourselves to continue to struggle against all forms of racism.
29 July 2011

Read More

Beyond divide and rule? From the Washington to the Beijing Consensus

Beyond divide and rule? From the Washington to the Beijing Consensus

October 10, 2010 | Tom Reifer

Source: tni.org

Cold War divisions were central to the rise of Asia-Pacific regionalism, but what factors are influencing alternative visions for Asia in the twentieth century, and what implications do they have for the global system as a whole?

{edocs}http://www.tni.org/sites/www.tni.org/files/Reifer_Geopolitics_and_Trajectories_of_Development.pdf,650,500{/edocs} Download .pdf

Read More

Key issues on the table at the 8th Asia Europe People’s Forum

Key issues on the table at the 8th Asia Europe People's Forum

October 10, 2010

Ben Hayes, Nick Buxton, Praful Bidwai, Susan George, Walden Bello
Source: tni.org

Ahead of the Asia Europe People’s Forum (AEPF) which coincides with the official ASEM8 summit this year in Brussels, four TNI scholar-activists – Susan George, Praful Bidwai, Ben Hayes and Walden Bello – discuss some of the key struggles facing citizens from both regions.

{edocs}http://www.tni.org/sites/www.tni.org/files/AEPF8_TNI_booklet.pdf,650,500{/edocs}

The title of the 8th Asia Europe People’s Forum ‘Challenging Corporate Power, Building States of Citizens for Citizens’ highlights the worrying lack of democratic accountability that characterises both the EU and the nature of its bi-regional relations around the world. Led by neoliberal free market ideology, the EU’s plans for “Global Europe” have far-reaching implications for people in both regions, meanwhile their voices remain consistently excluded from official forums. In this booklet four scholar activists look toward ASEM8 and the alternative/inclusive AEPF8, and consider some of the major issues that will be on the agenda for discussion: the ongoing crisis of neoliberal capitalism, democracy, evolving security regimes, the environmental crisis and poverty.

Contents:

  • Introduction
  • Susan George: European Union: most anti-democratic and neoliberal in history (read article online)
  • Praful Bidwai: Power without responsibility? The rise of China and India (read article online)
  • Ben Hayes: The EU Security-industrial Complex (read article online)
  • Walden Bello: Class and conflict: tensions at the heart of Asia and Europe (read article online)
  • About TNI, Contact details
Download Pdf
Read More

Summary Report of The 8th Asia Europe People’s Forum

Summary Report of The 8th Asia Europe People's Forum

October 9, 2010

From 4-5th October 2010, heads of state and governments from across Asia and Europe met in Brussels for the eighth Asia Europe Meeting (ASEM8) to discuss their future priorities and plans. From 2-5th October around 600 civil society, NGO and people’s organisations representatives, activists and parliamentarians from across Asia and Europe, met in Brussels for the 8th Asia Europe People’s Forum (AEPF).

The de-privatisation and reclaiming of the commons in many different ways – nature, knowledge, information, political participation – is critical. If this stays in the hands of individuals, corporations or as financial commodities – then they fall outside the realm of democratic control and participation. This is an approach that can help us to link together the struggles in the North and South.

Nicola Bullard, Focus on the Global South
Another world is possible and is also happening – we need to be inspired, committed and to work for the change we are all fighting for.
Andy Rutherford, One World Action

AEPF is a strategic civil society gathering of Asian and European social movements fighting poverty and inequality and working for social justice. AEPF began in 1996 in Bangkok, in parallel, and in response to the first ASEM summit which pushed for stronger regional blocs and the promotion of corporate power. AEPF is grounded in the common desire of people’s organisations and social justice networks across Asia and Europe to open up new venues for dialogue, solidarity and action.

AEPF8 was a week of discussions, dialogues, strategy sessions and actions focussed on corporate power in relation to food, climate, trade, decent work and governance.

2nd October – Institut des Hautes Etudes des Communications Sociales (IHECS)
First Plenary

Asia-Europe relations in a changing global context – the impact of the crisis in Asia and Europe and changing contexts, realities, and relations between Asia and Europe

Speakers: MP Walden Bello (Philippines), John Hillary (War on Want), Marica Frangakis (Attac Greece)
Moderator: Fiona Dove (TNI)

Welcome – Nicolas Van Nuffel, CNCD – Economic, climatic and food crises have deepened and now over a billion people in the world suffer from hunger. However faced with multiple crises our leaders have had one obsession – economic growth, cuts and trade, trade and trade. But citizens have not remained inactive – millions have protested to denounce the policies of our governments and three days ago 100,000 people marched in Brussels to protest against the cuts. In Copenhagen thousands mobilised behind the slogan, ‘Change the system not the climate.’ The AEPF is an opportunity not only to meet, to exchange views and to strengthen our ties – but to build an Asian and European regional civil society to challenge and influence governments and regional institutions.

Fiona Dove, TNI – This is the fourteenth year that we, as civil society have been watching and following ASEM, developing common agendas, statements and actions. This session will explore and debate the history, dynamics and opportunities of current Asia-Europe relations.

Walden Bello – Our historical relationships, regional dynamics and interests have been shaped by perceived opportunities for economic growth and trade. The response to the current crisis has been for the European Union to investigate how it can take advantage of Asia in order to pull itself out of the crisis. There have been very few structures created across state lines to support Asia-Europe dialogue. ASEM is a talk shop – it has done very little with few processes and virtually no institutionalised structures within it. Filipino President Noynoy Aquino had no problem in saying he wasn’t coming to ASEM, especially after meeting with Obama. We find that Washington matters much more than Brussels in the Asia-Pacific region.

John Hillary – I want to give an overview of how Europe is looking to Asia. There is now the perception of Europe in Asia is as an inferior economy, a junior power. The statements coming out of Europe in relation to ASEM or Asia echo this – they are almost like an apology – We used to enjoy supremacy but now we are in long term decline etc. So the twenty first century will be multi-polar veering towards Asia-centric. The leaders in Europe see Asia as both a threat and an opportunity. They are following an explicitly corporate agenda and so everything they are saying is in the interests of corporations and capital. Due to a decline in other places European companies see Asian markets as their most important salvation and escape clause. The EU is almost entirely dependent (90%) on energy imports – they lack the huge quantities of natural resources, minerals and metals needed and therefore European companies are desperate to keep access open to Asia.

If the world is now locked into global competition then EU companies will find it more and more difficult to compete. There is a profound self doubt in the heart of the EU’s relations with Asia – they now have none of the agricultural or manufacturing strength (e.g. recent death of German car manufacturing due to competition from Korean manufacturers). Even in services, such a key sector previously, making up 75% of economies and employment – we now recognise that Europe can not compete in the longer term. So Europe is now a very junior and nervous player.

ASEM is no more than a talking shop but from the European side they still see it as important because of the issue of political will. There will be discussions on FTA, investment, technical dialogue etc but the point of ASEM is to have political discussions at the highest level to keep EU in touch with Asia – which is why it is still given importance.

Marica Frangakis – The financial sectors are now heavily integrated which is why the crisis hit in the developed countries. India/China and other emerging economies are improving and were never as badly hit as in the EU/US. The crisis started in the US and very quickly it spread to EU with recession and deflation leading to a slump and the associated poverty, inequality, social discontent, wage decreases etc

The Greek people are now living it and Greece was a trigger – per capita income is now amongst the lowest in Europe – pensions are low, poverty is increasing. The trade imbalances between North and South Europe are similar to the dynamics between Asia and Europe. There is a deficit in the public budget and the state is vulnerable to pressures from financial markets and is trying to find new ways to cover the deficit – borrowing, printing money, raising taxes etc Printing money is what Japan and the US are doing now but the EU countries can’t do this because they are locked into the Euro and this threatens the stability and existence of the Euro.

Global Europe’s trade strategy aims to open up Asian markets to force new opportunities for European companies and is an explicit and aggressive statement towards this aim. The theme of EU trade relations for the last four years has been about government contracts, accessing natural resources and freeing companies from regulations- and at the moment the EU is preparing its new trade strategy, again focussing on Asia as its primary target. At the same time as trying to force external liberalisation it must also force more liberalisation internally – and the harmonisation of standards – reducing them so there are no obstacles to business. There is a change now in terms of the crisis. Every country is in deficit – a hundred billion pounds is being spent on nuclear programmes whilst governments tell schools and hospitals they don’t have enough money to run. For the first time in the last 15-20 years the people of Europe are waking up to the fact that the model of global capitalism which they have been told has been so beneficial is being questioned, in terms of peoples lives – the economy and financialisation of the economy has turned against them and been damaging.

There is 9.7-10% unemployment rate in US with no sign of improvement and this is a very dangerous position. If there is some significant growth in Asian economies then there is some hope for stimulus – but any major structural reforms to raise domestic consumption have not been taken in China because the leadership are still waiting for a recovery in the West. So we will also see stagnation in Asian economies soon – so this is quite an unusual situation and the liberalisation of speculative capital is part and parcel of this crisis.

The situation in Greece and Southern European countries is similar to the crisis in Indonesia and Thailand which was caused by rigid Structural Adjustment Programmes – squeezing economies in order to pay off the banks. Structural Adjustment Programmes have migrated and are now coming full force now to Europe – this is a globalised world in crisis.

Debt has been caused by structural reasons and the high spend on military. An indirect taxation on goods and services is very regressive and so we have high expenditure and unequal distribution of taxation. Austerity is institutionalised now across Europe and we need global financial reform and public banking.

John Hillary – We need to see this time as an opportunity to promote an ideological revolution. Governments are using a language of cuts and austerity which completely undermines the model of European social justice. All around – privatisation, liberalisation etc – are all going in one strong direction and being rolled out across country after country. We are now seeing the lived reality of crisis and need to take advantage of growing disillusionment. In the UK the majority of people agreed with cuts but now that has shifted because as people realise its their reality, their local services, schools, hospitals – they are turning against them – and that is where the politics comes in – to build an alternative movement of resistance. Not to think that elites are going to change their minds but building a movement and different groups to stand together. If we can bring a broad mass of people and link with Latin America, Africa and Asia then we have a broader resistance to the model as a whole.

The G20 can directly influence global economic governance through soft power – for example the IMF which was revived by the G20. The WTO is in terminal decline but has again revived, so the G20 is an important focus for us. We need the G192 as alternative to the G20 which is an unaccountable, untransparent and illegitimate body ruling the word.

Second Plenary
Corporate Capture of our Lives and Governments: Consequences and Impacts of the Consolidation of Corporate Power on the People of Asia and Europe

Speakers: Climate: Praful Bidwai (TNI Fellow), Trade: MP Charles Santiago (MSN), Food: Tom Lines (Researcher), Decent Work: James Howard (ITUC)
Moderator: Dorothy Guerrero (Focus on the Global South)

Tom Lines
Clearly bound up with the financial crisis has been the crisis of the food sector. What are the linkages between these two elements? What has happened with the food sector and the way food commodities are now traded is new and has massive implications for issues of corporate control. In addition we also need to look at these three sectors – Food Processing Companies, Supermarkets and Agricultural Trade.

During the wheat market crisis in 2007/2008 the price shot up to levels not seen in real terms since the 1970s however these markets settled down and by June the price had fallen to its price in 2005 price. A lot more wheat was grown and therefore the stocks recovered. However this year there was no real reason for wheat prices to suddenly explode as they did – there was a shortage in Russia, Europe and the Ukraine but that did not justify a 60% increase in wheat prices in a matter of weeks because wheat is being grown elsewhere in the US and Australia.

The price of maize and export crops for the Global South like cotton, cocoa etc have had very big price fluctuations. What we have also seen recover is the profits of the global investment banks which were at the source of the crisis two or three years ago. Why have these happened and where are the linkages?

Over last ten years it was shown to be dangerous to put all your money in shares and so the doctrine was to diversify and one of the areas to diversify into was commodities. Particularly over the last 5 years there was a lot of propaganda from investment analysts saying, ‘Well if you put your money in a range of commodities then their prices do not move at the same time as other assets. With economic cycle share prices, property prices go up and then fall at the end of the business cycle – but commodity prices are not correlated with this – so they have different rhythms.’

Goldman Sachs played a major role in 3 ways:

  • Their analysts did a hard sell on this commodities super cycle and although you only make money if the price rises and if you buy shares or bonds then you get dividends/interest. Commodities had been falling so how did they encourage people to do this despite these two off putting factors? By saying things had changed – China and India were buying a lot of oil and other goods such as iron ore/copper etc and markets had changed forever because of rise of East Asia but it was very generalised and misleading to say that all commodities will rise.
  • As well as their main speculators it was also their market analysts who were pushing hard that the oil price would rise and this shows the power of corporate propaganda.
  • They also enabled their investors to put money in a range of commodities through Index Funds. Therefore trading on the commodity markets dramatically increased. For example trading increased ten times on the London Metals Exchange and Chicago Maize Futures rose from around $500,000 in 2003 to $2.5 million 5 years later.

Commodities were not due for such a massive increase in prices, this came on the back of the change in the markets. In 2008 investors saw that with the beginning of crisis that share prices were weakening, property markets collapsed and they wanted to go somewhere else. They all piled into commodities and they were being advised to do so. What problems arose from this?

The crises were collated – the biggest commodity price collapse was in 2008 as people pulled out their money to put it somewhere else. Markets used to be operated for trading purposes and the banks played the role of banks. They lent money and gave deposits however now they are completely dominated by a few investment banks and the consequences are four fold:

  1. Now prices are more volatile – without any justification in supply and demand
  2. Huge impact on poor people in rural and urban areas who have to buy their food with low incomes
  3. Investors have been swindled – they haven’t got what they were promised by the propaganda.
  4. Futures markets where prices are set have been financialised, dominated and controlled by the banks.

Praful Bidwai
Climate Change is a story of no saints, no heroes and lots of victims. It is the largest crisis facing humanity and we are at a tipping point where afterwards any action will make no difference. Scientists told us that the maximum level of warming that the earth can tolerate is 2 degrees over pre-industrial levels – 450 parts per million of carbon dioxide in the atmosphere. But since then understanding has dramatically increased about the impact that positive feedback will have which will lead to indirect warming happens. So for example when glaciers melt rapidly the snow cover decreases so sunlight is no longer reflected back and is absorbed as heat. So they are now saying that 2 degrees is far too high and that the present levels of 380 parts per million has to be brought back down to around 350 parts. This will need extremely co-ordinated, progressive and drastic measures to be taken by those historically responsible but also action from emerging economies.

We are already seeing in India drastic droughts and then flooding in arid areas a loss of diversity, habitats, and changes in composition. For example apples which you can only grow in fertile areas are now being cultivated much higher up. Increased humidity is also leading to increases in malaria. The current damage from climate change on the South is estimated to be around $150-350 billion and total net aid flows is around $50 billion.

Trying to negotiate a series of negotiations where the North has resisted attempts to acknowledge responsibility. The world only has one agreement which is legally enforceable, Kyoto which only came into effect in 2005 – this is a band aid and very minimal cuts of 5% by 2012 in relation to 1990 emissions. At this rate the world would need around 30 protocols to stabilise and even these targets are not being met.

Kyoto also allows carbon quota trading and offsets so that emissions are not being cut. You can buy credits in the South on the presumption that certain projects financed by this money will help adaptation. However carbon trading is based on completely the wrong presumptions and is completely swindling the public. It has created huge interest in the Global South to trade in carbon – so in the next round of negotiations these market solutions will be even more important and this is one of the most profound influences of corporate power. They are creating a speculative market in carbon to which the world will be held hostage. So you can trade in a future carbon credit and carbon quotas. In 2008 the price of carbon collapsed and solutions have to be far more radical than market solutions or techno-fixes.

We thought Copenhagen would lead to dramatic, legally enforceable targets and a strong commitment to finance developing countries for mitigation and adaptation but a tiny fraction of what is needed was promised. This is also being controlled by IMF, WB etc. There were no targets, no enforceable cuts – just a free for all. Instead of stabilising the concentrations, carbon will increase as a result of Copenhagen and it is now estimated that temperatures will rise by 4c which will devastate the world.

The Copenhagen Accord has no UN stature, is not legally binding and has set a terrible precedent – in Cancun now no one expects dramatic results. Corporates have played a particularly nasty role in derailing negotiations. We need new sources of energy and none will be possible under existing regimes of intellectual property. In the same way that HIV vaccines were exceptions in trade agreements we need the same for energy technologies.

Charles Santiago
The question we need to ask is: Do Free Trade Agreements (FTAs) promote trade and growth or are FTAs about promoting investor rights and the control of trade?

As an MP my task is to uphold the Constitution of my country – however I am being prevented from doing this. I want to argue that what we are now seeing is companies writing a new Constitution that we have no control of through illustrating 3 illogical arguments:

1. The China/ASEAN FTA
Malaysia, Philippines and others were jumping over backwards to negotiate for market access to China, and China also wanted to access South East Asia. The FTA began on Jan 1st 2010. However in January, February and March the business communities of Malaysia and Indonesia said, ‘Stop this FTA because we are losing market access in our own countries and many small industries are closing.’ In Malaysia they called on their government to reduce the level of commitment made to China. So the mantra was market access, profitability and free trade but when it finally started happening, the weaker guy tried to stop it.

2. The Definition of Trade
What is trade? The production and distribution of goods and services. In Thailand in 2006/2007 they exported 45.2% of electrical products made to the US and imported X% of electrical products from the US.
Why do you need a FTA to regulate this – to ensure investor rights?

3. Rate of return on investments. The US Department of Commerce recently produced statistics on the rate of return for Asian countries in US markets. The stats showed that it made no difference who had an FTA with America, and in fact Singapore who had an FTA had lowest rate at 0.4%. FTAs are supposed to proved preferential access but this doesn’t happen.

Global Competitiveness
Why is Europe turning to Asia? Because of the investment opportunities for European Multi-National Corporations (MNCs), market access and to ensure European MNCs are not beaten by US and Asian companies. Europe is now doing everything to encourage a pro-business environment and to challenge and influence policies that are barriers to trade. The European ‘Towards a New Asia Strategy’ explicitly states that Europe will – ‘pursue all actions necessary to ensure open markets and non-discriminatory practices towards European businesses.’

What will this require? liberalisation, regulatory changes, convergence and harmonisation.

What does ASEAN want? Free movement of goods, services, skilled labour and capital. So in fact the interests of European and Asian Governments are now one and the same.

It was recently the 43rd anniversary of ASEAN – the title of the event was bridging markets and connecting people. This is testimony to their efforts in integrating markets through FTAs.

ASEAN has said that, ‘National and regional interests are one and the same. We need to accelerate regional integration, harmonise national interests with that of the region.’ So they are pushing liberalisation and integration and pushing towards a particular kind of convergence – to liberalise, harmonise and integrate, through neo-liberal principles.

FTAs are negotiated on the promise of reciprocity – where similar levels of obligation are expected. However this equal treatment of parties is likely to result in unequal outcomes thus exacerbating existing asymmetries between people and nations. The older FTAs in Latin America and Africa clearly demonstrate that all gains have gone to TNCs and local elites, whilst people are left with poverty, loss of livelihoods, water, jobs etc.

FTAs are not about controlling trade but promoting investor rights and a new constitution is being written – a new integration policy that we have no say, or control over. Our parliaments are happily signing onto them – and signing our interests over to business and profits.

James Howard
The ITUC represents 176 million workers and has members in most countries of ASEM. Currently there are 220 million people unemployed, 34 due to the crisis. The decent work deficit is likely to worsen due to millions of younger people joining workforce each year. Before the crisis we already had an unacceptable level of unemployment, insecurity and poverty – precarious work and food insecurity. So even if we could get back to a pre-crisis situation it would not be acceptable. OECD/UNCTAD etc are all saying reactions and policy responses are inadequate, but governments are not responding, they are just cutting and slashing jobs. Why? Due to collective pessimism where no one taking action, particularly the G20. This is leading to depression, anger, acceptance and denial.

We need alternatives – what could the world be like if we didn’t accept the economy we have? There are 6 ways in which world economy needs to be changed:

  • Maintain and withstand economic stimulus programmes.
  • Establish and increase social spending and social protection for everyone – it is affordable and would generate spending as poor people use extra income.
  • Invest in skills and training – particularly for young unemployed to prevent lost generations and to generate future growth.
  • Address climate change – move towards carbon neutral/low carbon economy and make necessary changes in transport and agriculture.
  • Regulate the financial sector and return it to its original purpose of channelling savings to investments. Introduce a financial transaction tax and the G20 should do more.
  • Strong global governance appropriate to the degree of integration within the global economic system to deliver protection to every human in the world. Look at how the G20 works – what would a world economic social and environmental Security Council look like? Elections, rotation, representation etc

What can ASEM do on these issues? It is a talking shop but at a governmental level it could do a lot in these areas and channel funds from richer to poorer to address these basic challenges that the world faces.

Discussion and Questions

  • How to stop hedge funds and banks expanding to Asia?
  • Even the CEOs of big companies have no idea how the system works – all they care about is profits – how they do it is a secondary issue. There is a need to regulate finance structures and banks must go back to their original role of banking, and banking alone not lending to other banks, and financial engineering – they should lose their licenses if they go beyond this remit. They are now using every possible opportunity to collateralise debt for example.
  • Income distribution – people are borrowing money to support middle class lifestyles in the US – so the problem is not just financial instruments, lack of regulation etc but capital-labour relationships. So core is income distribution.
  • Global agricultural crisis – in Europe farmers are not able to make enough money to survive and younger people not going into farming because it is not profitable and such hard work. Who is getting the money out of food along the supply chain? The middle man and so we need to get back to farming that is done locally – seeds, varieties, breeds – suited to local needs.
  • So many people are in precarious work – we need to reduce contract labour (no more than 20% employees on contract basis). What can unions and progressive forces in different countries do to stop the erosion of rights?
  • One way to increase support for climate cuts is to give people confidence that where they face job cuts that there is public support for investment in alternatives and training. No government has done proper employment assessment into the employment impacts of climate change adaptation.
  • Severity of agrarian crisis in India – 200,000 farmers have committed suicide in last 20 years and this is continuing. We need to find alternative ways of cutting carbon while supporting poor people’s livelihoods – whether in Bangladesh, Belgium or Rajasthan.

Workshops on the Four Major Themes – Space for more detailed discussions of strategies and alternatives to the problems outlined in the morning sessions.

TRADE AND INVESTMENT
Speakers: Marc Maes (11.11.11), Ranja Sengupta (Third World Network), Joseph Purugganan (EU-ASEAN FTA Campaign), Ryu Mikyung (KCTU), Seely Ashley (ITGLWF) Moderator: Cecilia Olivet (TNI)

DECENT WORK, DECENT LIFE FOR ALL
Speakers: PART 1 Georgis Altinzis (ITUC), Sri Wulandari (AMRC); PART 2: Dwight Justice (ITUC), Bismo Sanyoto (World Solidarity), Anannya Bhattacharjee (Asia Floor Wage Alliance), Cristine Ebro (Network on Transformative Social Protection) Moderator: Gareth Richards (Journalist)

FOOD SOVEREIGNTY
Speakers: Uwe Hoering (policy analyst), David Pred & Seng Sohkeng (Bridges Across Borders Cambodia), Fathima Burnad (Natesan), Mae Azhar (La Via Campesina) Moderator: Thierry Kesteloot (Oxfam Solidarity)

CLIMATE CHANGE
Speakers: Fabby Tumiwa (Institute for Essential Services Reform, Indonesia, Ms. Jutta Kill
(FERN, tbc), Nizamuddin Nizamani, Lidy Nacpil (Jubilee South Asia) Nicola Bullard (Focus on the Global South) Moderator: Dorothy Guerrero (Focus on the Global South)

BRUSSELS NIGHT – The world in crises and alternative pathways

Analysts and commentators from around the world discussed with AEPF participants the multiple-crisis and ways out from the current failing development models.

Speakers: Francois Houtart (Cetri), MP Walden Bello, Achin Vanaik (Delhi University), Marica Frangakis (Attac Greece) Moderators: Tran Dac Loi (VPDF), Fiona Dove (TNI)

2nd October – Institut des Hautes Etudes des Communications Sociales (IHECS)

Open Space Events

EU/Asian Free trade agreements: resistance and alternatives (Part 1)
Org: EU-ASEAN FTA Campaign, Seattle to Brussels Network, Focus on the Global South, WIDE, CEO, TNI

Extractives Industry, Climate Change and Indigenous Peoples: Discussions and Responses from Civil Society
Org: Revenue Watch-Philippines, CAFOD, Philippinenbeuru, Publish What You Pay, Christian Aid, 11.11.11, Alyansa Tigil Mina (ATM)

Upholding Peoples’ Food Sovereignty: Issues for Asia and Europe
Org: People’s Coalition on Food Sovereignty

Struggling for Climate Justice: concrete steps and strategies on climate and finance
Org: Ecologistas en Acción, Jubilee South, PRRM

Trade Unions and Development Effectiveness
Org: International Trade Union Confederation

North-South Solidarity
Org: South-South People’s Solidarity Network, Action Aid, Rosa Luxembourg Foundation, Vietnam Peace and Development Foundation, Institute for Popular Democracy

Asia Floor Wage: Stitching a living wage across Asia
Org: Asia Floor Wage Alliance

Migrant Worker Rights Promotion & Protection: A Global Responsibility
Org: Clean Clothes Campaign International Secretariat +Network of Action for Migrants, Committee for Asian Women

Decent Work for Domestic Workers: Campaign Strategies for a strong rights based ILO Convention
Org: Migrant Forum in Asia, TNI, Task Force on ASEAN Migrant workers

People, Politics, and Poverty: Need for an alternative development paradigm
Org: LDC Watch, South Asia Alliance for Poverty Eradication

Religious diversity, secularism, citizenship and democracy
Org: Centre Lebret-IRFED + Bandung Spirit Network + Pax Romana ICMICA

EU/Asian Free trade agreements: resistance and alternatives (Part 2)
Org: EU-ASEAN FTA Campaign, Seattle to Brussels Network, Focus on the Global South, WIDE, CEO, TNI

Transform the System: Illegitimate Debt and SDR Finance
Org: Jubilee South, CADTM, Eurodad, 11.11.11

Getting Rid of the Weapons of Mass Destruction
Org: AEPF Finland, Peace Union, No to Bases, Vietnam Association for the Victims of Agent Orange

From Copenhagen to Cancun: Pathways for a People’s Protocol on Climate Change
Org: Peoples Movement on Climate Change

How to guarantee Decent Work for the workers employed in interim, short-term contracts?
Org: World Solidarity – ACV/CSC

Right to the City and Strategising on Transformative Social Protection
Org: Network for Transformative Social Protection, People’s Empowerment Foundation

The Urgent Appeal system of the Clean Clothes Campaign
Org: Clean Clothes Campaign

EU-ASEAN FTA: Its impact on the people’s health
Org: Platform for Action on Health and Solidarity, IBON

People’s Global Action/GFMD in an era of Crises: Regional Consultative Process & New Challenges in Migration Policy Coherence
Org: Migrant Forum in Asia, TNI, Task Force on ASEAN Migrant workers

Civil society and upcoming electoral processes in Southeast Asia
Org: Euro-Burma Office, Burma Centrum Nederland, Asia House

Decent Work and Dalits: The case of the Manual Scavengers in South Asia

Org: Solidarité Dalits Belgique, IDSN, ICMICA, Pax Romana

Sunday Plenary

A Civil Society Message for ASEM – Discussion with Belgian Prime Minister Yves Leterme
Chair: Andy Rutherford, One World Action

How can we as activists across Asia and Europe can contribute towards a more just and equal world?

There is a democratic deficit and how can we close and influence it through stronger accountability and restructured political institutions? We have developed a statement that tries to be focussed as much as possible on corporate power – it does not include all our issues and struggles. It focuses on our recommendations and actions and how we can work together. This is the first time that ASEM have received our statement beforehand and they will also send us a written response – this is a first and shows some progress in addressing the democratic deficit.

Global crises have been at the core of our discussions as they will be at the core of yours and over the last few days we have linked this to the growing power of TNCs in relation to states and citizens – that is why we are asking for regulation and to fight inequalities – in addition to progressive taxation. Over a trillion dollars is lost each year from tax evasion whilst EU governments are adopting austerity measures. Structural Adjustment Programmes proved to be counter-productive and cyclical – how can ASEM strengthen financial regulation? How can Belgium Presidency push for the financial transaction tax?

Decent work is also linked to regulation – and we have seen increased pressure on salaries and erosion of safety nets. How can ASEM be a concrete place to counter the race to the bottom?

How ASEM can be a place of dialogue to strengthen and to ensure ASEM countries sign and implement ILO Conventions and Core Labour Standards – particularly 87 and 98.

PM Response – We believe that ASEM should not just be a meeting of governments but also of civil society and peoples organisations. We are grateful for this strong message and the signal it give to us and civil society – very important that it gets put forward so people see ASEM is not just about big money, big governments and economics but also about the ordinary people of 26 countries

We have to curb many of the negative trends that have been worsening throughout the last few years – we need to ensure economic growth benefits all. People have gradually achieved their social rights and we need to learn from each other on this – our social model has to be fought for – as it enables people here to take profits from economic progress, growth and globalisation.

We must cut our budgets and deficits but not in a way that damages our economic growth. Promotion of a good social model is key – not only from political decisions but in dialogue with trade unions and civil society representatives.

On the issue of financial regulation I am very glad that Belgium holding the Presidency and that for 50% of this time we can say that economic regulation is being tackled within the European Parliament – a European systematic body to fight against risk and this will make a difference. The earlier overwhelming power of the free market was very damaging.

At the G20 in Seoul we can also move this forward and we need new measures here to act against what happened two2 years ago and to give more voice to countries which are not yet represented in IMF.

There is a law (2003) in Belgium on a Tobin Tax based on the condition that other countries in the world would do the same. We are one of the 70 countries advocating for this tax both economically and politically – so we strongly support this tax and are one of the strongest advocates – so we will promote this at the opening address just like Sarkozy at the MDG summit. More countries are supporting this in Europe than Asia and we need to tackle these global issues on a global scale with global financing.

On the issue of decent Work a key factor is giving enough space and empowering trade unions and associations of workers in country. The history of Belgium shows improvement from the time when trade unions became active. So I am a strong believer in role of unions and of social dialogue and new architecture in ASEM. This will be one of the ideas I will promote tomorrow as well as social safety nets, corporate social responsibility and the abolition of child labour. We need to build up fundamental rights that are guaranteed in any country – including within FTAs.

Lidy Nacpil (Jubilee South Asia) – Access to food and water are fundamental rights and we are delighted that this has been recognised recently in the UN but there has been a diminishing of access to water due to the policies of Asia and Europe governments. Privatisation is being pursued by European countries, along with an export orientated agriculture model which is allowing speculation in staple food commodities.

PM Response – European integration began with the integration of coal and steel policies, followed by the Common Agricultural Policy which guaranteed food security and access at a fair price for both consumer and producer, in a sustainable way.
In the allocation of development aid by new emerging economies priority is being given to other domains (infrastructure, minerals, less human development related activities) and this needs to change.

I have always seen Bio fuels as a risk. Consumption of fuel in Belgium is very low and we always need to check the sustainability of where they are coming from.

Charles Santiago – There is a democratic deficit within trade policies that are being dictated by businesses – there is no access, secrecy on both sides, we don’t know what is being agreed or asked for. We are very worried about the detrimental impact that patents will have on access to medicines and affordable health care.

We need to recognise that trade is not the be all and end all but it’s a question of livelihoods, particularly for 70% of India’s people.

PM Response – Yes fully agree and we are very reluctant to abolish subsidies. Agriculture and food is not a product like a car or computer – I think we have the right as a continent to provide enough, good quality affordable food to our people through the CAP. You have to have a balance to lowering barriers to export to Europe but also I stand for a CAP as it is still very important in providing both fair prices for producers and consumers but we have exaggerated protectionism and we need to be careful of this in the next generation of FTAs that we are negotiating. The reality is that a lot of products are subject to trade in a totally free market situation.

On the content of FTAs we need transparency and good functioning democracy at a global level – good and timely information. In very important negotiations there was information and people were aware – for example in Belgium/Korea negotiations we were under a lot of pressure that this could damage our car industry. Farmers are aware of possible consequences and they do put pressure on us. But we need a better balance – so same can be done and shared in other countries. Trade discussions are not as transparent as aid discussions and there is a genuine request to see how that balance can be addressed.

Praful Bidwai – We are seeing market based solutions being promoted fairly recklessly and the EU has been dependent on particular forms of mechanisms (e.g. carbon trading). A tonne of carbon produced in Europe can not be treated the same as a tonne of carbon used in Asia in the future. Very generous permits being given to extractives and credits are being given to companies who are doing nothing for mitigation and adaptation. They are funding non-existent projects or projects that would have happened anyway.

The fear we have is that corporations are driving the agenda and promotion of market based solutions is derailing effective and sustainable agreements. What we saw at Copenhagen was a collusive agreement between five countries – if you go by these agreements then carbon will double and then temperatures will rise by 4c – this is being strongly driven by companies.

We need a complete transformation of production and consumption and not business as usual whilst looking for techno-fixes – the very same process that originally caused the problems.

The EU is now moving away from the multi-lateral agenda that was put together with such painstaking efforts and labour – it is being dismantled and this opens up a Pandora’s Box where you have a free for all and instead of legally binding, enforceable, well negotiated and researched agreements you have chaos and countries bargaining in separate groups.

PM Response – The EU has lived up to its commitments in terms of reducing CO2 emissions and providing structural financing for developing world adaptation. ASEM is not where we negotiate agreements but where we can generate good will and this issue will also be raised in the opening session tomorrow.

Climate change is raised in every bilateral meeting and it is sometime very difficult to convince people that we will have to be successful in Cancun – South Africa will soon have legally binding obligations. Europe takes and is ready to take its responsibility in meeting goals and in putting money on the table – we are advocating for legally binding agreements. We were frustrated that inappropriate tactics and strategies in Copenhagen led to Ministers leaving the room with our very generous position on the table. As donor countries we need to commit ourselves to specific agreements and contributions.

BRUSSELS NIGHT – The world in crises and alternative pathways

Analysts and commentators from around the world discussed with AEPF participants the multiple-crisis and ways out from the current failing development models.

Speakers: Samir Amin (WFA), Mr. Boris Kagalitsky (TNI), Pedro Paez (Former Minister of Economic Cooperation, Ecuador), Nicola Bullard (Focus on the Global South), MP Walden Bello (Philippines),

Moderators: Tran Dac Loi (VPDF), Fiona Dove (TNI)

Samir Amin
We need to choose strategic issues for our future campaigns – what image of transformation do we want to pursue? The challenge is whether or not people on this planet will look beyond capitalism and move to a new phase or will they move out of capitalism in crisis completely, so that we can move ahead on the long road to a transition from global capitalism to global socialism.

Capitalism is based on the dispossession of people on a massive and continuous scale – and always has been since 1500. The initiative for shaping this world was exclusively in the hands of the ruling classes of Atlantic-Europe. The people resisted but they had to adjust to the new system and simultaneously this system was made possible only by the possibility of a massive out migration from Europe, linked to the imperialist paradigm.

There were revolutions throughout the twentieth century announcing a change for the rights of the people, why? Because capitalism can’t be disassociated from imperialism, the system is based on imperialist ends which condition the reproduction of the condition both from the centres at the global level and periphery.

People are starting to question global unequal and deepening unequal relationships – questioning the imperialist dimension leads logically to questioning the capitalist dimension. The past crisis of capitalism led to WW II, the colonisation of Africa and depressions. However private property and the monopoly of capitalism was not questioned and so then nothing changed at the centre. Thus history is repeating itself and a second long crisis which started a century later in the 1970s again led to a crisis. In 1991 we predicted that this long crisis would lead to financial breakdown which then happened.

Where are we going now? A long period of chaos, wars, revolutions etc.

What is new? Attempt and strategy of military control over the planet by US and subordinate armies of NATO – maintaining an exclusive access to resources for reproducing the imperialist system. It can not be maintained except through this military control. The tools of control of the global system are over protection and the control of globalised financial and monetary system.

What is the solution? A global solution is a fallacy. When the problem is global then we first need to dismantle the global system. History does not move through wishful thinking and global consensus. There are power imbalances, struggles through war, revolutions, chaos etc before creating a new vision that will be better.

This is why I think that looking at global consensus is losing ground – the challenge is independent initiatives that support popular, dominated, and exploited classes from all regions. This has started already? But who is going to lead, control or use these initiatives in their own strategies.
We have seen this in Latin America and Nepal where power has been taken from below and from above. They are simultaneously contradictory and complimentary – they question the global order and so can potentially replace it. We need to remake the remake the twenty first century based on the internationalisation of the working classes.

Boris Kagalitsky
An era of wars and revolutions is what Stalin promised which is echoed by Samir. There are ways of globalisation and de-globalisation and one of the readings of this crisis is that it is the beginning of de-globalisation because capitalism is going this way. So what should be done by us as the global left, as social movements, as forces opposing the current paradigm?

We praise ourselves on great mobilisation – is this success? No, it is about winning and achieving goals. If you brought a lot of people together and didn’t win anything you have failed.

Just saying you want socialism is not going to work – we need a particular set of demands and general ideas about what our enemies consider to be the danger? Blackmailing societies with the threat of default, not being able to service debts etc This is exactly where we have to say yes! Cancel these debts, call for a global default as default is an excellent thing. Argentina was in a terrible crisis; it defaulted and then recovered because of it. Russia was the same in 1998. We have to fight for default – in Greece, Ireland and potentially the UK.

We can’t avoid protectionism – the liberals see this as evil by definition but it is not. Capitalists will bring in protectionist measures and be forced to do so, despite the WTO. But what type? What will we achieve through it? It is not about protecting capitalists but protecting societies. The market has created export orientated models – China, India, Russia, and Germany. Capitalism is not always based on cheap labour – at times there has been expensive labour backed by resources of the periphery. People are not cheap in the South – this is the struggle.

How can we mobilise resources? This is not the main problem – we can have an economy growing with limited resources but it needs specific industrial policies and an environmental growth model. We need democratic planning – to mobilise but not in a technocratic way – one that will allow us to move – not towards an old fashioned soviet style but a new democratic model based on new technologies. One that will accept and integrate new proposals and alternatives. If they can break our strategy into small pieces then it will break up and not be implemented comprehensively. We have to fight for our own logical and social/political change. For politics we need an agency – a party, movement or coalition – we don’t have it now but this is the task ahead for the current period.

Walden Bello
What now? We are in a long period of stagnation, the US has not recovered and the Chinese economy is export led. Elements of alternatives have been there for some time but how we can craft this into a credible political programme which will enable people to intervene on mass. The problem is not that the alternative doesn’t exist but it is the failure of political leadership to turn this into a viable political movement and programme. It might help us if we look at the experience of the Obama administration – this is vital because if there is a return to the right then it will have severe implications for us all.

Obama is part of the left in the US and his failure has been a spectacular collapse – he had broad based support and we had great hope in him. What showed here is that there is no such thing as objective determination. Why did it collapse?

He took responsibility for the crisis in contrast to Thatcher and Reagan who blamed the people before them. Propaganda thrust took him into major contradictions – he blamed the banks for creating the problem but also bailed them out of bankruptcy. This was his greatest loss of credibility. He brought out problems with neo-liberalism in his campaign but once in power he backed off. He relied on the left before and then on neo-liberal advisors afterwards. Whilst a social democrat he adopted a strategy of change that was principally technocratic and toned down the social aspects. He didn’t put social transformations at the cutting edge but just relied on the stimulus package to bring about a low unemployment economy with a respectable growth rate. This approach was not put within the context of a broader structural transformation programme. This was the perfect situation to offer a new approach to the neo-liberal model.

What could he have done?

  • Democratic decision making at all levels of the economy
  • Significant income and asset redistribution
  • Push for a more co-operative ethic in production, distribution and consumption rather than competitive.

A top down approach was accompanied by a failure to mobilise the mass base of the administration. He had a diverse (race, age, background) mass base in him coming to power but he allowed this to whither away relying instead on technocrats.

The Republicans adopted a hard line opposition – in contrast to his desire to reach compromise solutions. He tried to do away with a class conflict element and so the radical right used a popular base to capture the Republican Party. Political leadership is central – as well as defining the strategic direction.

Lessons?

  • In present crisis politics and affiliations tend to be volatile and unstable.
  • Need to move the people and inspire them.
  • Need to develop a transformatory political programme.
  • Politics is the art of creating a political movement out of diverse classes and forces.
  • Economic conditions and junctures may condition outcomes they do not determine them.
  • No objective determinism – need to use spaces, contradictions and unite to create a progressive, political mass.
  • Progressive politics – we need to engage in practical compromises but not in a strategic compromise with the elites (main failure of Obama was that he made a compromise with the neo-liberals).

Lessons?

  • In present crisis politics and affiliations tend to be volatile and unstable.
  • Need to move the people and inspire them.
  • Need to develop a transformatory political programme.
  • Politics is the art of creating a political movement out of diverse classes and forces.
  • Economic conditions and junctures may condition outcomes they do not determine them.
  • No objective determinism – need to use spaces, contradictions and unite to create a progressive, political mass.
  • Progressive politics – we need to engage in practical compromises but not in a strategic compromise with the elites (main failure of Obama was that he made a compromise with the neo-liberals).

Can change the President but not the system and therefore we can never expect substantial change.

Marica Frangakis (Attac Greece)
Greece is a politically sovereign state with a non-sovereign currency and therefore it can only finance itself through borrowing and taxation and has had to borrow with ever increasing interest rates. A bail out was arranged and it is now on a bloodline from the EU and IMF. What are the options?

To keep going, pay off creditors and carry on with what has been set by the IMF

We have been given till 2013 to bring back public debt and the deficit in relation to GDP with savage conditions attached, which translate into severe cuts in real and nominal wages and pensions. Prices are rising due to increases in taxation which is regressive. Unemployment and poverty are rising and we have the highest rates of poverty and inequality in Europe. These measures are deepening the recession and so they are going to make these problems worse. As GDP falls then the debt and deficit will rise so it becomes obvious that there will need to be an extension till 2020. The squeeze is so strong on Greek people that I can’t see them taking this for so long especially as it won’t have the right effect. People are paying for a crisis they are not responsible for.

Default – In this case Greece will have to leave the euro zone and find ways of financing the public deficit (expenditure, civil servant wages, pensions etc) and we import more than we export so we need to pay for this. The middle and upper class have sent money abroad and this will cause chaos and insecurity. The euro-zone will then go through a crisis (Spain, Portugal and Ireland) and it will create a lack of credibility and another type of crisis and chaos. We have had two fascist regimes – there is a rise in the right and divided left and we have had enough of this chaos.

To restructure our debt: To negotiate with creditors, reduce the amount we are going to pay and say I can’t pay so you may as well get some money. Give us time to get our house in order and breathing space. Reduce expenditure on armaments, introduce progressive taxation system, increase public expenditure on social protection etc

What would the left suggest? The second option but in fact the third is much better – we don’t have the luxury for debating for much longer. We need to change the architecture of the EU. If it doesn’t change it will collapse. There is no monetary or fiscal solidarity – it was built by Germany to serve their idea of how things should be run. We need a new political programme.

Pedro Paez (Former Minister of Economic Cooperation, Ecuador)
Behind all aspirations of goodwill, co-operation, multi-lateralism you have an iron fist of the imperialists. We need to deploy a planetary agenda to unlock the potential for people and not lead to wars and conflict. We have to understand the dialectics of the problem – not related to financial crisis but the loss of profit of the capitalist mode of production. In Latin America we are trying to formulate these new horizons – political and philosophical – learning from indigenous peoples. We have a responsibility to past and to the future. To get an idea of the velocity and ferocity of this crisis we have to follow clues.

The dislocation of private property is not a marginal issue – short selling something you do not own is a violation of the mechanisms of the market. Asphyxiating the market through over-production and accumulation – the problems are the markets as a universal compromise. Structural problems – there is no way out of this crisis within capitalism. The real business of profitability is war, conflict and more speculation. A huge process of resignation and acceptance and the alienation of human relations. People are saying that I’ve done nothing wrong and yet I am losing my job and the precarious job that I had. For 6 billion people this is massive and so political action from the progressive forces has to be reclaimed and is vital – building up a planetary projection of the democratic and participatory world we want to construct.

We need resources to challenge the authoritarian forces and unequal exchange. We need to recreate an autonomous programme to block out the Mafioso agenda. Not a linear left to right agenda but a totally new paradigm. Key to the progressive movement is to block the authoritarian agenda.

Nicola Bullard (Focus on the Global South),
We can talk about elements and principles but the world and its crises were not planned. Things unravel and evolve in ways that are very unpredictable and all we can do is to arm ourselves with orientation.

Another way to look at the crisis is a question of speed – the rate at which we produce and consume is incompatible with our social and natural capacity to reproduce our society and nature. The time it takes to look after children, gardens etc is not compatible with the rate of consumption and extraction – therefore relationships between production and consumption need to be recalibrated.

The limits of our society and nature need to be taken into account and the current system will always exclude vast populations. We need redistribution and dramatic change in how we do things – if we are to ensure well being for everyone – then there can’t be business as usual.

Where does political leadership come from? Where are the leaders? We need to look towards the international solidarity of the oppressed – this is where I would put my efforts. We need to be modest and self conscious about the role we have in this process – we have an important contribution to make but it needs to be done modestly. To see how we can support the process and make audible voices heard, and make invisible struggles visible. How can we use the privileged access we have to support the oppressed – how can we support this process of reimagination and emancipation, of self-realisation.

We need to understand how we see our role and engagement with these issues.

The de-privatisation and reclaiming of the commons in many different ways – nature, knowledge, information, political participation – is critical. If this stays in the hands of individuals, corporations or as financial commodities – then it falls outside the realm of democratic control and participation. This is an approach that can help us to link together the struggles in the north and south.

Let us not romanticise or idealise the struggles of Latin America – they are very volatile and we are looking at a very complex scenario however we need intellectual exchanges between Asia and Latin America.

Despite existing laws, regulations, standards and mechanisms, governments have failed to prioritise human rights, environmental security and labour rights, over the profits of companies. There has been a lack of political will in implementing regulation and establishing redress mechanisms for companies operating in, and beyond their territories.

October – Residence Palace

Policy Dialogues

TRADE
Speakers: Peter Berz, Deputy Head of Unit for relations with South Asia, Korea and ASEAN, MP Charles Santiago (MSN), Ranja Sengupta (Third World Network)

FOOD SOVEREIGNTY
Speakers: Leonard Mizzi (Head of Unit, EC DG on Agriculture-Unit A3), MP Walden Bello (Philippines)

CLIMATE CHANGE
Speakers: Praful Bidwai (TNI Fellow) and Bas Eickhout (MEP for the Greens)

SOCIAL PROTECTION
Speakers: Francesca Mosca (Director, EC EuropeAid Cooperation Office), Sandeep Chachra (ActionAid-India), MP Tian Chua (Malaysia), Rafendi Djamin (Indonesian Representative, ASEAN Intergovernmental Commission on Human Rights), Prof. Koen de Feyter (Antwerp University), Bart Verstraeten (WSM/European Working Group on Social Protection)
Chair: Paul Graham Meadows (Former Director General, DG Regional Policy, European Commission)

PEACE AND SECURITY
Moderators: Kalle Sysikaski (AEPF Finland), Varsha Berry (Focus on the Global South), Achin Vanaik (Delhi University), Colin Archer (International Peace Bureau), Jan Oberg (TTF)

Brussels Lobby Tour – Organised by Corporate Europe Observatory visiting Brussels Corporate Lobby Agencies

Side Events

  • Round table – Route map for companies to an Asia Floor Wage (Asia Floor Wage Alliance)
  • Collusion, capture, complicity. Big business lobbying in China, India and the EU

Protest Action Against the EU-India FTA

Against the backdrop of the 8th ASEM, the Belgian Platform for Action on Health and Solidarity held a protest action against the EU-India FTA in front of the European. The Action highlighted that:

India is known as the pharmacy of the developing world. It is one of the few developing countries with its own pharmaceutical industry and exports a plentiful supply of good, affordable medicines to dozens of other developing countries. India is the source of 90% of the HIV/AIDS drugs used in developing countries.

Through a free trade agreement with India, Europe is seeking to impose stricter intellectual property right regulations. This will make it more difficult for Indian manufacturers of generic medicines to bring their products onto the market, thereby pushing up prices. The EU-India free trade agreement therefore not only threatens to dry up a source of good, affordable medicines, but also puts countless human lives at risk in developing countries.

More information:
Executive summary: European free trade agreements and the right to health in the South (http://www.sante-solidarite.be/files/summary%20health%20and%20trade.pdf)

Briefing paper on EU trade policy and the right to health: http://www.sante-solidarite.be/files/Briefing%20paper%20FTAs%20andHealth_final_0.pdf

Video of action
http://vimeo.com/15803106

5th October – European Parliament

Beyond Free Trade: Alternatives for EU-Asia relations”?

Asian MP’s:
Walden Bello (Akbayan, Philippines),
Charles Santiago, Democratic Action Party, (Malaysia)

Members of the European Parliament:
Helmut Scholz, coordinator of INTA Committee for the GUE/NGL,
Yannick Jadot, coordinator of the INTA Committee for the GREENS-EFA,
Joe Higgins, member of INTA Committee for the GUE/NGL,
Ska Keller, member of DEVE Committee for the GREENS-EFA,

CSO Representatives of Trade Campaigns:
Ryu, Mikyung, International Director, Korean Confederation of Trade Unions,
Ashim Roy – New Trade Union Initiative (NTUI) India,
Joseph Puruganan – Co-ordinator, EU-Asean Trade Campaign,
Marc Maes, Trade Policy Officer, 11.11.11,

Brid Brennan, Programme Co-ordinator Transnational Institute,

Introduction – We need to review trade within the context of the current crisis. Trade remains a pillar of European Commission policy and is at the forefront of the EU recovery plan. It is through trade policy that markets stay open and goods and services keep flowing for the good of businesses and public finances.

We hear a very strong reiteration of business as usual but we believe it is with an added aggressive assault on people and the South in regard to access to markets, services and government procurement.

Ska Keller, member of DEVE Committee for the GREENS-EFA,

We are very concerned at the current shift to EPAs and free trade that is being marketed as the very thing that brings growth and therefore development. Free trade doesn’t necessarily bring growth or development – or a strengthening of social justice or society.

We are seeing an export led expansion and promotion of EU goods and services.

We could veto FTAs due to the Lisbon Strategy but this is unlikely to happen because we don’t have a majority. Once an FTA is agreed it is very hard to then say no. We demand that the Parliament is involved in early stages – in a timely manner and then to be involved at all stages. But we don’t see documents, we don’t know what’s going on and get very vague answers. (e.g. on the impact on access to medicines). There is no formal way for us to make amendments to the FTAs. The Development Committee also have the same concerns – about the lack of policy coherence and damage done to long term development through FTAs.

We are very concerned about impact on access to medicine, human rights, environment and agriculture as a result of the current India-EU FTA and agriculture.

This event is important for MEPs who are working on this issue and asking for information. We hope that we can support you in your struggle and you are supporting us today by being here.

Charles Santiago – Democratic Action Party, (Malaysia)

Two years ago when I took the oath as a first time parliamentarian I took the oath to protect the Constitution, sovereignty and rights of the people of my nation. Yesterday when hearing the European Commission officials speak on FTAs and Global Europe I was worried and concerned. FTAs will ensure that corporations and investors have rights – that people matter but in the case of access to medicines and retro-virals they will matter less.

Corporations now have a right to access to government procurement and this undermines nation’s right to provide for its people. The Lisbon Treaty gives the EC a mandate which means that consultation is not necessary. Indirect expropriation is being included in all FTAs – so that when a corporation perceives that its profitability is in jeopardy it can sue governments in court and this undermines the sovereignty of nations.

FTAs are leading to corporations running the world. And they are designed to do so.

We as parliamentarians need to reclaim the state and the nation for our people – to ensure our oath is realised. Therefore my call here today is to work together to promote a different type of globalisation where people mater and not corporations. We need to understand the impacts of FTAs, strengthen our resistance and alternatives.

Ryu, Mikyung, International Director – Korean Confederation of Trade Unions

Tomorrow the Korea-EU FTA is officially signed. The EU can’t compete with cheaper labour and lower union rights. Media propaganda is promoting the FTA to say that the car industry in Korea will benefit from it and that we need the FTA. But the FTA will also promote deregulation, protection for foreign investors and privatisation – so we need more voices to raise concern about the real benefits.

Korea is promoting cheap labour, long working hours, lack of working rights and devaluation of the Korean currency. The same policies in China which we can’t compete with and so they are pushing for an FTA with Europe. To remove all tariffs and barriers and provide more protection and intellectual property rights for capital. There is no obligation or duties to factories – they can close at any time and move elsewhere.

During negotiations Korea promised to ratify ILO Conventions but this didn’t happen.

Ashim Roy – New Trade Union Initiative (NTUI) India,

People here represent millions of people and anti-poverty movements – we want to say with one clear voice that we want to halt the EU-India treaty. India has a third of the global poor, most are primary producers and we need to make a transition that allows us to sustain our people and environment. We want to negotiate what the people want rather than what the corporations want. If we can’t decide our prices then how can we control our conditions? We have fought against all corporate agendas – we have fought and won generic and affordable drugs. We nationalised our banks and now have inclusive, accessible banking which will collapse with this FTA. We produce half the garments of the world made by people working at a poverty level wage. We are all now in a globalised world – the farmers are informed and will resist and will not allow this FTA to go ahead.

Joseph Puruganan – Co-ordinator, EU-Asean Trade Campaign,

There are two realities in South East Asia – a market of 550 million of growth, trade and investment but also a region of poverty and inequality where 30-40% of people live below the poverty line, are vulnerable to climate change and where the richest control 80% of the economy and corner the benefits of development.

Trade negotiators only see the first reality.

There is a distinction between ASEAN governments and their people – policies do not address even the most basic needs. The notion of equal partnership is driving negotiations but this doesn’t exist – the ambition for comprehensive trade agreements reflects only the interests of EU and ASEAN corporations. In 2007 the EU provided a mandate to the EC to negotiate with ASEAN – according to the rhetoric this is supposed to aid ASEAN to address the asymmetries which exist between the two regions.

When it became clear the EU would not get the level of ambition hoped for then it shifted to a bi-lateral cherry picking approach. EU-Malaysia negotiations were launched today. So beyond the rhetoric of EU being a champion of regional integration – to hold ASEANs hand in moving towards a situation where benefits are shared equally – it is very clear that for the EU that they want their ambitions to be realised at any cost. They will work to pursue an aggressive corporate agenda even if they need to shift to bi-lateral. For example the EU- Singapore negotiations and we worry that the level of ambition within this agreement will become standard for all.

So they will throw aside the notion of equal partnership and EU bottom lines are:

  • To slash tariffs and so create job losses – even EU’s own studies show this. For example Philippines fishery and cereals sectors already mired in poverty.
  • TRIPS+ – that will undermine access to cheap drugs.
  • Government procurement that will have serious implications on domestic policy space.
  • Aggressive access to raw materials – to access resources and land by indigenous peoples
  • Erosion of policy space

The message from the Vietnamese is that workers in textile and leather industries, mostly women are at threat from anti-dumping measures from discriminatory policies of the EU. The ambitious aims of the EU will have dire consequences for the people of the region (not of governments and corporations) but people and communities who are already suffering from poverty and inequality.

Joe Higgins, member of INTA Committee for the GUE/NGL

The theme of ASEM is ‘Greater Prosperity and Dignity for all Citizens’ – but this will only be achieved for big businesses of both regions. The reality is that all governments primarily represent the major corporations, financial institutions and capitalism. As we have seen in recent years it is their interests that are put first.

EU global interventions have been very controversial and detrimental to small producers and workers. The EU-Columbia FTA was enacted in the face of huge opposition but the EU-India FTA will be the most controversial of them all. European big business sees the potential for dazzling profits and this is the prize they are striving for, irrespective of the consequences. To achieve this agreement they have to bludgeon India into submission on crucial areas – free access to goods and services. This will swamp India with subsidised goods and destroy the livelihoods of manufacturers and workers.

Trade and investment negotiations remain secretive and closed. The ongoing trade discussions between the EU and India are indicative of this approach. Behind closed doors, negotiators on both sides are working hand-in-hand with company and business representatives to push a business-first agenda that undermines governments,’ threatening the lives and livelihoods of millions of small farmers, street traders and access to affordable medicines.

Dharmendra Kumar, India FDI Watch

After the orgy of speculation that has taken place what have EU service providers got to offer India. They like to pretend they are models of democracy. Genetic modification of seeds is also of major consequence – we do not know the impact of GM seeds under different climatic conditions.

The European Parliament has a neo-liberal, right wing majority but we will continue to fight. But workers and trade unions all have a responsibility to sit down to fight for public resources, to make sure they are under democratic control and to advance the general good of society.

FTAs need ratification by European Parliament so they have a vital role to play. In Pakistan – all agreements from IFIs, Paris Club etc – are all seen in terms of privatisation. Nestle for example has taken over water privatisation. How can movements in Europe advice and protest on these agreements in Pakistan which are anti-people.

The struggle against FTAs is becoming the struggle against corporations and businesses. We all need to come together to challenge instruments of domination and to move towards systems change in a fundamental way.

Yannick Jadot, Coordinator of the INTA Committee for the GREENS-EFA,

There are new competencies for the European Parliament under the Lisbon Treaty but the European Commission does not depend on us to develop a new mandate or to check the different steps of the negotiations. Political balance – fiscal, monetary, environmental dumping – before it was a civil society debate and now it’s within the European Parliament. The INTA -international trade committee is dominated by the right.

Japan-ACTA for example – the Parliament were out of the negotiation and despite a strong resolution against the lack of transparency we didn’t manage to achieve it. We were not part of the debate – we were here to claim our right to know what it means in terms of generics but failed to bring transparency.

With the Lisbon Treaty the Parliament has to give consent to all agreements and negotiations. We now have a bigger responsibility and we need you to give us the capacity to deal with these issues.

For example the Korean FTA is a 1500 page document – we can’t have a clear and precise analysis because we have 20 similar documents arriving all the time – on investments, bananas etc. We need your help to alert us to what is at stake – what the impact might be. I am working on Export Credit Agencies and member states don’t understand the role of the European Parliament on mining, oil, minerals etc and it is clearly seen by member states as their sovereignty but now the Parliament has power on this to better understand the impact of big dams, impact on developing countries etc

We could not be as good as we are and try to be without the help of NGOs to bring pressure on this Parliament. Trade policies are needed that are the outcome of internal national policies, food sovereignty, human rights etc and not imposed from outside based on the needs of corporations.

We need to make sure that trade policies are the tool and not the end and to do this we need to change the dynamics of all committees.

Marc Maes, Trade Policy Officer, 11.11.11,

Trade policy has escaped democratic control since the middle-ages. It is completely under executive power and there is a desperate need to bring it into democratic space. There is exclusiveness, untransparency and technical difficulties. Sometimes a very clear examples of massive injustice but often its very piecemeal – the sum total is devastating but it is difficult to show this to the general public.

There are 10,000 lobbyists in Brussels with massive strength and very strong links to governments of member states. They serve the interests of their industries. Trade impacts employment, environment, jobs, indigenous peoples etc but they are there to serve business.

At a national and European level you can come with great analysis and arguments but they don’t want to look at it – they call a business association who says don’t both or worry about it. They don’t engage on the intellectual level. We are now faced with the European Parliament who has quiet new competencies on trade and investment, but it is still very difficult for them to exert themselves. The Commission is a very difficult nut to crack – DG Trade has to consult with DG Social, DG Environment etc…so this might be a first place to start.

The Council is an important pillar and since the new treaty the parliaments of member states don’t need to ratify agreements so they have less control over what they do. So MEPS say it’s a European issue and is therefore not following it so who is holding our European Governments to account? There is less and less control. National governments are completely unchecked by parliaments on their trade positions. Or they say our position is none of your business because it is an EU position and we are not willing to expose this – this is a massive problem.

Parliament has a right to information from the Commission – they have a weekly briefing – but the question is what is the Parliament doing with it – they are drowning in the information. Parliament needs to beef up its analytical capacity. Since the treaty gives Parliament the right to information then what are they doing with it – are they sharing it with constituencies, with general public? Analysing it? Producing briefings?
Ratification is to say yes or no and it is very difficult to say no to processes that have taken years.

The Parliament has to approve all trade laws and to set the mandate but it is unclear how they will feed back on this mandate to the Commission. Again they need for adequate time to do this. At present there is a great need not only to see but also to scrutinise their mandate.

Walden Bello (Akbayan, Philippines),

President Aquino decided not to attend ASEM possibly as it was going to be again a ratification of the neo-liberal agenda. There was a recent hearing in the Filipino Congress on EU-Filipino Partnership Co-operation Agreement. We questioned our Foreign Ministry, why are we doing this? We have the WTO, ASEAN-EU FTA, ASEAN-China FTA, ASEAN –Japan FTA. He said it it’s the EU that is pushing this.

ASEM began with a push from the EU in response to APEC in 1996, followed soon after by the Asian financial crisis but there was none of the desired and expected support to Asian economies from the EU. Now the meeting is in Brussels and interest is largely from European side with their need to respond to recession and crisis. We need these markets to get us out of this recession!

Can’t talk about trade and investments without talking about migration and the current crisis of migration (i.e. Laos, Thai and Cambodians in Sweden). Migrants must be treated with respect and dignity and integrated into workers organisations. They are being used as scapegoats for the crisis.

Actions

Create a parallel front to FTAs – to not be too pessimistic on the European Parliament – people are affected by FTAs both in Europe and Asia and we need to use this opportunity to rebuild.

How can civil society push for more space in the European Parliament? The most important thing is to keep together, create networks and have a permanent exchange and concrete alternatives.

The European Business Lobby does not stop in Brussels – also in China, who learnt techniques from Europe.

Investment policies are even worse than trade – collusion is even worse. There are 3000 bilateral investment treaties in the world, the EU own 1300 of them and they are completely biased in favour of businesses and against public interests. There are secret arbitration councils against which there is no appeal. Indirect expropriation issue – doesn’t exist in EU law – no one should say you are increasing my costs due to environmental protection so I need. Businesses are there at heart of negotiations and in drafting text. I have always denied a conspiracy for years – but now I see that civil society are being denied access and being prevented from engagement.

The number of people working on trade within civil society is going down – nothing is moving in the WTO and so all those who were watching it are no longer. We need to mobilise our civil society colleagues to focus on trade policies because that is where major decisions are being made.

Concluding Remarks – Andy Rutherford (One World Action)

We are confronting challenges and creating joint visions as active citizen’s organisations. We are networks and this is our strength. What do we now do with this privilege of being here of interacting and influencing. We need to take on the responsibility and move forward, Informed by our alternatives to become a progressive reality. Because they influence and affect the lives and livelihoods of millions of people.

Another world is possible and is also happening – we need to be inspired, committed and to work for the change we are all fighting for.

Read More

Recommendations to ASEM8

Recommendations to ASEM8

October 9, 2010

Background

From 4-5th October 2010, heads of state and governments from across Asia and Europe met in Brussels for the eighth Asia Europe Meeting (ASEM8) to discuss their future priorities and plans. From 2-5th October around 600 civil society, NGO and people’s organisations representatives, activists and parliamentarians from across Asia and Europe, met in Brussels for the 8th Asia Europe People’s Forum (AEPF).

AEPF is a strategic civil society gathering of Asian and European social movements fighting poverty and inequality and working for social justice. AEPF began in 1996 in Bangkok, in parallel, and in response to the first ASEM summit which pushed for stronger regional blocs and the promotion of corporate power. AEPF is grounded in the common desire of people’s organisations and social justice networks across Asia and Europe to open up new venues for dialogue, solidarity and action.

The following call to action is based on the recommendations from the many events that were held throughout these four days, focussing on the relation of corporate power to trade and investment, food sovereignty, climate change, decent work, and peace and security.

Call to Action – from the 8th Asia Europe People’s Forum

“Poverty is created by unequal economic systems – it can be eradicated. Governments need to reassert their control over corporations and be accountable to their citizens. Ultimately it is a question of political choice and priorities.”

Charles Santiago, MP Malaysia

ASEM8 is an historic opportunity for governments to take the timely and decisive actions needed to address the social, economic and environmental crises that have deepened the poverty, injustice, loss of employment, and exclusion faced by millions of women and men across Asia and Europe. The gap between the rich and the poor is widening, and access to resources, livelihood opportunities and basic services remain grossly unequal.

Despite the policy failures of trade liberalisation, market deregulation and privatisation, governments continue to ignore the growing tangible consensus for fundamental policy change. Instead of fulfilling the needs of people and reinvigorating local economies, hundreds of billions of dollars have been mobilised to save the banks and financial system, while essential social services remain under-funded and threatened.

Despite existing laws, regulations, standards and mechanisms, governments have failed to prioritise human rights, environmental security and labour rights, over the profits of companies. There has been a lack of political will in implementing regulation and establishing redress mechanisms for companies operating in, and beyond their territories.

Companies and businesses have used their expanded legal rights and exceptional access to decision-makers to aggressively push for policies that open up new markets and allow access to raw materials regardless of the social or environmental costs. We see this repeated in Brussels with the Asia Europe Business Forum, which brings together EC, government officials and corporate lobbyists.

“Governments must live up to their human rights obligations, including the duty to protect against abuses involving corporations.”
Mary Robinson

The consequences of this corporate domination are experienced in the lives of millions of women, men and children across Asia and Europe. This has led to a hollowing out of democratic accountability as elites make decisions and implement policies with little or no scrutiny from citizens, creating the conditions for poverty, inequality, environmental devastation and growing social unrest.

The Asia-Europe People’s Forum, representing citizens, people and social movements from Asia and Europe, is calling on the Heads of State and Government of the ASEM member countries to take forward the following actions:

Promote human rights and tackle exclusion

  • Fully ratify and integrate into national laws the commitments made in the Convention of the Elimination of all Forms of Discrimination against Women.
  • Take immediate measures to prevent discrimination on any grounds, including caste-based discrimination, and take special measures to assure decent work conditions for the Dalits in South Asia.
  • Ensure democratic, transparent and just governance systems that are accountable to citizens based on agreed international human rights principles and legislation.
  • Stop the criminalisation of undocumented migrants and refugees. Repeal the EU Return Directive which legitimises the massive arrests of undocumented migrants and detention without due process of law, up to 18 months (of detention) including pregnant women and a ban of no return for 5 years.

Promote sustainable solutions to the economic and financial crises

Europe and Asia should pursue a comprehensive recovery plan with people and the environment at its heart, based on principles of redistribution of income and wealth, enabling countries to invest in low-carbon development, sustainable decent jobs, education and to meet basic needs.

  • Introduce a Financial Transactions Tax to generate funds to support poverty alleviation and climate adaptation.
  • Ensure stabilised exchange rates by establishing a new global reserve currency system, as promoted by the recent UN summit on the global crisis.
  • Strictly regulate all financial actors, institutions and products. All financial operators must operate with full transparency and be regulated and supervised. Restore the clear separation between savings banks and investment banks. Prohibit off balance sheet and offshore transactions, over the counter trading and high risk financial operations (i.e. short selling, structured investment vehicles and collateralised debt obligations). Ban all speculation on commodities.
  • Reform and restructure the International Financial Institutions.
  • Reverse the privatisation of the banking sector and return banks to the purpose for which they were designed.
  • Implement universal social protection policies, essential in alleviating poverty, using the UN Social Protection Floor Initiative as a starting point. Ensure social protection is part of the EU’s Development Co-operation strategy and develop a Communication on Social Protection in development cooperation, linked to a concrete, time-bound action plan with dedicated resources to support the implementation of long-term and sustainable social protection systems. The state has the obligation to provide and manage social protection schemes and they should not be managed or run as a business insurance system.
  • Responsibly address the debt problem in Asia and Europe. Conduct debt audits, end unsustainable and illegitimate debts and reform lending and borrowing procedures.

Support a Just Trade and Investment system

Europe and Asian governments should take forward trade and investment policies that put the interest of farmers, workers, the environment and respect for human rights first by:

  • Agree to a moratorium on the EU’s Global Europe Strategy and all ongoing free trade negotiations between, and within Asia and Europe.
  • Put on hold all European member states Bilateral Investment Treaties negotiations, while the new EU investment policy framework is being defined. Ensure the protection of public rights over private interests.
  • Support an independent investigation and stakeholder consultation process on the impact of current EU and Asia trade policies on poverty and social, environmental and human rights.
  • Replace the investor-to-state dispute settlement mechanism, embedded in international treaties, with a state-to-state mechanism.

Base all future EU-Asia trade relationson an approach that:

  • recognises small producers’ rights to trade protection within their own domestic and regional markets
  • bases its relations on a principle of non-reciprocity and differential treatment
  • recognises and supports food sovereignty of countries, consumers and producers
  • respects the right of countries to formulate and pursue their own development strategies and economic models in the public interest
  • promotes and enables universal access to essential public services
  • allows for the regulation of imports, exports and investments to fulfill social, economic, civil and political rights
  • is democratic and inclusive, subjecting any agreement to a public and parliamentarian scrutiny and regular review and accountability mechanisms
  • prevents discriminatory and devastating subsidy regimes

Make corporations accountable to governments and governments accountable to citizens

Voluntary codes of conduct have not prevented human rights and environmental abuses. Growing corporate influence has created a democratic deficit that urgently needs to be addressed. Asian and European Governments should:

  • Work, with the full involvement of the ILO towards the development of international legally binding instruments to define and enforce corporations’ legal responsibilities and accountability for their activities. Increase transparency of corporate accounts by adopting a country-by-country reporting standard for multinational companies. Ensure that corporations annually disclose their finances, environmental, workers safety, human and labour rights, lobbying and tax records.
  • Promote the creation of an International Economic Tribunal that can adjudicate on trans-national corporations and impose appropriate sanctions.
  • Introduce a high-quality, mandatory lobbying transparency register, to end the excessive political influence of corporate lobby groups. Assure full transparency, rules and safeguards against corporate capture of policy making and European Commission advisory groups; close the revolving door between the European Commission and industry lobbies; implement effective conflicts of interest rules for Commissioners, Commission officials and Commission Special Advisers and institute enforceable ethics rules for corporate and business lobbyists, among others.
  • Close down tax havens under the jurisdiction of any EU member state and Asian countries.
  • Ensure greater transparency in the management of natural resource revenues, by demonstrating support for complementary voluntary and mandatory mechanisms. Support the global Extractive Industries Transparency Initiative by providing increased political, financial and technical support to resource-rich countries to ensure full and timely implementation of the EITI. Champion revenue transparency by requiring country-by-country financial reporting for companies engaged in oil, gas or mineral extraction (through the adoption of national laws, stock listing requirements or as part of an International Financial Reporting Standard).
  • Repeal the EU Raw Materials and Access to Markets legislation.

Protect rights to food, water and health

EU and Asian Governments should promote agriculture, food, energy and trade policies to meet the need for healthy, adequate and affordable food, and water and sanitation. Asian and European Governments should:

  • Building on the July 2010 UN Resolution on the Fundamental Right to Water and Sanitation increase the funding for publicly managed water and sanitation infrastructure. Increase political and financial support for public-public partnerships in the water and sanitation sector.
  • Take immediate action to curb financial speculation on food stocks and prices by implementing a global registry of all commodity-related spot and derivatives transactions (including both exchange and OTC futures); restrict or prohibit investment funds’ (including ETFs’) access to commodity markets; introduce effective position limits and introduce comprehensive regulation of OTC trade, including the clearing of transactions.
  • Reform the EU Common Agricultural Policy and export-led agricultural models to end dumping of agricultural goods and support small scale sustainable food production and food sovereignty.
  • Stop promoting the use and the production of industrial agrofuels, the EU should revoke its mandatory target on agrofuels by 2020.
  • Stop land grabbing and forced land acquisitions that are taking millions of hectares out of essential food production. Guarantee security of access to land and coastal and marine resources for women and men involved in small scale agricultural production and fishing.
  • Safeguard and fund accessible and free health care.
  • Stop the building of large dams which have produced severe environmental, economic and safety concerns and have evicted millions from their homes and livelihoods.

Promote Climate Justice

Addressing climate change requires a shift towards a low carbon economy. To achieve this Asian and European Governments should:

  • Ensure global temperatures do not rise more than 1.5ºC to avoid catastrophic climate change. European countries should reduce their emissions by 40% of their 1990 level by 2020 without offset or resorting to dangerous and costly nuclear power – enabling greenhouse gas concentrations to stabilise at 300ppm.
  • All climate change interventions should be made within the framework of social and inter-generational justice and human rights.
  • European countries should meet the costs of adaptation and mitigation based on differentiated responsibilities (not through loans).
  • Invest in the just transition of the economy comprising green decent jobs, skills development, vocational training, social dialogue and protection, and co-ordinated industrial policies. Invest public funds generated by new taxes in the rebuilding and expansion of public infrastructure (public transport, sustainable local energy systems etc). Subsidies and aid packages for any industry sector should be used to help the sector and its employees to transition to a low carbon economy, in the reconstruction of devastated communities and environmental regeneration.
  • Introduce an international tax on shipping and aviation emissions to reduce emissions.
  • Support the creation of a Climate and Environmental Justice Tribunal.
  • All funds for climate mitigation and adaptation should be managed by legitimate UN agencies such as UNCTAD.

Promote Decent Work

The decent work agenda requires Asian and European governments to commit to Core Labour Standards, the creation of decent jobs, social dialogue and social protection. To achieve this Asian and European governments should:

  • Ratify and implement ILO Conventions and Core Labour Standards revising labour laws where they are not in compliance with Conventions. In particular:
  • ILO Convention 87 and 98 on Freedom of Association and Collective Bargaining.
  • Support the finalisation of an ILO Convention on Domestic Work at the International Labour Conference in July 2011.
  • Sign and implement UN Convention on the Protection of the Rights of all Migrant Workers and Members of their Families.
  • Adopt national economic policies that guarantee decent wages.
  • Create and protect decent jobs for all, particularly for young people, women, disabled people and workers within the informal sector, by prioritising investment of resources in local economic development and tackling the persistence of precarious working conditions through the development and enforcement of labour laws. Temporary contracts should be limited to work that is temporary in nature only, and direct employment of workers should be ensured through strong regulation and restriction of employment through labour agencies. Governments should invest more in labour inspection, (i.e. more resources for the training of inspectors, increase the number of independent inspectors and perform more labour inspections in the field).
  • Initiate a process of “upwards” harmonisation of workers incomes, social and labour rights in Asia and Europe, including equal rights for migrant workers.
  • Guarantee access to social protection, job security, health care, maternity leave and essential services for permanent, contract, disabled and migrant workers by implementing national integrated and participatory policies on social security. Prioritise the enforcement of employment law over the enforcement of immigration policies to address the widespread exploitation of migrant workers and to ensure that migrant workers have full access to legal redress mechanisms when their rights are violated (including the provision of visa/residence permits independent from the employer).
  • End all forms of gender-based violence and discrimination against workers, including migrant workers (e.g. obligatory pregnancy and/or STD tests), through ensuring appropriate legal and policy standards in coordination with women organisations and migrant communities.
  • Take immediate steps to prevent the exploitation of child labour.
Read More

Roundtable debate on Asia European relations

Roundtable debate on Asia European relations

October 6, 2010

Walden Bello, Praful Bidwai
Nicola Bullard, Christa Wichterich, Marica Frangakis
Source: tni.org
October 2010

Debate between leading European and Asian analysts on the decline of European power, the economic rise of China and India, the likelihood of global recession, climate change and proposed alternatives to the current global economic model.

Audio File:

{mp3}http://www.tni.org/sites/www.tni.org/files/audio-files/rountable_lowest.mp3{/mp3}

Walden Bello

Senior analyst at Philippine think-tank Focus on the Global South, TNI fellow and Akbayan representative in the Filipino Congress.

Author of more than 14 books, Bello was awarded the Right Livelihood Award (also known as the Alternative Nobel Prize) in 2003 for “… outstanding efforts in educating civil society about the effects of corporate globalisation, and how alternatives to it can be implemented.” Bello has been described by the Economist as the man “who popularised a new term: deglobalisation.”

Bello predicted the financial crisis several years prior to the current meltdown and is a globally respected figure within the alternative globalisation movement. Canadian author Naomi Klein called him the “world’s leading no-nonsense revolutionary.”

Praful Bidwai

Independent Journalist

TNI Fellow and former senior editor of The Times of India, Praful is a freelance journalist and insightful columnist for several leading newspapers in South Asia writing regularly on all aspects of Indian politics, economy, society and its international relations. He is an associate editor of Security Dialogue, published by PRIO, Oslo; a member of the International Network of Engineers and Scientists against Proliferation (INESAP) and co-founder of the Movement in India for Nuclear Disarmament (MIND).

Read More