A3-0007/94

Resolution on the introduction of a social clause in the unilateral and multilateral trading system

The European Parliament,

-having regard to its resolutions of 9 September 1986 (paragraphs 64 and 65), 18 November 1988 (paragraph 77), 11 October 1990 (paragraph 52), 30 September 1993 and 28 October 1993 (paragraph 12), wishing to guarantee minimum standards with regard to freedom of association, free collective bargaining, working hours, the minimum age for employment, industrial safety and inspection of working conditions,

-having regard to the International Labour Organization (ILO) conventions as a whole,

-having regard to the Vienna Declaration and the Action Programme adopted by the World Conference on Human Rights on 25 June 1993,

-having regard to the motion for a resolution tabled by Mr Suárez González on social clauses in the international multilateral trading system (B3-1673/92),

-having regard to the motion for a resolution by Mr Staes on a ban on imports of goods produced with child labour (B3-1352/93),

-having regard to Rule 45 of its Rules of Procedure,

-having regard to the report by the Committee on External Economic Relations and the opinion of the Committee on Social Affairs, Employment and the Working Environment (A3-0007/94),

A.mindful of the globalization of international economic activity and the resultant far-reaching changes in the international division of labour,

B.whereas international trade should be a special means of introducing social innovation that would permit greater respect for workers' rights,

C.whereas those who set GATT up recognized the principles of comparative advantage and so did not become involved in the field of fair working standards,

D.mindful of the millions of children reduced to slavery throughout the world making goods at derisory prices, in violation of basic human rights,

E.whereas serious violations of ILO Conventions also occur in the Member States, most of which have accepted and ratified them, particularly with regard to domestic staff and workers employed in numerous clandestine work-places (especially in the textiles industry), where people work under appalling conditions, without social protection and in return for a mere pittance,

F.whereas the Community, which remains one of the most powerful economic and trading blocs in the world, should set an example to both developed and developing countries with regard to respect for labour rights,

G.mindful of the tens of thousands of prisoners throughout the world who are exploited and even tortured in veritable factories, part of whose output is intended for the West,

H.mindful of the indispensable role played by the trade unions with regard to respect for workers' rights throughout the world,

I.mindful of the essential work which the ILO has carried out over the past 75 years, within the limits of its powers, in the field of workers' rights,

J.whereas the goals of social justice and fair competition can only be achieved on the basis of a code of minimum working standards linked to the agreements governing international trade,

K.whereas on several occasions in the past Parliament has called for the introduction of a social clause in international trade,

1.Believes that it is vitally important that a number of ILO conventions be observed by all Member States and third countries in all circumstances, particularly the conventions restricting the use of child labour (Nos. 5 and 138), those prohibiting forced labour (Nos. 29 and 105) and those guaranteeing the right to join trade unions and the right to engage in collective bargaining (Nos. 87 and 98);

2.Considers it essential that a social clause designed to combat child and forced labour and to encourage trade union freedoms and the freedom to engage in collective bargaining on the basis of the ILO conventions mentioned above be introduced in the multilateral and unilateral framework (GSP) of international trade, and that, in doing so, account be taken of the importance of national and regional characteristics and of the diversity of historical, cultural and religious backgrounds;

3.Considers that the introduction of a social clause in international trade must not become a means of increased protectionism directed against developing countries but that, on the contrary, it should become a factor in the struggle against underdevelopment and violations of human rights;

4.Expresses the hope that, following negotiations between the two sides of industry, foreign investment by multinational companies will permit not only the transfer of new technologies and management skills but also, and above all, social innovations based on the clause referred to above;

5.Calls therefore for importing companies and their associated distribution circuits likewise to cease social dumping practices and ensure strict observance of the ILO Conventions referred to in paragraph 1; calls upon the Commission to study corrective measures in this context;

6.Considers it essential that the introduction of a social clause in multilateral trade regulations is included in the responsibilities of the future World Trade Organization and consequently asks the European Union to ensure that the Declaration of the Ministerial Conference closing the Uruguay Round contains a commitment and specific agreements to achieve this priority objective;

7.Calls for Article XX(e) of GATT to be changed by introducing a ban on child and forced labour and the right to join trade unions and engage in collective bargaining; accordingly, considers it essential that a code be negotiated between all the Contracting Parties to determine the way in which these principles can be implemented in practice;

8.Considers it important that such a code should include a clause concerning mandatory consultation within the future World Trade Organization and, until that institution is set up, between the European Union and the countries concerned before measures to deal with a suspected violation of ILO Conventions are considered; regards it as essential, moreover, that the code make provision for an appeals and/or arbitration procedure;

9.Believes that proper enforcement mechanisms should be established, preferably under the GATT and the WTO, so as to ensure that the social clause is respected by individual companies in all signatory countries; believes that the GATT and the WTO should work in close collaboration with the ILO when panels rule on any conflicts arising from the application of the social clause;

10.Believes that the social partners in all countries will and should have an important role in monitoring and reviewing the application of the social clause and above all in seeing that its provisions are respected and enforced; such a role should include the possibility of making direct complaints to the Commission;

11.Emphasizes the importance of reactivating Article XX(e) of the GATT, particularly with regard to the reinstatement of China in GATT or the future World Trade Organization;

12.Proposes that the ILO, while retaining its independence, be involved in monitoring respect for workers' rights in conjunction with the future World Trade Organization;

13.Hopes that the future World Trade Organization will include an advisory committee, with members from the ILO and the countries concerned, which will have the power to lodge complaints against multinationals or states that flout the conventions enshrined in the social clause;

14.Calls on the Commission to introduce a social incentive clause as a means of combating underdevelopment in the new ten-year arrangement for the Community's Generalized System of Preferences;

15.Calls for a financial instrument to be set up following the 1994 annual GSP renewal to permit the implementation of action programmes to encourage the education of children, literacy and the establishment of medical provisions for children who have suffered as a result of bad working conditions and to provide aid for the reintegration of political prisoners and for the setting up of free trade unions and the encouragement of trade union activities;

16.Insists that the European Union should take the lead in pushing for the inclusion of social clauses in trade agreements and in this context urges that the Commission support the inclusion of a social clause during the renegotiation of the Generalised System of Preferences;

17.Believes that the links between the European Union and the ILO should be strengthened through joint activities such as the pilot IPECL programme (International Programme on Elimination of Child Labour);

18.Calls upon the Commission to consider ways of guaranteeing respect for labour rights and how monitoring could be carried out;

19.Calls on the Commission to make specific proposals to the Council and Parliament before 31 December 1994 based on the principles stated in this resolution;

20.Instructs its President to forward this resolution to the Council, the Commission, the governments of the Member States, the ILO and the GATT Secretariat.