Cause-oriented groups urge RP to reject NAMA proposal

The Philippines should take the lead in rejecting the new Non-agricultural Market Access (NAMA) proposal of “middle ground” countries because the plan could lead to job losses in many local industries, several cause-oriented groups told the government yesterday.

In a letter to Trade Secretary Peter B. Favila, the groups belonging to the Stop the New Round! Coalition (SNR) asked the government to exhibit leadership in the NAMA 11. “We challenge you to be the leading developing country voice in NAMA 11 in calling for the rejection of the new NAMA proposal,” the one page letter stated.

In an attempt to reach a compromise between developed and developing countries and resume the stalled Doha negotiations, “middle ground” countries, composed of Chile, Hong Kong China, Mexico, Peru, Singapore and Thailand, proposed a coefficient of 18 to 22.

Developed countries are insisting on a 15 coefficient while the NAMA 11 whose members Argentina, Brazil, Egypt, Indonesia, Namibia, the Philippines, South Africa, Tunisia, and Venezuela are asking for a 35 coefficient.

Lower coefficient translates to deeper tariff cuts. 

According to the letter, such an ambitious formula would result in a substantial reduction of the average bound rates for industrial and fishery products and would constitute a serious erosion of policy space.

The groups warned that a compromise deal on NAMA would translate to job losses specifically in the motor vehicles sector, which employs around 39,000, the apparel sector with an even bigger employment of 370,000, the leather and footwear sector with 69,000 workers, furniture sector with 143,000 workers and plastic products which provides jobs to 54,000 workers.

The sixth Doha Development Round in Geneva, aimed at alleviating poverty and boosting the global economy, has been stalled since July last year primarily because of disagreements among the major trading powers on the issues of tariffs and farm subsidies.