Tuesday, September 1, 2020

Trade negotiations - who does one listen to?

Trade negotiations and stakeholders have been a tricky issue always. Who does one consult when arriving at trade deals. Who are the stakeholders in business and society that need to be consulted? How do sub-national and local authorities figure in the process? What should the mechanisms be for effective input sharing and arriving at negotiating positions? What kind of businesses get access to air their views? What about civil society groups and workers?

The UK has set up several Trade Advisory Groups (TAGs) to help the government in negotiating their trade deals in sectors ranging from professional advisory services to life sciences.The purpose is "to provide the blend of strategic and technical expertise required to ensure the United Kingdom’s trade negotiations are able to progress at pace."

The issue of who needs to be consulted and what interests dominate trade negotiations is as old as trade deals itself. Not everyone is happy with how stakeholders are consulted, as is evident in this voicing of concern that workers views  are not getting enough priority in trade deals.

Unions bosses warned “workers will suffer” if the Government failed to involve them in talks.

Animal welfare campaigners such as the RSPCA and consumer groups have also been left out - despite concerns that a US trade deal could slash food standards by allowing chlorinated chicken in British shops.

In another part of the world, concerns of how a trade deal could hurt local jobs in Singapore is a critique of the need for such trade deals. Mobility of labour across geographies pursuant to a trade deal is also seen as very sensitive. 

Trade deals involve extremely complex trade-offs, winner and losers as well long standing impacts on economies. Some sectors stand to gain while others may lose out due to the competition from outside. How the political economy of these realities are understood, negotiated and managed is critical in any trade negotiating strategy. Of course consultation of all those going to be impacted is always the first step towards that goal!

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