Trade unions are raising serious concerns about the lack of protections for workers in the EU-Mercosur trade agreement proposals being put forward by the Commission.
The ETUC has warned the Commission that its current proposals on the EU-Mercosur trade agreement would fail to effectively sanction companies for even the gravest violations of workers’ rights.
The European Commission has claimed that the proposed deal with Argentina, Brazil, Paraguay and Uruguay includes “a high level of environmental and labour protection.” But the text contains no enforceable labour clauses or sanctions for companies which violate workers’ rights. Complaints would lead at best to a non-binding opinion of a panel of experts.
That is completely insufficient for a deal with countries where, according to the Commission’s own impact assessment, people are subject to “slave-like working conditions” and the restrictions on workers’ rights will “restrain any significant increase in real wages or improvement in working conditions” from the free trade agreement.
As such, the deal would open the way for European companies to invest in countries that are characterised by dangerous working conditions and the exploitation of indigenous people.
As it stands, the deal is a source of unfair competition that will have negative consequences on workers’ livelihoods, wages, working conditions and employment for workers in key sectors of the EU economy.
The deal falls short when it comes to democratic process and legitimacy, its impact on the economy and employment in Europe, sustainability, and trade diversification.
Claes Mikael-Stahl, Deputy General Secretary of the European Trade Union Confederation, said:
“The ETUC has followed these negotiations since their beginning and the main concern has always been on protecting workers. The outcome has not assuaged this concern.
“Trade should contribute to raising working and living standards for all and not only the dividends of corporate shareholders. The Commission’s own impact assessment shows the Mercosur deal would not do that and should be vetoed.
“The Commission are paying lip service to labour rights because they know working conditions in Mercosur countries leave a lot to be desired, but the bottom line is that the deal lacks even the most basic sanction for companies which violate workers’ rights.
“This deal would allow European multinationals to extract the mineral wealth of Mercosur countries at the expense of the local communities, who will be forced to work in dangerous conditions and see their environment destroyed.
“Europe needs to diversify its supply chains, but should not do that at the expense of workers' rights and fair competition.
“We need to move away from ‘lowest price, highest profit’ logic and build multilateralism through agreements based on rights, sustainability, democracy and shared benefits.”
