GSO News Volume 2 Number 5, June 2006
Katherine A. Hagen - Managing Director

GSO News is a subscription service provided by the Geneva Social Observatory.  We report on developments at WHO, WTO, ILO and many other Geneva-based organizations, as well as other selected developments on global social issues. We hope you enjoy our news service, and we invite your comments and suggestions (please send them to gsonews@gsogeneva.ch).  We welcome subscriptions and are now offering a wider choice of subscription payment options.  Connect to our subscription page at http://www.gsogeneva.ch/subscribe.asp.  We encourage you to share the information on how to subscribe with others.  Thank you for your support.  The detailed news follows the table of contents below.  

GSO News Digest June 2006

1.     The Employment Relationship at the ILO Conference
The employment relationship has been a contentious issue for close to a decade at the ILO.  The 2006 Conference finally adopted a Recommendation on the subject but did so over the objections of the Employers’ bench.   

2.     Occupational Safety and Health – a new “Framework* Convention
A new approach to convention-setting worked a bit better in producing a tripartite consensus at the ILO Conference.   

3.     Human Rights Council Starts Operating
The first session of the Human Rights Council featured important messages from Secretary-General Kofi Annan and High Commissioner for Human Rights Louise Arbour but few signs of any real change. 

4.     Harmony at UNCTAD
In contrast to the first session of its “Mid-Term Review” in May, the UN Conference on Trade and Development produced a harmonious conclusion on consensus-building, technical assistance and research and analysis at its second session in June.  A high-level panel has also produced a report with recommendations for future action.  But the impasse over the role of “policy space” for developing countries remains to be worked out over the extended summer hiatus.  A third session meets in September.   . 

5.     UNAIDS Programme Coordinating Board
The UNAIDS 2006 Report on the Global AIDS Epidemic was issued just prior to the Special Session of the UN General Assembly to review progress on the Declaration of Commitment on HIV/AIDS made at the High-Level Session of 2001. 

6.     WTO Negotiations Update
The refocus of deadlines for WTO negotiations is now on end of June for “modalities” in agriculture and NAMA spurs.  Ministers are in town for a long hot weekend, and Lamy tries to recharge the batteries by introducing the “three 20s. 

7.     WIPO Tries Again on a Development Agenda
The World Intellectual Property Organization has another go at merging issues in search of a consensus on intellectual property and development.   

8.     Looking Ahead to the Economic and Social Council
The International Labour Conference starts on 31 May and continues through 15 June in Geneva.

9.     Personnel Changes
GSO News reports on recent changes in Geneva-based international organizations.

10.    Forthcoming Events
A listing of events in June and July 2006 taking place in Geneva unless otherwise indicated.  

GSO News June 2006

1.     The Employment Relationship at the ILO Conference

The employment relationship has been a contentious issue for close to a decade at the ILO.  The 95th ILO Annual Conference finally adopted a Recommendation on the subject in June but did so over the objections of the Employers’ bench.  A compromise reached in 2003 for proceeding with drafting such a  Recommendation was interpreted by the Employers Group to be limited to the issue of new policy on “disguised employment” only.  However, the new Recommendation prescribes a framework for national policies on “effectively establishing the existence of an employment relationship and on the distinction between employed and self-employed workers, combating disguised employment relationships and ensuring standards applicable to all forms of contractual relationships.”  The Employers Group further argued that the Recommendation sets universal criteria and indicators and a presumption of employment that treats independent workers as employees.  In today’s world, the complexity of direct employment, indirect employment through subcontractors, individual contracts for work without a specific employment contract and even piece-work arrangements calls for guidance on how to ensure that employers deliver decent wages and working conditions.  The Recommendation was adopted with a recorded vote of 329 to 94 with 40 abstentions.  See www.ilo.org for press releases and Conference reports. 

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2.     Occupational Safety and Health – a new “Framework* Convention

A new approach to convention-setting worked a bit better in producing a tripartite consensus at the ILO Conference – that is, where Employers, Workers and Governments all agreed.  This is the “Promotional Framework Convention on Occupational Safety and Health” and an accompanying “Recommendation.”  Over a number of years in the making, the promotional nature of this convention indicates a new approach to standard-setting at the ILO.  The ILO has well over 180 conventions, or binding international treaties, and 150 recommendations, or guidance documents for national policy, on workers rights and other labour standards.  This is its main function, to serve as a global standard-setting body on labour policy, but many of its conventions have become outdated or were so over-reaching as to be deemed unratifiable by most countries.  So a promotional framework convention is one of the alternative modes of standard-setting that the ILO is exploring to provide flexibility for updating and interpretation.  Occupational safety and health standards are considerable in number, including one that is a sort of “umbrella” standard (Convention 155), and this is an area where other approaches to implementing standards (such as codes of conduct and monitoring guidelines) have been very prolific.  The new “Promotional Framework Convention on Occupational Safety and Health” calls on member States to develop national occupational safety and health programmes and to adopt a “preventative safety and health culture”. 

The consensus was somewhat disrupted by an unanticipated resolution on asbestos, calling for the elimination of any future use of asbestos and the identification and proper management of any asbestos currently in place.  The ILO already has an Asbestos Convention, but the Workers Group pushed for this additional resolution on the grounds that this is a particularly hazardous product, banned in most industrialized countries but spreading in use in developing countries, with over 100,000 deaths annually worldwide directly attributable to exposure to asbestos.  As a product used in building and construction, it is a serious health and safety hazard, but the Employers Group protested that the resolution should have been preceded by more detailed study of actual impact and means for addressing the problem.  The resolution, nonetheless, was adopted.   See www.ilo.org for press releases and Conference reports.

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3.      Human Rights Council Starts Operating

The first session of the Human Rights Council featured important messages from Secretary General Kofi Annan and High Commissioner for Human Rights Louise Arbour but few signs of any real change.   The Secretary General’s opening speech on 19 June was widely covered in the media for his emphasis on the importance of universality and objectivity and the need to eliminate double standards.  Not so widely covered was his emphasis on hunger, ignorance and disease as concerns for the Council as well as political repression.  He called for the Council to add a procedure for receiving complaints under the Covenant of Economic, Social and Cultural Rights and the need for legal safeguards for economic and social development.  Commissioner Arbour, for her part, cited the “four freedoms” that Franklin Delano Roosevelt had promoted – from want, fear, expression and worship.  She spoke about the interdependence of all rights – pertaining to freedom from poverty, discrimination and conflict, and the need for economic and social development and a fair distribution of resources.  GSO News highlights these points as a sign of where the new Human Rights Council is likely to have its most significant impact.  Secretary General Annan reminded the Council members that the Council must prove itself within five years, at which time the General Assembly will decide whether to make the Council a principal organ of the UN. 

The first session concluded on 30 June with a programme of action for the next year and two intersessional working groups, one on the review of mandates authorized by the previous Human Rights commission, and the other on the modalities for the universal periodic review.  Two new covenants, recommended by the Commission, were also adopted – one is the International Convention for the Protection of All Persons from Enforced Disappearances, and the other is the International Covenant for the Rights of Indigenous Peoples.  The next session of the Council will be from 18 to 29 September.  In the interim, the working groups will make some headway, mostly in early September, and the old Sub-Commission for the Promotion and Protection of Human Rights, a subsidiary body of individual experts of the old Commission, will meet for its last regular session from 25 July to 12 August 2006 in Geneva. 

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4.     Harmony at UNCTAD

In contrast to the first session of its “Mid-Term Review” in May, the UN Conference on Trade and Development produced a harmonious conclusion on research analysis, consensus-building, and technical assistance at its second session in June.  A high-level panel has also produced a report with 21 recommendations for future action.  The Panel of Eminent Persons, chaired by Fernando Enrique Cardoso, the former President of Brazil, notes that UNCTAD is not a player in negotiations on global finance, trade and investment but that it could recover its standing if it concentrated on being a “think tank on development issues.”  The Panel agreed that UNCTAD is the “premier international organization addressing problems of trade and development” and is well suited to provide an “investment for development” framework.  It urged the streamlining of its commissions to two, one on trade and one on investment, with a possible third commission on technology.  (See “Report of the Panel of Eminent Persons” at http://www.unctad.org/sections/edm_dir/docs/osg20061_en.pdf.) 

Meanwhile, the Trade and Development Board urged the formation of yet another commission, this one on “Globalization and Systemic Issues.”  But the impasse over the role of “policy space” for developing countries remains to be worked out over the extended summer hiatus.  One clue to how this might be resolved is the language approved at the second session by instructing the Secretariat to carry out its research and analysis by “Recognizing the need for diversity in national policies, placing greater emphasis on practical solutions and policy options for developing countries and countries with economies in transition to cope with existing and emerging development challenges.”  (Para 11(a) of “Strengthening the Three Pillars of UNCTAD, Agreed outcome” at http://www.unctad.org/en/docs/tdsxxiiil4_en.pdf.) 

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5.     UNAIDS Programme Coordinating Board

The UNAIDS Programme Coordinating Board (PCB) met on 27 to 28 June in Geneva and adopted an array of decisions, recommendations and conclusions based in large part on the guidance from the UN 2006 Political Declaration on HIV/AIDS at  the High-Level Session of the UN General Assembly on 31 May to 2 June.  See http://data.unaids.org/pub/Report/2006/20060615_HLM_PoliticalDeclaration_ARES60262 _en.pdf.  The 2006 Political Declaration was a reaffirmation of the 2001 Declaration of Commitment on HIV/AIDS but featured updated concerns about the continued expansion and feminization of the pandemic and the commitment to scale-up to universal access by 2010.  The PCB is a unique multistakeholder board, including representatives from UN agencies and civil society, that sets policy for UNAIDS.  The June meeting approved UNAIDS action on promoting universal access by 2010, setting ambitious national targets including interim targets for 2008, gender assessments of national programmes, and mobilizing more resources for the pandemic, estimated to be $20 to 23 billion a year by 2010.  In both the PCB decisions and the UN Declaration, one finds a strong statement in support of the TRIPS flexibilities for access to drugs that has been directed at the pharmaceutical industry.  Two issues that resulted in a compromise were a proposal put forward by US First Lady Laura Bush on creating an International Testing Day and another proposal to merge the different national coordinating entities that don’t exactly coordinate with each other.  On the first, the Board noted that it might be a major strain on national resources in developing countries to encourage everyone to be tested on the same day but agreed that it is a “way to promote greater access to voluntary HIV counseling and testing, organized with the participation of civil society, especially networks of people living with HIV and AIDS and requests UNAIDS to analyze potential impact of and implementation issues relating to an international testing day”.  The Board had a proposal to call for the integration of the national coordinating authorities in each country with the Country Coordinating Mechanisms that the Global Fund works through.  However, this was a bit too meddlesome in national policymaking, and the final decision calls for efforts to “at least reduce duplication” and to consider the possibility of mergers.  See “Decisions, Recommendations and Conclusions of the 18th Meeting of the Programme Coordinating Board” at http://data.unaids.org/pub/Report/2006/PCB_18_06-finaldecisions0628_en.pdf. 

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6.      WTO Negotiations Update

The refocus of deadlines for WTO negotiations is now on end of June for the central “triangle” of agricultural market access, agricultural subsidies and market access for industrial goods, but some are already looking to the end of July as the “real” deadline.  Ministers are in town for a long hot weekend, and Director-General Pascal Lamy has tried to recharge the batteries for an energetic push by introducing the “three 20s.”  For the US, he wants to see an improved offer on cutting domestic farm subsidies to something well below “$20 billion,” while the EU is urged to improve its offer on agricultural tariffs by moving closer to the request made by the “G-20” and the developing countries are being urged to accept “20%” in the “Swiss formula” for tariff cuts on industrial goods.  These are the three issues, and the negotiators and varied lobbyists are certainly familiar with all the arcane terminology of trade.  For the rest of us, it’s easy to be talked down to.  It seems that the latest US offer, made in October of last year, was to cut their domestic farm subsidy ceiling by 53%, but since US actual subsidies are currently around that same proposed ceiling, this isn’t much of a real cut.  (One has to assume that the current ceilings in WTO rules were set very high.)  The G-20 has argued that this ceiling needs to be cut by at least 75% to have any impact, while the EU has asked the US to cut it at least by 60%.  Since the current US spending is close to $20 billion, and that is about where a 53% cut would set the ceiling for future limits on domestic farm subsidies, the move to something below the $20 billion seems to be the minimum that the EU and G-20 would accept. 

As for the EU, their latest offer was to cut their farm tariffs by 46%, while the G-20 had countered by asking the EU to cut their farm tariffs by 54% and the US had insisted that the EU cut their tariffs by 66%.  Go with the G-20 offer, says Lamy.  And for the G-20, that is to say, the large developing countries led by Brazil, India and South Africa, the key is to find a formula for cutting tariffs on industrial goods that has potential for real impact on access to their markets for industrial goods from the developed countries.  The WTO committee handling these negotiations has a Swiss-proposed formula that offers a differentiated rate reduction between developed and developing countries and a coefficient for calculating the rate. 

Meanwhile, the eyes are on a new grouping, the G-6.  This includes the central players of US, EU, Brazil and India but also includes Australia and Japan (but not South Africa).  This group met until late Thursday night, 29 June, prior to the WTO-oriented but still informal meetings of the full membership in the Trade Negotiating Committee and of the smaller so-called “Green Room” groupings that are by invitation only.  Everyone agrees that deals cannot be made in meetings of the full 149 member States, but there is no formal structure for an executive board or smaller, representative working party.  So the smaller groupings are ad hoc, set at around 30 or so, and based on a mix of major players along with the main constituents of thematic and geographic groupings with an effort at proportionality between developed and developing countries and from the geographic continents.  The reference to the “Green Room” is to the color of the Director-General’s conference room when the practice of smaller ad hoc meetings became a part of the unwritten WTO procedures.)  There are some 60 ministers in town, with about half of them included in the Green Room and half, not.  However, some 25 of these ministers are national ministers from the EU, and they are only represented by one, i.e. the EU Trade Commissioner (along with the EU Agricultural Commissioner, of course) in the Green Room.

The EU Trade Commissioner Peter Mandelson has stirred things up a bit by arranging a meeting of his national constituent ministers for 1 July on the services negotiations, as well as a proposal for a “new round” on energy!  Are these maneuvers deliberate distractions from the impasse on agriculture and industrial goods, or are they part of a bigger timeframe?  It should be noted that the separate track on liberalization of trade in services has an end of July deadline that is seen by many, including apparently Commissioner Mandelson, as the “real” deadline for a Doha Round deal.  While the central “triangle” on agriculture and industrial goods needs to be kept alive, there are major benefits to be derived from services liberalization (and other aspects of the complex plethora of trade issues) to justify an end-of-July focus instead of an end-of-June focus.  And of course, the really definitive deadline is 1 July 2007, when the US loses its Trade Promotion Authority - that is, the time-limited device that keeps Congress from amending any trade agreement at will.  As usual, for comprehensive reporting on the negotiations, a good source is www.ictsd.org.  For a developing country perspective, the daily events are being covered by Third World Network at www.twn.org.

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7.     WIPO Tries Again on a Development Agenda

The World Intellectual Property Organization has another go at merging issues in search of a consensus on intellectual property and development.  The second session of the WIPO Provisional Committee on Proposals Related to a WIPO Development Agenda (the PCDA) met from 26 to 30 June 2006 in Geneva.  The continued impasse between the Friends of a Development Agenda and the US played itself out once again.  The US came forward with an offer to discuss some of the proposals that had been gathered under various consolidated headings at the first session of the PCDA in February.  A “Chair’s list” was issued under the chairmanship of Ambassador Rigoberto Gauto Vielman of Paraguay, but it had the effect of a “red flag” for Brazil and Argentina since it appeared to correlate exactly with a previously submitted list from the US and had none of their proposals on the list.  Informal consultations behind the scenes continued to keep everyone waiting for a decision on how next to proceed.  The developing countries en masse seem to have hardened their position of insisting on a permanent Development Agenda rather than provisional discussions.  The WIPO website provides mostly sanitized information, but a good source is IP-Watch at www.ip-watch.org providing comprehensive, unedited coverage. 

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8.     Looking ahead to the Economic and Social Council

The UN Economic and Social Council meets in annual July session in Geneva this year.  (It will also meet in Geneva in 2007 to make up for having missed a year in 2005 when it was held for a second consecutive year in New York in anticipation of the High-Level Summit in September 2005.)  This is a very structured and elaborate event, as shown in the list of Forthcoming Events below.  It starts with a High-Level Segment on 3 to 5 July and wraps up with Conclusions on 27 to 28 July.  So it’s the whole month.  The High-Level Segment this year is an opportunity for the ILO to showcase its expertise and advocacy on employment policy, in contrast to its traditional standard-setting role as we described in the first few news items of this issue of GSO News.  The theme for the High-Level Segment is “Creating an environment at the national and international levels conducive to generating full and productive employment and decent work for all, and its impact on sustainable development.”  One would hope for a zippier title, but one does have to cover all the appropriate buzz words!  ILO Director-General Juan Somavia will be joined by two prime ministers (from Norway and Pakistan), the Tunisian Minister of Foreign Affairs for keynote addresses on “Working out of Poverty” and the outgoing Deputy Secretary General of the UN Mark Malloch Brown.  Sub-themes of gender equality, youth employment, urban employment and migrant employment will be interspersed with discussion on international development cooperation for promoting employment, the importance of productivity, and the particular needs of Africa and Least Developed Countries.  We’ll hear the views of senior officials from UNCTAD, WTO, World Bank and IMF, too.  Stay tuned for a long, hot month. 

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9.     Personnel Changes

GSO News reports on recent changes in Geneva-based international organizations.  As noted last month, we can confirm that the WIPO Coordination Committee has approved the appointment of a new senior management slate.  This includes four Deputy Directors-General:  Francis Gurry (Australia), Michael Keplinger (USA), Pilippe Petit (France) and Narendra Sabharwal (India); and three Assistant Directors-General: Wang Binzing (China), Geoffrey Onyeama (Nigeria) and Ernesto Rubio (Uruguay), effective 1 December 2006.  Deputy Directors-General Rita Hayes (USA) and Geoffrey Yu (Singapore) will finish their terms and move on to other, not-yet disclosed endeavors.  At the ILO, Deputy Director-General of Social Dialogue Sally Paxton (USA) leaves as of 30 June, but no replacement has yet been named.  Typically, this is done by mutual agreement between the Director-General and the US tripartite constituents.  A new Director for Sectoral Activities, however, has finally been named – Elizabeth Tinoco (Venezuela).  Not yet announced, but we hear it’s a done deal: Jukka Takala (Finland) retires as Director of SafeWork and moves to Bilbao, Spain as Director of the European Agency for Safety and Health at Work, whose current Director Hans-Horst Kankolewsky (Denmark) has been elected the new Secretary-General of the International Social Security Association (ISSA), headquartered at the ILO in Geneva.  Not much has happened yet on candidacies for WHO Director-General.  One candidate has announced – Japan will be nominating Shigeru Omi, the WHO Regional Director for the Western Pacific.  Others are clearly checking their possibilities.  Deadline is 5 September, so GSO News will have more to report in our July/August issue.

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10.     Forthcoming Events

A listing of events in June and July 2006 taking place in Geneva unless otherwise indicated.

Economic and Social Council of the UN:

3 -5 July          ECOSOC High-Level Segment on Employment and Decent Work

6-10 July         ECOSOC Coordination Segment on Sustained economic growth for social development, including the eradication of poverty and hunger

11-13 July      ECOSOC Operational Activities Segment on Funding coordination

14-19 July      ECOSOC Humanitarian Affairs Segment, including emergencies and natural disasters

19-27 July      ECOSOC General Segment

27-28 July      ECOSOC Conclusions

Other:

3-8 July           Codex Alimentarius Commission 29th Session

11 July            World Population Day with a theme of “Being Young Is Tough”

15-17 July      G8  Summit with three themes of energy security, education and infectious diseases (St. Petersburg)

25 July-           Sub-Commission on the Promotion and Protection of Human Rights

12 Aug           

1-7 Aug          World Breastfeeding Week with the theme “Code watch:  25 years of protecting breastfeeding”

3-13 Aug        Fêtes de Genève

13-17 Aug      XVI International AIDS Conference with the theme “Time to Deliver” (Toronto)

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