The secret immigration policy they tried to hide, by Linda Kaucher
While political reporters for the most part ignore the EU, British
domestic policy is actually formulated to fit not just with internal EU
directives, but, importantly, with the EU's external international trade
agenda.
This broader policy affects people's lives here, particularly their
employment and that of their children and grandchildren in the future.
Yet information on this broader picture, the parts of EU trade policy
that will affect people most, is kept from them.
A very relevant and major feature
of EU trade policy is the concession that allows transnational
corporations to bring workers into the EU. In tradespeak this is called
'Mode 4'.
The World Trade Organisation (WTO) defines four modes for
cross-border trade in services: via internet (Mode 1); where the
customer crosses borders e.g. tourism and the international student
market (Mode 2); where a company establishes in another country (Mode
3); and by moving workers across borders (Mode 4).
Moving workers from a lower to a higher socio-economic country is a
very profitable business for the transnational corporations that are in a
position to benefit, on a par with moving production and service work
to cheaper labour areas of the world.
With the WTO Doha deal apparently abandoned, the EU has been
negotiating a set of bilateral and regional trade deals with much of the
world. These deals are more secretive than WTO negotiations, with the
contents of negotiations kept private until those negotiations are
completed.
But investigative work has revealed the urgency of the situation.
The EU is including Mode 4 concessions in all of the deals it is
currently negotiating. In fact Mode 4 is the carrot, to obtain, in
exchange, investment opportunity access into trading partner countries
for transnational financial services corporations, which are for the
most part based in London.
Actually these corporations benefit from both sides of the deals.
They get the investment opportunities but also cheap labour brought in,
and, as this 'reserve army of labour' undermines the power of organised
labour, strengthening the power of capital in its balance of power with
labour.
Although these are EU deals, the UK is the main and willing target
for the Mode 4 concessions. Thus it is UK workers who will pay the
price.
A very important trade deal in this regard is the EU/India Free Trade
Agreement (FTA) that has been under negotiation for four years. It has
been discovered that Mode 4 concessions are the one thing that the
Indian government is demanding. In addition, leaked documentation shows
that the liberalised UK will be taking the bulk of the EU's Mode 4
commitment.
In fact Trade Commission staff have admitted that the EU/India FTA
is, in effect , 85% a UK deal. That's the percentage of the gains which
will accrue to the UK (well, the international financial firms based in
London, anyway) while the UK (UK workers, this time) will get that
percentage of the pain.
Financial services investment opportunities overseas will not produce
jobs here. But workers will be displaced via Mode 4, especially in a
time of cuts. Transnational firms will be able to offer cheap onshore
outsourcing, using cheaper temporary migrant labour and will also be
able to supply labour into other firms allowing them to offload all
employer responsibilities.
Within the supposedly 'capped' UK points based system for labour
migration, the government has ensured that the categories relevant to
trade commitments have no numerical limits. There are no such limits on
the 'intra-corporate transferees (ICTs) category in Tier 2 or on the
'international agreements' category in Tier 5. Neither is there any
resident labour market test, which would stipulate that jobs have to be
offered here first.
In fact both these restrictions are disallowed at the international trade level in respect of Mode 4.
Under the current points based system, skilled workers are currently
being brought in and paid the minimum wage, which is then made up to a
low industry norm with tax-free expenses and with no national insurance
payable. Thus the UK government is even now encouraging the use of a
cheap labour supply that not only displaces workers here but also
damages the national economy in a variety of ways. Wages are repatriated
overseas, the earn/spend cycle needed for recovery is broken, workers
become unemployed and the welfare bill increases, the employment future
for young people is further curtailed, and skills transfer are lost for
the future.
As trade agreements, with Mode 4 included, are committed to hard
international trade law, they become effectively permanent. This is why
this handing of control of UK labour migration to transnational
corporations will affect not only present but future generations. Any
attempt by any future government to pull back on these commitments will
potentially invoke corporate legal action to recover all anticipated
profits that may be negatively affected by the government action.
International financial services corporations based in London are
proactive in directing UK input to EU trade policy via their lobbying
mechanism 'thecityuk' and in Brussels through the European Services
Forum, the mechanism that influences EU institutions directly.
'Thecityuk' is made up of International Financial Services London
(IFSL) and the Corporation of London and the UK Trade and Industry
(UKTI) section of the Business, Innovation and Skills Department is
closely connected. 'Thecityuk''s secretive Liberalisation of Trade in
Services (LOTIS) Committee ensures that UKTI bureaucrats take financial
services' own directives into EU trade policy like carrier pigeons. And
UK governments ensure that domestic regulation is formulated to fit with
this.
The Labour party has not told the UK public about this EU/India
agreement and the centrality of the Mode 4 concessions even though Peter
Mandelson initiated all the current agreements. Neither has the
Conservative/Liberal coalition, even when David Cameron and Vince Cable
led a specific 'trade' delegation to India in 2010. Greens MP Caroline
Lucas spent years as an MEP and a member of the European parliament's
International Trade Committee (INTA) but has declined to warn UK workers
what they are being signed up to, and similarly Ukip, which has two
members on the INTA but actually supports the concept of temporary
labour from outside the EU being brought in by transnational
corporations.
The House of Commons select committee tasked with overseeing the
Department of Business, Innovation and Skills has failed to bring the
Department's role in moving workers into the country into focus and has
accepted the silence of the secretary of state, Cable, on this.
Who will tell the UK public about these irreversible commitments on their behalf?
There is a small light at the end of the tunnel. The Railways,
Maritime and Transport (RMT) union is going to argue to the TUC's
September Congress that it should campaign to alert the UK public to the
implications of the EU/India trade deal and of Mode 4. Yet, as the TUC
has so far been part of the cover-up, it remains to be seen first if
this motion is passed, and then what the TUC does with it. (if anything?!)
Linda Kaucher is a
researcher on international trade. With Masters degrees in Journalism
and in Human Geography, from Australia and the London School of
Economics, and a broad background as an educator, she campaigns to take
the lid off trade secrecy. She has written articles for the Morning Star
and submissions to government consultations. She was invited by the EU Trade Commission to make a presentation to its civil society dialogue on services trade.
“Although
India and the EU are not discussing special visa categories,
the two
countries are
negotiating a numerical quota of approximately 40,000 workers who can enter the
EU for up to 12 months to work in around 25 services sectors, including architectural services, engineering
services, research and development services and computer
and related services.” (note
the way the EU is now referred to as a country, like India!)
taken from:-
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