Tuesday , 25 September 2018
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Civil Society Statement on the EU-Indonesia Comprehensive Economic Partnership Agreement (CEPA)

I. Introduction

This statement has  been  developed jointly  by Indonesian and European  civil society organisations. We believe that an EU-Indonesia  Comprehensive Economic Partnership Agree- ment (CEPA) must first of all be approached as a means to serve  the  public  interest.  It should  ensure that trade  and investments contribute to  equitable and sustainable de- velopment, the  preconditions for which  include  a healthy environment, a climate-friendly economy, gender  equality, security of livelihoods and decent work for all. A CEPA must be conditional on the ratification and implementation of ba- sic human rights  law, as well as climate  and environmental agreements.

A CEPA must in no way limit government’s policy space  to regulate the  economy  and  to take  measures to ensure citi- zens’ rights to life, food, water and sanitation, energy, health, housing, education and  decent work. We see that the  cur- rent negotiations are largely driven by the interests of large transnational  corporations. Unlimited   market access  and protection for foreign investment will result  in further con- centration of markets and capital. This contributes to inequi- table socioeconomic development in and between countries and is hence not a sustainable way forward.

II. Conditions for the negotiation process

PROVIDE  FULL TRANSPARENCY

Transparency implies openness, full consultation with and involvement of social partners and CSOs and sharing of in- formation throughout the  negotiation process. The man- date,  negotiating proposals and consolidated negotiation texts  of both  negotiating parties, as well as all stakehold- er inputs, should  be proactively  published and  should  be fully publicly accessible  in the common working language of the negotiation parties to enable  equal access to docu- ments by all stakeholders.

ENSURE BALANCED STAKEHOLDER INPUT

All stakeholders should  have an equal opportunity to pro- vide input to decision-makers in the course of the negotia- tion of the agreement. Governments and the Commission need  to ensure that they  achieve  balance in their  stake- holder  interaction, both  quantitatively and  qualitatively. This  includes   actively  seeking   input   from  underrepre- sented groups, in particular indigenous communities and women,  as well as limiting  interaction with  groups that are overrepresented. Contacts with interest groups should be disclosed fully and proactively.

RATIFY AND IMPLEMENT CORE ILO CONVENTIONS

Ongoing violations of workers’rights by companies demon- strate the lack of implementation and enforcement of the ILO  core  labour  conventions by the  Indonesian govern- ment. Various recent research findings demonstrate many abuses of internationally recognized human and  labour rights  in Indonesia.  The responsibilities of governments and companies as recognized by the United Nations Guid- ing Principles for Business  and  Human Rights should  be at the centre of the ongoing  negotiations. The agreement should  include  clear references to the  ILO 1998  Declara- tion on Fundamental Principles and Rights at Work, the ILO Decent Work Agenda, the ILO Governance conventions and the  protection of Indigenous People’s rights  (ILO conven- tion 169) and the protection of fisheries  worker (ILO Con- vention  188). Ratification of ILO governance conventions C122 and  C129, ILO C169 and  compliance with  the ILO core labour conventions are a CEPA ratification condition.

CONDUCT  AND  DISCLOSE IMPACT ASSESSMENTS ON HUMAN RIGHTS AND SUSTAINABLE DEVELOPMENT

To ensure the  protection and promotion of human rights and  to  support equitable and sustainable development, it is vital that an in-depth assessment of its impacts on human rights  and the  environment is conducted prior to the conclusion of the  CEPA negotiations. The outcomes should,  together with  the  inputs from stakeholders, lead to amendment of the  text  to ensure that the  agreement is in line with  the  overarching equitable and sustainable development  objective. The  required  Sustainability Im- pact Assessments and Human Rights Impact Assessment (HRIA) must be carried  out  not  just  ex ante,  but  also ex post,  to evaluate and  remedy  any adverse  human rights and environmental impacts occurring  as a result  of trade and investment agreements.

DECLARE SUPPORT FOR A BINDING UN TREATY ON BUSINESS AND HUMAN RIGHTS TO ADDRESS HUMAN RIGHTS VIOLATIONS BY INVESTORS

We expect all Parties  to the  CEPA to proactively  and con- structively  engage with  the negotiations at the  UN for a Treaty on Business and Human rights that aims to remedy the current imbalance between the investment protection regime  and the limited access to justice for victims of hu- man rights violations.

END DEFORESTATION

The CEPA should  not undermine but contribute to efforts to  halt  deforestation, bearing  in mind  both  Indonesia’s and the EU’s commitments to halt  deforestation by 2020 as  part of the  Sustainable Development Goals. Despite repeated  complaints submitted  by independent forest monitors to  the  authorities for the  enforcement of the EU-Indonesia  Voluntary  Partnership  Agreement,  forest areas  continue to be cleared  illegally, notably  for palm oil concessions.

III. ‘Red Lines’ for the negotiations

We urge the negotiating parties to not include any provisions under CEPA that will lim- it the  state’s  capacity  to regulate and take measures in the  public interest. Therefore, there are a number of ‘Red Lines’ that cannot be crossed in the negotiations.

KEEP PALM OIL OUTSIDE  OF THE NEGOTIATIONS

Indonesia is the world’s largest  palm oil producer and ex- porter. The production, processing and  trade  in palm oil products in Indonesia by domestic and foreign (including European)  companies is causing  tremendous environ- mental, social, human rights  and labour  problems.  These include  large-scale slashing  and  burning of primary  and secondary forests for palm oil plantations, making Indone- sia a major contributor to climate  change; environmental pollution; land deprivation and human rights violations of local communities; and serious systemic labour rights vio- lations in the sector.

Trade negotiations are not  the  right place to solve these issues.  In an inclusive dialogue  outside the  trade  negoti- ations, involving  all stakeholders, Indonesia and  the  EU should pursue an ambitious roadmap to address the prob- lems  surrounding palm  oil in a democratic, transparent and  holistic  way. Including  palm  oil access  rules  in CEPA will result in increased trade in palm oil products, based on weak voluntary-based certification schemes like RSPO and ISPO that lack implementation and  enforcement mech- anisms and  demonstrably fail to protect the interests of local communities, workers, smallholders and the environment.

EXCLUDE VITAL PUBLIC SERVICES

Access to affordable basic public services is central  to the welfare of the population in any country. In the interest of ensuring universal  access  to  basic  public  services, these should  be excluded  from liberalisation, as this  can easily lead  to  cherry-picking  by (foreign)  service  providers, en- suring  quality  private  services  for the  wealthy, and sub- standard public services for the poor. Services like health, education, water, electricity should be excluded from liber- alization  and  privatization commitments under  the  CEPA services chapter. In addition,  basic public services must be exempt from  disciplines  on domestic regulation: parties to the  CEPA must be free to regulate, protect and devel- op public  services  according  to  domestic public  welfare needs, which  must not  be undermined by requirements that rules must be ‘least burdensome’ to business.

NO RESTRICTIONS ON INDONESIAN EXPORT TARIFFS ON RAW UNPROCESSED MATERIALS

The CEPA text  should  refrain  from  targeting Indonesian export measures aimed at promoting domestic processing of raw materials. Such measures aim to enhance domes- tic value added  that will support the  development of lo- cal downstream industry  and help reduce unemployment and poverty.

IPR: ENSURE ACCESS TO GENERIC MEDICINES AND SEEDS

The intellectual Property Rights chapter must not include increased patent protection that hampers access  to  af- fordable  (generic)  medicines,  as  this  would  constitute a direct violation of the human right to health.  As such, IPR impacts should be evaluated by a HRIA. The same  goes for seed  patenting: Extended seed  licences for multinational corporations would stand in the way of local small farmers producing, re-using  and or sharing/exchanging their own seeds  and create  tensions with their livelihoods, biodiver- sity and  the  right to food. Farmers  may even run the  risk of being criminalized  and prosecuted for the use of ‘unli- censed’ seeds  if a CEPA IPR chapter contains stronger en- forcement.

ALLOW PERFORMANCE REQUIREMENTS,  LOCAL CONTENT REQUIREMENTS AND PREFERENTIAL TREATMENT FOR SMALL DOMESTIC PRODUCERS

Both in relation to service provision  and  public  procure- ment, Indonesia must remain at liberty to set performance requirements (i.e. restrictions) for foreign investors, includ- ing  limitations on  foreign  (majority)  ownership, limita- tions on foreign workers in key positions, and local content requirements (i.e. use of local resources and workers). Such regulations are vital instruments to ensure that incoming investments effectively  contribute to  national develop- ment trajectories aimed  at enhancing competitiveness, added  value of local industries and boosting local employ- ment. In government procurement, Parties  must remain free in public tenders to ‘source locally’, by granting pref- erence  to domestic small and medium enterprises (SMEs) and  local produce,  as part of a national, regional  or local development policy. Domestic  production being  crowded out  by EU imports is already increasingly  depriving  small farmers and  fisherfolk  in Indonesia of their  livelihoods. The CEPA must allow Indonesia to remain full policy space to prioritise  local production to reduce  rural poverty  and improve the welfare of local farmers and fisherfolk, and, if necessary, impose  import quota for sensitive  agricultural products.

BINDING SUSTAINABLE DEVELOPMENT CHAPTERS

Sustainable Development chapters included  in the  CEPA must have concrete and binding objectives  instead of the current aspirational language included  in EU trade  agree- ments. Clear goals  to address trade-related violations  of human rights, labour, environmental and  climate  stand- ards  that the  CEPA should  respect and  uphold  must be formulated, monitored and enforced. The sustainable and equitable development objectives  laid down  in the  sus- tainable development chapters should  govern the  agree- ment as a whole.

CONCRETE DEMANDS TO ADVANCE RIGHTS OF WORKERS

CEPA should  include clear commitments to respect exist- ing  international labour  legislation and  national labour legislation both  in the EU and in Indonesia.  Any lowering of ILO standards or regression in domestic legislation due to a CEPA agreement is unacceptable.

ACCESS TO REMEDY FOR VIOLATIONS OF HUMAN  AND LABOUR RIGHTS, AND ENVIRONMENTAL PROTECTIONS MUST BE ENSURED

The  CEPA should   contain effective  mechanisms to  en- force human rights, environmental and labour standards. All stakeholders must have direct access  to a complaints mechanism with effective remedies, and the Parties to the agreement must be under  an  obligation to act on com- plaints made, through state-state dispute settlement. Any chapter, clause  or aspect of the  agreement that compro- mises  human rights  and  labour  obligations or environ- mental protections can  be  subject to  a  complaint. The CEPA must ensure that,  to this end, an effective  monitor- ing mechanism is put in place, including by providing the necessary capacity and financial resources.

III. CURTAIL INVESTMENT  PROTECTION AND INVESTOR-STATE DISPUTE SETTLEMENT

The CEPA must strictly curtail  the  substantial and  proce- dural rights  of foreign investors commonly granted in in- vestment chapters of trade  agreements. The CEPA must not  include  an investor-state dispute settlement mecha-nism – regardless of whether it’s “classic” ISDS, the Invest- ment Court System  or the  envisaged Multilateral Invest- ment Court – that allows foreign  investors to bypass  the national legal system and lodge a direct complaint against a state before  an  international tribunal. Such privileged access for investors, which serves them as a powerful  po- litical tool and has proven detrimental for public interests in past trade  and investment agreements.

Signatories:

SIGNATORIES FROM INDONESIA

1. Indonesia for Global Justice (IGJ)

2. Koalisi Rakyat untuk  Keadilan Perikanan (KIARA)

3. Indonesia AIDS Coalition (IAC)

4. Koalisi Rakyat untuk  Hak Atas Air (KRuHA)

5. Konfederasi Serikat Buruh Sejahtera Indonesia (K-SBSI)

6. Kesatuan Nelayan Tradisional Indonesia (KNTI)

7. Wahana Lingkungan Hidup Indonesia (WALHI)

8. SEAFish for Justice

9. Federasi Serikat Nelayan Nusantara (FSNN)

10. Persaudaraan Perempuan Nelayan Indonesia (PPNI)

11. Persatuan Petambak Garam Indonesia (PPGI)

12. Satu Dunia

13. Gabungan Serikat Buruh Indonesia (GSBI)

14. PATTIRO Semarang

15. Bojonegoro Institute

16. Development Institute

17. Migrant CARE

18. International NGO Forum on Indonesian Development (INFID)

19. Solidaritas Perempuan (SP)

20. Indonesian Human Rights Committee For Social Justice (IHCS)

21. FSP.TSK-KSPSI

22. Farmers Initiative for Ecological Livelihoods and Democracy (FIELD Indonesia)

23. Federasi Serikat Pekerja Tenaga Kerja Indonesia di Luar Negeri-Serikat Pekerja Seluruh Indonesia (FSPT-KILN-SPSI)

24. Federasi Konstruksi dan Informal (F-KUI)

25. Labor Institute Indonesia

26. Bina Desa

27. Serikat Petani Indonesia ( SPI )

28. Serikat Petani Kelapa Sawit ( SPKS)

29. FSB.KAMIPARHO-KSBSI

30. FSB KIKES KSBSI

31. Komite Perjuangan Rakyat (KPR)

32. Federasi kehutanan, Industri Umum, Perkayuan, Pertanian dan Perkebunan (F-HUKATAN-KSBSI)

 

SIGNATORIES FROM EUROPE

1. Africa Europe Faith & Justice Network (AEFJN)

2. attac Spain

3. Bread for all

4. Bruno Manser Fund

5. Bund für Umwelt und Naturschutz

6. Deutschland-Friends of the Earth Germany

7. Centre for Research on Multinational Corporations (SOMO)

8. CNCD-11.11.11

9. CNV Internationaal

10. Corporate Europe Observatory

11. Ecologistas en Accion

12. European Trade Union Confederation

13. Fern

14. Friends of the Earth Europe

15. Keep Ireland Frack Free

16. Les Amis de la Terre-Friends of the Earth France

17. PowerShift

18. Seattle to Brussels Network

19. Stiftung Asienhaus

20. Transnational Institute

21. Transport & Environment

22. FÍS NUA

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