NL – Trade, 2nd NAP
Introduction
A revised action plan
“With its revision of the National Action Plan for Business and Human Rights the government aims to formulate a comprehensive agenda on business and human rights with renewed Dutch ambitions giving substance to the obligations outlined in the UNGPs. The operationalisation of the UNGPs is not only an important theme within the Netherlands’ national and foreign human rights policy, but also as part of Dutch policy on development cooperation and foreign trade aimed at building more sustainable value chains.” P. 21.
Pillar I
Development cooperation
Sustainable trade with and investment in developing countries
“Development cooperation policy on business and human rights focuses on improving the sustainability of production and international value chains in and with developing countries in a way that helps reduce poverty and inequality. To this end it is important that a) the interests and specific situation of the developing countries in question are taken into account when designing measures aimed at making trade and investments more sustainable, and b) developing countries are supported in the transition required to meet these commitments to inclusive, green economic development.
The interests and specific circumstances of developing countries must be taken into account when drafting national, European and international agreements aimed at improving the sustainability of trade and investments. Examples include developing standards on deforestation and the climate, the circular economy, land use rights, labour, foreign trade and investments and RBC. The cornerstone of this is to determine the development impact of efforts to make trade and investment more sustainable, especially the impact on vulnerable groups such as indigenous peoples, small-scale producers, workers and agricultural labourers, with a particular focus on women and young people. This should reinforce the efforts’ positive effects and, as far as possible, prevent and mitigate any negative side effects. Developing countries receive several forms of support. First, bilateral and EU- and World Bank-led discussions take place with governments in developing countries about the transition towards greater sustainability, and ways of reducing poverty and inequality in the course of this transition. Second, Dutch civil society organisations such as trade unions and employers’ organisations receive funding to, on the one hand, strengthen sister organisations in developing countries (for example through dialogue with other local stakeholders) and, on the other, to advocate at international level the interests of, in particular, small-scale producers and workers. Third, a range of Dutch and international implementing organisations make efforts to improve the business climate and supplementary government policy in developing countries, focusing particularly on SME producers as the ones playing the most significant role in poverty alleviation. Examples include providing access to financial services, improving infrastructure and building capacity for entrepreneurs and their trade associations. Fourth, efforts are made to increase the sustainability of international value chains by working jointly with businesses, civil society organisations and other levels of government on improved procurement practices and new revenue models with a focus on work, a living wage and income, land rights and land use and the elimination of child labour.” p. 46
| ACTION POINTS PILLAR 1 | Aim | Responsible party | Timeline |
| Sustainable trade with and investment in developing countries | |||
| Strengthen collaboration between ministries by establishing an interministerial working group to conduct a permanent dialogue on sustainable trade and investments, focusing on specific high-risk value chains with a strong Dutch footprint. | Enhance learning capacity regarding policy coherence on sustainable trade and investments and on business and human rights | All ministries involved, with BZ taking the initiative. | From 2022 |
| Research, monitor and evaluate the impact on developing/producing countries of national, European and international sets of rules and standards aimed at improving the sustainability of trade and investments, where possible under the auspices of the EU and supported by local stakeholder consultations | Enhance learning capacity regarding policy coherence on sustainable trade and investments and on business and human rights. | BZ | On introduction of new proposals and during implementation |
p. 49
Foreign trade and investment
“Trade and investment agreements need to not only broaden and deepen countries’ economic relationship but also contribute to improved labour rights and environmental protection. EU trade and investment agreements, for example, include commitments on promoting and implementing obligations relating to fundamental labour rights and on honouring commitments agreed in multilateral environmental treaties. The Netherlands endeavours in the EU and beyond to provide economic support to developing countries, for example through favourable trade rules. The Generalised Scheme of Preferences (GSP), for example, enables least developed countries to import goods into the EU without paying import duty. The European Commission has submitted a new proposal to replace the current GSP, which expires at the end of 2023. The Commission proposal would make some changes aimed at improving the social, labour and climate dimensions of the Scheme. The government is on the whole supportive of the European Commission’s proposals and will continue its efforts during ongoing negotiations to preserve the generous nature of the instrument. By linking the ratification and effective implementation of international agreements to tariff preferences, the GSP promotes the right to development and respect for human rights in developing countries. As part of the EU’s new trade policy strategy, the European Commission is reviewing its approach to trade and sustainable development commitments in trade agreements and aims to present the outcome for discussion at the European Council in mid-2022.
The Netherlands has contributed to this review and will build on its current commitment to ambitious and rigorous compliance with agreements on trade and sustainable development, to ensure that parties take action on a non-discriminatory basis to protect public interests such as human rights, labour conditions and the environment.
EU trade agreements also factor in the discrepancy between the level of economic development of trading partners. Examples of such agreements include the Economic Partnership Agreements (EPAs) which the EU has negotiated with various African, Caribbean and Pacific (ACP) developing countries and with trading blocs. EPAs are asymmetrical trade agreements, with the EU giving full access to its market (‘duty and quota-free’). The EPA partners, on the other hand, can completely exclude certain products from liberalisation, while other products have long transition periods. Such agreements are therefore dependent on the level of development and the capacity of country markets to open up to outside competition. The European Commission’s negotiating mandate with ACP countries was modernised and expanded in 2019 to include, among other things, sustainable development and investments
EPAs are also governed by the Cotonou Agreement and as such have a strong focus on development. EPAs should therefore also be seen as a useful platform through which ACP countries and the EU can discuss technical assistance for sustainable development. A striking example of this is the cacao initiative in Ghana and Côte d’Ivoire. The Dutch government supports the European Commission’s efforts to further develop the EPAs into comprehensive accords.” pp 50 and 51.
| ACTION POINTS PILLAR 1 | Aim | Responsible party | Timeline |
| Foreign trade and investment | |||
| Strive to ensure that negotiations maintain the generous character of a new Generalised Scheme of Preferences (GSP) and strengthen the GSP provisions with a social, labour and climate focus. | Integrate appropriate international business and human rights frameworks into the GSP Regulation. | BZ | Up to end of 2023 |
| Strive for ambitious commitments and robust compliance with agreements on trade and human rights, working conditions and the environment during negotiations on new and existing EU trade agreements. | Integrate relevant international business and human rights frameworks into the EU’s trade policy strategy | BZ | Begin 2022 to end of negotiations |
p. 52.
Pillar III
Strengthening non-judicial state mechanisms
National Contact Point for OECD Guidelines (NCP)
“… The government values a well-functioning NCP as one of the state-based mechanisms for access to remedy. It is therefore important to continue to reinforce the NCP and its recommendations. One way of doing this is to give the NCP’s work more weight in trade instruments. A company’s attitude to a possible NCP notification is already taken into account when considering its participation in trade missions. A balanced expansion of this practice to other instruments will encourage cooperation of business in an NCP process.” p. 70.