Tea trade is notably
impacted by tariff reduction, removal of quantitative restrictions
and customs duties such as variable import levies, minimum
import prices, discretionary import licensing and all sorts
of non-tariff measure under the clause of 'market access'
of the WTO trade policies. Tea trade therefore has become
completely market mediated and less regulated. Tea sector
in the producing countries is experiencing a crisis due
to the structural rearrangements and deflationary policies
of nation states in line with the WTO trade policies. The
ramifications of these crises are multifaceted. The commonly
observed micro-level developments together with the macro-level
rearrangements in all tea-growing countries are the decline
of wages and commodity prices; emergence of small growers;
closure and abandonment of large plantations; lower level
of organization; absence and curtailment of or non-compliance
with existing social security entitlements; and withdrawal
of state subsidy for the tea sector. The problems have been
multiplied with the developments such as erosion of market
share of tea in the total beverages market; global over
production and stagnated consumption in some markets worldwide.
Consequently, tea industry, which is accountable for the
livelihood of a major chunk of population and responsible
for a significant share of foreign exchange earning in the
developing and underdeveloped countries of Asia, Latin America,
and Africa, is on the verge of collapse due to the crises
associated with the fall in commodity prices and wages of
workers. It is estimated that more than 10 million people
as workers and small growers, are being severely affected
by the present crises in the tea sector globally. In many
cases, these working populations are the most vulnerable
sections of the society encompassing ethnic and religious
minorities and women and child labourers.
In order to voice the devastating conditions of the workers
as well as tiny and small growers in the tea sector word
wide, civil society organisations and trade unions from
the tea producing countries of Asia and Africa came together
and formed a joint platform. The concerned countries and
representing organisations met in Mumbai and Porto Alegre
World Social Forums in 2004 and 05 and discussed and voiced
the issues associated with tea sector. The decision to observe
an International Tea day for expressing the rights of workers
and small growers was taken at these meetings. .
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