[mobglob-discuss] FWD: GATS is the New Multilateral Agreement On Investment [ MAI ]

[Gordon Flett]

The adverse effects of GATS will not be limited to so-called 'developing
countries'. Countries such as Canada and Australia stand to join
Argentina in a general deterioration of economic conditions and
privatisation of essential public services such as healthcare , water
and education - ie services that have thus far escaped the privateers!.
However that is all about to change under the soon-to-be-conluded GATS
'instrument'. And after we concede our inheritance to the infamy of
GATS, what then? 

John. 


http://globalissues.com/TradeRelated/FreeTrade/GATS.asp 

The General Agreement on Trade in Services (GATS) at the WTO is seen as
the next MAI (Multilateral Agreement on Investment, that was
successfully derailed by enormous protest at the impacts it would have
on people's lives). 

Its goal is to basically further liberalize services in the public
domain. 

While private businesses providing public services can have its merits,
the concerns with something like GATS has been along the lines of
concentrated ownership, foreign ownership by large transnationals and
rules limiting or affecting the ability of national governments to
appropriately hold companies providing these services sufficiently
accountable. 

On a broad range of "services" this therefore has a wider impact than
many other (most often also undemocratic) international trade and
investment agreements. 

Transnational corporations [TNCs] and their strong business lobby groups
have helped make the US and European Union (EU) push the GATS hard to
developing countries. 

If given the go ahead, it too would be seen to have a "devastating
effects on the ability of governments to meet the needs of the poorest
and most powerless of their citizens" according to the World Development
Movement's report. 

Titled ' In whose service?', the report goes on to show that there are
concerns on a number of fronts including the following: 

GATS covers basic services like water, health and education. These are
basic necessities -- not things that can be left to the market. It
should be the duty of governments to ensure that even the poorest have
access to such services, whether or not they can afford to pay. Yet,
water supply in developing countries appears to be a major target for
European companies in the current negotiations. 

GATS rules are not just limited to the cross-border trade in services.
They also prevent some forms of government regulation of foreign
investors, that is, of multinational companies setting up shop in their
country. The GATS therefore extends beyond other trade agreements,
preventing governments from following their own national development
strategies and ensuring that local people actually benefit from the
presence of multinational corporations. 

Commitments made by governments under GATS are effectively irreversible. 

The privatisation and deregulation of service provision is highly
controversial, yet governments are not only signing away their own right
to regulate - but the right of future generations to implement different
policies. 

"The scope of Gats is breathtaking. Almost every human activity is
designated a "service", from transport and tourism to water, health and
education. 

Foreign corporations will be allowed to take over almost any public
service on the basis of a secret "agreement" that is irreversible. The
EU website describes GATS as "first and foremost, an instrument for the
benefit of business". 

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