The General Agreement on Trade in Services (GATS) is the agreement
being most aggressively pushed through the "built-in agenda" of
the WTO though no new round was possible in Seattle because of
people's protests and a developing country backlash against their
exclusion in trade negotiations. "Services" include health and
education, water and environment, energy and transport, food distribution
and even government public service. The 1994 GATS categories are:
Business; communication (telecoms, postal, audiovisual); Construction
and related engineering services; Distribution; Educational; Environmental
(water delivery, energy, refuse disposal); Financial; Health related
and social Tourism and Travel related recreational, cultural and
sporting; and Transport (sea, air, rail, road) and other.
Hence
every aspect of our lives is up for sale and every aspect of human
needs and every form of human activity is being redefined as a
tradeable service. The WTO has drafted clever language about GATS
being a "bottom up" treaty rather than a `"top down" treaty because
a country can make commitmentsfor trade liberation in different
sectors through progressive liberalisation. Not a "bottom up"
treaty A treaty that totally bypasses national democratic decision-
making and excludes citizen participation can hardly be called
`"bottom up". To be truly "bottom up", the rules and subject matter
of GATS need to first be discussed among local communities and
regional and national parliaments. They then need to be amended
on the basis of democratic feedback. Without such a "democracy
round", GATS is not a "bottom up" but a "top down" agreement being
forced on the people of the world. The fact that governments,
as members of WTO, are putting the lives and securities of their
citizens on auction to global corporations through GATS does not
make the agreement legitimate or reflecting the will of people.
GATS is impinging on issues of culture, resources and dispute
resolution which under some national laws and constitutions are
not under the jurisdiction of federal governments negotiating
in WTO.
The
philosophy of GATS is the auctioning of vital resources and essential
services and transforming them from fundamental rights of citizens
to markets for global corporations. Through GATS, in effect our
lives have been put up for sale. Global energy and water corporations
such as Enron, Suez, Vivendi, health and education, businesses
such as the health management organisations (HMOs) in the U.S
are pushing for liberalisation of trade in services. Even mining
and logging corporations are riding on the back of GATS. And corporations
trading in hazardous waste are trying to use GATS. Water privatisation
It is being argued that because this trade is already larger than
trade in merchandise, service sectors should be commercialised
and globalised. The promise is that services would be provided
more efficiently and prices of essential services would reduce.
But the experience of water privatisation in Bolivia, Puerto Rico
and Argentina and energy privatisation in California and Maharashtra
state in India shows that this is totally false. In Bolivia, when
public water system was sold to Bechtel and International water
prices increased so dramat [the actual figure here is one killed,
with hundreds injured. Finally, the corporations were kicked out.
In 1995, when water was privatised in Puerto Rico, poor communities
had no water, while tourist resorts and U.S. military bases enjoyed
unlimited supply. In Argentina, when Generale de Eaux got a contract
for water delivery, prices doubled and quality deteriorated. The
company was forced to pull out when people refused to pay their
bills.
The WTO briefing of March 16, 2001, entitled "GATS: Fact and Fiction"
uses four arguments to allay citizens fears that GATS will lead
to the dismantling of rights to water, health and education.
(1.)
Art. 1 of GATS excludes "services supplied in the exercise of
governmental authority".
(2.)
GATS does not oblige countries to privatise or deregulate services.
(3.) GATS does not oblige countries to open up their markets.
In what is termed the "bottom-up" approach to liberalisation,
governments can choose which services they open up and to what
degree.
(4.) GATS does not prevent countries tightening regulations or
reversing previous decisions to allow service provision by foreigners.
Each of these responses is misleading.
Article I of GATS is recognised as ambiguous and does lend itself
to the interpretation that public services are candidates for
privatisation and liberalisation if services are offered on "commercial
basis" or "in competition with one or more service suppliers."
Since public services also have a fee, this could be interpreted
as being commercial. Since there are always private actors in
health, in education, this could be interpreted as being in competition.
But small schools and private clinics are different from global
corporations seeking trade liberalisation of services. The very
fact of putting vital service sectors up for trade liberalisation
in the GATS classification for commitments, and allowing the entry
of corporations in sectors which were beyond commerce is forcing
the Third World to lock its essential services and scarce resources
into the violent and unjust dispute settlement and trade sanction
system of the WTO.
Robbed of freedom While WTO repeatedly refers to the "freedom
of countries'', its rules and rule-making processes rob weaker
countries of freedom. Contrary to the propaganda that WTO rules
serve the interests of the poor, the rules are rules of commercialisation
- shaped and defined by powerful corporations to increase their
power and profits. None of the WTO arguments respond to the citizens'
criticism of the principle of marketisation of essential services
enshrined in GATS. That remains the goal and objective of GATS.
The WTO response is a weak attempt at allaying realistic fears
of citizens by using speed of processes of implementation as an
excuse to say the goals might not be reached. But the fact that
a car can go off the road, or not start or start with delay cannot
be used to deny the existence of a highway. GATS is the highway
to the privatisation of our lives, and the highway leads in the
wrong direction.
That is the central issue of the debate on trade in services.
How and when different countries start their engines to drive
down this highway is a secondary question. That they might not
start at the same time, or might have different models of cars
will not change the fact that once they are on the road to liberalisation
of services, all will reach the same destination - a destination
where water, health and education cannot be guaranteed to all
members of society because they are no longer rights provided
through public services, but are commodities to be bought in the
market place. The history of the Uruguay Round provides a good
lesson of how issues that do not belong to WTO have been brought
into WTO, issues that were never negotiated or accepted by the
majority of members but were forced on them. TRIPs, agriculture,
investment, services are not subject matters of trade - As the
post-Seattle NGO Campaign stated, "WTO needs to shrink or it will
sink''.
The
U.S. and European Union pressure to commercialise essential services
through GATS so that their corporations can make money out of
the survival needs of the poor is a new wave of crimes agains
the economy unleashed through WTO. Trade liberalisation of agriculture
is killing thousands of farmers, the TRIPs agreement is denying
cures to millions suffering from Malaria, T.B., HIV/AIDS. Instead
of pausing and taking stock of the destructive impact of WTO rules
of agriculture, written by and enforced on behalf of 5 grain trading
giants and TRIPs rules made by the pharmaceutical and life sciences
corporations, the WTO is rushing headlong into writing new rules
on behalf of corporations wanting to control our water, our health,
our education. That is why, as we move towards the next WTO Ministerial
in Qatar in November, we will be organising and mobilising worldwide
with the common call "Our World is Not for Sale: Stop Corporate
Globalisation". GATS should be put into deep freeze. The future
of services, and people's rights to water, health and education
needs to be democratically debated within each society and country.
Only after a "democracy round", in which ordinary people can take
part, should issues be brought to WTO. Without democratic debate,
WTO agreements have no legitimacy. The citizens' agenda cannot
continue to be preempted by the corporate agenda and then forced
undemocratically on people. (The writer is Director, Research
Foundation for Science, Technology and Ecology, New Delhi.) wtc.jpg
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