25 February 2003
ARE OUR SERVICES SAFE?
Leaked documents today revealed that the
European Union is putting pressure on
developing countries to “open up” public
services, such as water, as part of the World
Trade Organisation (WTO) agreement on trade
in services [1]. The agreement could have
devastating impacts for developing countries,
but Friends of the Earth today warned that it
would also have far-reaching consequences
here in the UK – potentially putting the
regulation of service sectors, including
water, waste and energy at risk.
The European Commission is currently
negotiating which services will be included
in this the latest WTO agreement (GATS), but
the supposedly “transparent” process has been
shrouded in secrecy. Indeed today’s
revelations fly in the face of reassurances
previously given by the UK Government on the
exclusion of water from the agreement.
Similarly little information is available
on the impacts of the agreement here in the
UK. But investigations by Friends of the
Earth suggest there could be far-reaching
consequences for the future regulation of
many services, right down to local authority
level. Environmental regulations, for
example, could be subject to WTO agreement,
introducing a lowest common standard
approach.
Trade in services (virtually any economic
activity that is not agricultural production
or manufacturing – over 150 sectors in all)
is a major part of the UK economy, accounting
for 70% of GDP in 2001 and employing 77% of
the workforce. Further growth of the sector
through the development of export markets is
considered to be a priority by the Department
for Trade and Industry, and the UK Government
are keen advocates of the GATS process.
Friends of the Earth trade campaigner Eve
Mitchell said:“These revelations should sound
a warning for people in this country as well
as in the developing world. They could result
in massive deregulation within the service
sector. Environmental protection – already
much weaker in many WTO member states – could
be dramatically reduced.
“Once again we are seeing Governments
handing over control to the private companies
who can profit at the expense of people and
the environment. The WTO is a trading
organisation – it should not be responsible
for regulating our services. The UK
Government must call a halt to the GATS
process until a full assessment of the
impacts has been carried out.”
ENDS
NOTES
[1] Documents obtained by the Guardian
(25/2/03) show the EU has demanded that some
of the least developed countries open up
their service industries, allowing European
firms to charge for providing water, in
exchange for access to Europe’s agricultural
sector.
Contact:
Eve Mitchell 020 7566 1681
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