Briefing No. 95 September 2004

GATS Update Briefing

Introduction

In P&I Briefing 29 we explain how GATS works and outlined UNISON's concerns over the current GATS negotiations and the potential impact on public services in Scotland. This briefing provides an update.

GATS is the General Agreement on Trade in Services, the service element of the Geneva based World Trade Organisation (WTO). It sets out a

framework of legally binding rules for the liberalisation of trade in services. Whilst there is an exemption for services supplied under 'Government Authority', the partial privatisation of public services opens the door to multinational companies who wish to take over essential services in the UK and developing countries.

UK Government Action

The UK bargains (known as offers and requests) through the European Commission, which is the negotiating body for the whole of the European Union. Extensive commitments had already been made under the GATS before the government and EU published its consultation documents in October 2002.

UNISON, with a number of other trade unions and NGOs, responded to the UK government consultation, (see UNISON website). Whilst this is a reserved matter the Scottish Executive and Parliament has a direct interest as it is responsible for many of the services that could be covered by GATS. The Government published its reply to the public consultation in December 2003 including the concerns of 776 respondents includingUNISON.

The European Union published its offers to improve access to its services markets on 29 April 2003. The education sector, health related and social services sector and audio-visual services are not included in the EU's offers to other countries. But they could be included in future rounds.

The DTI remains of the view that the GATS will benefit the UK and is keen to point out that education and health services are exempt from the EU's offers to other WTO member countries. However, they don't say that negotiations on the offers and requests will be conducted on a country to country basis and that the UK could still be under pressure to open up these key services to foreign competition.

The EU's requests to 109 WTO member countries includes 94 countries classified as developing countries or economies in transition.

Under the new classification of environmental services 'water for human use and waste water management' becomes a new sub-sector. Of the 109 countries targetted by the EU, 72 have been asked to open up this sub-sector. For a fuller anaysis of the EU's requests, see the World Development Movement website: www.wdm.org.uk

The problem with these negotiations is that they are held in secret. We need to know exactly which services will be affected, and how. We need full consultation and democratic debate before negotiations are completed.

European Parliament

On 12 March 2003 the EP adopted a motion which, while expressing support for the GATS, includes concerns related to transparency and restrictions on the right to regulate. It also calls for water services to be excluded and for labour conditions on visas for foreign workers and investment to be subject to conformance with the ILO tripartite agreement.

The European Commission has also been busy promoting the privatisation of public services outwith GATS. Proposals to

liberalise water services have been rejected twice by the European Parliament in January and March this year.

The Services Directive excludes drinking water but not waste water and generally promotes competition over social or environmental concerns. UNISON is concerned that in the absence of a European legal framework on Services of General Interest, our public services will become market commodities to be bought and sold purely for profit.

Nairobi Declaration on GATS

In May, civil society groups from north and south, including WDM, gathered in Nairobi to discuss the impact on the south of GATS and the forthcoming WTO negotiations in Cancun. Their declaration on GATS included this statement:

"WTO is not just about imports and exports of goods, but increasingly is encroaching on people's democratic control over and access to resources and on governments' abilities to regulate social and economic policies and formulate human development.

The GATS represents a powerful and totally unacceptable instrument that limits policy space and restricts popular access to services which are essential to people's livelihoods and economic development."

The declaration committed organisations to work together to resist the neo-liberal agenda being promoted by a number of developed countries and corporate interests. They also highlighted and number of practical examples where the liberalisation promoted by institutions such as the World Bank and IMF had damaged essential public services in the developing world.

Action in Scotland

UNISON together with other interested groups has undertaken a range of actions to highlight the threat of GATS both to public services in Scotland and the developing world. Actions include member awareness through briefings, journal articles and a postcard campaign. Meetings with UK and Scottish ministers, MPs and MSPs (including a parliamentary petition), and civil servants from the DTI. We have highlighted similar concerns over EU internal market reforms that mirror the GATS approach. UNISON has also been active in raising wider concerns over the activities of the World Bank and IMF in promoting the 'Washington Consensus' ideology of the smaller state and a bigger role for market disciplines.

Action for Branches

Keep raising the issue with your MP and MSPs. Press for a full parliamentary debate before the government signs up to any EU and GATS privatisation.

Support the WDM events in Edinburgh next month.

Further information:

World Development Movement
http://www.wdm.org.uk

GATS Watch Org
http://www.gatswatch.org/

European Public Services Union
http://www.epsu.org/

Head for Holyrood

The Scottish Coalition of the Trade Justice Movement is organising a lobby of the Scottish Parliament at 12 noon on Wednesday 27 October 2004. Help send the message that Scotland supports Trade Justice.

Plus Small World Big Challenge. WDM Scotland's public conference on Saturday 30 October at Central Hall, Edinburgh. www.wdm.org.uk

Contacts list:

Dave Watson
d.watson@unison.co.uk
@ The P&I Team
14 West Campbell St
Glasgow G26RX
Tel 0845 355 0845
Fax 0141-221 8953