Bridges Weekly Trade News Digest • Volume 7 • Number 13 • 10th April 2003
Save The Children UK Foresees Negative GATS Outcomes
US AND SACU SET TO LAUNCH TRADE NEGOTIATIONS IN LATE MAY
The first round of discussions concerning a free trade agreement (FTA) between the US and the member countries of the Southern African Customs Union (SACU, which includes Botswana, Lesotho, Namibia, South Africa, and Swaziland) is scheduled to take place at the end of May or beginning of June this year. The two sides will meet every six to ten weeks until negotiations are concluded at the end of 2004. US Trade Representative Robert Zoellick said the agreement would benefit the SACU member countries by increasing trade, creating new jobs, boosting economic growth and development, and promoting regional integration. In turn, he contended that access to the expanding southern African market would benefit US farmers, workers, businesses, and families. According to Josette Shiner, associate US Trade Representative, this will be the first bilateral agreement that will "pair" trade and aid. As part of the trade negotiation process, a separate group — consisting of government and non-government trade experts — will be established to concentrate on issues surrounding the lack of trade expertise and infrastructures in SACU member countries.
A number of sensitive topics — including agriculture, compulsory licenses and parallell imports to ensure access to essential medicines, South Africa’s black economic empowerment laws, transparency with regard to government procurement, and access to the telecommunications and financial services sectors in southern Africa — will have to be approached as negotiations begin. Some southern African economists assert that this agreement could put a strain on the economies of the smaller SACU member nations, as they would have to significantly increase exports in order to make up for lost tariff revenue. Another concern has been raised surrounding the recent restriction of the use of compulsory licences in the US-Singapore FTA and the fear that the same restriction would be implemented in this case.
ICTSD Reporting; "Southern Africa: free trade area with US proposed," INTEGRATED REGIONAL INFORMATION NETWORK (IRIN), 26 March 2003; "Date set for US/SACU free trade talks," I-NET BRIDGE, 9 April 2003.
TRADE UNION STATEMENT MAKES DEMANDS ON CANCUN MINISTERIAL
In a recently released statement, the International Confederation of Free Trade Unions (ICFTU) sets out its main demands for outcomes at the WTO Cancun Ministerial meeting in September this year. The statement makes proposals for more democracy and transparency at the WTO, and emphasises the need for negotiators to put the concerns of developing countries before those of developed countries. Increased debt relief, enhanced development assistance, and fundamental reform of IMF/World Bank adjustment policies, are just part to the 26-point statement. It also sets out how workers’ rights and the protection of core labour standards can be progressed at the WTO. The statement proposes various safeguards that are needed to ensure that public services and other services of general interest cannot be undermined by private sector competition under WTO disciplines. The statement urges caution with regard to the "Singapore issues" (investment, government procurement, competition policy and trade facilitation), and makes the case for multilateral investment rules built around the promotion and protection of social policies through binding and enforceable investor obligations, which it notes are absent from the proposals tabled at the WTO. Also highlighted are closer links between the WTO and international organisations, particularly UN special agencies such as the International Labour Organisation, and adequate funds for the poorest countries to participate in WTO decision-making. Specific measures are proposed so that sustainable development is incorporated effectively into every aspect of WTO work.
To view the ICFTU statement, visit: http://www.icftu.org/displaydocument.asp?Index=991217396&Language=EN.
"Global Trade Unions state Position for WTO Cancun Meeting," ICFTU PRESS STATEMENT, 7 April 2003.
Save The Children UK has released a report indicating concern over the possible effects of the General Agreement on the Trade of Services (GATS) on developing country Members affected by its implementation. Under the agreement, participating countries are permitted to choose which services sectors they are willing to commit, but once the decision is made it is irreversible, regardless of the outcome. The report raises concern over the services that are currently public, and the results that the privatisation of these services could have on people in poverty, and children in particular. Sectors such as health, education, and water are all covered by the GATS, and are in many countries currently public services. Privatisation of these sectors could lead to price increases, and as a result, compromise children’s rights to health and clean water, as mandated by the Convention on the Rights of the Child.In the report, entitled "GATS and Water: The Threat of Services Negotiations at the WTO", the authors show a specific concern over the possibility of major water companies pressuring smaller and less developed countries to commit their water sectors under the GATS, and the potential repercussions on the wellbeing of children. The authors present case studies showing the effects of privatisation of the water sector in developing countries such as the Philippines and Colombia, and in which water prices rose dramatically. According to the report, the European Commission intends to press for "real and meaningful market access" for its water companies in current WTO service negotiation rounds. Save The Children UK is urging all members of GATS not to commit the water sector to the agreement in the current round of negotiations, and for the EU to stop pressuring Members to make such commitments.
"GATS and Water: The Threat of Services Negotiations at the WTO," SAVE THE CHILDREN UK, 8 April 2003.
WORKSHOP EXAMINES TRADE, INVESTMENT AND MEAS
A two-day meeting on trade and sustainable development post-Doha, held in London from 7-8 April, focussed on investment and multilateral environmental agreements (MEAs). Organised by the International Institute for Sustainable Development (IISD) and the Royal Institute of International Affairs (RIIA), the workshop focussed on investment, sustainable development and the WTO during the first day, and on MEAs and the WTO on the second day. Following presentations delivered by representatives of civil society, academia, the WTO, and trade negotiators, participants engaged in debate on issues ranging from institutions needed to manage investment at the domestic and international levels, and the ideal relationship between MEAs and the WTO, to implications for WTO negotiations in both areas. Participants generally agreed on the need for a framework to govern investment, but sharply disagreed on the appropriateness of the WTO as a forum in this regard. However, most conceded that negotiations were likely to be launched after Cancun, and cautioned against the implications of a situation where investment would mainly be used as a bargaining chip in the overall negotiating package, rather than recieve full attention in its own right. Citing specific examples, many speakers underscored the uniqueness of each situation concerning trade measures in MEAs and their relationship to WTO rules. Calling for greater coordination between MEA secretariats and the WTO, as well as greater domestic-level coherence, speakers emphasised that the future will bring a growing number of overlaps between MEAs and the WTO. This IISD-RIIA process is set to continue, and follow-up meetings will be held in Geneva, Brussels and Cancun over the coming months. The meeting proceedings will be posted on the IISD and RIIA websites (see http://www.iisd.org and http://www.riia.org).
ICTSD reporting.
FYROM BECOMES 146TH WTO MEMBER
On 4 April 2003, the Former Yugoslav Republic of Macedonia (FYROM) became the newest Member of the WTO. The WTO’s General Council approved the FYROM’s accession package on 15 October 2002, beginning the final stage of an accession process that has taken nine years to complete. With the inclusion of the Former Yugoslav Republic of Macedonia, the WTO expands its membership to 146, though several potential Members — including Algeria, Nepal, Russian Federation, Saudi Arabia, Belarus, Ukraine, Cambodia, Uzbekistan and Viet Nam — are presently negotiating their accession.
WTO PRESS RELEASE, 4 April 2003.