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AFTINET Bulletin No 14

30 March 2001

Contents:

  1. Trade in Services Campaign
  2. Meeting with DFAT on Trade in Services
  3. Protests against the Free Trade Agreement of the Americas on April 6 in Buenos Aires and April 21 in Quebec
  4. International Day of Action on WTO Agreement on Agriculture on April 17


1. 
Trade in Services Campaign

Following the successful launch meeting of the Trade in Services Campaign on March 14, AFTINET ALERT 15 distributed a leaflet explaining GATS, a letter to the Minister and the Stop the GATS Attack international sign-on statement. These are also available on the AFTINET website.

The Stop the GATS Attack statement has already been signed by twenty-two Australian organisations. These include the Australian Council of Trade Unions and six other unions. More unions and community organisations have referred it to their decision-making bodies and will sign up soon.

There has been media coverage from local and national radio and print media. On March 26 the ABC national radio program, the Health Report, did an in-depth piece on how the proposed changes to GATS might affect the ability of governments to regulate and provide public health services, featuring the article published in the Lancet. This is on the ABC website at www.abc.net.au

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2.   Meeting with DFAT on Trade in Services

Community organisation representatives from AFTINET, ACOSS and ACFOA met with DFAT Trade in Services negotiators on February 28 to obtain information about the government’s policy in the negotiations. The information provided was limited because of the early stages of the negotiations and because of the general government policy to provide limited information during negotiations.

DFAT reported that the government is not ruling out any areas for negotiation. The priority sectors for negotiations on market access are Telecommunications, Financial Services, Professional Services, Construction and Engineering, Environmental Services, Aviation and Tertiary education. In a subsequent bulletin, DFAT indicated that Australia may submit negotiating proposals on the accountancy, architecture, engineering, financial services, legal and construction sectors.

Australia’s Paper on government regulation lodged on the DFAT website in December 2000 supports a "necessity test" including the criterion of "least trade restrictive" being applied to Article V1 of the GATS agreement. This would mean that domestic regulation in certain areas could be challenged under the WTO disputes process if it were not least trade restrictive.

The delegation outlined the concerns of community organisations about the impact this could have on the right of national governments to regulate.

Our delegation also stressed that we opposed the application of "national treatment" to government procurement and subsidies since this could mean that transnational companies could have access to government procurement and to public funding of public services.

The delegation outlined our concerns that this could affect government policy and the ability to provide public services. We argued that both government procurement and access to government subsidies should be matters of national policy and not included in the GATS.

DFAT officials replied that these concerns had been noted.

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3.  Protests against the Free Trade Agreement of the Americas on April 6 in Buenos Aires and April 21 in Quebec

Massive protests are planned against the extension of the North American Free Trade Agreement between the US, Canada and Mexico to other Latin American countries. Naomi Klein explains why in an article in the Toronto Globe and Mail Wednesday, March 28, 2001.

"On April 6, trade ministers from the 34 countries negotiating the Free Trade Area of the Americas will meet in Buenos Aires. Many in Latin America predict that the ministers will be greeted with protests much larger than the ones that exploded in Seattle in 1999.

The FTAA's cheerleaders like to pretend that their only critics are white college kids from Harvard and McGill who just don't understand how much "the poor" are "clamouring" for the FTAA. Will this public display of Latin American opposition to the trade deal change all that?

Don't be silly.

Mass protests in the developing world don't register in our discussions about trade in the West. No matter how many people take to the streets of Buenos Aires, Mexico City or Sao Paulo, defenders of corporate-driven globalization just keep on insisting that every possible objection lobbed their way was dreamed up in Seattle, by somebody with newly matted dreadlocks slurping a latte.

When we talk about trade, we often focus on who is getting richer and who is getting poorer. But there is another divide at play: which countries are presented as diverse, complicated political landscapes where citizens have a range of divergent views, and which countries seem to speak on the world stage in an ideological monotone.

In North America, we are finally hearing the debates about whether or not more of the same model of deregulation, privatization and liberalization will protect our heath and education and water systems. In Western Europe, the foot-and-mouth inferno is putting the entire model of export-oriented industrial agriculture on trial.

And yet such diversity of public opinion is rarely attributed to citizens of Third Word countries. Instead, they are lumped into one homogenous voice, channelled by dubiously elected politicians or, better yet, ousted ones such as Mexico's Ernesto Zedillo, now calling for a global campaign against "globophobes."

The truth is that no one can speak on behalf of Latin America's 500 million inhabitants, least of all Mr. Zedillo, whose defeat was in part a repudiation of NAFTA's record. All over the Americas, market liberalization is a subject of extreme dispute. The debate is not over whether foreign investment and trade are desirable - Latin America and the Caribbean are already organized into regional trading blocs such as Mercosur. The debate is about democracy: what terms and conditions will poor countries be told they must meet in order to qualify for trade and investment?

For the past two decades, these terms and conditions have been negotiated and enforced by the IMF and the World Bank in exchange for loans. Social services have been privatized, user fees introduced, agricultural subsidies cut (while richer countries kept theirs), hard-won land-redistribution programs abandoned, and minimum wage controlled - all in the name of becoming "investment ready."

Argentina, the host of next week's FTAA meeting, is currently in open revolt over massive cuts to social spending - almost $8-billion (U.S.) over three years - that have been introduced in order to qualify for an IMF loan package. Last week, three cabinet ministers resigned, unions staged a general strike, and university instructors moved their classes to the streets.

Though anger at wrenching austerity measures has focused primarily on the IMF, it is rapidly expanding to encompass trade deals such as the proposed FTAA. The Zapatistas began their uprising on Jan 1, 1994 - the day the North American free-trade agreement came into force. Seven years later, three-quarters of the population of Mexico live in poverty, real wages are lower than they were in 1994, and unemployment is rising. No wonder the Zapatistas were able to draw 150,000 supporters to the streets of Mexico City earlier this month.

And despite the claims that the rest of Latin America is clamouring for a NAFTA to call its own, the central labour associations of Brazil, Argentina, Paraguay and Uruguay -representing 20 million workers - have come out against the plan. They are now calling for countrywide referendums on membership in the FTAA.

Brazil, meanwhile, has threatened to boycott the summit altogether, furious at Canada's dirty trade war and wary that the FTAA will contain protections for drug companies that will threaten its visionary public health policy of providing free generic AIDS drugs to anyone who needs them.

Defenders of free trade would have us believe in a facile equation of trade = democracy. The people who will greet our trade ministers on the streets of Buenos Aires next week are posing a more complex, and challenging, calculation: how much democracy should they be asked to give up in exchange for trade?"

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4.  International Day of Action on WTO Agreement on Agriculture on April 1 7

Via Campesina, a global network of small farmers organisations, will mobilise on the 17 April for an International Day of Protest on the impacts of the WTO Agreement on Agriculture on small farmers in developing countries.

Since 1994 the WTO agreement has forced developing countries to lower tariffs and on agricultural imports while both the US and Europe make direct payments to farmers which are not outlawed by the agreement. Exports at subsidised prices have undercut local crops in developing countries once tariffs are removed. Under the rules of the WTO Trade in Intellectual Property Rights Agreement, transnational corporations are patenting traditional seeds and developing genetically modified crops which also exclude small farmers. These trends cause unemployment and mass urban migration, and can undermine food security leaving developing countries dependent on imported food.

Via Campesina is calling for an end to subsidised imports, and to the patenting of traditional seeds and use of genetically modified crops. They are calling for the development of food security policies and sustainable farming methods for small farmers.

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