The Hon Mark Vaile
Minister for Trade
Parliament House
Canberra

Dear Minister Vaile,

Australia’s role in opening up service sectors through new methods

I am concerned about Australia’s role in the current round of GATS negotiations in Geneva. There are a number of ‘benchmarking’ or ‘complementary’ proposals on the table to change the way that countries negotiate their GATS commitments and I understand that Australia has submitted its own proposal.

I am concerned that the proposed changes will force countries to make more and deeper GATS commitments by forcing a minimum level of commitment across a minimum number of service sectors. The current structure of GATS allows countries to choose whether and in which sectors they will make commitments. The website of the Department of Foreign Affairs and Trade praises this as "different to other WTO Agreements, in that there is not one rule to which all Members must adhere". This flexible system should not be undermined by any proposal that requires a mandatory commitment across a certain number of sectors.

I am particularly concerned that these proposed changes will force countries to open up their essential service sectors, such as health, education, water, postal, telecommunications, energy, public transport and audio-visual services. Opening these services to the market interests of transnational corporations jeopardises the ability of local firms and public bodies to provide essential services on an equitable basis.

I urge you to withdraw Australia’s proposal to change the GATS negotiating process. I also urge you to not support any ‘benchmarking’ or ‘complementary’ approach to the GATS negotiations. Governments should retain the right to determine the level of their GATS commitments freely and without pressure. Decisions about essential services should be made democratically at the local and national level, not signed away behind closed doors.

Yours sincerely,