Open Statement from Parliamentarians December 16, 2005

DEFEND THE RIGHT TO DEVELOPMENT IN THE NEGOTIATIONS ON SERVICES LIBERALIZATION

We are Parliamentarians concerned about how the draft Ministerial text on services tabled for negotiations, attached to the draft text as Annex C (“Objectives, Approaches and Timelines”), sets the stage for a General Agreement on Trade in Services (GATS) agreement that gravely undermines countries’ capacity to undertake services sector liberalization at the pace and to the extent most appropriate for their preferred development strategies.

We are alarmed that Annex C proposes an extremely aggressive process for services liberalization that, moreover, will particularly hit the underdeveloped countries that generally have the most backward services sectors. It goes far in undermining countries’ sovereign right to pursue development according to their terms and according to what in their judgment is to the greatest benefit of their people. Indeed, a GATS agreement according to Annex C that severely restricts countries’ ability to assert their sovereign right to decide which services sectors to liberalize and to what extent lays the basis for severe financial, water, health, education and other crises.

The proposal according to Annex C overturns established negotiating procedures in GATS – the bilateral request-offer system – and takes away whatever development principles and flexibilities there are. Annex C exerts severe pressure for faster and deeper liberalization by:

1. Setting “qualitative benchmarks” that ask member countries to bind existing levels of liberalization in Mode 1 (cross-border supply) and Mode 2 (consumption abroad), while asking for increased foreign equity participation in the critical Mode 3 (commercial presence). This in paragraph 1 of Annex C. 2. Obliging countries to enter into negotiations through the expansion and strengthening of the “plurilateral” and “sectoral and modal” approach that will replace the voluntary bilateral request-offer method as the predominant negotiating method. Under this approach, groups of member countries present requests in any specific sector or mode of supply to another member that shall then be obliged to enter into plurilateral negotiations. These are in paragraphs 7 and 2 of Annex C. Among the important sectors apparently immediately targeted are the power, water and health sectors. 3. Aiming to start negotiations on government procurement to enable developed country corporations to corner lucrative government contracts. This is in paragraph 4 of Annex C.

All told these mean to bring countries in the direction of forcing them to enter into negotiations on service sector liberalization, preventing them from ever undertaking policy measures that reduce market access, and committing them to progressively liberalize. Under the current GATS approach, countries are free to decide what sectors to liberalize and when.

Annex C is already highly contentious and has been criticized by so many developing countries. The delegations of the country groupings Association of Southeast Asian Nations (ASEAN) and African, Caribbean and Pacific Countries (ACP) – some 80 countries in total – have already gone as far as drafting their own alternative texts that remedy the most worrying elements of Annex C.

We are Parliamentarians anxious to defend the right of countries to choose, now and in the future, the levels and extent of commitment to liberalization in full accordance with people’s needs and welfare and with national policies and priorities. We call on our delegations to protect this sovereign right.

DEFENDING THE RIGHT TO DEVELOPMENT IN THE NEGOTIATIONS ON SERVICES LIBERALIZATION

signatories

Cong. Saturnino Ocampo ()

Philippines

Cong. Teodoro Casiño (Bayan Muna)

Philippines

Cong. Rafael Mariano ()

Philippines

Cong. (Anakpawis)

Philippines

Cong. Liza Maza (Gabriela)

Philippines

MP Ivan Valente (PSOL)

Brazil

MP Ludra Rosado (PSB)

Brazil

MP Maria Helena Rodriguez (PSB)

Brazil

MP Rupchand Pal (CPS-M)

India

MP Yousef El-Maimani (Majlij Ashshur)

Saudi Arabia

MP Yasmeen Rehman(Pakistan People’s Party)

Pakistan

Sen. Oya Zrihen (PS)

Belgium

Rep. Karine Lalieux (PS)

Belgium

MP Elsa Papadimitriou

Greece

MP Jimmy Angwenyi

Kenya

MP Adhu Awiti

Kenya

MP James Gachagua

Kenya

Dr. Oburu Oginga

Kenya

MP Shakeel Ahmed Mohamed

Mauritius

Benedict Martins (ANC)

South Africa

MP Dickson Mkono (ANC)

South Africa

MP Sisa Njikelana (ANC)

South Africa

MP Aubert M. Helene

France, European Parliament

MP Vittorio Agnoletto (GUE/NGL)

Italy, European Parliament

MP Markov Helmuth (GUE/NGL)

Germany, European Parliament

MP Lotta Hedstrom (Green Party)

Sweden

MP Caroline Lucas

UK, European Parliament

MP Agot Valle (Socialist Left)

Norway