STOP MAI

MEDIA RELEASE -for immediate release, 29 May, 2001 Authorised by the STOPMAI Campaign Coalition (WA) Website http://members.iinet.net.au/~jenks/fair.html StopMAI (WA) is affiliated with the Australian Fair Trade and Investment Network (AFTInet) and with the World Social Forum (WSF)

New global rules for export/import of services portend full privatisation of basic utilities

The Australian Government is a signatory to the 1995 General Agreement on Trade in Services (GATS), which is proposed to be sweepingly expanded in November at a ministerial summit of the World Trade Organisation.

Trade Minister Mark Vaile has dismissed widespread concerns that the GATS will pave the way for full privatisation of traditional government services including public education, health services, water supply, sewerage and even social security.

If GATS were applied to such services, the effect would be profound. They would no longer be classed as public services; instead they would be categorised as commercial enterprises, open to competitive tendering by multinational companies, who would share in all public funds allocated to those sectors.

Mr Vaile points to a clause in the agreement that services supplied in the exercise of government authority are not covered by the GATS.

However, there are at least two serious flaws in this reassurance:

• To be excluded from GATS, a government service cannot be supplied on a commercial basis, nor in competition with one or more service suppliers. [GATS Article I, paragraph 3 (c). ] This clearly rules out, eg, education, on both grounds.
  
• Mr Vaile's interpretation is subject to challenge by any of the 140 WTO member countries, and the dispute panel decision will be binding on Australia in the same way as the decision which forced us to accept Canadian salmon imports.

PERTH PUBLIC FORUM ON GATS

These and related issues will be discussed at a free public forum on Thursday, 7 June at 7.30 pm, 4^th Floor, Unity House, 79 Stirling Street, Perth.

ENDS #39