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GATS Resource Kit

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Title: GATS Resource Kit


1
GATS Resource Kit
2
Introduction
  • This kit has been prepared by unions in the New
    Zealand Council of Trade Unions who are concerned
    about the impact of GATS.

3
How to Use this Kit
  • Each of this kits five sections is a PowerPoint
    presentation that can be printed off to use as
    handouts, overhead transparencies or as a data
    show projection. There are more detailed notes
    below each PowerPoint providing further
    information to support a presenter. Some of the
    kits pages are hyperlinked so that presenters
    can move quickly to the parts of the kit that are
    relevant to them and ignore the other sections.
  • Resources such as pamphlets and form letters are
    available.

4
Resources in this Kit
  1. This introduction
  2. How GATS works
  3. Examples of how GATS will affect your service
  4. Campaign resources
  5. Contact details for further information
  6. The end

5
GATSThe General Agreement on Trade in ServicesA
quick introduction to how it works
Return to Contents
6
The WTO
  • GATS is one of a number of agreements under the
    World Trade Organisation (WTO)
  • The WTO and GATS were both established in 1995
  • The WTO now has 144 member countries including
    Australia, Fiji, New Zealand, Papua New Guinea
    and the Solomon Islands. Samoa, Tonga and
    Vanuatu are all presently seeking to become
    members.

Return to Contents
7
The goals of the WTO and GATS
  1. To establish global rules for trade between
    nations
  2. To ensure trade flows freely and predictably
  3. To remove any restrictions such as government
    regulations that are considered to be barriers
    to trade in goods or services.

Return to Contents
8
The scope of GATS
  • GATS limits governments from taking measures that
    inhibit free trade in services
  • What are services?
  • What is trade in services?
  • What are measures taken by governments?
  • Are any services exempted?

Return to Contents
9
What is a service?
  1. Business Services (e.g. accountants, midwives)
  2. Communications Services (e.g. postal,
    telecomunications)
  3. Construction and Engineering Services
  4. Distribution Services (retail and wholesale
    shopping)
  5. Education Services (incl. professional standards)
  6. Environmental Services (e.g. water supply, sewage)
  1. Financial Services (e.g. insurance, banking)
  2. Health Related and Social Services
  3. Tourism and Travel Services (e.g. restaurants,
    travel agents)
  4. Recreational, Cultural and Sporting Services
    (e.g. libraries, museums, rugby)
  5. Transport Services
  6. And other services not included elsewhere

Service includes the production, distribution,
marketing, sale and delivery of that service.
Return to Contents
10
What is trade in services?
  • How to trade in services
  • Services can be delivered
  • across borders (e.g. internet, call centres)
  • to consumers who travel abroad (e.g. students,
    tourists)
  • by foreign companies establishing a local
    presence (e.g. privatisation, takeover)
  • by personnel from overseas (e.g. consultants,
    skilled labour contracts)

Return to Contents
11
What are measures taken by member countries?
  • Each country is restricted from taking measures
    which are considered barriers to trade of
    services. This includes measures taken by
  • Central, regional and local governments and
    authorities
  • Non-governmental bodies exercising powers
    delegated by them (e.g. water companies,
    professional organisations)

Return to Contents
12
Are any services exempted from GATS?
  • GATS does not cover services supplied in the
    exercise of governmental authority
  • However a service supplied in the exercise of
    governmental authority is defined as any service
    which is supplied
  • neither on a commercial basis,
  • nor in competition with one or more service
    suppliers
  • This does not exempt most public services such as
    post, schools, hospitals, water supply etc.

Return to Contents
13
GATS Obligations
  • There are two types of obligations GATS member
    countries have
  • The first set is top down or general
    obligations which apply to every service, whether
    a country has scheduled it or not.
  • Secondly, there are specific obligations which
    each country can choose to individually sign up
    to in their schedule.

Return to Contents
14
General (top down) ObligationsThese apply to
all services whether scheduled or not
  • Most Favoured Nation Treatment
  • Transparency
  • Increased Participation of Developing Countries
  • Domestic Regulations
  • General Exceptions
  • Subsidies

Return to Contents
15
Most Favoured Nation Status
  • MFN means that each member country must treat all
    other member countries equally favourably.
  • E.g Tonga could not choose to have free trade in
    health services with Samoa but not the USA. It
    must treat them both the same.

Return to Contents
16
Transparency
  • All members must publish all relevant measures
    that effect their trade in services and inform
    the WTO of any changes to laws, regulations or
    administrative guidelines that will affect trade
    in services
  • They must respond promptly to requests for
    information from any other member country

Return to Contents
17
Increased participation of developing countries
  • Developing countries will be facilitated
    towards increased participation in trade of
    services by developing greater competition and
    effectiveness, improved access to distribution
    channels, and the liberalisation of market access
    in services of export interest to them

Return to Contents
18
Domestic Regulations
  • Each country will establish and maintain
    administrative tribunals or procedures which
    provide for prompt review and appropriate
    remedies at the request of an effected overseas
    service supplier.
  • Each country will ensure that any measures it
    takes that affect foreign companies are not more
    burdensome than necessary or act as
    unnecessary barriers to trade.

Return to Contents
19
General Exceptions to GATS
  • GATS rules cannot be used to prevent measures
  • Necessary to protect public morals or maintain
    public order
  • Necessary to protect human, animal or plant life
    or health
  • Necessary to prevent deceptive or fraudulent
    services
  • To protect individual privacy and confidentiality
  • Relating to safety
  • To collect taxes on traded services or service
    suppliers
  • To protect security interests

Return to Contents
20
Subsidies
  • Subsidies are subject to GATS rules
  • WTO members recognise that sometimes subsidies
    have distortive effects on trade. Members
    shall enter into negotiations to avoid such
    distorting effects
  • Any Member that considers it is adversely
    affected by a subsidy of another member can
    request consultations with that member and must
    be afforded sympathetic consideration

Return to Contents
21
Specific Commitments
  • Each country draws up a schedule of services
    which they commit to open to trade
  • They can also list limitations on their
    commitments
  • If a particular service is specified in a
    schedule then it is subject to the following
    specific commitments
  • Market Access
  • National Treatment
  • Additional Commitments

Return to Contents
22
Part of a typical schedule
These columns indicate limitations on those
commitments MARKET ACCESS NATIONAL TREATMENT
This column indicates sectors the country has
committed to GATS
  • Limitations come in four modes
  • Mode 1 -across borders
  • Mode 2 to consumers who travel
  • Mode 3 by foreign companies establishing a
    local presence
  • Mode 4 through mobile personnel

23
Market Access
  • The following types of limitations are not
    allowed in committed service sectors
  • Limitations on the number of suppliers (e.g.
    number of universities, landfill sites)
  • Limitations on the total value of service
    transactions or assets (e.g. size of a tourist
    hotel in a sensitive location)
  • Limitations on the total number of service
    operations or on the total quantity of service
    output (e.g. number or size of suburban malls)
  • Limitations on the total number of natural
    persons that may be employed in a particular
    service (e.g. limiting the number of foreign
    actors in a film being shot in New Zealand)
  • Measures which restrict or require specific types
    of legal entity or joint venture to supply a
    service (e.g. requirement for joint venture with
    locals or local representation on a board)
  • Limitations on the participation of foreign
    investment (e.g. maximum foreign shareholding in
    a news media company)

24
National Treatment
  • Each country must treat foreign service suppliers
    no less favourably than it treats locally owned
    service suppliers
  • Foreign service providers may be treated the same
    or better, but not worse
  • The rules for foreign and local services do not
    have to be identical

Return to Contents
25
Additional Commitments
  • Members can negotiate further specific
    commitments into their schedule if they wish!

Return to Contents
26
Progressive Liberalisation
  • Members shall enter into successive rounds of
    negotiations with a view to achieving a
    progressively higher level of liberalisation

Return to Contents
27
Modification of Commitments
  • A member can modify any commitment in its
    schedule once it has been in place for three
    years
  • First however it must negotiate a necessary
    compensatory adjustment to its other commitments
    that leaves all other members no less well off.
  • Compensatory adjustments are made on a MFN basis
    every country is entitled to them
  • Any member that is not happy with this adjustment
    can refer the matter to arbitration to enforce
    its right

Return to Contents
28
Dispute Settlement and Enforcement 1
  • A member that breaches GATS may be reported to
    the WTOs Council for Trade in Services
  • The council can refer the matter to binding
    arbitration
  • The guilty member will be required to make
    adjustment in its schedule that compensates for
    any benefit that other members could reasonably
    have expected to accrue if it were not for the
    breach

Return to Contents
29
Dispute Settlement and Enforcement 2
  • The case is heard in secret before a WTO panel of
    trade experts
  • If the government is found in breach of GATS
    rules the WTO can order that the offending
    measure be withdrawn
  • If the government refuses the WTO can authorise
    the complaining country to impose trade sanctions
    to the value of what that countrys services
    suppliers have lost or could reasonably have been
    expected to lose

Return to Contents
30
Current GATS negotiations
  • The promised assessment of the impact of GATS
    prior to new negotiations has not occurred
  • WTO argues that the assessment is technically not
    possible
  • GATS negotiations began in 2000 and include
    changes to the agreement as well as new
    commitments
  • A full new round of negotiations began in 2001 at
    Doha and are due to complete in 2005
  • Each country must make initial offers of further
    liberalisation by 31 March 2003

Return to Contents
31
Click on your sector for examples of how GATS
could affect it
How could GATS affect Maori? Click Here
  • Energy
  • Broadcasting
  • Post
  • Distribution
  • Education
  • Tertiary Education
  • Water
  • Environment
  • Health
  • Tourism
  • Local Govt
  • Libraries and Museums
  • Labour Rights
  • Public Services and Privatisation

And, how does GATS affect Developing
Countries? Click Here
Return to Contents
32
Energy
  • Publicly owned or controlled energy providers
    could find the are in competition with foreign
    providers
  • Renewable energy sources could be exposed to full
    completion with non-renewable or environmentally
    harmful energy sources
  • Measures to limit energy consumption could be
    illegal

Return to Services List
Return to Contents
33
Broadcasting
  • Countries could lose the ability to have local
    content quotas on television, radio and movies.
  • They will not be able to nurture local creativity
    and talent
  • the public could be exposed to an increasingly
    homogenised and non-critical international media
  • Attempts to establish Maori television and radio
    will be undermined

Return to Contents
Return to Services List
34
Post
  • Courier companies could lode challenges against
    postal monopolies on delivering basic letters
  • Or in New Zealands situation this pre existing
    deregulation could be cemented in so that state
    owned postal services could not be reintroduced
    in the future
  • Postal services engaged in international
    competition will not be able to protect rural
    delivery costs

Return to Contents
Return to Services List
35
Distribution
  • GATS could lead to local shops increasingly being
    replaced with internet and telephone shopping.
    Jobs will be lost overseas.
  • Local towns could lose the ability to limit large
    mega stores moving in and driving out smaller
    local shops. It could limit the ability to
    restrict the supply and distribution of alcohol
    and tobacco.

Return to Contents
Return to Services List
36
Education
  1. GATS may allow foreign franchise early childhood
    centres the same access to government funding as
    local community operated centres
  2. Curriculum Resources with local content and
    issues will not be able to be able to be favoured
    over mass produced foreign curriculum resources

37
Education
  1. Governments may not be able to decide which
    institutions can and cannot educate teachers or
    what standards they should be required to meet to
    register
  2. Private schools may be entitled to funding on an
    equal basis to public schools
  3. Policies that favour internationalisation over
    local culture and society will not be able to be
    repealed

Return to Contents
Return to Services List
38
Tertiary Education
  • Foreign tertiary education providers are given
    the right to treatment at least as favourable as
    domestic private providers but the distinction
    between private and public has been blurred by
    funding and other changes during the 1990s.
  • Competition and privatisation will increase and
    be locked in, contrary to current Government
    policy.

39
Tertiary Education GATS could threaten
  • staff and community representation on councils
  • restrictions on the presence of foreign owned
    institutions or requirements on their ownership
  • limits on the number of particular types of
    institutions such as the number of universities,
    either nationally or regionally
  • limiting the number of PTEs
  • limits on the number of institutions that can
    teach a particular subject either nationally or
    regionally
  • limits on the number of students undertaking a
    particular qualification
  • preferential access of domestic tertiary
    institutions to research grants and funding
  • regulatory requirements re quality of provision
    and qualification requirements.

Return to Contents
Return to Services List
40
Water
  • The European Union's leaked secret request calls
    for the opening up of trade in water for human
    consumption and waste water.
  • For cities with private water supplies, such as
    Auckland, this could prevent them regaining
    public ownership of their water. Large foreign
    companies could control entire water supplies
    with the sole motive making a profit of a citys
    people

Return to Contents
Return to Services List
41
Environment
  • GATS could lead to a inability to limit the
    number of landfills or oil drilling platforms for
    instance.
  • It would inhibit government's ability to regulate
    environmental services so that peoples health,
    local jobs and the environments well-being is
    promoted ahead of short term profit.

Return to Contents
Return to Services List
42
Health
  • GATS may force public health to compete on a
    equal footing with private health care. This
    could lead to increased costs for patients and
    cost cutting by health care providers.
  • Not for profit trusts and charity groups that
    provide services like aged care and ambulances
    will be in direct competition with foreign
    companies.
  • Cultural safety training requirements in nursing
    may be considered illegal
  • Many health care services (I.e. dentistry
    physiotherapy and midwifery) are not even
    included under the category health care but
    business

Return to Contents
Return to Services List
43
Tourism and Travel
  • Local communities could lose their ability to
    ensure tourism is planned and accords to their
    community values
  • Foreign owned tourism companies may not be
    compelled to consider protecting local habitats
    and heritage.
  • Companies with monopolies on resources, such as
    whale watching, may be exposed to unfettered
    competition

Return to Contents
Return to Services List
44
Local Government
  • GATS potentially undermines local government
    rights to prefer local businesses and use rates
    to generate local jobs and income.
  • It could affect
  • Subsidising low income housing projects
  • Regulating casinos
  • Regulating pesticide spraying
  • Regulating public transport
  • Subsidising community economic development
    initiatives that give preference to local hiring
    and purchasing

Return to Contents
Return to Services List
45
Libraries, Museums and Sports
  • Government funding to important cultural and
    democratic institutions such as museums and
    libraries may be required to be shared with
    foreign for profit competition.
  • Increased deregulation of sports could see local
    sport stars moving overseas in greater numbers

Return to Contents
Return to Services List
46
Labour Rights
  • GATS will make it easier for foreign companies to
    contract out services work overseas, deliver
    services across borders over the internet and
    telephone, and even to bring service workers
    across borders
  • To the extent that GATS contributes to
    privatisation of government services, public
    sector unions are likely to be replaced with
    non-unionised workers with lower wages and fewer
    benefits
  • The GATS, like other WTO agreements, does not
    include any reference to ILO labour standards on
    child labour, discrimination, and worker rights.
    This sanctions trade without standards

Return to Contents
Return to Services List
47
Public Services and Privatisation
  • GATS could mean governments lose their ability to
  • Limit the number of suppliers or reduce
    competition to protect important monopolies
  • Regulate foreign competition requiring it to act
    in a certain way
  • discriminate in favour of local ownership over
    foreign ownership when privatising their services
  • Once in competition, public services find it hard
    to maintain universal quality and free services
    for their people

Return to Contents
Return to Services List
48
Maori and the Treaty
  • GATS rules treat everything as tradable
    commodity, undermining the treaty and core Maori
    values
  • Despite the treaty Maori have no say in GATS
    treaty negotiation or ratification
  • Maori commercial interests are currently
    protected from GATS but not non-commercial
    interests and concerns
  • Maori community building enterprises could be
    placed in direct competition with foreign
    companies

Return to Contents
Return to Services List
49
Developing Countries
  • The public service sectors of many countries in
    the Global South have already been gutted by the
    IMF and World Bank's structural adjustment
    policies which require severe reductions in
    public budgets and privatisation of public
    services and assets. This opens up opportunities
    for multinationals to provide these services on a
    for-profit basis.
  • Many people will be excluded from such essential
    services as health care, education, water and
    energy due to cost and lack of access. Under the
    GATS developing countries will not be able to
    turn back from the structural adjustment forced
    on them by the IMF and World Bank in sectors
    where they have made commitments.

Return to Contents
Return to Services List
50
Return to Contents
51
Campaign Resources
  • This section of the kit contains resources to
    help your union begin campaigning and educating
    on GATS

Return to Contents
52
ContentsThese resources are currently being
prepared and will soon be added to the
presentation.
  • Pamphlets
  • Draft letter to local bodies
  • Draft letter to school boards/community
    groups/etc
  • Article for community newspapers/union journals
    etc
  • Draft letter to MPs

Return to Contents
53
Contact for further information
  • ProGATS organisations
  • Anti-GATS organisations
  • Australian Unions
  • New Zealand Unions
  • Pasifika Unions
  • Global Unions

Return to Contents
54
ProGATS organisations
  • The World Trade Organisation (WTO)
  • Centre William Rappard, Rue de Lausanne 154,
    CH-1211 Geneva 21, Switzerland.Tel 41 22 739 51
    11, Fax 41 22 731 42 06, email
    enquiries_at_wto.org
  • Australian Department of Foreign Affairs and
    Trade (DFAT)
  • R.G. Casey Building, John McEwen Crescent,
    Barton, ACT, 0221 Australia.Tel 61 2 6261 1111,
    Fax 61 2 6261 3111, email
  • New Zealand Ministry of Foreign Affairs and Trade
    (MFAT)
  • 195 Lambton Quay,Wellington - Private Bag 18 901,
    Wellington ,  New Zealand  Ph 64 4 439
    8000,   Fax 64 4 439 8511, e mail
    enquiries_at_mft.govt.nz
  • The Trade Liberalisation Network
  • PO Box 26 Wellington. Ph 64 4 9146320, Fax 64 4
    9146322

Return to Contacts List
55
Anti-GATS organisations
  • World Development Movement (Britain)
  • GATSwatch (Europe)
  • The Alliance for Democracy (USA)
  • AFTINET (Australia)
  • Public Interest Advocacy Centre, Level 1, 46-48
    York St, Sydney NSW 2000, Australia, email
    pranald_at_piac.asn.au
  • ARENA (New Zealand)
  • PO Box 2450, Christchurch, New Zealand,
  • Tel 03-366-2803, email arena.nz_at_clear.net.nz

Return to Contacts List
56
Australian Service Unions
  • ACTU
  • Level 2
  • 393 Swanston Street
  • Melbourne Vic 3000
  • Tel (03) 9663 5266
  • Emailmailbox_at_actu.asn.au
  • Websites
  • NTEU
  • AEU
  • CPSU
  • ASU

Return to Contacts List
57
New Zealand Service Unions
  • NZCTU
  • PO Box 6645
  • Wellington
  • Ph 04 385 1334
  • Email peterc_at_nzctu.org.nz
  • Websites
  • NZNO
  • PSA
  • EMPU
  • SFWU
  • AUS
  • ASTE
  • PPTA
  • NZEI

Return to Contacts List
58
Pasifika Unions
  • SPOCTU South Pacific Oceania Council of Trade
    Unions
  • PO Box 3817 Wellington NEW ZEALAND, Tel 64 4
    9170333, Fax 64 4 9172051 Email
    mike.ingpen_at_psa.org.nz
  • CIWA Cook Islands Workers Association
    IncorporatedP O Box 403, Rarotonga, Cook
    IslandsPacifique du SudCOOK ISLANDSTel (682)
    24422, Fax (682) 24423, E-mail
    ciwa_at_oyster.net.ck
  • FTUC Fiji Trades Union Congress32 Des Voeux
    Road, P O Box 1418, Suva, FIJITel (679) 315
    377/315, 402, 314 099/314 668, Fax (679) 300
    306, E-mail ftuc1_at_is.com.fj
  • VCTU Vanuatu Council of Trade UnionsP O Box 089,
    Port Vila, VANUATU,
  • Tel (678) 23679, Fax (678) 26903,
  • E-mail synt_at_vanuatu.com.vu
  • PNGTUC Papua New Guinea Trade Union CongressP O
    Box 4279, Boroko, National Capital District,
    PAPUA NEW GUINEATel (675) 325 7642/325, 9656,
    Fax (675) 325 6390/323 9657, E-mail
    daphne_at_dg.com.pg
  • STUC Samoa Trades Union CongressPSA House,
    Fugalei, P O Box 2260, Apia, SAMOATel/Fax (685)
    22049, E-mail snuw_at_lesamoa.net
  • FITA Friendly Islands Teachers' AssociationP O
    Box 859, Nuku'alofa, Tonga Islands, South
    Pacific, KINGDOM OF TONGATel/Fax (676) 23972

Return to Contacts List
59
Global UnionsWebsites
  • Global Unions
  • International Confederation of Free Trade Unions
  • Education International
  • Public Services International
  • International Federation of Building and Wood
    Workers
  • Trade Union Advisory Committee (OECD)
  • International Metalworkers' Federation
  • International Textile, Garment and Leather
    Workers' Federation
  • International Union of Food, Agricultural, Hotel,
    Restaurant, Catering, Tobacco and Allied Workers'
    Association
  • International Federation of Chemical, Energy,
    Mine and General Workers' Union
  • International Transport Workers Federation
  • International Federation of Journalists
  • Union Network International

Return to Contacts List
60
Return to Contents
Return to Contacts List
61
The End
  • Thanks for using this resource
  • Good luck with your campaign
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