Secret documents reveal EU's tough stance on global trade
John Vidal, Charlotte Denny and Larry Elliott
Tuesday April 16 2002
The Guardian
The European Union is demanding full-scale privatisation of public
monopolies across the world as its price for dismantling the common
agricultural policy in the new round of global trade talks, secret
documents leaked to the Guardian revealed yesterday.
The sweeping requests for the opening up of sensitive sectors of its
trading partners' economies including water, energy, sewerage,
telecoms, post and financial services are contained in a 1,000-page
draft document prepared by Brussels officials for approval by member
states next month.
Europe has spelled out in detail a long list of restrictions which it
wants its trading partners to drop. These include requirements that
New York estate agents be US nationals, a ban in Mexico on foreigners
owning land within 50km of the border and rules in Korea restricting
the sale of alcohol to licensed providers.
Many of Europe's demands are likely to meet with bitter opposition
from its trading partners, resentful that Brussels is dragging its
feet on opening up its own markets in key areas. In some areas, such
as energy and postal services, Brussels wants other countries to break
up national monopolies which its own member states have been reluctant
to tackle.
The draft negotiating strategy has provoked alarm among development
campaigners who fear the ultimate goal is to push poor countries into
privatising public services like health and education.
"We are shocked by how the the EU is preparing to trample over its
claims to be in favour of sustainable development in the naked pursuit
of the interests of European multinational service corporations," said
Dave Timms from the World Development Movement. "These documents
confirm our worst fears about these negotiations. The EU is targeting
sectors where there is no evidence that liberalisation benefits
developing countries."
With Brussels under mounting pressure from its trading partners to
scrap its expensive system of agricultural subsidies and tariff walls
in the new round of talks launched in Doha last November, Europe's top
trade official, Pascal Lamy is hoping to make major gains at the
negotiating table in the increasingly lucrative global trade in
services, particularly in the financial sector.
The EU wants its companies to be able to compete on an equal footing
with local firms which will require its trading partners to scrap
rules banning foreign competition and ownership in sensitive parts of
their economies. The strategy is the fruit of years of lobbying by
Europe's financial services sector which is hoping to expand
throughout Latin America and Asia.
With the City of London, home to the most sophisticated financial
industry in Europe, Britain is likely to be a big winner; Mr Lamy's
initiative has enthusiastic backing in Westminster.
Copyright Guardian Newspapers Limited
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