World Trade Organisation (WTO) negotiations on services: ETUC calls on the Commission to reconsider its position

Brussels, 27/06/05

The ETUC regrets that once again the European Union is making liberalisation proposals of services markets to the WTO without the involvement of social partners and without a serious assessment of all the implications for Europe and for the developing countries having been made previously.

The ETUC asks the Commission to withdraw its request of liberalisation of water distribution services in the developing countries. “Quite rightly, the European Union is not offering its own water distribution services for liberalisation under the GATS: why should it ask the other countries, and in particular the developing countries, to do so?” asks the ETUC. Since once such commitments have been made under the GATS, they are 'effectively irreversible', developing countries risk losing space and flexibility in public policy making in a sector essential in the fight against poverty.

The ETUC is also concerned about the Commission's proposals to modify the current GATS negotiating process by introducing a “benchmark” approach [a minimum level of commitments which any WTO member would have to make within this round]. “If some WTO members do not make offers, it is first and foremost due to lack of political will. In any case these countries should not be forced to make precipitated commitments in specific sectors”, writes the ETUC.

The European Union offers to further liberalise temporary movement of highly qualified contractual service suppliers as well as some services such as postal services. For the ETUC, serious guarantees should be provided regarding the observance of core labour standards and national labour law in host countries. Moreover, the possibility to have labour market criteria to regulate the movements of service suppliers should be maintained. “By offering to rule out the “economic needs tests” applied by some Member states, the Commission takes unjustified risks. The ETUC also states that the regulatory framework for European postal services should be completed and universal service provision secured before making any additional international commitments.

26.06.2005
Press release
In Trade