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Sunday, 30 October 2005 |
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Awareness campaign on threat of WTO's GATS vital by Gamini Warushamana 'WTO Watch' (WW), a new pressure group has stressed the urgent need for an awareness campaign to educate the authorities and the public on the risk and threat of the WTO's General Agreement of Trade in Services (GATS). The Ministerial meeting of the WTO to be held in Hong Kong next month is crucial and the decision taken by the government on how far the country is ready to open the service sector to international competition will be momentous. As GATS scope covers even national policies on environment and can be interpreted as a barrier to free trade in service this decision will affect all in the country. Neither of the two main candidates in the presidential election has given any indication about their policy on this crucial issue. Both of them are talking about strong national economy, priority to agriculture, SMEs and the vulnerable sectors. However, there is no way to protect local enterprises after the country agrees to GATS, said Dhamma Disanayake, Convenor of WW. The prevailing silence on the issue is lack of awareness about the content of GATS, WW said. Policy makers, political parties, economists, business community and the public in Sri Lanka and many developing countries are in the dark about the threats. Therefore WW has called for a wide awareness campaign on the issue. Under GATS, everything other than international trade will be considered as barriers to trade in service. Accordingly all services which are used from birth to death or from hospital to funeral service will be governed by GATS. According to Article 1 of the GATS all laws, regulations, Acts and legislation, policies, administrative decisions and any other form of activities which affect international trade in service will be challenged under GATS. GATS authority will be extended to national, regional, provincial or further lower level of administration of a country and if violated can be challenged in an international court. For example, if a decision taken by the Uva Provincial Council in relation to a service that Sri Lanka agreed to open for international competition can be challenged by any one of the 147 WTO member countries, claiming the decision is a violation of GATS. If a country opens any service for international competition under GATS, it will not be able to control the number of companies coming into operation or the value of assets or transactions, range of activities of such international companies, number employed in such companies and share of the foreign investment as a percentage. After opening, special treatment for local companies will be banned. Therefore all pledges of presidential candidates on the national economy without a clear stand on GATS are controversial WW said. Any future President and his government should explain to the public on how far the country can comply with GATS. A wide discussion involving all stakeholders including the business community is essential in drawing up a framework before the Trade Minister attends the WTO summit in Hong Kong because developed countries and multinational companies use force and offer bribes to get the consensus of trade ministers of developing countries for GATS and the open service sector. In the past Sri Lanka experienced a similar situation and the UNF Trade Minister agreed to WTO policies in agriculture betraying all developing countries at the WTO Cancun Summit in 2003. |
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