22 April 2002
Trading Services For Agriculture - “Bring It On !” Trade Network Tells EU
Documents leaked by the British media suggest the European Union may be prepared to consider eliminating agricultural
subsidies and trade barriers in exchange for significant liberalisation of global services trade.
“Bring it on !” was the response of Trade Liberalisation Network Executive Director, Stephen Jacobi to the EU’s “wish
list” for services negotiations the Doha trade round. “New Zealand has more to gain than perhaps any other nation from
the elimination of Europe’s disastrous farm subsidies and trade barriers. If it ever came to a choice between retaining
New Zealand’s Overseas Investment Commission and obtaining free entry of New Zealand butter and lamb into Europe I know
what side my money would be on”.
Mr Jacobi said New Zealand had nothing to fear from further liberalisation of trade in services. “New Zealand’s services
industries are internationally competitive and have been pressing the Government to seek the reduction of trade barriers
in negotiations with Singapore and Hong Kong. Negotiations in the WTO’s General Agreement on Trade in Services (GATS)
could open up new global opportunities for financial services, consulting, engineering, education and postal services.”
Mr Jacobi said the GATS was the most misunderstood of all the WTO rules. “The GATS does not require governments to
privatise essential services like education or water or to offer government subsidies to private providers. Under GATS
countries are free to continue to regulate in the national interest and to maintain exceptions. But they cannot not
expect other countries to liberalise when they are not prepared to do so. That applies particularly to Europe where many
services sectors are still heavily protected”.
Mr Jacobi said the EU’s wish list was an opening bid in a complex negotiation. “Wishes, like dreams, are free. Whether
the EU can obtain all it wants is another matter. That’s what trade negotiations are all about”, concluded Mr Jacobi.
Ends