Submission of the Victoria University of Wellington Students’ Association on the GATS (General Agreement on Trade in
Services)
Victoria University of Wellington Students’ Association (VUWSA) is the official representative of over 16,000 students
studying at Victoria. As a representative of tertiary students, our organisation opposes education being signed up to
international trade agreements such as this. We are also concerned about the effect this agreement will have on other
public services in Aotearoa.
Education
In the 1994 Uruguay round of trade liberalisation, New Zealand went further than any other OSCD country and signed its
primary, secondary and tertiary education services up to the GATS agreement. Although it currently refers only to
private education that means little in New Zealand, given that private tertiary providers enjoy similar subsidies to
public ones and our education system runs on the basis of open competition.
GATS means the New Zealand government cannot intervene in the education system in ways that might disadvantage foreign
private providers, such as:
* The current Labour-led government cannot limit the number of Universities in New Zealand under the GATS. If a private
provider from overseas wishes to seek approval to use the term ‘university’ or limit the number of private entities
seeking such approval because such limits are seen as a barrier to trade in education services.
* Foreign private education providers cannot be denied the same subsidies as local private providers under GATS, where
they offer NZQA approved courses, even if they employ only foreign education personnel and that subsidy money goes
straight out of the country.
If the government decided to ignore the rules of the GATS agreement, it could end up being taken to the WTO and being
forced to back down or else face trade sanctions. To date this has only been a potential threat. However current
international negotiations for further commitments to the GATS and more extensive rules for domestic regulation are
likely to cause major problems for the New Zealand education system, particularly in tertiary education.
Other Public Services
The GATS agreement is a very undemocratic. Current negotiations are happening in secret with minimal public
consultation. The public is unlikely to know what further services are signed up to this agreement until after the final
commitments have been made. However commitments made by this government to the GATS will be binding on future
governments. The agreement is designed to give rights and protections to large international companies, and these
protections are made at the expense of people’s rights to high quality and accessible public services. The underlying
principal and ideology of this agreement is that the market is the most effective way of providing services in society.
What the policies of successive New Zealand governments since 1984 have proved is that the open market is not the most
effective way to provide pubic services.
Other areas potentially affected by further commitments to the GATS are - Health (all sectors), Transport and public
services provided by local bodies (public water supply, waste management and similar services).
Te Tiriti o Waitangi
VUWSA is committed to principles and objective of Te Tiriti o Waitangi. The GATS is a binding international treaty that
overrides Te Tiriti o Waitangi. The GATS potentially undermines promotion of the Maori language and culture,
culturally-appropriate models of development and ensuring that foreign investment applications don’t impede Tiriti
claims.
Little to no consultation has occurred between the State and Maori regarding this international Treaty. For the
government to commit further to the GATS without consultation with Maori, would be a serious breach of Te Tiriti o
Waitangi.
Conclusion
VUWSA does not at present have an official stance on Globalisation and Trade Liberalisaton. However VUWSA does have
major concerns with public services being signed up to international agreements like the GATS agreement. We oppose the
fact that New Zealand’s education system has already been signed up to the GATS agreement, and demand the government
remove these commitments immediately.
We also oppose further NZ commitments to the GATS agreement. Particularly when negotiations are being done in secrete
and little to no genuine consultation with the New Zealand public has occurred.
28.February 2003
Contact: Nick Kelly
VUWSA PO Box 600 Wellington
Nick.Kelly@vuw.ac.nz
Ph 473 8566 or Home Ph 971 4294