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open their markets fully from the start; countries may file specific ROBECO Group, UBS and over 50 other banking, investment reservations. However, the agreement does ‘lock-in’ liberalisation and insurance companies. and market access, banning new protective measures. EU Commissioner Brittan stressed that "the close links estab- The financial services negotiations were an unsolved leftover lished between EC and US industry...were an essential factor in from Uruguay Round negotiations on services (GATS). In 1995, obtaining the final deal".’ In fact, he found the cooperation with negotiations on this sector failed once again when the US with- the FLG to be so inspiring that he wants to use it as a prototype drew, displeased with the reluctance of Asian and Latin American _ for the future. "Within the EU, we are now considering a private countries to open their markets to US financial sector involvement in the process of building up services corporations. Some 60 other countries our priorities," he said, some months after the signed an interim agreement, and negotiations deal was finished. "The example of the EU-US were relaunched in April 1997. The European As Asian countries Financial Leaders Group—involving a group of Commission then took the lead, aware that EU business leaders to provide high-level momen- countries had removed almost all internal barri- were loath to tum to the negotiations—has been the model for esto foreign trade and investment in the fina liberalise their the creation or pew mechani for Enrope, “ cial services sector over the previous years. As F 4 F similar deal will be needed for the next round o Asian countries were loath to liberalise their financial services services liberalisation negotiations."* The FLG financial services sectors further, senior trade sectors further. can certainly count on the full support of the 3 officials from the European Commission and . 5A Trade Commissioner in its preparations for the the US embarked upon a campaign to make senior trade officials upcoming WTO negotiations on services them change their minds. They travelled to from the European (including financial services), scheduled to Asian capitals and presented financial ser- os begin in the year 2000. vices liberalisation as the cure for sluggish Commission and the While banking, securities and insurance economies, as it would attract new foreign US embarked upon corporations based in the EU, US and capital flows. . Japan were jubilant about the signing of The third partner in this team effort was, a campaign to make the agreement, negotiators from the coun- them change their minds. according to the Dutch Ministry of tries referred to as "emerging markets" Economic Affairs, "the international finan- were far less enthusiastic. In practice, the cial industry, particularly from the US and benefits are reserved for the Northern cor- the EU, united in the Financial Leaders porations which can now enter new mar- Group (FLG)".” kets in Asia, Latin America, Africa and The FLG's role was to "identify the bar- Central and Eastern Europe. The prospect riers to trade in other countries"; the EU of services companies from the South and US delegations would then put these competing in Northern markets is illusory. obstacles on the negotiating agenda. The group—headed by the When Southern countries signed on to the agreement, it was in largest banks and insurance companies in the world, including the hope of attracting foreign direct investment and financing. Barclays PLC, Chase Manhattan, ING Group, Ford Financial The EU, the US and their financial services corporations argued Services Group, the Bank of Tokyo/Mitsubishi, Goldman Sachs that the market openings will make the banking and insurance and the Royal Bank of Canada—strives for the liberalisation of industries in "emerging markets" more efficient by increasing the financial services sector on a global scale. FLG co-chairmen — competition. But it is very likely that plentiful jobs will be lost as are Andrew Buxton, head of UK-based Barclays PLC, and Dean _local banks are swallowed up by Northern financial services cor- O'Hare of the US Chubb Corporation. Other members include the porations with far greater resources. An already inequitable American International Group, British Invisibles, Bank of financial cycle will thus be solidified, with profits flowing back to America, Aegon Insurance Group, Dresdner Bank AG, Citigroup, shareholders in the EU, the US and Japan. Endnotes was ranked as one of the capital's 10 most Amsterdam, 30 April 1998, website 1. Sutherland, Peter, speech given in New York _ influential lobbyists in the January 1998 issue of | www.worldcom.nl/tni/wto/booklets/wto3.htm. City, 3 March 1994. the Washingtonian magazine, website 14. Personal interview with Keith Richardson, 2. Karliner, Josh, The Corporate Planet: www.wexlergroup.com/bio_wexler.htm. Brussels, 21 February 1997. Ecology and Politics in the Age of 9. The Wexler Group is an independent unit of 15. James Enyart of Monsanto, quoted in: Globalization, Sierra Club, USA, 1998. Hill and Knowlton, Inc., an international public — Shiva, Vandana, "Who are the real pirates?”, 3. "The MAI Shell Game", Public Citizen, web- _ relations firm; website www.wexlergroup.com/ Third World Resurgence, Third World Network, site www.tradewatch.org/Shell_Game/ corporate_profiles.htm. Malaysia, no. 63, November 1995, pp. 16-17. Cover.htm. 10. Silverstein, Ken, "Doing Business with 16. Pratt, Edmund J., "Intellectual Property 4. Kantor, Mickey, Letter to Bob Drake, Despots", Mother Jones, May/June 1998, web- Rights and International Trade", Pfizer Forum, President, National Cattlemen's Association, site www.mojones.com/mother_jones/MJ98/ 1996, www.pfizer.com/pfizerinc/policy/forum/ dated February 8, 1996. silverstein.html. current/ article/rights.htm. 5. Such as Brazil's recent challenge of EU's 11. The European Commission even filed aso- 17. James Enyart of Monsanto, as quoted by regulatory regime on the import of poultry. called amicus brief on behalf of the NFTC. Vandana Shiva (see note 15). 6. Bardacke, Ted, "American Boycotts Start to Source: Reuters news wire, 23 September 1998 18. Pratt, ibid. (see note 16). Bite", Financial Times, 2 June 1997. (see note 6). 19. Vander Stichele, ibid. (see note 13). 7. Gevirtz, Leslie, "Business Challenges 12. "EU and Japan urge WTO to ban 20. Howard, Stephanie, Eugenics, a self- Massachusetts’ Myanmar Sanctions", Reuters Massachusetts-Myanmar boycott", AFP, defence guide to protecting your genes, A SEED news wire, 23 September 1998, at website Geneva, 22 September 1998. Europe, 1998. www.ofii.org/newsroom/news/980923reut.htm. 13. Vander Stichele, Myriam, "Towards a 21. The CBD clearly states that there should be 8. Anne L. Wexler, a former White House aide, | World Transnationals' Organisation?", TNI, benefit-sharing from the use of genetic were loath to from the European Commission and the US embarked upon a campaign to make them change their minds. NEXUS © 15 As Asian countries _liberalise their financial services DECEMBER 1999 — JANUARY 2000