Nexus - 0702 - New Times Magazine-pages

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TNCs are drooling over the potential markets for government 1999 dialogue meeting, the Commission distributed a rather procurement contracts, which in many developing countries cover vague paper outlining its ideas for a WTO investment agreement 20 to 30 per cent of total GDP. In most developing countries, which lacked many of the controversial elements of the MAI” A government procurement contracts remain one of the only ways to week before, however, the NGOs present had received a leaked steer economic development by enabling local industry to devel- version of an earlier official Commission proposal. This version, op. As is the case with the proposed rules for investment, WTO which included nearly all of the elements that had provoked major rules for competition policy and government procurement are pre- opposition to the MAI, had already been discussed with the sented as necessary for the creation of a ‘level playing field’. In Council of Ministers' 133 Committee (for external trade) the pre- reality, however, equal competition between giant global corpora- vious month.** Asked about the status of these two papers, the tions and smaller local producers in developing countries will lead Commission did not move a muscle but stated that "especially on to the massive-scale extinction of the latter. investment, the ideas are moving very fast".’ Although a number Is it a dictatorial tool of the rich and powerful? Does it destroy of other dialogue meetings were held on issues such as trade facil- jobs? Does it ignore the concerns of health, the environment and _itation as well as trade and development, fewer and fewer NGOs development? "Emphatically no," says the WTO publication, /0 turned up. Common Misunderstandings about the WTO. Another blow to the Commission's credibility came in March One of the outcomes of the Geneva Ministerial Conference in 1999 when it was revealed that it had been pursuing a parallel and May 1998, and the 50th anniversary of the GATT, was an qualitatively different process of "consultation and partnership announcement by the WTO that it would intensify its PR strategy with European business interests over investment issues" with the in order to explain the 'benefits' of free trade to the world. so-called Investment Network (IN).* The IN, representing Fiat, Concerned about the growing worldwide public backlash to trade ICI, Daimler-Benz, Carlsberg, British Petroleum, Rhéne-Poulenc and investment liberalisation, the WTO and some 50 other corporations, was set up to declared new measures to involve NGOs and identify the priorities of large European corpo- civil society, allow better access to documents rations for a WTO investment agreement. The and improve transparency. So far, however, Commission also surveyed more than 2,000 the WTO's efforts on these issues have been . . . European businessmen in order "to give a clear appalling. Is ita dictatorial tool picture of the way international liberalisation i and international rule-making on investment THE EC's MANY FACES of the rich and are perceived by the business community".*! Sir Leon Brittan has used every conceivable powerful? The IN is clearly an outgrowth of the argument to gather support for ‘his’ Commission's experience during the Financial Millennium Round. While critics argue that . . Services Agreement negotiations, in which it the financial crisis and the accumulating evi- Does it destroy jobs? worked closely with the Financial Leaders dence that economic globalisation causes Group. widespread social and environmental — Recently, the Commission has also damage demand a reconsideration of con- Does it Ignore the encouraged European corporations in the tinued trade and investment liberalisation, services sector to set up a European Sir Leon has not wavered. On the con- concerns of health, Services Network (ESN), which will trary, the financial crisis, which accord- the environment and "advise European Union negotiators on ing to Brittan was caused by "the mis- the key barriers and countries on which management of the market economy", development? they should focus in these negotiations". makes him "feel strongly that the intro- In his speech at the first meeting of the duction into the WTO of global rules ESN, Sir Leon Brittan was frank about governing investment is one of the high- the central role he envisages it playing: est priorities in the new round of global "You are the driving force of the consul- trade negotiations". tation system which we have established; In order to ensure that investment my door is open for any matters of con- negotiations would occur, the European cern. And I expect that whenever the Commission—claiming to have learned from the opposition to the overall ESN comes to some conclusions, these will represent the MAT in the OECD—began to reach out to NGOs. "Wide consul- views of the industry, although I will also be ready to listen to the tation and open debate will be crucial for the success of the problems of individual companies."* Millennium Round. Governments need to keep their electorates The ESN is closely related to the European Service Leaders fully informed," Brittan reassured an NGO delegation at one of Group (ESLG), which consists of over 40 chairmen and CEOs the 'dialogue meetings' on the proposed Millennium Round, from various sectors ranging from banking to energy services. organised by the Commission for 'civil society’ representatives The ESLG is supposed to "give the political impetus and a high since September 1998. Business representatives, who also fit the public profile" to the new GATS negotiations starting in the year Commission's definition of civil society, were present at these dia- 2000. logues. The Commission also promised transparency and partici- The active encouragement of the creation of new business pation in decision-making in the proposed new negotiations, the structures by the Commission, to build support for the Millennium publication of information on the EU's website, anda "sustainable | Round and to deliver input into the negotiations, will surely development impact assessment" of the Millennium Round.* strengthen its position vis-a-vis EU member states. As US acade- The sense that the Commission had embarked on a charm mic Maria Green-Cowles points out: "By working closely togeth- offensive with questionable substance grew stronger during the er, the companies and the Commission present the member states ‘dialogue’ process over the coming months. During a January with a negotiating strategy 'pre-approved' by European industry."* powerful? Does it ignore the concerns of health, the environment and NEXUS - 23 Is it a dictatorial tool of the rich and Does it destroy jobs? development? FEBRUARY — MARCH 2000