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Europe Daily Bulletin No. 8394
Contents Publication in full By article 17 / 42
GENERAL NEWS / (eu) eu/wto

Commission offer on services preserves public services, Lamy assures

Brussels, 05/02/2003 (Agence Europe) - As expected, Wednesday the European Commission presented the initial offers it proposes making to the Union's 144 trading partners in the framework of negotiations over the "services" chapter of the Doha Development Agenda. It is a question of an "offer for the further opening up of the European market" to foreign services providers, notably banking, financial, professional, computer, environmental, tourism, as well as telecommunications, transport (sea, air but only handling), insurance, consulting and retailing. But, other than the postal services that are also included in the planned opening, "the proposals we are making today at the same time guarantee the total preservation of European public services, such as education and health" Commissioner Pascal Lamy declared to the press, in a "categorical denial of rumours circulating these past few months". As for the audio-visual sector, other "politically sensitive" subject, the Union "will make no commitment to opening up is markets, in compliance with a Council mandate of 1999… We thus ensure that the WTO is used to defend and promote the European model", he said, refusing at this stage to provide further "details" on the plan (see page 6). "We have taken the decision not to do so to preserve the role of other institutions (as) it is a question of a proposal for an offer that we shall only put on the WTO table once the Council and relevant European Parliament Committee have provided their assent". They must be able to amend this proposal. If they have sound arguments, I must be able to listen to them", he explained. This process is, however, only consultative, and the Commission must simply ensure that its approach is that of the Union "as long as it remains within my remit, and this does remain inside my remit", he indicated.

For this sector (services), that contributes to over 60% of GDP and employs 67 million people in the EU, the Europeans have "strong offensive interests" in the multilateral negotiations that began in 1999 and is currently carrying on within the Doha Round. "It is therefore crucial for the Union to present a consequential offer so as to keep up the impetus of negotiations and secure European interests", said the spokesman in a press release, also referring to the concern of meeting the "interests of the other parties, especially developing countries". Does it for that mean that GATS (general agreement on trade and services) presents a threat, a risk for public services? "No, as this only concerns trade in services, thus services we decide to trade in", stressed Mr. Lamy. He then insisted: the Commission's proposal affects neither the provision of public services within the Union, nor the right of the EU to regulate public services".

On 31 March at the latest, the Union (like the other members of the WTO) will have to deposit its initial offers in Geneva, in response to the thirty or so requests for market opening made by third countries this summer. The second round will then end and they will be able to get into the thick of negotiations as such. "Obviously, we'll give away as little as possible. But there are sectors where we'll not give anything away at all, like the audio-visual sector, health and education as we don't need to," and for the rest, "we can let more go or even take some back", said Lamy citing, for example, the tempting offer by Europeans on the transport services in the Uruguay Round, and its final withdrawal for lack of adequate flexibility on the part of interested parties.

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