World trade proposals lack legitimacy

3 January 2003

The latest government proposals for liberalising world trade in services lack democratic legitimacy, according to a report published today by Federal Union.

Click here to read the report.

The report was commissioned in response to the DTI publication, "Liberalising Trade in Services - a New Consultation".

Proposals to open up world trade are broadly welcomed by the Federal Union report, but the procedures are criticised as being remote and undemocratic. The GATS process is based on secret negotiations between the different member states of the WTO.

The report recommends:

New measures to make global trade fairer and more accountable, including a consultative parliamentary assembly

There should be a special category of "cultural product", to take account of the conflicting needs of trade and identity in areas such as the media and food

Tax loopholes should be filled to ensure that the super-rich pay their fair share of tax

"It is not surprising that there is wide-spread opposition to the GATS process, considering how unaccountable it all is," said Richard Laming, Director of Federal Union. "There needs to be a real attempt to make the system democratic and more fair."

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