The EU is demanding full-scale privatization of public monopolies across the world as its price for dismantling the common agricultural policy in the new round of global trade talks, secret documents leaked to the Guardian revealed Tuesday.
The sweeping requests for the opening up of sensitive sectors of its trading partners' economies including water, energy, sewerage, telecoms, post and financial services are contained in a 1,000-page draft document prepared by Brussels officials for approval by member states next month.
Europe has spelled out in detail a long list of restrictions which it wants its trading partners to drop. These include requirements that New York estate agents be US nationals, a ban in Mexico on foreigners owning land within 50km of the border and rules in South Korea restricting the sale of alcohol to licensed providers.
Many of Europe's demands are likely to meet with bitter opposition from its trading partners, resentful that Brussels is dragging its feet on opening up its own markets in key areas. In some areas, such as energy and postal services, Brussels wants other countries to break up national monopolies which its own member states have been reluctant to tackle.
The draft negotiating strategy has provoked alarm among development campaigners who fear the ultimate goal is to push poor countries into privatizing public services like health and education.
"We are shocked by how the the EU is preparing to trample over its claims to be in favor of sustainable development in the naked pursuit of the interests of European multinational service corporations," said Dave Timms from the World Development Movement.
"These documents confirm our worst fears about these negotiations. The EU is targeting sectors where there is no evidence that liberalization benefits developing countries."
The Guardian failed to balance this report by quoting another expert in support of freer trade.
With Brussels under mounting pressure from its trading partners to scrap its expensive system of agricultural subsidies and tariff walls in the new round of talks launched in Doha last November, Europe's top trade official, Pascal Lamy is hoping to make major gains at the negotiating table in the increasingly lucrative global trade in services, particularly in the financial sector.
The EU wants its companies to be able to compete on an equal footing with local firms which will require its trading partners to scrap rules banning foreign competition and ownership in sensitive parts of their economies. The strategy is the fruit of years of lobbying by Europe's financial services sector which is hoping to expand throughout Latin America and Asia.
With London, home to the most sophisticated financial industry in Europe, Britain is likely to be a big winner; Lamy's initiative has enthusiastic backing in Westminster.
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