Published: March 18 2001 20:08GMT | Last Updated: March 18 2001 20:14GMT



The anti-globalisation protestors who paralysed Seattle in late 1999 have
found a new bogeyman. This time it is World Trade Organisation talks on
liberalising trade in services, which resume in Geneva today. The protesters -
development campaign groups and public sector unions - want to halt the talks
in their tracks.

They claim the WTO is plotting to abolish state monopolies, overrule national
regulations and open markets to ruthless exploitation and profiteering by
multinational companies. The result, they say, will be destruction of public
services and violation of democratic rights.

The allegations are fantasy. The WTO cannot force any member to open its
market. That decision is voluntary and countries that opt to liberalise may
choose how far and how fast to go. WTO rules allow members to exempt sectors,
regulate and privatise as they see fit. They may also suspend liberalisation
commitments for health or safety reasons and even withdraw them.

Equally wrong-headed are complaints that rich WTO members will bully poor ones
into making concessions against their will. The rules-based trade system is
the best defence the weak have against coercion by the powerful. That is why
so many developing countries belong to the WTO.

What this protest is really about is militant anti-capitalism and protecting
public service union members' jobs. If it succeeds, poor countries will find
it harder to attract the investment, technology and skills they desperately
need to provide essential services efficiently.

That so many falsehoods have gained currency shows politicians have still to
learn the real lessons of Seattle. The time is gone when trade deals could be
clinched behind closed doors and parliamentary approval was a formality. For
global liberalisation to progress nowadays, its benefits must be sold to
legislators and electorates with vigour, persistence and conviction.

Although many governments are committed to liberalising services trade, few
have bothered to explain their aims to voters, leaving the WTO's overstretched
secretariat to take the flak. Such myopic behaviour risks undermining the
project by handing victory in the battle for public opinion to opportunistic
opponents with redoubtable public relations and lobbying skills.

For the services talks - or any other WTO negotiations - to succeed,
governments must come out fighting. They need to argue robustly for
liberalisation and expose the protesters' scare-mongering as the self-serving
nonsense it is. If the advance of globalisation's misguided foes is to be
halted, now is the time to draw a line in the sand.





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