General Agreement on Trade in Services

HC Deb 21 March 2001 vol 365 c230W

Mrs. Anne Campbell

To ask the Secretary of State for International Development if she will make a statement about the impact of the proposed General Agreement on Trade in Services on basic services in developing countries. [154302]

Clare Short

Developing and developed country governments choose both the sectors in which and the extent to which they liberalise services under the General Agreement on Trade in Services. Services supplied in the exercise of governmental authority—that is, public services like health and education services—are explicitly excluded from the GATS (although private services are covered by the GATS).

Further liberalisation of private services under GATS offers developing countries potential benefits in a number of different sectors. Increased competition in basic services such as banking, transport and telecommunications would provide more efficient and effective infrastructure in developing countries, which is vital if they are to achieve the economic growth they need to reduce poverty.