"NGO concern over public services baseless-WTO envoy"

By Robert Evans

GENEVA, May 22 (Reuters) - Claims by anti-globalization groups and labour unions that current global trade negotiations will force privatization of public services are baseless, a senior developing country envoy said on Thursday.

The issue is high on the list of causes -- alongside the invasion of Iraq -- for planned demonstrations against the June 1-3 summit of the Group of Eight (G8) industrial countries to be held in Evian, France, just across Lake Leman from Geneva.

Alejandro Jara, Chile's ambassador to the World Trade Organization (WTO) and chairman of talks on opening up service industries, said: "Concerns expressed over public sectors are all unfounded, even completely unfounded."

"There is no reason for the sort of concern expressed by many NGOs (non-governmental organizations)," he said, adding offers made so far showed governments were not giving up regulatory powers in areas like health and water.

Organizers, who expect tens of thousands of protesters to block roads between central Geneva and France for up to a week around the summit, say the 146-member WTO is a tool of the major powers to impose economic domination on the rest of the world.

Even moderate labour groupings, like the Brussels-based International Confederation of Free Trade Unions (ICFTU), say the only way to protect education, health and public utilities is to exclude them formally from the services talks, or GATS.

The British-based World Development Movement (WDM) says the European Union, driven by powerful service industries, is pressing many developing countries to open up water services, electricity supply and postal deliveries.

NGOs say the United States is driving hard to get openings for its private health and education firms.

But Jara said at a news conference that the 25 negotiating offers tabled so far in the talks - part of the WTO's overall Doha Round of free trade negotiations due to be completed by the end of 2004 - show that the services governments provide are excluded from GATS.

Public services, which in some poorer countries are already contracted out to private firms, would only be opened up to full international competition under GATS "if governments want them to be," he said.

NGOs point to Bolivia, South Africa and Colombia as countries where, they argue, privatization of water, electricity and telecommunications has led to costlier and worse services.