Sustainability impact assessment of proposed WTO negotiations: Final report for the distribution services study

International Trade and Services Policy, 2005. In association with Impact Assessment Research Centre, Institute for Development Policy and Management, University of Manchester, UK.  Report written by Julian Arkell and Michael D C Johnson

The WTO-GATS negotiations will attempt to liberalise market access in distribution services and seek the grant of national treatment for foreign affiliates, but not for the temporary movement of natural persons in distribution services, for which governments will continue to impose any terms they deem necessary. Thus the role of domestic regulation becomes paramount. The three country studies -- in Brazil, Kenya and Malaysia which were undertaken for the purposes of the present Sustainability impact assessment (SIA) show how important government policies are in the distribution sector. Such policies directly or indirectly affect employment levels, the pace of liberalisation, and the need to take account of the ethnic makeup and sensibilities in society, as well as in the ownership of distribution enterprises, their capitalisation and development.

There is little that governments can do to enhance the positive effects of liberalisation in the distribution sector. This of itself brings general economic benefits and improves structural efficiency. The focus must be on mitigating adverse impacts - both the direct social, economic and environmental impacts and also the indirect effects arising from changes in consumption patterns and in supply driven by demand.

For developing countries, it appears that the enactment and enforcement of balanced and transparent local regulations, governing such matters as corporate behaviour, labour, social standards and environmental protection, is essential. In many developing countries this cannot be achieved without outside help. Governments and donor agencies in developed countries should consider offering technical assistance for the preparation and implementation of appropriate regulations, related in particular to planning and environmental concerns.

Available at http://trade.ec.europa.eu/doclib/docs/2005/october/tradoc_125556.pdf