Free trade myths and realities # 2

Myth: The Agreement on Trade in Services (GATS) violates fundamental human rights to services such as water and healthcare.

Reality: GATS would not lead to the privatization of services, even though this would almost certainly be a good thing. Governments rarely supply services in a reliable, cost-effective manner. In poor countries, the often fail altogether to supply essential services, such as delivery of clean water. Private providers would at least supply these services.

If the service is privatized in a transparent and efficient manner, or if the government simply ceases to oppress private providers, it is likely that the poor will be far better off. Insurance systems in poor countries exist only for the very wealthy, and governments’ own barriers to healthcare provision present far more problems for access to healthcare than does competition by foreign businesses. Public health agencies in poor countries often suffer from corruption, bureaucracy, and lack of accountability to poor people who most need those services.