Making trade work for public health
BMJ 1999; 319 doi: https://doi.org/10.1136/bmj.319.7219.1214 (Published 06 November 1999) Cite this as: BMJ 1999;319:1214
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Editor, The recent editorial in the British Medical Journal on the
WTO discussed several issues which are important for health policy (1).
The WTO sets the legal framework for global trade, and decisions taken by
it have consequences for policies made at the national level. It is clear
that
the WTO agreements will have significant implications for health policies
and the organisation of health services across all European countries (2).
According to the background paper by the WTO secretariat, market oriented
reforms in many countries together with the growth of the health care
industry have opened up prospects for increased trade in health services
(3). In European Union Member States negotiating powers with respect to
trade rest with the European Commission and are heavily influenced by
commercial interests. In contrast, social and health
services remain primarily a matter of national governance. In Europe
national health administrations are, for the most part, happily unaware of
the priorities and impact of trade negotiations. Similarly, there is
little public debate by legislators or within the media on the health and
social implications of the agreements which have already been
negotiated. Yet it is clear that these agreements could alter the nature
and way in which health and social policies are defined and implemented in
countries, with important implications for cost and equity. The broad
agenda on services negotiations could for example imply that global
commercial provider chains would have access to competitive bidding on
publicly funded health care markets such as the
NHS.
The Amsterdam Treaty states that implications for health and health
protection should be considered in the planning and implementation of all
Community policies (4). However, we must ensure that these commitments are
respected in relation to trade negotiations. It is important to understand
that trade and investment negotiations do not only deal with trade in
goods between countries, but that they also have
implications for social rights, and the financial and political capacity
of nations to make effective public policies. In the process of trade
negotiations these considerations may well be compromised by an emphasis
on the commercial rights of the corporate sector. It is reassuring that
the WHO will be at the negotiations to represent public health interests
in Seattle, but this is not enough. We need public pressure at national
and European level to ensure that commercial interests do not override
those of health and social policies when trade negotiations are
undertaken.
Meri Koivusalo, MD, PhD
Physicians for Social Responsibility and
Globalism and Social Policy Programme (GASPP)
PO Box 220, 00531 Helsinki, Finland
Mike Rowson
Co-ordinator
Economic Policy and Health Project
Medact,
601 Holloway Road
London N19 4DJ
Gilles de Wildt , MD MSc MRCGP
General Practitioner , Medact
17 Jiggins Lane Surgery, Bartley Green, Birmingham B32 3LE
Reference:
1) Drager N. Making trade work for public health. British Medical
Journal 1999;319:1214.
2) Koivusalo M. World Trade Organisation and Trade-creep in
health and social policies. Occasional Paper 4, GASPP, STAKES. 1999.
Available from world wide web
URL:
www.stakes.fi/gaspp/gaspp.htm#NETWORKING
3) World Trade Organisation. Council for Trade in Services.
Health and Social Services. S/C/W/50.18 September 1998.WTO, Geneva. 1998.
4) Treaty on European Union. Consolidated version of Treaty of
European Union incorporating changes made by Treaty of Amsterdam signed on
2 October 1997. Official Journal C340, 10.11.1997:145-172.
Competing interests: No competing interests
Editor
Drager's editorial recognises the potential tensions between national
public health policies and a countries' requirement to comply with
international trade agreements, when the mandate of the World Trade
Organisation (WTO) is extended to include a General Agreement on Trade in
Services (GATS) (1). We are concerned about other problems, those of
closed decision making, inadequate accountability and the involvement of
large sums of public money - similar to the problems associated with the
Private Finance Initiative (2)- as well as disregard for national
democracy and regional agreements, in the interests of trade.
GATS rules will be negotiated at the WTO's meeting in Seattle,
Washington, USA between November 29th and December 3rd 1999 by trade
ministers, or their representatives, from 134 countries. Proposed GATS
rules expect countries to open up their public and private services to
foreign investment. Government contracts for services (upwards of 15% of
many nation's Gross Domestic Product) will be expected to be opened up to
suppliers from anywhere in the world. GATS regulations will apply to
health and social care services.
According to Susan George, President of the Globalisation
Observatory, Paris, the European health sector has already been singled
out as a special target for trade by the American Coalition of Service
Industries(3), if inclusion of services is tabled and signed at the WTO
meeting, with implications for the continued existence of public health-
care in Europe.
Inclusion of services in the WTO's remit will have far-reaching
implications for health and welfare worldwide. For this reason, we feel
that informed national and international debate on the issue is needed.
Trade issues should not be the sole criteria for agreeing that WTO's remit
should include services, but the implications for health and social
welfare, for human rights and for the environment, must also be
considered.
In our view health and social welfare impact assessments of the
proposed changes are required before agreements are signed, particularly
the impact of GATS on health and social inequalities, within and between
countries. Discussions should involve parliament, professional and labour
organisations, as well as civil society groups in the UK and
internationally, with full access to information related to the
negotiations and the opportunity to express their views.
Whilst trade and investment may be important for all countries, we
should remember Charles Normand's view that "there is no point in
increasing measured national income unless this helps to improve national
welfare"(3) .
Lorna Arblaster
independent researcher
Leeds
Giovanni Leonardi
medical practitioner,
member of World Development Movement
London School of Hygiene and Tropical Medicine
Simon Lewin
research fellow
London School of Hygiene and Tropical Medicine and
Medical Research Council of South Africa.
Carolyn Stephens
senior lecturer
London School of Hygiene and Tropical Medicine and
Universidad de San Miguel de Tucuman, Argentina
Martin McKee
professor of European Public Health
London School of Hygiene and Tropical Medicine
1 Drager N. Making trade work for public health. BMJ 1999;319:1214
2 Smith R. PFI: perfidious financial idiocy. BMJ 1999;319:2-3.
3 George S. Globalising designs of the WTO state sovereignty under threat.
Le Monde Diplomatique, July 1999. website: www.monde-
diplomatique.fr/en/1999/07
4 Normand C. Can an economic case be made for investing in health? BMJ
1998;316:1762
Competing interests: No competing interests
WTO protects trade and investors above public health
Dragers editorial reminds us that the international agreements
negotiated in the World Trade Organisation (WTO) have wide ranging
implications for public health (1). The WTO agreements are enforceable, in
contrast with other
international agreement on the environment, human rights and social
welfare.
Governments can be challenged for implementing laws intended to protect
public health if they restrict free trade. In WTO dispute settlements so
far, trade issues have been placed above public health (2).
The editorial made only passing reference to the likelihood of a new
agreement on investment. The European Union is pressing for the WTO to
start negotiating an investment agreement (3). This would prevent
countries placing any restrictions on foreign investment or implementing
any
regulations that might disadvantage a foreign investor. Last year
negotiations on a very similar investment agreement fell through following
a campaign by a wide range of groups worried about the implications for
the environment, health and human rights (3).
An investment agreement could be damaging to public health. Regulations to
protect public health and the environment could be challenged if they
disadvantaged a foreign company. For example, tobacco control is one
measure that could be threatened. Tobacco firms could claim compensation
for
‘expropriation of trademark rights’ if advertising or sponsorship was
restricted, or ‘expropriation by taxation’ for losses from raised taxes.
In 1997 the Canadian Public Health Association passed a motion opposing
the proposals for an agreement on investment, stating that it would
‘constrain governments' ability to regulate investment to achieve and
protect citizens' social, economic, environmental, health and other
national interests’ (4).
The latest proposals do not address these concerns (3).
‘Saving Lives: our healthier nation’ states that the government will
undertake health impact assessment of major new government policies (5).
The latest round of WTO negotiations could produce agreements with major
direct
and indirect health impacts. The government should honour the commitment
made in the white paper and undertake health impact assessment of the of
all the WTO proposals before signing any new agreements.
Margaret Douglas
Senior Registrar in Public Health
Common Services Agency, Scotland
References
1) Drager N. Making trade work for public health. British Medical
Journal 1999;319:1214.
2) Koivusalo M. World Trade Organisation and Trade-creep in health
and social policies. Occasional Paper No. 4, GASPP, STAKES. 1999.
3) Coates B 'Investment and the WTO: who is in the driving seat?’
International Coalition for Development Action Journal, September 1999
4) Canadian Public Health Association 1997 Resolution No. 16
‘Promoting Health in an Era of Global Free Trade’
5) Department of Health Saving Lives: Our Healthier Nation
London: The Stationary Office 1999 Cm 4386 available at
http://www.official-documents.co.uk/document/cm43/4386/4386.htm
Competing interests: No competing interests