WRITTEN QUESTION E-0821/03 by Patricia McKenna (Verts/ALE) to the Commission. GATS and water privatisation.
Date: 2003-03-17
Institutions: European Parliament, Provisional data
Subjects: GATS, common commercial policy, developing countries, impact study, liberalisation of the market, privatisation, water supply

6.2.2004

EN

Official Journal of the European Union

C 33 E/87

Answer given by Mr Patten on behalf of the Commission

(22 April 2003)

The Commission is following closely the Thai Government’s policy of ‘war on drugs’ launched in the
beginning of February 2003. The Commission is concerned with the present situation, in particular with
reports that a number of drug-related deaths have thus far allegedly been the result of extra-judicial
killings.

While the Commission recognises the seriousness and urgent nature of the problem of illicit drugs in
Thailand, it feels the problem should be tackled through a balanced approach addressing the demand and
the supply sides and conducted in accordance with international human rights standards and the rule of
law.

The Commission feels that the Thai Government should conduct transparent and thorough investigations
into each death, take urgent measures to prevent the number of deaths from rising further, and co-operate
closely with the United Nations Commission on Human Rights (UNCHR) on this issue.

In this respect, the Commission and the Member States are addressing the subject of the fight against drugs
with the Government of Thailand through the appropriate diplomatic channels.

As regards the death penalty, the Commission follows the specific Union policy guidelines on the subject
in its relations with third countries that maintain capital punishment. The Union has on several occasions
raised the issue of the death penalty with the Thai Government, as recently as in 2002.

The suggestion concerning possible amendments to the United Nations (UN) Conventions on Drugs to
expressly prohibit the death penalty for drugs-related crimes appears difficult to take forward given the
nature of International Law and the principle of sovereignty of the States, but also because the Community
as such is not a party to these Conventions. It would be up to the States that are parties of the
Conventions to propose the modifications they deem appropriate.

This subject was not on the agenda of the UN Commission of Narcotic Drugs meeting which took place
between 8-17 April 2003 in Vienna. Moreover, since the Commission only has an observer status in the
UN Commission of Narcotic Drugs, it was not in a position to intervene in this regard.

(2004/C 33 E/083)

WRITTEN QUESTION E-0821/03

by Patricia McKenna (Verts/ALE) to the Commission

(17 March 2003)

Subject: GATS and water privatisation

In the WTO, the Commission has been in the forefront of the liberalisation of water services in developing
countries. Does the Commission agree that privatisation of water services in the developing world serves
the interests of large multinational corporations rather than the interests of the world’s poorest people?

Before requesting the liberalisation of water services in third countries, has the Commission undertaken an
independent study of the effects of such liberalisations?

If not, will the Commission agree to carry out such an assessment in close cooperation with the relevant
NGOs before requesting further liberalisations from third countries?

C 33 E/88

Official Journal of the European Union

EN

6.2.2004

Answer given by Mr Lamy on behalf of the Commission

(25 April 2003)

Environmental services are covered by the ongoing general agreement on trade in services (GATS)
negotiations, and the Community has made a negotiating proposal, and presented requests on environ-
mental services, including on water distribution and waste water services, to most of its trading partners.
The main objective of the Community for the negotiations is to reduce, or eliminate, barriers to trade in
environmental services.

The Community requests on water distribution do not ask for privatisation, they clearly exclude any cross-
border transportation either by pipeline or by any other means of transport, and they do not seek access
to water resources. Moreover, even if a World Trade Organisation (WTO) Member chooses to take
commitments, these do not undermine or reduce in any way the host governments’ ability to regulate
water management and allocation among users,
to choose the more appropriate form of private
participation and to impose equitable pricing policies and ensure affordability for the poor. The
Community has and will continue to support developing countries in this respect, including through the
provision of technical assistance.

The Community’s approach to water related services, including in WTO, is guided by its overall policy on
water, which is based on a thorough assessment of the issues, and challenges, involved. This includes,
evidently, also the question of private sector participation in the provision of water and sanitation services.
There is recognition that the private sector needs to be involved in efforts, together with government and
civil society, to bringing water and sanitation services to the unserved and to strengthen investment and
management capabilities. In view of the high capital demand for water infrastructure investment (by some
estimates up to USD 180 billion annually compared to present investment levels of USD 70-80 billion
it is necessary to augment public funding by mobilising private funding for water utilities,
annually),
wastewater treatment,
irrigation and other water-related programmes and to make the sector a more
attractive target for private investment. To achieve the latter goal private investors (cid:1) local or foreign (cid:1)
must be given confidence that their legal and financial rights are protected. The Commission believes that
the GATS negotiations, if adequately driven, could make a useful contribution to this goal. Liberalisation of
trade in water services should be used as an instrument to facilitate infrastructure investments, strengthen
water management capabilities and foster technological development, taking into account developing
countries’ administrative capacities and regulatory framework.

the WTO
the Commission has launched a ‘Sustainability Impact Assessment’
In addition,
negotiations.
In this context, one specific sector study is devoted to environmental services, with a
particular emphasis on water wastewater services. Consultation with stakeholders is an integral part of the
SIA process, and mechanisms have been established to ensure that stakeholders can contribute fully to the
SIA study both as experts, and as part of the consultative process. The contractors and the Commission are
committed to actively seeking the expert views of stakeholders, and to ensuring a comprehensive and
inclusive process of consultation with civil society.

(SIA) of

In addition, the Commission is regularly consulting civil society, including non-governmental organisations
(NGOs) with relevant experience and particular interest in trade policy, on its policy. This dialogue is an
important element in the process of formulating trade policy.

(2004/C 33 E/084)

WRITTEN QUESTION E-0852/03

by Christos Folias (PPE-DE) to the Commission

(20 March 2003)

Subject: Public supply contracts

Article 7(2) of Greek law 2955/2002 authorises the supply of products in the absence of estimates
regarding annual requirements or procedures for the awarding of contracts. It does not provide for any
means of establishing which product is the most suitable for patients and allows prices to be set arbitrarily