GATS: Whats in, whats out, why do the students shout

1
GATS Whats in, whats out, why do the students
shout?

• James Cemmell ESIB Committee on Commodification
  of Education

2
What is the GATS?

• General Agreement on Trade in Services
• WTO policy designed to liberalise trade in
  services anologous to GATT for tangibles
• Came into force at the end of Uruguay round in
  1994/1995 and is still being negotiated

3
Methods of services delivery covered explicitly
in the GATS

• Cross border supply- distance learning
• Consumption abroad- students study abroad
• Commercial presence- providers with tangible
  presence abroad
• Movement of natural persons- movement of
  researchers and academic staff

4
What issues are we dealing with in the GATS?

• Subsidies
• Quality assurance
• Accreditation
• Institution licensing
• Development
• Deregulation/reregulation

5
Flexibility of the GATS

• Agreement a framework to be completed,
  negotiations continuing within GATS framework on
• Subsidies
• Safeguards
• Government procurement
• Special and differential treatment
• Domestic regulation

6
Specific commitments to be negotiated

• Market access
• National treatment
• Progressive liberalisation- framework for
  continuing negotiating agreement

7
Pro-GATS lobby

• Trade liberals, for profit providers,
  globalisation at any cost
• GATS will erode trade barriers such as
• Non-recognition
• Non-licensing
• Illegality of provision
• Joint ventures/government permission

8
Contentions legal text of GATS

• Definition of article 13 too broad
• Domestic regulation article 64 b necessity test
• Progressive liberalisation-one way
• Institutional provisions dispute settlement body-
  limited criteria
• Subsidies- what is a trade distorting barrier?
• Succession from agreement

9
Contentions- specific commitments

• Market access- sector size control (South Africa)
• National treatment- subsidies, state licensing of
  institutions

10
Contentions Procedural

• Limited input from broad sectoral interests
• Negotiation done by trade reps
• Limited provision for social issues to take
  precedence over trade issues
• DSP is appointed by DG and has a history of
  negating health/welfare concerns
• Developing countries reported overt bullying in
  Qatar by Quad group, WTO staff and other

11
Whats happening in Norway?

• Government, minister and civil service are all
  pro GATS
• Reasons globalisation of regulatory structures
• Open market to new types of providers
  (diversification of domestic provision)
• Possibility of reciprocal liberalisation-
  Norwegian providers market access

12
What could GATS mean for Norway?

• Norway HE sector is extremely protected- GATS may
  normalise subsidies
• Subsidies may be extended to foreign providers
  under national treatment
• Necessity test is still not clear- stringent
  criteria will not pass
• One way MA liberalisation may not be reciprocated

13
Action for Norwegian students

• Find out explicit and look at implicit drivers of
  liberalisation process?
• Find out how GATS is integrated into Norways
  strategic plan for HE
• Make sure that the sector has a joined up input
  into GATS negotiations
• Negotiations should be stalled whilst sector
  develops position