Andrew Osborn in Brussels Friday March 7, 2003 The Guardian
The European Union yesterday angrily rebuffed claims that it is using global trade talks to force the world's poorest countries to open up their service sector markets to European companies.
Documents leaked to the Guardian last month appeared to show that the EU is doing just that - in exchange for cutting its lavish farm subsidies. However, Pascal Lamy, the EU's trade commissioner, yesterday denied that Brussels had any such agenda.
"Such a debate needs to take place on the basis of facts and not fiction," he told a hearing in the European parliament.
Non-governmental organisations (NGOs) have accused Mr Lamy of demanding access for European banking, telecoms and other firms to fragile developing country markets.
They have also alleged that his proposals would allow European firms to charge for providing water to some of the 1.2bn people who live on less than a dollar a day.
But Mr Lamy said the EU's proposals in the World Trade Organisation's service sector talks "do not seek to dismantle public services, nor to privatise state-owned companies".
"EU requests do not touch on the issue of access to water resources and in no way undermine or reduce governments' ability to regulate pricing, availability and affordability of water supplies (or any other public service) as they choose."
However Mr Lamy's soothing words failed to win over the NGOs. "The EU is systematically targeting key laws and legislation in developing countries which regulate what foreign companies can and can't do," said Clare Joy of the World Development Movement.