TPP negotiations threaten to forcibly commercialise state-owned bodies
The ABC, SBS and Australia Post could lose special regulatory treatment under trade measures being pushed for by the US.
eaked details of the controversial Trans-Pacific Partnership trade negotiations, published today by WikiLeaks, reveal that the futures of publicly owned enterprises such as Australia Post, the ABC, SBS and state power utilities may be on the negotiating table in secret talks under way in Hawaii this week.
WikiLeaks has published previously unknown details of the Trans-Pacific Partnership (TPP) negotiations relating to the treatment of state-owned enterprises (SOEs) – publicly owned corporations that do not operate along strictly commercial lines and deliver benefits to the community as a whole.
University of Auckland trade expert Jane Kelsey said the draft SOE text appeared to be “totally US-driven” and raised a wide range of concerns about putting corporate interests ahead of the delivery of public services.
“‘Commercial considerations’ is a vague term that could have far-reaching consequences,” Professor Kelsey observed. “That is intrinsically problematic. SOEs are almost always state-owned because they have functions other than those that are merely commercial, such as guaranteed access to important services, or because social, cultural, development and commercial functions are inextricably intertwined.
“[An] SOE engaged in public broadcasting, railways, or research may have hybrid roles, some being commercial and some not. Would the entire enterprise have to act on the basis of ‘commercial considerations’?
“There is an additional trap that once SOEs and private firms are ‘competitively neutral’ the advocates of privatisation will say there is no justification for retaining state ownership because the private sector can bring efficiency gains, choice and competition to the provision of the public service.”
Professor Kelsey also highlighted the leaked paper’s references to “transparency” provisions designed to give foreign companies “increased opportunities to exercise leverage over a government’s domestic decisions”.
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