ยท Would GATS limit efforts to regulate the health insurance sector? The insurance industry argues that service agreements should prohibit restrictions on the types of insurance products allowed on the market. Might this mean a ban on legal requirements that health insurance policies must cover certain medical conditions?
Some will argue these are Chicken Little sky-is-falling concerns. But if the NAFTA-WTO experience shows anything, it is that corporate lawyers will grab onto any crevice in trade rules to hoist corporate interests above the public interest.
Consider the "Chapter 11" investment protections in NAFTA. In a case closely paralleling what might occur in other countries with a GATS agreement, UPS is suing the Canadian postal service for offering express delivery service. The postal service is subsidized for mail delivery, and that subsidy unfairly advantages Canada Post over UPS in the express delivery market, UPS claims.
If Canada Post want to compete in the market, they should set up drop-off boxes separate from mail boxes, employ delivery and sorting staff separate from the people who handle the mail, and handle delivery packages at separate facilities from the mail, UPS argues. Since Canada Post had the temerity not to pursue this economic irrationality, UPS is asking for hundreds of millions of dollars in compensation.
Some will argue these are Chicken Little sky-is-falling concerns. But if the NAFTA-WTO experience shows anything, it is that corporate lawyers will grab onto any crevice in trade rules to hoist corporate interests above the public interest.
Consider the "Chapter 11" investment protections in NAFTA. In a case closely paralleling what might occur in other countries with a GATS agreement, UPS is suing the Canadian postal service for offering express delivery service. The postal service is subsidized for mail delivery, and that subsidy unfairly advantages Canada Post over UPS in the express delivery market, UPS claims.
If Canada Post want to compete in the market, they should set up drop-off boxes separate from mail boxes, employ delivery and sorting staff separate from the people who handle the mail, and handle delivery packages at separate facilities from the mail, UPS argues. Since Canada Post had the temerity not to pursue this economic irrationality, UPS is asking for hundreds of millions of dollars in compensation.