26.10.2012 Views

(EU) and the Common Market of the South (MERCOSUR)? - FDCL

(EU) and the Common Market of the South (MERCOSUR)? - FDCL

(EU) and the Common Market of the South (MERCOSUR)? - FDCL

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

Open discussions might, generally speaking, facilitate a more efficient communication,<br />

but it can be legitimately doubted whe<strong>the</strong>r an invitation to participate in an<br />

open minded discussion in <strong>the</strong> area <strong>of</strong> tough, intense negotiations on international<br />

trade regimes can be seen as a serious attempt to let <strong>the</strong> discussions be guided by<br />

<strong>the</strong> ‘unforced force <strong>of</strong> <strong>the</strong> better argument’ <strong>and</strong> to let this direction have an effect on<br />

<strong>the</strong> final outcomes. The European Commission makes it immediately clear in <strong>the</strong> following<br />

paragraph, that it would like to see <strong>the</strong> Brazilian drinking water sector, as well<br />

as <strong>the</strong> wastewater management sector subjected to <strong>the</strong> principles <strong>of</strong> free market<br />

access <strong>and</strong> National Treatment:<br />

“A.WATER FOR HUMAN USE & WASTEWATER MANAGMENT<br />

Water collection, purification <strong>and</strong> distribution services through<br />

mains, except steam <strong>and</strong> hot water<br />

This sub-sector only concerns <strong>the</strong> distribution <strong>of</strong> water through<br />

mains’ (i.e. urban sewage systems). This excludes any cross-border<br />

transportation ei<strong>the</strong>r by pipeline or by any o<strong>the</strong>r means <strong>of</strong> transport,<br />

nor does it imply access to water resources.<br />

- Mode 3: Take commitments under MA <strong>and</strong> NT” 313<br />

“MA” in this case would mean far-reaching market access for European corporations<br />

<strong>and</strong> “NT” would mean <strong>the</strong> granting <strong>of</strong> identical juridical treatment for European<br />

water corporations with Brazilian suppliers. This dem<strong>and</strong> for a liberalization <strong>of</strong><br />

<strong>the</strong> Brazilian drinking water market would mean <strong>the</strong> total commercialization <strong>of</strong> <strong>the</strong><br />

Brazilian market for drinking water in all federal states <strong>and</strong> municipalities. The service,<br />

i.e., water from <strong>the</strong> tap will <strong>the</strong>n only be provided against payment under market<br />

conditions.<br />

Price-ceilings set by <strong>the</strong> state or <strong>the</strong> region would not be permitted due to <strong>the</strong><br />

international treaty based on <strong>the</strong> principle <strong>of</strong> national treatment. The price is determined<br />

by <strong>the</strong> market <strong>and</strong> poorer segments <strong>of</strong> <strong>the</strong> population would face <strong>the</strong> risk <strong>of</strong><br />

having <strong>the</strong>ir water turned <strong>of</strong>f or <strong>the</strong> risk <strong>of</strong> not even being connected to <strong>the</strong> water<br />

network.<br />

The installation <strong>of</strong> new water pipes in marginal or low-income sectors would only<br />

occur, if <strong>the</strong> investment for <strong>the</strong> company would be pr<strong>of</strong>itable: Municipalities could not<br />

give subsidies or any kind <strong>of</strong> public funds for this purpose, unless those subsidies<br />

were available to <strong>the</strong> European suppliers under <strong>the</strong> same conditions.<br />

313 Ibid.<br />

107

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!