2 July 2001

Mr John Larkins
Assistant Secretary
Services and Intellectual Property Branch
Trade Negotiations Division
Department of Foreign Affairs and Trade
RG Casey Building
Barton ACT 0021

Trade negotiations in the World Trade Organisation

The Australian Library and Information Association (ALIA) welcomes the opportunity to participate in the Department's public consultations on trade negotiations. ALIA is the professional association for the library and information sector. ALIA represents 6500 personal members, 800 institutional members and 10 million library users.

ALIA's first objective is to promote the free flow of information and ideas in the interest of all Australians. ALIA has concerns about the potential for publicly funded libraries and information services to be subjected to unintended consequences from international trade agreements.

In simple terms, the GATS appear to constrain government policy and regulatory options in favour of free market solutions. Publicly funded libraries on the other hand serve a public policy agenda that corrects the failure of free markets to meet broader community goals such as universal access to information and literacy.

Exceptions to inclusiveness

The only general exception to the comprehensive inclusiveness of the GATS is for services supplied in the exercise of government authority - a term which is defined to mean 'any service which is supplied neither on a commercial basis, nor in competition with one or more service suppliers'.

To fall within the ambit of this definition a service must satisfy two tests. The first is that it not be supplied on a commercial basis. The second, that it not be supplied in competition with one or more service suppliers (the term 'commercial' is not defined).

A key question then is whether this exception applies to either some, or all publicly funded libraries. Unfortunately the meaning of this key GATS provision is the subject of considerable uncertainty and debate. There are very few services that are neither supplied on a commercial basis, nor in competition with other service suppliers. In the absence of decisions by trade panels on the meaning of 'exercise of government authority' it is not possible to determine how broadly or narrowly this provision might be interpreted.

Since no WTO panel has yet ruled on 'the government authority' exception it cannot be predicted with certainty what the outcome of such a ruling would be.

Services in competition with the private sector

There is a reasonably strong argument that publicly funded libraries would be seen as supplying services on a non-commercial basis. This is most clearly the case for the typical public or educational library supplying services either for free or at nominal cost or on a cost recovery basis. ALIA's statement on Free library services for all asserts that each member of the Australian community has an equal right of access to public library and information services without direct charge to the individual (Attachment A).

The more difficult point to establish is that publicly funded library services are not supplied in competition with the private sector. While the more traditional services provided may not compete with other service suppliers, as they are generally not regarded as commercially viable, this is not the case for online or digital services, and increasingly reference and information services.

As digital and online services become more and more prominent for the public and private sectors, it is reasonable to expect that the provision of competitive services will increase. Publicly funded libraries play a major role in ensuring equity of access for all Australians to digital and online services. This is evident in the high use of such services and the Australian Bureau of Statistics report Household use of Information Technology which found that 'for adults accessing either a computer or the Internet during 2000 outside of home or work, the most popular sites of access were a neighbour, friend or relative's home, a tertiary institution or a public library'. (p18) The ability to continue to carry out this important role should not be compromised by its being seen as in competition with other service providers operating on a commercial basis. It is in this context that the GATS is most likely to emerge as an important factor in determining the future viability of publicly funded library services.

GATS and publicly-funded libraries

Australia has declined to list library services in its schedule of commitments. However, several other countries have done so including Japan and the USA. The fact that two of the world's most influential economic powers have listed library services suggests that other nations are likely to be pressed to follow suit.

There is growing international concern about the impact of international agreements on trade and investment. It is essential that the right balance between domestic policies that promote Australian culture but enable Australia to prosper in a free trade world is established. The potential outcomes for libraries need to be fully understood before Australia embarks on international agreements that may undermine the ability of publicly funded libraries to carry out their public benefit role within our community.

The cultural exemption category has been used in the past so a new strategy could involve negotiating a new international instrument that would address cultural diversity and acknowledge the legitimate role of domestic cultural policies. Our concern is that other imperatives may override cultural objectives unless there is a commitment to a cultural exemption in all trade agreements. Private rights and public interests need to be balanced and cultural expression should not be treated merely as a commodity. Placing publicly funded libraries within a commercially competitive environment and potentially undermining their tax-supported status would have a serious and detrimental impact on Australia's cultural heritage.

Conclusion

The well being of publicly funded libraries and information services is essential in ensuring access to a full range of human expression and providing individuals with the skills necessary to access and use information so that they may fully participate in our democratic society. Libraries and information services are central public institutions for the collection and distribution of the historical, cultural and intellectual records. They provide access to the broadest possible range of information and ideas. Publicly funded libraries are therefore a significant part of the cultural sector. They are involved in encouraging the development and promotion of cultural products, and the preservation and dissemination of those products.

Trade agreements should ensure that publicly funded libraries are protected and included in any possible separate treaty that allows special consideration for cultural goods and services in international trade. The provision of services for the benefit of our community and for the public good by publicly funded libraries should be recognised within the general exception without precluding such libraries from participating in trade in other services where there is a commercial imperative.

Yours sincerely

Jennefer Nicholson
Executive director