Abstract

When Worlds Collide: The Implications of Trade and Investment Agreements for the Not For Profit Delivery of Social Services

Andrew Jackson and Matthew Sanger

The implications of international trade and investment agreements for the non-profit sector are largely unexplored. However, public measures to support and regulate non-profit services could be considered to affect the ability of foreign-owned commercial firms to establish operations in Canada, to provide services to Canadian governments and consumers, and to benefit equally from government supports. Measures which could be deemed to be “discriminatory” and illegal under trade rules (NAFTA and the GATS) include subsidies and tax supports; exclusive and preferential contracting regimes; and effective exclusion of commercial providers from some markets. While trade procedures have not been used to date to challenge Canadian government policies, the possibility is a serious one, and could become more so depending upon the future evolution of trade and investment agreements under the WTO. Our analysis suggests that the dangers of a conflict between social policy and trade policy are more potential and prospective than actual. This underlines the need for caution in future negotiations, some re-thinking of trade objectives, and finding sound bases for coherence between social policy and trade policy.

Bios

Andrew Jackson has been Senior Economist with the Canadian Labour Congress since 1989 and is a Research Associate with the Canadian Centre for Policy Alternatives. His areas of interest include the labour market and the quality of jobs, income distribution and poverty, macro-economic policy, tax policy and the impacts of globalization on workers and on social democratic economic policy. He has written numerous articles for popular and academic publications, and has co-authored three books, including Falling Behind: The State of Working Canada 2000.

Mr. Jackson returned to the CLC in June, 2002 after a two year leave of absence to serve as Director of Research with the Canadian Council on Social Development.

Andrew Jackson was educated at the London School of Economics (B.Sc (Econ.); MSc (Econ)) and at the University of British Columbia. Prior to joining the CLC, he worked for the then leader of the New Democratic Party, Ed Broadbent, and for the Canadian Labour and Business Centre.

Matthew Sanger is currently a Research Associate at the International Development Research Centre (IDRC), where he helps to fund research on governance, equity and health in Africa, Latin America and the Caribbean. He is also a Research Associate with the Canadian Centre for Policy Alternatives (CCPA), and with the Saskatchewan Population Health and Evaluation Research Unit (SPHERU).

Prior to joining IDRC, Matthew worked with Canadian labour unions for over a decade then was an independent consultant from 1998 to 2002, focusing on the health and social policy implications of international trade agreements. During this time, he worked with a wide range of government and popular sector organisations in Canada and internationally.

Most recently, Matthew coordinated a major research project on globalisation and health for the Commission on the Future of Health Care in Canada. He is a principal author of the project report, Putting Health First: Canadian health care reform, trade treaties and foreign policy, which was released by the Commission in October 2002. The full text of the report is available on the web sites of the Commission (www.healthcarecommission.ca) and the CCPA (www.policyalternatives.ca).

Matthew has a B.A. in Philosophy (1982), an M.A. in Adult Education (1988) and is currently completing a doctoral dissertation related to public health and international trade.

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