The GATS: Impacts of the international “services” treaty on health-based alcohol regulation

Abstract

There is an underlying incompatibility between public health-focused alcohol regulation and the World Trade Organization's “services” treaty. This treaty, the General Agreement on Trade in Services (GATS), is very broad, extending beyond border measures to reach into many areas formerly considered purely matters of legitimate domestic regulation. Essentially unknown to the public, the GATS is currently being re-negotiated to broaden the number and types of services it covers and to place greater restrictions on the scope of governments' regulatory ability. All services, including services relating directly and indirectly to alcohol, are on the negotiating table. These negotiations can be expected to affect most adversely those alcohol policies that are considered to be the most effective in protecting public health. The European Commission and the United States are strong advocates for expanding the GATS and formally propose that countries liberalize their distribution systems, including systems for distributing alcohol. If adopted, this proposal would preclude many health-based policy options in developing countries and is likely to place increased pressure on alcohol policy in Europe, when other countries request reciprocal commitments from the EC. The paper examines threats that the treaty and its proposed expansion pose for alcohol monopolies, advertising restrictions, governments' control over availability and access to alcohol, international health-based alcohol initiatives, and alcohol policy in developing countries. Alcohol researchers and public health advocates are encouraged to play a more proactive role in international treaties to achieve more balanced results, rather than acceding to ratchet-like constraints that make the adoption of an ever-greater number of public policy options increasingly difficult.