Water and the GATS : mapping the trade – development interface

This study ‘maps’ the trade-development interface in the water sector and shows how the inclusion of water services under the GATS (General Agreement on Trade in Services) might affect the achievement of the targets under the Millennium Development Goals. The study was undertaken in South Africa, Mexico and Senegal and includes two major areas of activity in the interaction between trade and development: Private Sector Participation (PSP) and regulation. The type and level of PSP may vary substantially, from service contracts with limited private sector functions, to full privatization where both operation and ownership of water infrastructure passes from the public authorities to private operators. Modalities of regulation in the water sector are in the process of evolution as public authorities adapt to recent reforms, including adoption of a supervisory role over private service providers. The study also explores what GATS rules might take effect to alter the trade-development con?guration in the future.