EU-US consumer link on track

Date: 18/06/1998

By Mark Turner

THE last major obstacle to the launch of a transatlantic consumer dialogue was cleared this week when the US Congress endorsed the move.

The way is now open for representatives of 60 consumer organisations from Europe and the US to meet in Washington this September. The participants will debate consumer guarantees in electronic commerce and set the agenda for future encounters.

The move has been welcomed by global umbrella group Consumers International as a much-needed counter-balance to the influential Transatlantic Business Dialogue (TABD), which has driven EU-US commercial policy for the past three years.

"This is very important for consumers, who have not had access to the business dialogue," said trade expert Chris Gethin. "Its importance goes way beyond Europe and the US."

Public disaffection with an élitist global trade agenda has been growing steadily since the creation of the World Trade Organisation (WTO) in 1995. Widespread concerns have prompted huge protests in India, marches in Geneva and a concerted Internet campaign against the Organisation for Economic Cooperation and Development's proposed Multilateral Agreement on Investment (MAI).

Although consumer groups are not against liberalisation per se, they have become increasingly critical of the public's lack of involvement in talks, which they claim have been driven by the interests of producers rather than end-users.

"Trade liberalisation can increase consumer choice," said Consumers International. "However, the consumer's right to choice must not jeopardise the consumer's right of access to basic goods and services, and the right to safe products and a healthy environment."

The consumer groups' cause received two important boosts this year, with US President Bill Clinton and UK Prime Minister Tony Blair agreeing last month to call for more public consultation on transatlantic trade issues and Clinton urging talks with environmentalists, labour groups and consumers at WTO level during the organisation's ministerial meeting in Geneva.

It was far from clear, however, whether the US Congress would endorse the idea because of fears that, on many issues, American consumer organisations would side with Brussels' line rather than Washington's.

Last month, for instance, Consumers International mounted a huge campaign to persuade the United Nations Codex committee on food labelling to mandate labelling on genetically-modified items - a well-established bone of transatlantic contention.

Given the sensitivities, the Transatlantic Consumer Dialogue (TACD) will probably steer away from food during its first meeting, talking instead about less controversial issues such as privacy rules and rights of redress in electronic commerce.

EU and US to set up a transatlantic consumer dialogue parallel to the already established Transatlantic Business Dialogue (TABD).