27 September 2006
“David and Goliath” battle over Europe’s new trade deals
Europe wants to forge new trade deals, on behalf of the UK government, which risk driving some of the world’s poorest countries deeper into poverty, Oxfam says in a report launched today.
 Europe has stepped up the pressure over negotiations on free trade agreements, called Economic Partnership Agreements, with 75 former colonies in Africa, the Caribbean, and Pacific since the suspension of the Doha round of world trade talks in July this year.
These new free trade agreements would open the markets of poor countries, jeopardising local farmers and fledgling industries, who would face unfair competition with the economic powerhouse of Europe. Cutting trade taxes would deprive poor countries of money needed for schools, hospitals, and other services – the Congo could lose more than its entire education budget.
Phil Bloomer, Oxfam’s Director of Campaigns and Policy, said: “These proposed free trade agreements are a serious threat to the development prospects of poor countries. The UK government needs to build alliances and exert all its influence in Europe to encourage the EC to drop unfair demands on poor countries, and instead work towards trade agreements that will help lift people out of poverty.”
Oxfam’s report, Unequal Partners, says that free trade agreements could bankrupt fledgling local industries by forcing them into competition with European multi-nationals. Farmers in developing countries would suddenly face competition from a surge of often highly subsidised European foodstuffs. The EU is seeking a range of harmful measures that were roundly rejected by poor countries at the World Trade Organisation.Bloomer said: “The UK government has shown great leadership on the global stage in helping alleviate poverty in Africa by pursuing policies of debt cancellation and increases in aid. This is the time for Alistair Darling, the UK’s Secretary of State for Trade, to deliver on promises made in the Africa Commission to make trade work for development.”
The power imbalance, and other flaws in the negotiating process, means that the interests of poor countries are being ignored. David v. Goliath looks like a fair fight in comparison - the Pacific Islands faces the EU with an economy 1400 times its size. The review of Economic Partnership Agreement negotiations, now under way, is an opportunity to change the way these talks are progressing to ensure that poor countries are equal partners in these negations and not poor cousins.
Bloomer said: “Unless there’s a radical shift in approach from the EU, these negotiations will produce free trade deals that jeopardise jobs and entire industries in developing countries. Perhaps the biggest danger is that poor countries will be signed up to deals that stymie their opportunities and jeopardise future development.”
As a priority Alistair Darling, the Secretary of State for Trade and Industry, and the UK government, should push the EC to:
* Drop damaging ambitions which pressure ACP countries into opening their markets before they are ready;
* Get rid of unfair obstacles to trade from ACP countries;
* Stop forcing onto the agenda harmful policies such as investment rules that will hamper the future ability of poor governments to fight poverty;
* Offer alternative trade agreements that promote development and reduce poverty, as mandated.
Far more is at stake for the ACP than for Europe. Forty-one per cent of ACP exports go to Europe, but ACP trade is merely small change for the giant European economy. Firms in the City of London pay more in executive bonuses than Europe spends on buying products from the ACP countries.
Oxfam is a member of the Trade Justice Movement that is calling on the UK government and the EU to stop the current negotiations on Economic Partnership Agreements and provide alternatives that work for poor people.
Oxfam International
www.oxfam.org
Oxfam GB
www.oxfam.org.uk |
Oxfam