30 January 2007

Doha trade talks must focus on development

The resumed WTO Doha trade talks must stop endorsing the right to wreck small economies for short-term profit and instead prioritise the trade and development needs of developing countries, says Rae Julian, Executive Director of the Council for International Development.

The Doha round of 2001 stalled due to the intransigence of the US and the EU trade blocs, who insisted on maintaining subsidies for their own farmers on the one hand and abolishing import tariffs for other countries on the other.

"The removal of subsidies will have a negative effect for developing countries and Pacific Island nations as they are expected to compete with large, transnational companies on a steeply sloping playing field. Small nations do not have a large range of products with which to trade and are more vulnerable to changes in the world market," says Ms Julian.

"The right of nations to make their own choices to promote sustainable development and safeguard the wellbeing of its people must be secured."

"Trade should not benefit the rich at the expense of the poor and with increasing globalisation all nations need to be responsible for providing sustainable development for all."

Not only do developed countries seek to deny to developing countries the same flexibility that they enjoyed during their own development, but most of them also display blatant double standards when it comes to removing their own protective measures. Trade barriers, export subsidies, and other policies which unfairly advantage developed-country exports, or unfairly limit access of developing-country goods, are still in place in most developed countries.

"While Norwegian sheep, for example, languish on a subsidy of just under $US100 a year, cows in the field next door receive a government income of $US2.65 a day. This makes them richer than one-third of the world's people, two billion of whom are still living on less than two dollars a day. The cows in Switzerland are even more affluent."

We call on the New Zealand government to bear in mind their responsibility to our Pacific Island neighbours. They must take into account the vulnerability of many developing countries, particularly in the Pacific. CID urges the government to make development considerations central to the Doha talks by supporting fair trade policies.

"New Zealand punches above its weight in international trade talks. This is only an asset if it uses its voice wisely," Ms Julian says.

ENDS

© Scoop Media