The fight against poverty must not be sidelined at trade talks

Poor countries should not accept attempts by the EU and US to parcel measures to tackle poverty into so-called 'development packages', separate from the rest of the negotiations that are taking place at the WTO ministerial that begins today.

"These development packages are little more than smoke screens to hide the fact that rich countries are not willing to make any serious concessions in the trade talks. Tackling poverty was meant to be at the centre of the negotiations, and yet rich countries are making cynical attempts to sideline poor countries’ concerns by parcelling them off into separate deals," said Adriano Campolina Soares, director of ActionAid Americas.

Aid-for-trade – little is known about what such a deal would consist of. It could be positive if poor countries are able to choose what type of aid they get and how they use it. However, all too often such offers come with conditions attached. For example, much of the money from Japan’s recent offer of $10 billion to the world’s poorest countries would take the form of loans. Furthermore, it is just a re-announcement of an offer they made during the G8 summit last July. ActionAid would urge poor countries to reject any package that made liberalising markets a condition of aid.

Cotton – the EU has called for cotton subsidies from rich countries, which are devastating the livelihoods of over 10 million farmers in West Africa, to be dropped. However, as it is the US, and not the EU, who gives its farmers vast amounts of subsidies on cotton, it is somewhat of an empty gesture. The US is unwilling to make substantial cuts to the more than $3 billion per year its gives its cotton farmers in subsidies, despite the fact that the WTO has ruled that they are illegal.

Market access - the EU has suggested a deal on market access for the poorest countries (Least Developed Countries), allowing them duty free and quota free market access into industrialised markets. In principle, this should allow poor countries to increase their exports into rich countries. However, many poor countries will never benefit from such offers as they face other barriers to trade (such as ridiculously high hygiene standards) that the rich countries are unwilling to address. This deal is opposed by the US.

"Poor countries must stand firm and not allow their issues to be separated from the other negotiations. If these talks are to be a true development round that benefit millions of poor people around the world, measures to tackle poverty must be put at the heart of all negotiations," said Aftab Alam Khan head of ActionAid’s trade justice campaign.