19 December 2005

ActionAid International believes the outcome of the trade summit in Hong Kong is an insult to the world’s 2.4 billion poor people. Hopes that the talks might help bring a swift end to all trade-distorting subsidies and stop rich nations from forcing poor countries to open their markets to unfair foreign competition faded as delegates from poorer countries were bullied into agreeing to the final declaration.

The outcome:
"This summit is a failure. It has delivered only paltry reductions in subsidies and gone into dangerous terrain on the privatisation of basic services such as water and healthcare. Poor farmers have also received no protection from highly subsidised foreign produce. Even if their governments can live with this outcome, it is poor people who will pay the ultimate price," says Adriano Campolina Soares, director of ActionAid Americas.

On subsidies:
"The EU has tentatively agreed to set a 2013 end date for export subsidies. Not only is this far too late, but the EU had already committed to reducing them anyway. By 2013, these cuts will only amount to one billion euros. This pales into insignificance compared to the 55 billion euros that the EU gives in domestic subsidies every year. Millions of farmers in poor countries will continue to lose their livelihoods because of these unfair handouts," says Tim Rice from ActionAid UK.

On cotton:
"The US has made a measly offer to cut its cotton export subsidies by 2006. This is a red herring because they have already been deemed illegal by the WTO. Furthermore, export subsidies are only a tiny fraction of the nearly $4 billion in subsidies the US gives its cotton producers every year," says Moussa Faye from ActionAid Senegal.

On services and non agricultural market access (NAMA):
"This deal will make it impossible for poor countries to protect their industries and services from unfair competition from rich countries’ multinationals. This could lead to massive job losses and drastic increases in the costs of basic necessities such as water, healthcare and education," says Mustafa Talpur from ActionAid Pakistan.

On the so called ‘development package’:
"The development package has been whittled down to a few token measures – aid-for-trade and market access for some goods from poor countries. Aid-for-trade pledges remain unconfirmed, while the market access proposals contain a ridiculous number of exceptions. Japan’s exemptions look like a menu in downtown Tokyo – the text excludes most of what rich countries consume," says Steve Tibbett, ActionAid UK.

On the future:
"Hong Kong is not the end of the road. The new alliance of poor countries that came together here must continue the fight for poor people’s rights. If they remain united against the unfair demands of rich countries they can still change the trade deal," says Aftab Alam Khan, head of ActionAid’s trade justice campaign.

The verdict of the People’s Caravan, the grassroots campaign, supported by ActionAid:
"The voices of poor people from all round the world came together in a peaceful protest. In Hong Kong, they stressed that people’s rights to good health, safe water and the chance to earn a living are not to be bargained with," says Mukul Sharma, organiser of the People’s Caravan.