Introduction - The trouble with trade

As the world’s richest countries continue to force the poorest nations to open their markets to global competition, we must continue to campaign to persuade governments and international organisations that current trade rules are unfair.

What is 'trade?'
Trade is something people and companies do every day – buying and selling goods and services. Trade can happen at a local level, buying coffee at a market or paying for a haircut. Or at a global level - for example, fresh fruit shipped from South Africa to UK supermarkets.

In the last 25 years global trade has boomed – about $12.4 trillion of goods and services were exported worldwide in 2005. However, the way that rich countries have behaved means that the benefits have been unevenly spread.

Why does trade matter?
Millions of poor people depend on trade. They supply the goods, grow the produce or work in a factory – sometimes on fair terms, but very often not. Too often, inadequate wages or unfairly low prices for goods mean that workers and producers lose out.

This makes it hard for people to properly house, clothe, feed, educate and look after themselves and their families.

What's wrong with global trade?
The global trade rules are skewed towards rich trading nations and big corporations. Rich countries – particularly the US and the countries of the EU – continue to press poorer countries to accept new trade rules which would compel poor nations to 'liberalise' and open up their markets to free trade.

This threatens the livelihoods of millions of small-scale farmers and fishermen, and could force thousands of local companies out of business. It could also mean big falls in government revenue - meaning poor country governments have less money to spend on health and education.

How should trade work?
We want trade rules to tackle poverty and protect the environment. For this to happen, the UK government and other rich countries must fight to ensure that governments, particularly in poor countries, can choose the best solutions to end poverty and protect the environment.

ActionAid is calling for an international trade system that will help end poverty – not one that exacerbates it.

photo : ©Gideon Mendel/Corbis/ActionAid