No More Liberalisation, Trade Ministers Urged

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Trade ministers from the world's least developed countries meet in Lesotho (27-29 February)

Trade ministers from the world's poorest countries must stand firm this week against WTO moves to further liberalise world trade, a move which has already cost sub-Saharan Africa $272 bn over the last twenty years, says ActionAid.

ActionAid argues that far from bringing development to poor countries, the offer on the table threatens to push many poor people further into poverty. The organisation is calling on the Least Developed Country (LDC) grouping of trade ministers to push for real reform of the trading system to help fight poverty.

According to ActionAid, Rich country's Hong Kong proposal of Duty/Quota Free market access termed as 'Development Package' for LDCs products could actually exclude 92% of their important products work some $ 15 billion.

Aftab Alam Khan, head of ActionAid's Trade Justice campaign, said: "From the start of this process, rich countries have talked about development but never delivered.

"Even when they announced a 'development package' at the last big WTO meeting it turned out to be a small carrot attached to a huge stick - a cynical attempt to get poor countries to sign up to a damaging deal."

Estimates suggest that under the current tabled Doha deal, Africa stands to lose $190 bn, while the poorest African cotton farmers have not seen the elimination of damaging US cotton subsidies promised four years ago at the WTO.

ActionAid is concerned that trade ministers may succumb to pressure to sign up to 'aid for trade' deals, where rich countries offer aid money under the auspices of improving trade, in exchange for developing countries opening up their markets.

Moussa Faye, Director of ActionAid in Senegal, said: "aid-for-trade is acceptable only if it can help poor countries to trade on more equitable grounds with the ultimate aim of reducing poverty. The aid must be available to introduce measures to protect poor people from unfair competition or cheap imports. Aid for trade should not be backed in to a corner by heavy handed tactics of the EU and US."

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