Christian Aid Rejects WTO Development Package

|PIC1|Christian Aid has rejected the latest offering from the World Trade Organisation negotiations intended to reduce global poverty.

‘Improved Market Access’, under which rich countries would waive any tariffs or quotas on exports from the least developed countries (LDCs), is a key component of the development package.

Christian Aid said, however, that the package would ‘barely scratch the surface’ of global poverty. And according to a study of official UN figures, this move would only increase trade in each affected country by a maximum of four dollars per person per year.

“This deal would actually be worth a mere one cent per day for every person in the least developed countries and so is negligible,” said Claire Melamed, Christian Aid’s senior trade analyst.

Ms. Melamed said that while any move towards helping LDCs trade more fairly was positive, the deal being worked out in Hong Kong was virtually meaningless.

She further warned that the one cent a day figure was at the very best the maximum because the analysis was based on every LDC gaining access to every rich market.

“In reality this figure is likely to be even lower because we know some poorer countries will not be allowed tariff and quota free access,” said Ms. Melamed.

She added: “The Americans, for example are arguing they do not want to accept textiles from Bangladesh. Under no circumstances should LDCs make any concessions based on this deal.”

|QUOTE|Christian Aid also reacted with disappointment as the WTO negotiations continue to be dogged by stalemate.

“Christian Aid sees services, such as water, banking and healthcare, as a key battlefield as this is where the EU in particular is pursuing interests that are diametrically opposed to those of poor countries,” John McGhie, Christian Aid’s journalist in attendance at the talks.

“The European Union (EU) has shown not a flicker of interest in softening its line and making a more generous offer on cuts in agricultural subsidies,” he added.

“The group of 90 poorer countries in the WTO is putting together its own proposal on services negotiations because it is so concerned about the pressure coming from Europe,’ said Claire Melamed, Christian Aid’s head of trade policy. ‘Services is definitely the fulcrum on which the entire WTO meeting hinges.”

Christian Aid has put together a new briefing, ‘GATS and the European Commission’, which outlines Europe’s aggressive push for more open services markets in poorer countries.