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Introduction Trade justice is essential if we are to Make Poverty History. International trade should contribute to creating decent work, promoting human rights and ending poverty worldwide. But currently, the rules of international trade are not working for the poor. Trade rules allow big agribusiness to export agricultural goods like wheat or cotton at below cost (dumping). This drives down world prices and ruins chances for poor farmers to make a living. Trade rules also discourage poor countries from moving into higher value goods, which would improve their returns from trade. Every two years the World Trade Organization (WTO) holds a major summit called a ministerial meeting. In 2005, the meeting was held in Hong Kong. Previous meetings took place in Cancún (Mexico) in 2003, Doha (Qatar) in 2001 and Seattle (USA) in 1999.
Background Read : Trade Justice can help Make Poverty History Read : more about key measures needed for trade justice. What does trade have to do with poverty? In a word: everything. International trade connects countries and people to global markets. This can be positive by providing new markets for business and access to goods, services and investment that contribute to jobs and growth at home. It can also overwhelm local economies with unfair competition, unwanted corporate exploitation and damage the environment. The terms of a country’s connection to global markets make all the difference. All countries need linkages to the global economy, but they must have the power to choose, with their citizens, the terms that are appropriate for their own development needs, and chart their own development path and policies. Current negotiations on trade rules are power games that force poor countries into accepting policies that are good only for a handful of bigger countries and the commercial interests based there. What is the World Trade Organisation (WTO)? The WTO is the main international body that decides the rules that govern international trade. There are 148 member countries that negotiate throughout the year on trade issues, but many poorer nations are excluded from key meetings and discussions. In fact, more than 30 developing nations have no representation whatsoever at the WTO. Other poor countries have only one negotiator, who has the impossible task of attending over 1000 WTO meetings a year. There are rules for trade in almost everything: goods (e.g. from rice to textiles to minerals), services (e.g. from education to banking to childcare), as well as rules on issues beyond cross border trade, including investment, patents (e.g. on HIV/AIDS drugs) and domestic regulation of services.
Outcomes of Hong Kong - The 6th Ministerial Meeting of the WTO in Hong Kong reached agreement on a Declaration that keeps the Doha Round of trade negotiations alive but betrays the development agenda. The following links offer comprehensive reviews of the decisions of Hong Kong from a development perspective: Resources on trade justice from Make Poverty History members:
www.kairoscanada.org/e/economic/trade/index.asp www.maketradefair.com/en/index.htm
Additional resources:
Want to see a list of proposed “Fair Trade Rules” that would serve farmers interests North and South? www.ccic.ca/e/002/trade_fair_trade_for_hungry_farmers.shtml
Want to learn more about agricultural subsidies and their effect on trade? Rigged Rules and Double Standards: trade, globalization and the fight against poverty
Want to understand how the rules governing trade in services threaten development? The GATS, South African Local Governments and Water Services Resources by other international organizations and campaigns:
www.whiteband.org/specialIssues/WTO/NewsListingSection/en
International Confederation of Free Trade Unions action guide
Institute for Agriculture and Trade Policy Radio Hong Kong
Friends of the Earth International
Canadian government To view the Canadian Government’s outline of its objectives at the World Trade Organization To see CIDA’s approach to Agriculture and Development.
Official WTO Site
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