In order to make poverty history, we must make trade work for the poorest
Letter to the editor of Financial Times Asia edition from Secretary of State
for International Development
23 November 2005
From Hilary Benn MP.
Sir, If we are going to achieve a good development outcome to
the world trade talks, the concerns of the poorest and most vulnerable
countries, the so-called Group of 90, must now be urgently addressed. If we are
to make poverty history, we need to make trade work for the poorest.
The UK is committed to ensuring that the Hong Kong trade talks deliver real benefits for all developing countries. In the short term, the more advanced developing countries such as India, Brazil and China - where the majority of the world's poor live - stand to gain most, while the G90 needs help to adjust to new trade rules and seize new opportunities. I have written to members of the G90 to tell them that the UK is working to build international support for a "trade and development package" for the G90. Tony Blair, the UK prime minister, outlined last week the measures we think are needed.
- First, the trade rules must change. Maintaining protectionism is not the answer. We need to improve agricultural market access for developing countries significantly, cut trade-distorting domestic support and set an early date - ideally 2010 - for eliminating all forms of export subsidy.
- In the longer term, sub-Saharan Africa stands to gain most from agricultural liberalisation, with real income gains of 43 per cent by 2015, according to World Bank analysis.
- But we must not force liberalisation on developing countries. All World Trade Organisation agreements must include flexibility so that trade reforms can be built into countries' own development plans. And all developed and advanced developing countries should offer duty-free and quota-free access for all products from least developed countries.
- Second, we must put in place measures to help with adjustment as a result of preference erosion, loss of tariff revenues and higher prices for net food importers. The UK Presidency has prioritised securing adequate transitional assistance for African, Caribbean and Pacific producers affected by reform of the European Union sugar regime - Euros 40m for 2006 and at least Euros 250m a year from 2007. We want to see what more can be done to address wider adjustment costs and are encouraging others to contribute to the new International Monetary Fund Exogenous Shocks Facility. Last weekend, Gordon Brown, the UK chancellor, announced the UK's contribution of Pounds 50m over five years.
- Third, we must deliver on the commitments made by Group of Eight leaders in July to provide additional resources to overcome supply-side constraints, having agreed that global aid should rise by Dollars 50bn a year by 2010. The Commission for Africa recommended that developed countries should provide Dollars 10bn a year up to 2010. We would like to see a doubling of support collectively by the G8 and others, including significant World Bank and European Commission increases, through the new Infrastructure Consortium for Africa and more widely.
- For its part, the UK is increasing its aid for infrastructure to Africa from Pounds 70m to Pounds 120m a year by 2008, and last week we announced a trebling of aid for trade development to Pounds 100m a year by 2010. Yesterday, EU development ministers agreed an increased collective effort on aid for trade and we hope other G8 countries will follow suit. This package of measures is not exhaustive and will take time to deliver. But we cannot let the Doha Development Round fail. The developed world has to signal now that we will translate our fine words into action at Hong Kong.
Hilary Benn,
Secretary of State for International Development
Related links
