Fuente: © European Parliament
http://www.europarl.eu.int/

EU: Trade liberalisation and domestic reform the keys to combating poverty

/noticias.info/ - Trade liberalisation is crucial to the fight against hunger and poverty but it is not enough on its own, MEPs were told by experts at a hearing of the International Trade Committee on 13 September. Domestic reforms, such as scrapping farm subsidies in the rich countries, are also needed.


MEPs broadly supported this view but added that the linkage between liberalisation and poverty was not always clear cut and that every country's circumstances were different. Agriculture was seen as a key area by most experts and MEPs, as it accounts for between 50% and 90% of employment in developing countries. There was a broad consensus that the benefits of trade liberalisation must be accompanied by domestic reforms in both developed and developing countries.

Patrick MESSERLIN, professor of economics at Sciences Po, Paris, argued that the main responsibility for fighting poverty in developing countries lay with the OECD countries, especially the EU. He said the elimination of export subsidies was certainly not enough: domestic subsidies and price support must be dismantled too. Apart from trade liberalisation, he added, there was a need for sound domestic governance using a wise mix of regulatory reform, domestic subsidies and taxes.

According to Veena JHA, Coordinator of the UNCTAD India Programme, trade liberalisation, in particular liberalisation of the agriculture, textile and clothing industries, generally had a positive impact on poverty reduction. However, she believed differentiated trade liberalisation would yield the best results.

Pierre DEFRAIGNE, director of EUR-IFRI, said the EU's contribution to eliminating poverty and hunger should go beyond trade because trade could only create opportunities, not deliver development.

Rashid KAUKAB, of the Trade and Development Programme, South Centre, Geneva, criticised the EU for not always adhering to its multilateral trading system commitments. "The EU has been quite good at selling some promises against down payments by developing countries", he said. He called on the EU to make a commitment at the highest level to turning its trade policy into a tool for achieving broad-based and widely shared development.


Reference :
2005/09/13 08:30:00
Daniel Varela Suanzes-Carpegna (ES) - EPP-ED - In the chair:
Public hearing: The contribution of trade to combating hunger and poverty notas_de_prensa_archivo