Trade Reforms - A Moral Imperative For The EU

7.53.28am BST (GMT +0100) Thu 11th Oct 2007

Earnshaw Palmer is calling the EU to be a honest broker in international Trade talks.

Free trade is a vital ingredient for profits, growth and prosperity and the obverse is a recipe for unmitigated disaster. The Dhoa round of world trade talks are still stalled resulting in many farmers experiencing billions in lost revenue.

At present export subsidies distort world trade. With the empasse around the substantial reduction in the level of subsidies on agricultural products by the USA and the EU, emerging economies like India and Brazil are unwilling to reciprocate by opening their markets to external competition for manufactured goods and services.

In the absence of a comprehensive deal there is the real prospect of moves towards bilateral or regional agreements as unpalatable alternatives. This is not a favoured option for obvious reasons.

Whilst this squabble over trade talks is going on China is flexing its economic muscle gorging up Africa's vast resources. African, Caribbean and Pacific (ACP) countries are under enormous pressure to sign the EU's. Economic Partnership Agreements (EPAs) by Dec. 31, failing which the EU has threatened to apply punitive tariffs to ACP countries exports to the EU. Even the World Bank has requested the EU to extend its deadline to allow proper negotiations of the proposed trade liberalisation to take place.

Africa is ill-prepared and lacks the capacity that will enable it to benefit from trade liberalisation. Many African commentators believe that the EPA would make it harder for poorer African counties to trade their way out of poverty.

There are also grave concerns that Africa would potentially become a dumping ground for subsidised European products making it impossible for domestic markets to thrive as locally produced goods cease to be viable. Livelihoods will be lost and in countries where no welfare system exists, it could result in abject poverty for a significant proportion of the population. Furthermore, African exporters would be unable to influence the price they receive for their goods.

I believe that trade freedom plus trade fairness equals trade justice for all. I would be encouraging the EU to become an honest broker in all trade talks. The EU should be able to use its influence in the world as a force for good and be a beacon for fairness, good governance and world stability. This is a moral imperative for the EU.