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Global trade is currently neither free trade nor a level playing field

By James Ensor - posted Wednesday, 15 August 2001


What should be done?

Developing countries’ capacity to trade must be supported by wealthier countries through policies like aid, debt relief, and technology. This would help poorer countries to build up the infrastructure and skills they need to benefit from trade, and to distribute those benefits more widely. Poorer countries also need national policies that give more people the chance to participate in markets: policies like land reform and affordable credit and marketing services. Tax and benefits systems enable the income from trade to be shared, while laws that support workers’ rights enable them to bargain for a fair share of the wealth they helped produce.

The Australian government should:

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  1. Advocate that any review of the WTO Agreement on Agriculture should involve acceptance of the principle that allows developing countries to protect and support their food systems up to the point of food self-sufficiency for social, environmental or economic reasons - and to plan and implement their own national food strategies and rural development policies.
  2. Support research on the impact of trade liberalisation on poverty and sustainable development, including on women. This research should draw on the expertise of specialised UN agencies and non-government organisations, and feed into WTO Trade Policy Review Mechanism.
  3. Increase its commitment through the aid program to help the poorer developing countries to engage in international trade, especially by supporting labour-intensive, small, and medium-sized enterprises. This technical and financial assistance must be provided urgently, if these countries are to benefit from future trade negotiations.
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About the Author

James Ensor is Director of Public Policy at Oxfam Australia.

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