Globalisation should be “force for good” says Hewitt
Launching a new White Paper entitled “Making Globalisation a Force For Good” the Trade and Industry Secretary has called for a new pro-development approach to help poorer countries open up their markets and eradicate poverty.
Among the policies unveiled include proposals to end tariffs and subsidies as part of wide ranging reforms that mark a new direction in the UK’s approach to trade and WTO negotiations.
Patricia Hewitt stated: “It is time to end the mercantilist style of trade negotiations which treat opening markets as concessions that have to be battled over.
“Poorer countries should not be expected to pay a price for any concession on subsidies, tariffs or market opening by a developed country – as trade negotiators too often imply. Developed countries should make reforms willingly because all have something to gain.
“We need a system that allows developing countries to remove trade barriers in a way that is properly sequenced and, vitally, within their own plans for development and poverty reduction.”
Ms Hewitt urged her European counterparts to back the proposals. Specifically, the paper calls on the EU adopt a flexible approach to ensure the goals of the Doha Development Agenda are met.
Similarly, it calls on the EU and other developed countries to eliminate all export subsidies and trade-distorting domestic support including the Common Agricultural Policy (CAP).
The paper also underlines the importance of investing in education and skills to ensure UK citizens are well equipped to operate in a modern, high-tech, economy.
Additionally, it argues that the internationalisation of business should be supported through the work of UK Trade and Investment and the Export Credits Guarantee Department.
Oxfam broadly welcomed the new White Paper. Its director of policy, Justin Forsyth, said: “The White Paper contains much that could be good for poverty reduction but the real test is whether the policy and principles outlined in the paper are put into practice.
“The best start would be to press for deeper reform of the CAP during the upcoming UK presidency of the European Union.”
He argued that CAP reforms are key, specifically: “An end to dumping farm products on world markets – a measure which would lift millions out of poverty.”
The charity though is concerned that the White Paper is still “overly enthusiastic about free trade and opening the door indiscriminately to foreign investment, despite the potential impact on poverty.”
