George Monbiot on trade: A game of double bluff

The UK and EU are keeping the poorer nations exactly where they want them: beholden to their patrons

Rejoice! The world is saved! The governments of Europe have agreed that by 2015 they will give 0.7% of their national income in foreign aid. Admittedly, that's 35 years after the target date they first set for themselves, and it's still less than they extract from the poor in debt repayments. But hooray anyway. Though he does not become president of the EU until later this year, Tony Blair can take some of the credit, for his insistence that the G8 summit in July makes poverty history. It's inspiring, until you understand the context.

Everyone who has studied global poverty - including European governments - recognises that aid cannot compensate for unfair terms of trade. If they increased their share of world exports by 5%, developing countries would earn an extra $350bn a year, three times more than they will be given in 2015. Any government that wanted to help developing nations would surely make the terms of trade between rich and poor its priority.

This, indeed, is what the UK appears to have done. In March it published the most progressive foreign policy document ever to have escaped from Whitehall. A paper by the departments of trade and international development promised that: "We will not force trade liberalisation on developing countries." It recognised that a policy that insists on equal terms for rich and poor is like pitting a bull mastiff against a chihuahua. Unless a country can first build up its industries behind protectionist barriers, it will be destroyed by free trade. Almost every nation that is rich today, including the UK and the US, used this strategy. But the current rules forbid the poor from following them. The EU, the paper insisted, should, while opening its own markets, allow poor nations "20 years or more" to open theirs.

But two weeks ago the Guardian obtained a leaked letter showing that Peter Mandelson, the European trade commissioner, was undermining the UK's new policies. His most senior official complained that the policy document was "a major and unwelcome shift... Mandelson is taking up our concerns and will press for a revised UK line".

...

http://www.guardian.co.uk/comment/story/0,3604,1495676,00.html