Monday 23 April 2007

Trade for development?

Here we go again! Another round of negotiations has taken place in Delhi in an attempt to revive stalled (but also unequal) global trade agreements. Something really shocking is that despite this persistent lack of agreement, and according to the latest WTO report, last year international trade grew faster than in 2005. Another important idea is that "not everything comes from China". According to this same report, and quoting Evan Davies from BBC News:
"In terms of exports of goods alone (which account for four-fifths of global trade), Germany is the world leader, with the US second and China third."
There are some questions I would like to raise concerning this issue in terms of its consequences for developing countries:
  1. The ideological and intellectual basis that sustain these rounds of negotiations sometimes forget that increasing trade is a mean to achieve better economic and social conditions, not an end in itself. The WTO 's main goal is to fix and enforce fair trade deals conducive to better economic ans social conditions.
  2. LDCs are obsessed with achieving greater access to agricultural markets in developed countries. Certainly this is a good start, but their advancements today in accessing these markets in developed countries has a big cost: the opening of their markets to services and industrial goods originated in developed countries. Moreover, great distribution groups (mainly from 1st world countries) play a major role in making the profits go back to developing countries.
  3. Modernization and development can't be sustained in the export of products made with cheap labour force. Developed countries today are those that made possible to generate products with more added value based in technology and well prepared human capital.
  4. These round of trade negotiations should also consider the free movement of temporary workers from developing to developed countries!
  5. Conditions today are very different from those faced by nowadays developed countries. Developed countries today protected their infant industries (the international competence wasn't that fierce!) and developed efficient public sectors to deal with the risks associated to more open markets.
  6. China and India have recently joined the WTO, whereas their impressive economic performance dates back from almost 2 decades ago!
More ideas on this issue here (in Spanish, though!)

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