WTO conference must give priority to development

Rite and Reason: With the World Trade Organisation conference getting under way tomorrow, Bishop John Kirby reminds us that …

Rite and Reason: With the World Trade Organisation conference getting under way tomorrow, Bishop John Kirby reminds us that we in this country "ought to be sensitive to the intimate relationship between poverty and agriculture"

As the only global organisation which determines rules of trade between nations, the occasion of this conference affords an invaluable opportunity for us to reflect upon the ethical dimension of international trade and to add our voice to those who look to the WTO to make rules which foster food security, livelihood security and advance rural development objectives.

Making fair trade rules consistent with development objectives is essential for poverty reduction and sustainable development. As the Irish bishops' pastoral letter on development last September 9th said: "Commitment to the global common good also challenges the international structures of trade. The shift to an open trading regime through the WTO means that trade reform is inevitable." The text of the pastoral letter is available on www.catholiccommunications.ie.

The present trade round, "The Doha Development Agenda" was launched in 2001 on the understanding that it was a development round. If it is to be faithful to its agenda, the up-coming Hong Kong ministerial conference must give priority to addressing the development dimension of trade in the work to promote human rights, ensure sustainable development and eliminate poverty in the poorest countries.

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The human person with inalienable human rights is the only proper focus of all social and economic relations, and therefore the progressive opening up of markets to international trade is something to be welcomed, but only if it contributes to the global common good. In particular, any such developments need to be preceded by a considered analysis of their impact on poor people in developing countries.

For example, in the agriculture sector, it is arguable that trade tariffs are some of the few protections that developing countries can offer their small farmers to allow them to compete in the face of the economic power of industrialised farm exports from the rich and middle-income countries. As a member of the world's largest economic block, Ireland already makes a substantial contribution to combating poverty in developing countries.

However, much more is needed to meet the challenges of the Millennium Development Goals to which world leaders have made a commitment. This is not a responsibility that should be lightly disregarded. Christian commitment to the global common good implies that Ireland must participate in this process with a real concern for the developing world. The Irish Commission on Justice and Social Affairs has said that, given our history, we ought to be sensitive to the intimate relationship between poverty and agriculture.

It is estimated that of the 1.2 billion people worldwide living on less than a dollar a day, 900 million are dependent on agriculture for a living. Consequently, they will be the first to be affected by decisions reached in Hong Kong. If the WTO acts to promote sustainable agriculture growth in the developing world it will have an appreciable impact on poverty reduction. It is worth noting that 74 per cent of the total labour force in least developed countries is engaged in agriculture, compared to 4 per cent in the EU.

The Government has already made it clear that it will do no more on the question of subsidies and domestic support, and that the reform of the CAP agreed two years ago will stand until 2013. But there are other significant things that Ireland can do to take a lead in the EU to advance the Hong Kong talks agenda.

Ireland can push for the establishment of an "Aid for Trade Fund" to provide developing countries with the finances and technical assistance needed to address adjustment costs arising from the Doha negotiations and to improve their trade-related infrastructure; support improved market access for least developed countries to allow them duty- free and quota-free access for their products; and the introduction of special safeguard mechanisms that would allow developing countries to protect themselves against sudden import surges that threaten food security.

One of the most sensitive issues that needs to be addressed, however, is the manner in which food aid can act as a disincentive to food production in the developing world. While food aid is to be welcomed in an emergency, and the generosity of donors acknowledged, there can be cases where food aid is offered in non-emergency situations, ostensibly as a form of international assistance. In these cases, the food aid could be regarded as a form of dumping that disrupts the competitive position of small-scale farmers and threatens food security.

In the light of this reality, all such aid should be subjected to appropriate scrutiny to ensure that it does not impact negatively on the long-term development of the indigenous population. The Holy See, in its reflection on the Hong Kong meeting, summed it up: "Agricultural trade liberalisation is not to be enthroned as an end in itself but as a means for achieving ultimate objectives, such as the integral development of each and every person along with the reduction of poverty. Therefore, international trade rules should be aligned with a wider commitment to human development and to the lifting of living standards of the poor."

Bishop John Kirby is chairman of Trócaire and a member of the Irish Commission for Justice and Social Affairs