New International Trade Pacts Enslave Poor Nations

Oxfam stated that new international trade deals signed between wealthy and poor nations proved to be damaging rather than helpful to the economic improvement of poor nations. Emily Jones, who is the author of the Oxfam report called "Signing Away the Future," said that poor nations were being forced to make deep cuts in their import tariffs. She added that these duties were often reduced to zero under some free trade pacts that were signed between industrialized and poor nations. Under such international trade agreements, developing countries are forced to open up their markets to subsidized farm goods. According to the Oxfam report, there are currently over 250 bilateral and regional trade agreements. In fact, the report said that more international trade deals were being negotiated. The organization said that about 25 nations have inked free trade deals with wealthy countries. At present, bilateral and regional trade pacts account for 30% of world trade. The Oxfam report said that some of these trade pacts often affected the economic development of poor nations. Ms. Jones said that many developing countries were forced to sign these trade agreements due to fears that they would lose a preferential treatment. According to Ms. Jones, many developing countries were asked to cut their import duties in exchange for export preferences. She said that the NAFTA (North American Free Trade Agreement) has resulted in the loss of around 1.3 million jobs in Mexico during the last ten years. She added that increased exports to the US have failed to fuel development. The Oxfam report said that the policies of service liberalization threatened to reduce competition and end small-scale local businesses. According to the Oxfam, developing nations were pressured to sign international trade agreements with richer countries. In its report, the Oxfam made several demands regarding international trade deals. First, they should recognize the need of developing countries for differential or special treatment in order to boost their economy. Second, they should help poor nations in adopting more flexible policies concerning the protection of intellectual property rights. Such move would help poor countries gain more access to cheaper services such as health care. Third, they should exclude public services like health, education, sanitation, and water. Fourth, they should recognize the right of countries to regulate foreign investors. They should also include commitments regarding the enforcement of core labor policies. Fifth, international trade agreements should make sure that all parties concerned would take part in the negotiating process. Source : http://www.tbc-world.com/