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DEVELOPING COUNTRIES :
TRAPPED BY WTO
Stanislaus Jude Chan
KARACHI - “More than 30,000 farmers from India have committed suicide over the last five years!” says
one participant at a Monday discussion on the post-Hong Kong World Trade Organisation
(WTO) ministerial summit. Yet another claims that the total figure of self-inflicted deaths of
poor farmers in South Asia stands at “more than 2.5 million” to date. |
Whatever the real figure, one thing is clear, the speakers said -- poor, developing
countries are receiving the short end of the stick with WTO agreements – or rather, non-
agreements – and are frustrated to death – in some cases, literally.
The US and the Bush administration has used free trade agreements as a “forced trade
agreement” and “fast track authority” in its own favour, while disregarding the interests of
poorer countries in its WTO negotiations, says Abid Suleri, assistant executive director of
Pakistani NGO Sustainable Development Policy Institute, Islamabad (SDPI).
In agriculture – among the most contentious issues due to resistance of developed country
markets to the entry of products from agriculture-producing countries -- as well as other
industries such as textiles, there is much unease over the United States and European
Union’s employment of protectionist policies on imports while they demand the
liberalisation and “opening up” of poor countries.
These practices allow the economic superpowers to “dump” products, leading to the
stifling of local industries and further poverty, hunger, and economic dependency as a
result, activists say.
Claiming that “the US practises double standards” and makes “scapegoats” of poor
nations “under the guise of WTO”, Suleri questions the WTO’s mission of “eradicating
poverty”, as reflected in its “make poverty history” tagline.
But harping on the WTO isn’t going to make it disappear, says Dr Tarzil Haider Usmani,
director general at the Ministry of Science and Technology in Pakistan. “The process of
globalisation and the WTO are inevitable, and we shouldn’t bang (our heads) against the
wall.”
“What must be done, though, are two things: One is domestic sovereignty, which we (the
poor countries) must keep,” he says. “The second thing we must do is to protect against
trade reforms and liberalisation that is not in our favour, through the use of social safety
nets and protectionist systems. Otherwise, the WTO will do more harm than good.”
Critics say the WTO has evolved into a juridical-institutional umbrella that the richest
countries and their major corporations use to create rules they impose on other countries.
Within this organisation, the focus is on opening up markets instead of concerns like
reducing hunger, unemployment, or social inequality, they add.
The WTO and its ministerial negotiations in recent years has focused on raising the
volume of international trade dominated by transnational corporations, eliminating
defensive barriers of poor countries, and consolidating control over the production and
trade of agricultural products.
The WTO also looks inward rather than out, at the delegates that represent the people at
WTO negotiations.
With a lack of “skilled and qualified representation”, there is a grouse among the farmers
and workers that these negotiators who are supposed to be working for the best interest
of the people, faced with the problems of the people on one hand and pressures from
world superpowers on the other, are engaging in “double-speak”.
Abid Suleri says some negotiators are “so ashamed” that they have caved in to the
pressure by the rich nations in the talks, and are “unable to face the farmers”.
Developing countries and NGOs are concerned that the US and Europe’s persistence to
discuss the “new issues” aimed at opening up their markets for foreign firms and their
products with minimal government regulation could result in massive job loss for local
markets.
National sovereignty would also be compromised as governments lose a large part of the
right to make domestic policies in key economic and social areas.
Since the formation of the WTO, many countries – the poorer ones like Cambodia and
Vietnam included – have been trying to get into it to take advantage of the benefits that
come with being part<
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