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Contributions from
the Column
Facts and trends
OECD extends development assistance criteria
Lack of direction in the face of increasing poverty
The many voices of German education co-operation
“Decent work instead of exploitation” for children
US Senate investigates World Bank corruption
Development assistance rising
KfW development bank debate on fighting poverty
New dynamism for the WTO
6/2004
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[ International trade ]
New dynamism for the WTO
In response to a petition put forward by Brazil, the WTO decided in April that US cotton subsidies do not comply with the principles of free trade. The Financial Times commented that the WTO’s ruling would put pressure on other agricultural subsidy practices. Next, the European Commission reported in May that it would be prepared to renounce export supports for agricultural products. Moreover, Brussels indicated a loss of interest in the so called “Singapore Issues”. This catchword stands for negotiations on binding rules for investment and other issues. Most developing countries oppose this agenda as it would severely restrict their scope for drafting economic policies.
The recent concessions by Brussels could breathe new life into international trade negotiations following the failure of Cancún. At the ministerial meeting last year, EU trade commissioner Pascal Lamy had dropped his demand for “Singapore” talks too late, when the conference was already collapsing.
Support payments to farmers in the rich nations damage Third World opportunities. For instance, experts estimate that Washington’s cotton subsidies bring down world market prices by about a quarter. This is of particular concern to African economies for whom this primary product is the only export commodity. At the ministerial meeting in Cancún, German development minister Heidemarie Wieczorek-Zeul had endorsed a number of African governments who had complained about cotton subsidies. Other EU politicians had harshly criticised her for doing so. In the meantime, the German government has convinced its European partners of more favourably considering cotton imports from Africa. (dem)
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