Development & Aid, Economy & Trade, Europe, Headlines

DEVELOPMENT: EU Claims the Trade Way Works

Ann De Ron

BRUSSELS, Sep 22 2004 (IPS) - The EU has published 15 case studies to show that trade for development is “not an empty slogan used in Brussels”, but is “showing some excellent results on the ground.”

The report ‘Making trade work for development’ gives examples of European Union (EU) programmes for trade-related assistance in developing countries.

Among the listed EU case studies is one to improve local production conditions and inspection systems for fish from Lake Victoria in Tanzania that has helped provide abundant fish for the European market. Another covers fair trade projects in India and Mexico that have boosted micro-businesses, brought women into the labour market and launched new brands.

A trade support programme in Bangladesh is cited as building capacity and expertise in government departments, and enabling the country to participate in WTO and other negotiations.

Another success story claimed is the free online helpdesk where developing countries’ exporters can find information on customs duties and documentation, rules of origin and trade statistics. Since its launch in February this year the online helpdesk has been consulted more than 323,000 times at an average of more than 1,400 queries a day.

Trade-related assistance has been a priority in EU development policy in recent years. It involves funding for projects such as assistance with World Trade Organisation (WTO) negotiations, customs reforms, infrastructure improvements, product safety schemes, clearer rules, and support to private companies in export markets.

Between 2001 and 2004 the European Commission, the executive arm of the EU, has spent 3.4 billion dollars (2.8 billion Euros) on such programmes. Last year 121 new projects were launched. This makes the EU the single largest donor for trade-related assistance, with more than a third of global commitments in this field.

“I am pleased to report that these efforts have brought some excellent results on the ground, and these case studies show the very real effect it is having on the lives of people in developing countries,” outgoing trade commissioner Pascal Lamy said at the release of the report Tuesday.

The selection of cases shows that the policy is “very much the reality on the ground in a number of our partner countries,” development commissioner Poul Nielson added.

But several NGOs point to the need to look at the larger picture.

“When global trade touches peoples’ lives, increasing it can have beneficial results,” Giampiero Alhadeff, secretary-general of the international NGO network Solidar told IPS. “It’s great the EU has invested 2.8 billion euro and it would be good news if Lamy’s successor can go on with these programmes.”

But he has two objections. First, he says the EU should concentrate less on trade and more on job creation. “In reality poor Africans are largely untouched by a possible increase in global trade. The poor need jobs, and those jobs are about producing goods and services to be consumed locally and thus not be part of global trade.”

Secondly, he said that while the EU is engaging in trade-related assistance, it maintains an agricultural regime that does not help development. “You can easily come up with 15 cases illustrating that too.”

Simon Stocker, head of the NGO Eurostep said “2.8 billion euro is quite a lot, but it still is just a drop in the ocean compared to how much is spent on subsidies for European farmers.”