Menzies Campbell launches trade out of poverty campaign

7.19.54pm GMT Thu 19th Mar 2009

Senior Liberal Democrat MP Sir Menzies Campbell today took the chair at the launch of the “Trade Out of Poverty” (TOP) campaign in Westminster. The campaign, led by five senior parliamentarians from across the political spectrum including Sir Menzies, John Battle MP, Lord Hastings, Peter Lilley MP and Clare Short MP, aims to let the poorest countries prosper through trade.

TOP is a an independent, all-party movement dedicated to tackling poverty by helping the world poorest countries trade their way to a better life for their people. The campaign aims to mobilise support for helping poor countries to Trade Out of Poverty in same way that previous campaigns have forced governments to commit to boosting Aid and Dropping Debt.

Commenting after the launch Sir Menzies said:

“We live in a globalised world and we must acknowledge that poor and rich countries alike are interlocked. We must realise that trade is the key to alleviating poverty in the world.

“But international trade of the kind that is required is set to decline sharply and it will hit the poorest hardest unless we act now to open up new opportunities. We can and must take the moral and political lead”.

He continued:

“The current global economic crisis makes this initiative even more urgent. The worldwide recession is already generating protectionist sentiments in America and indeed Europe. The Trade Out of Poverty campaign is vitally important at this time to remind rich countries that the natural temptation to turn in on ourselves is a profound mistake which is not only damaging to ourselves but also to those whose plight is even more grave”.

Former UN Secretary General Kofi Annan, who is among TOP’s high profile supporters, endorsed the campaign and said:

“There can be no meaningful attempt to tackle poverty until the world’s poorest countries are able to trade their way to a better life for their people. I welcome the Trade Out of Poverty campaign, and support its aims to highlight the iniquities of the status quo and campaign for trade justice”.

Notes;

1. For more information visit www.tradeoutofpoverty.org

2. Although the Low Income Countries account for 20% of the world’s population they account for less than 2% of world trade.

3. The aims of the campaign: five ways to help trade end poverty

· Open up rich country markets unconditionally to all the poorest countries. Low Income Countries with average incomes below $2.70 per day account for 20% of world population but less than 2% of world trade.

· Simplify trade rules to let developing countries share in world trade. Some small countries in theory have 100% tariff free access to EU markets – but because of complex rules of origin up to 40% of their exports pay tariffs.

· End rich country export and domestic subsidies which hit poor countries’ trade. US spends $3billion subsidising and dumping cotton to support just 25,000 growers, undermining livelihoods of millions in Africa. EU subsidises cows by $2 ½ per day – more than the average

income in most poor countries, who cannot compete.

· Help reduce tariffs between poor countries. The highest tariffs are between the poorest countries: one reason less than a tenth of African

exports go to other African countries whereas nearly three quarters of European trade is within Europe. We must help them replace customs duties by other sources of revenue.

· Support investment in roads, ports and administrative structures that make trade possible.