Oxfam Calls International Trade Rules Biased in Favor of Rich Countries; Launches Multi-nation Campaign to Change Rules

(May 16, 2002) Oxfam, the multinational development, relief, and (increasingly) advocacy organization, has issued a new publication on trade that recognizes the potential benefits to developing countries of trade but strongly criticizes the rules of trade that favor developed countries. Oxfam has simultaneously launched a multi-nation campaign to change trade rules in favor of poor countries.

Unlike many anti-trade activists and organizations, Oxfam's report recognizes the benefits of trade.  The report asserts that if Africa, East Asia, South Asia, and Latin America were each to increase their share of world exports by one per cent, the resulting gains in income could lift 128 million people out of poverty. It points out that in Africa alone, this would generate $70 billion in income,  approximately five times what the continent receives in aid.

It locates the harm to poor countries and people in the fact not of trade itself, but the of the rules of trade. The report states:

In their rhetoric, governments of rich countries constantly stress their commitment to poverty reduction. Yet in practice rigged rules and double standards lock poor people out of the benefits of trade, closing the door to an escape route from poverty. For example: Rich countries spend $1 billion every day on agricultural subsidies [for farmers in rich countries]. The resulting surpluses are dumped on world markets, undermining the livelihoods of millions of smallholder farmers in poor countries. When developing countries export to rich-country markets, they face tariff barriers that are four times higher than those encountered by rich countries. Those barriers cost them $100bn a year - twice as much as they receive in aid.

The new U.S. farm bill, with a large increase in agricultural subsidies, will increase the harm to developing countries and should also intensify the debate over unequal rules. The new farm bill will increase the already great difficulties in improving the lives of farmers and agriculture in developing countries.  See the Washington Post farm bill story

To see the executive summary and summaries of the book's chapters 

Two key chapters for those interested in helping poor people are:

·        "Ch. 3. Left behind: poor countries and poor people in the international trading system" which analyzes why most poor countries are not benefiting from  international trade and

·        "Ch. 4.  Market access and agricultural trade: the double standards of rich countries" which explain what trade barriers exist and how they harm developing countries.  A key chapter for those interested in agriculture in developing countries.

These and other book chapters are available online from Oxfam at 

To participate in the campaign 

Hunger Notes Home Page

copyright