labels: economy - general
Blair tells the rich to end trade deadlocknews
15 November 2005

London: Tony Blair, in his annual foreign affairs speech, has tried to break the logjam over a world trade agreement by calling on rich nations to set a date for ending their export subsidies.

Tony Blair appealed to France and the United States not to squander a chance to seal a historic agreement on global trade that has the potential to allow millions of people in the poorest countries to escape poverty. In his speech, Blair issued a detailed list of proposals aimed at reviving the process ahead of a critical meeting in Hong Kong next month.

He said: "The European Union and the US must go further, within the negotiations, on agriculture. We must reduce trade-distorting subsidies; we must see a credible end date for export subsidies; we must put an ambitious limit on the number of sensitive products that can be afforded extra protection.

"In return Brazil, India and others must move on cuts in industrial tariffs, services liberalisation, with proper flexibility for developing countries that need to sequence their commitments in line with their development needs."

He said: "Agriculture accounts for under 2 per cent of the GDP of rich countries and roughly the same share of employment. Can we afford to allow differences over support for agriculture in rich countries to block an agreement that could give renewed hope to the 1 in 5 people in the world living on less than $1 a day? And can we afford to weaken an international trading system on which future employment and prosperity in rich countries depends?"

He said that a one per cent increase in Africa's share of world trade would benefit Africa by over US$70bn, three times the aid increase agreed at the G8 summit at Gleneagles in July.

Blair warned rich nations that they would enjoy "no security or prosperity at home" unless they "deal with the global challenges of conflict, terrorism, climate change and poverty."



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Blair tells the rich to end trade deadlock