Website: www.wtj.org.uk

As usual the AGM will be very brief consisting of approval of accounts and election of officers. All the relevant AGM papers (that is: agenda, officers’ reports and financial statement) are enclosed and can be read on the website.

If you can, could you, please, try to find somewhere to display the notice at the end of this newsletter so as to give us a bit of extra publicity?

Members will be saddened to learn that Bill Hanley died on 6 August. He was buried on 14 August in Frankby Cemetery after a service in St Michael’s and All Angels’ RC Church, Woodchurch. Wirral Trade Justice would not have been formed had it not been for Bill. He encouraged and supported Liz Seager, our Membership Secretary, and Paula Horton, our Treasurer, when they responded to the campaign for a mass lobby of MPs in 2003. The outcome was that Bill suggested - and helped them to implement - the idea of a dedicated and focused group, concentrating exclusively on unfair international trade rules, which they saw as the most significant obstacle to alleviating world poverty. Bill chaired the committee with flair and enthusiasm and set the pattern of future activity. He continued to influence the development of the group even after ill-health forced him to give up the chair. He will be remembered with respect and gratitude by the members of WTJ as one who had the knowledge to identify a cause worth following, the conscience to see the injustice of the world system and the skills and vision to try to do something about it. May he rest in peace.

The World Trade Organisation (WTO) talks in Geneva last July had been expected to last five days. They were abandoned on the ninth day because of failure of any progress on the final two (of twenty) proposed topics. The WTO exists to encourage free trade in goods. Unlike its predecessors it is also concerned with trade in services, foreign investment and intellectual property. It is an institution for liberating trade, a forum for governments to negotiate trade agreements and a place to settle trade disputes. It operates a system of trade rules.

The BBC’s News Channel describes the background to the Doha Round of trade talks: "These started in 2001 with the aim of remedying inequality so that the developing world could benefit more from freer trade. However the talks have repeatedly collapsed as developed countries failed to agree with developing countries on terms of access to each others’ markets. The US and the European Union (EU) want greater access to provide services to fast growing emerging countries, including China and India. Meanwhile developing countries want greater access for their agricultural products in Europe and the US."

Adoption of free trade rarely benefits poor countries. Many have become significantly poorer as cheap subsidised goods from rich countries displace their home produced goods and destroy local developing industry and agriculture, the mainstays of their local economy. So it is hardly surprising that the poorer developing countries have become wary of trade deals that expose them to the dangers, both of ‘dumping’ and foreign investment, for which they are not yet ready. Meantime the EU and the USA (both of which have used protectionist policies during their early economic development) continue to subsidise their own farmers.

The July 2008 trade talks failed on details of agricultural issues. The USA had agreed to lower the cap of its agricultural subsidies in exchange for China, Brazil and India’s support on the other clauses. However, the reduction offered was to a figure significantly greater than the USA’s current level of agricultural support and would, anyway, need the agreement of Congress. The special safeguard mechanism for developing countries would have allowed them to protect poor farmers by applying tariffs on specified imports if the price fell too low or the import volume surged. The US would not accept the levels proposed. Another subject on which agreement could not be reached was African and Caribbean banana imports to the EU. Because of impasse on the agricultural issues, there was no opportunity to negotiate the important topic of rice and some environmental issues.

What impact the abandonment of negotiations will have on food shortages is not clear. Poor countries may switch from multilateral trade talks to economic partnership agreements (EPAs). These are bilateral agreements that can demand unrestricted opening up of poor country markets. Ironically, the safeguards negotiated in the Doha round aimed at improving the transparency and disclosure of EPAs will not be available to them.

No deal in 2008; but is there a suggestion that rich nations are growing in their understanding of the needs of developing countries, and are developing nations beginning to organise their negotiations better? There is considerable disappointment that the recent talks failed, both on the part of developing countries, and the EU and USA. Very likely negotiations will resume; but probably not until after the US elections, and possibly not until well after the next EU elections. Meantime there is concern that the standing of the WTO will be damaged and it may have difficulty in carrying out its other functions. These talks were scheduled to be completed in 2005 and this is not the first time they have been abandoned in despair. In spite of this, it does seem that the will to reach a just conclusion is still alive.

Around a hundred people turned out for the showing of the film Black Gold at Heswall Hall on 24th April. The film followed the struggle of the leader of an Ethiopean coffee growers’ cooperative to reconcile what we in the West pay for our lattes, cappuccinos and supermarket coffee purchases, with the poverty-inducing prices paid to members of the cooperative.

The film illustrates the complexities of the global value chain which we, as an organisation, work to understand and seek to change. Between the coffee tree and cup are local, national and international markets, needs for storage, transport, shipping and roasting and export and import barriers. The end result is clear: despite the vast sums of money generated by the trade, the farmers do not receive a just reward for their work and are unable to lift their families out of poverty.

A discussion of the film was led by Alasdair Roxborough from Christian Aid and during the discussion further examples were produced of how the power of multinational companies and the rigging of trade agreements in favour of richer countries cause injustice.

Representatives from Marks and Spencer were present with a display and information about the Fairtrade coffees which their stores sell and which they provided free for us on the night. Jo and helpers from the Oxton Green Community Shop provided a stall with a range of fairly traded goods.

WTJ were glad to be invited back to St Anselm’s College, Birkenhead, at the end of last term to introduce the issue of trade justice to some young people. Two of our committee members, Alan Vernon and Ceri Tector, were joined by Beckie Hurst, who works for Christian Aid, to play the ‘Trading Game’ with four groups of year 8 students. This game always goes down well with young people, showing in a very graphic way how strong countries always exploit the weak and frame international trading rules to maintain the status quo. Each session was followed by a discussion and it was clear not only that the boys had enjoyed the experience but also that they had gained a good grasp of the unfairness of the present world system. We hope that what they learned will stay with them, so that when they are older they will be motivated to join the campaign against unfair trade rules.

WTJ joined with a dozen other local groups to celebrate United Nations International Day of Peace in Vale Park, New Brighton on 21 September. Lou McGrath of Landmine Clearance spoke about how countries that have been torn apart by war are still having to cope with the legacy of landmines. We were able to connect with many other people with objectives similar to our own. We also gained a few new members.

For information ring Jack Heery 648 1930 or email jackheery@phonecoop.coop

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Printed and published by Jack Heery, 10 Marlfield Lane, Wirral, CH61 1AJ.