NEWSLETTER– September 2006

Website: www.wtj.org.uk

 THE END OF THE DOHA ROUND

All WTJ members are no doubt feeling a sense of total frustration at the breakdown in the recent trade negotiations. Ever since the optimism of Gleneagles gave way to the harsh reality of EU and US bullying, we have been prepared for this outcome. But it is this reality that we must try to understand, if our own efforts are to be based on an understanding of the constraints binding the negotiators on all sides.

The response of all the aid agencies has been uniform in condemning the selfishness of the rich countries of the world. The World Development Movement (WDM) echoed the content of all the aid agencies’ press releases when it welcomed the fact that the EU and USA have been unable to force a bad trade deal onto developing countries as the trade negotiations finally stalled in Geneva.

Commenting on the reported collapse, Peter Hardstaff, of WDM said; "Ever since the start of this so-called development round, the EU and USA have consistently opposed, sidelined and ignored a string of development-friendly proposals made by poor countries. This is not just a question of EU and USA not delivering the long-promised agricultural subsidy reform. Demands by developing countries to be allowed to protect poor farmers and infant industries have been sidelined, and they have little or nothing to gain from moves to open up trade in services."

But is no deal better than a bad deal? Answers by email to: Hon Sec WTJ.

WHAT DO WE DO NOW?

We surely need to address directly the very nub of the problem which is that the power of the farm vote in both the EU and the USA completely precludes any serious political possibility of change. If the scale of this problem can be reduced then the likelihood of change will increase in proportion. Perhaps the answer is staring us in the face. In the EU, by far the greatest part of the subsidy goes to the big agribusinesses; the same is true in the USA also. Why can’t we make a beginning by scaling down the subsidies so that the bigger the business, the smaller the subsidy? Why not write to your MP or to Alistair Darling, the Secretary of State for Trade and Industry, and ask if this possibility has been examined? Perhaps WTJ could take the lead in creating a breakthrough in international negotiations!

DRUMMING HOME THE MESSAGE

Members of Wirral Trade Justice took their drums to Chester, one year on from the G8 summit in Gleneagles, to ‘drum’ home the message that we still need to

MAKEPOVERTYHISTORY.

We joined members of Chester World Development Forum and, led by Felix Ngindu an accomplished African musician, beat out the message to shoppers and tourists. People were asked to write to our leaders to ask why all the promises of last year have still to be honoured. See the website for a picture of the WTJ team in action at Chester Cathedral and watch out for the big drum event in London on September 14 as part of the Global Month of Action. Also, you’ll have your drumming chance if you come to the AGM on 15 October. (See the notice calling the AGM on the back of this newsletter.)

A G M – 15 OCTOBER 2006

JOHN BATTLE MP

John Battle, MP, recently sponsored an Early Day Motion in the House of Commons which secured signatures from MPs of all parties demanding, inter alia, that the UK Government work through the EU to "ensure that WTO agreements allow developing countries to use trade policies to protect the livelihoods of their poor farmers and develop their own sustainable economic strength, and to choose the best policies for poor people and the environment in services such as water, health and education". 

John, who has a reputation as an inspirational speaker on development questions, has agreed to address our AGM on the subject of:

"TRADE JUSTICE, IS THERE ANOTHER ROUTE?"

Please support this event to show that you think the campaign for trade justice is worth pursuing. If you know anyone who could display the notice, please copy it and help to get some extra publicity.

ELIMINATING WORLD POVERTY

Try to get hold of a copy of the Government White Paper - "Eliminating world poverty - making governance work for the poor" - if you want to inform yourself about the areas of policy where our government can influence things on a unilateral basis. Or read it on the DfID website at: www.dfid.gov.uk/

You can get a free copy of a summary by ringing 08453004100, (DfID Publicity).

Although the Trade Justice Movement has signally failed on the world scene to achieve its objectives, at least in this country the politicians have taken our message on board totally. If you read it and agree that this is so, perhaps it would be a good idea to send a letter to Hilary Benn encouraging him to keep pricking the conscience of Europe and the USA.

When the draft was under consultation WTJ submitted detailed suggestions which included the following in its submission:

"The duty of companies to maximise shareholder value will only be modified by some kind of legislative framework that imposes domestic sanctions on overseas transgressions. The laws relating to securing contracts by bribery must be strengthened and applied more rigorously and other legislation to cover exploitation and environmental degradation must be considered by the government in consultation with our international partners."

COMPANIES BILL

Those concerns are echoed by the Corporate Responsibility Coalition which, with the Trade Justice Movement, is campaigning for UK company law to be updated. From the TJM website www.tradejusticemovement.org.uk

"We believe companies can be a force for good in poor countries. And we are not against companies making a profit. But we also believe it shouldn’t be a matter of choice whether a company behaves ethically or not. We’re calling for the Company Law Reform Bill (now renamed the Companies Bill -Ed) to be amended so directors must take into account the social and environmental impacts of their company’s activities. In particular directors must:

be aware of the social and environmental impacts of their decisions;

take into account the interests of ‘stakeholders’ (e.g. employees, the environment, suppliers and communities) when making decisions;

report on the social and environmental performance of their business decisions;

and take steps to reduce negative impacts."

Ceri Tector writes: "The focus for companies these days is very much on corporate social responsibility. In Africa this may mean taking care not to pollute the environment, cleaning it up when it does happen, improving workers’ conditions, digging wells to provide clean water, launching education programmes for children, health initiatives to combat the spread of AIDS and even providing anti-retroviral drug treatments. Investors can be a driving force in this area. Companies cannot afford to disregard their investors, so if you have shares in companies which work in developing countries, make it your business to find out what they are doing for the people they employ. One of the criticisms levelled at multinationals is that profits made abroad go overwhelmingly to shareholders in Western countries. The South African Government requires companies to allocate a percentage of their shares to local black business people in an attempt to tackle this. Western companies and banks can also play a part in fighting corruption – one of the obstacles to economic development in Africa. For example, there must be the utmost transparency in making loans to prevent corrupt governments from enriching themselves."

GLOBAL MONTH OF ACTION

On 14 September people from across the world come together to start a  Global Month of Action building up to a White Band Day on 17 October. Join the world and take action to make poverty history this autumn as together we

STAND UP AGAINST POVERTY!

www.makepovertyhistory.org.uk

You can make your contribution to the elimination of world poverty by writing to our chairman or secretary with your ideas for future action.

Emails: to the editor jackheery@phonecoop.coop

or to the secretary randd@supanet.com.

OUR FINANCES

Last year we had a deficit of £57, but our balance now stands at more than £250, which includes the magnificent sum of £173 raised by Liz Seager, our membership secretary, and her husband, John, who did the Wirral Walk, with sponsorship for WTJ. We record a big thank you to Liz and John for this. We do need more money to fund our coming expenses, including a bill for nearly £300 for insurance premiums. If you feel you can help to keep the WTJ show on the road please get in touch with Paula Horton, hon. treasurer, (44 Beresford Road, Birkenhead,CH43 1XJ) or see her at the AGM.

 << back

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