11th September, 2007

AMANDA JACKSON

The APEC leaders’ meeting finished with statements on a number of economic issues which will affect the poor. The statements had some positive aspects but were long on aspirational goals and short on actual targets.

The official communiqué called for a revival of the Doha round of trade negotiations designed to lower barriers to trade. This round of talks, begun six years ago, would have benefits for poor agricultural nations which at present must compete with produce from heavily subsidised farmers in some rich nations.

A popular image of the inequalities of trade tells how the average cow in the European Union earns her owners more per day - $US2 - than nearly 50 per cent of the world’s population earn from their labours. Another example which drives home the problem is that cotton farmers in the US receive more in subsidies than the entire crop is worth. The announcement of APEC is therefore positive if it means that there is action to reduce subsidies which in Europe and the US are worth over $US68 billion each year.

Changes in the world climate, which are acknowledged will affect the poor most deeply, need international action. The business leaders who met during APEC called for specific targets. Peter Charlton, who co-chaired the meeting said governments needed to provide “clear goalposts that stay in position for a reasonable time so business can invest in improvements”.

What came out of the APEC meeting was a long-term aspirational goal to reduce greenhouse gas emissions, increase forest cover and invest in new technologies. The Declaration did not set clear goals and bi-passed the United Nations Kyoto agreement which Australia and the USA have not supported.

APEC’s private meetings paved the way for huge new resources sales contracts for Australia but it was disappointing that the talks did not herald any big steps to overcome economic inequality. However, Minister for Foreign Affairs , Mr Downer did announce a meeting of Asia Pacific ministers next year, aimed at producing further economic reform and reducing poverty.

Amanda Jackson is the national coordinator of the Micah Challenge Australia.

~ www.micahchallenge.org.au.