Ireland should wield moral muscle on trade

 —  April – May 2013

U and Irish trade policies are undermining sustainable development

in the Global South. We need a change from the current approach

which is resulting in growth without development for these coun-

tries. The Irish Government has committed itself to advancing EU

trade negotiations and supporting the World Trade Organisation and the

multilateral trading system, including the Doha Round of negotiations,

during its EU Presidency. This ignores both growing concern about this

model of global trade, rooted in trade liberalisation, and the fact that these

priorities undermine Irish and EU development policies.

EU trade policies seek to expand trade between Europe and other parts

of the world. They follow an aggressive competitiveness strategy and use

bilateral and multilateral free-trade agreements to secure market access

and cheap supplies of raw materials for European companies. They pur-

sue an agenda of trade liberalisation which encourages countries of the

Global South to open up their markets to international trade by reducing

tariﬀs and quotas, increasing rights for investors, privatising industries

and services, and reducing support to domestic producers.

Loss of tariﬀ revenue to trade liberalisation leads to a reduction in public

revenue in developing countries. Opening up markets negatively impacts on

local producers as cheap goods from Northern countries ﬂood markets.

In the agricultural sector this has had a particularly detrimental eﬀect

on food sovereignty. Small scale and subsistence farmers are unable to

compete with subsidised agricultural imports from Europe and other

regions. European Commission impact assessments have acknowledged

that Economic Partnership Agreements, for example, could lead to the

collapse of the manufacturing sector in West Africa.

Irish and EU policies prioritise the opening up of new markets and a

substantial role for the private sector in development co-operation. The

primary concern appears to be how Irish business can proﬁt in Africa rather

than underlining the need for ethical trade and sustainable development

which would support local economies.

In Liberia the result of such policies has been land grabbing and human

rights violations by extractive industries and agribusinesses. Transnational

corporations lease large tracts of land to cultivate rubber and oil palm,

preventing their use for food production. Rubber, palm-oil and log-

ging plantations, known as ‘concessions’ currently cover approximately

,, hectares or % of the country. Hundreds of thousands of

Liberian citizens live in districts that were granted to companies without

local input and consent.

These contracts cannot be implemented without violating the rights of

local communities simply because operations encroach on their farmlands.

This leads to signiﬁcant loss of livelihoods and negative impacts on local

economies. Land deals have become the new ‘Scramble for Africa’. .

million hectares of agricultural land (roughly the size of Kenya) has been

bought or leased by investors since  for export-oriented projects

which undermine food sovereignty, local industry and environmental

sustainability.

EU trade policy puts corporate interests ahead of sustainable and inclu-

sive development. However, there appears to be little consensus on this

between EU institutions in practice. MEPs recently voted to reject the

European Commission’s proposal to impose a unilateral deadline of 

on African, Caribbean and Paciﬁc Countries (ACP) to sign trade agree-

ments that are deemed unfair. The EU Council supported the European

Commission’s position.

Ireland, as EU president, now plays a crucial role as chair of the Council

of Ministers in negotiating a compromise between the EU Council and

European Parliament. Irish and EU civil society organisations are urging

the Irish government to ensure this negotiation results in a fair deal and

sustainable development in ACP countries and more equitable relations

between the EU and the Global South. This is an opportunity for Ireland

to promote a global trade system that prioritises justice, equity, rights and

sustainable development.

Jacinta Fay is co-ordinator of the Liberia Solidarity Group’s Trade Justice Project

which aims to ensure that human rights and ethical business are the cornerstone

of Ireland’s trade with the Global South. This article is based on “The Free Trade

Trap” published by the Liberia Solidarity Group.

jacinta fay

The EU uses bilateral and multilateral free-

trade agreements to secure market access

and cheap supplies of raw materials for

European companies

Ireland should wield moral

muscle on trade

Government should broker equitable, sustainable relations between EU and

Global South/ACP

Palm oil plantation in Sinoe County, Liberia. Image

courtesy of Sustainable Development Institute Liberia

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