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Subject:
From:
Ousman Gajigo <[log in to unmask]>
Reply To:
The Gambia and related-issues mailing list <[log in to unmask]>
Date:
Sat, 22 Feb 2003 12:14:29 -0800
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I didn't think there was much to the Franco-African summit that just ended
in Paris. But if France removes some of the trade barriers that Chirac
mentions in teh BBC article below, then there would be at least one benefit
that would trickle down to the poor African farmer who had to toil at home
while his president wined and dined with Chirac.
The same benefit would have been realized way back if developed countries,
including the US, stop preaching about free trade without remove trade
barriers like farm subsidies.

Ousman



http://news.bbc.co.uk/2/hi/business/2788369.stm

France urges rethink on African trade

Subsidies close Western markets to many African farmers
French President Jacques Chirac has proposed freezing some farm subsidies in
rich countries, in an attempt to help the agrarian economies of Africa.
Speaking at the end of a two-day summit with African leaders, Mr Chirac
urged fellow developed countries to join France in a moratorium on
protectionist help for domestic farmers.

Such an agreement, Mr Chirac argued, should be valid until global trade
rules were revised in two years' time.

Development economists often argue that subsidies in rich countries
effectively lock poor developing-world farmers out of Western markets, and
provide unbeatable competition within developing economies themselves.

But Mr Chirac's proposal, if serious, has little chance of appealing to his
fellow leaders, for whom agricultural subsidy is a crucial political issue.

Time for change

France is often criticised for its seemingly contradictory stance on trade,
urging investment in Africa's economies, while remaining the fiercest
supporter of subsidies for its own farmers.


France has long been oriented toward Africa

This should now change, Mr Chirac said.

He told African leaders that it was time to "work on a new strategy for the
development of African agriculture," admitting that developed nations had
not been "attentive enough to Africa's real economic and trade needs".

African countries dependent on farm exports for their survival needed
"privileged and sustainable access" to markets in developed countries, Mr
Chirac said.

In addition, certain key products - notably cotton, coffee and cocoa -
should benefit from price support in order to ensure their mainly African
producers a decent return.

Deaf ears

Mr Chirac said he would urge both the European Union and the Group of Eight
industrialised countries to back his proposals.

G8 ministers are meeting in Paris this weekend, mainly to discuss ways of
safeguarding the global economy against the threat of war.

Mr Chirac's proposal is unlikely to be received with cheer by his fellow G8
leaders, however.

Many European countries are wary of tinkering with farm subsidies, which are
politically extremely sensitive.

And few other countries share France's focused interest on Africa - Spain
looks to Latin America, for example, while the UK has loyalties spread
around the world.

'Complicated question'

Economic development in Africa is due to top the agenda, however, when the
G8 meets for its full summit in June.

But most economists have tended to prefer African development plans based on
liberalising investment and more cleverly targeting aid, rather than
interfering in the market for individual commodities.

The US warned on Sunday that it would not unilaterally cut farm subsidies
and tariffs, following talks among trade and agriculture ministers at the
World Trade Organisation on farm aid reform.

In Brussels, a spokesman for the European Commission called the issue of
African farm exports a "complicated question... that cannot be easily
resolved."







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