Vaile Urges EU and US to Help ‘Make Poverty History’

Trade Minister Mark Vaile has called on the European Union to back US President George W Bush’s call for developed countries to eliminate agricultural subsidies in order to help ‘Make Poverty History’.

“President Bush’s comments show he is prepared to show real leadership in addressing global poverty, and I urge EU leaders to follow suit,” Mr Vaile said.

“Debt forgiveness and aid are admirable but it is time the world’s leaders attacked one of the major causes of poverty - agricultural protectionism.

“Oxfam argues that total subsidies to farmers in rich countries, particularly in the EU and the US, amount to around US$300 billion a year – more than the combined income of 1.2 billion of the world’s poorest people.

Government support in both the EU and the US totals $180 billion. As a percentage of farm income, 33% of it is government support in the EU, and 18% in the US. Australia provides just 4% or $1.1 billion.

Mr Vaile said,”Agricultural protection depresses world prices for agricultural goods and restricts the ability of developing countries, like those in Africa, to trade out of poverty.

“Rather than giving the world’s poor the money to buy wheat, it is time we gave them the technology to grow it and the level playing field to sell it into. We must ensure that developing countries have access into the wealthy markets of the world so they can sell what they produce.

“A World Bank analysis estimates that a level playing field on trade would lift 140 million people out of poverty.

“Australia is leading by example. We have given 50 Least Developed Countries tariff free access to our own market and we continue to push, through the Cairns Group of agricultural exporting nations, for a successful conclusion to world trade talks.”

Mr Vaile said he would continue to lobby the US and EU, as he has been doing for many years, to turn words into actions at a key World Trade Organization meeting in Dalian, China, next week.

“The China meeting will come hot on the heels of the G8 meeting in Scotland and will give the rich countries of the world the chance to show real leadership towards freeing up world trade and tackling poverty in the developing world.”

Mr Vaile will attend the meeting next Tuesday and Wednesday along with about 30 Ministers from the world’s key trading nations. The Doha Round of world trade talks is at a critical stage leading up to the 6^th Ministerial Conference in Hong Kong in December.

Contact: Mr Vaile's office 02 6277 7420 - DFAT Media Liaison 02 6261 1555