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Oxfam Hong Kong - Unfair Trade Rules
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UnfairTradeRules
UnfairTradeRules
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Internationaltradecouldbeapowerfultooltoendpovertyhowever,inreality,outrageousinjusticesexistinthe
internationaltradingsystem.
Theworldisalargemarketinwhichweallparticpate,regardlessofwhetherweareproducersorconsumers.Due
totheeffectsofglobalisationinthe21stcentury,weareallcloselyconnectedthroughtrade.
Tradingisdefinitelymorethanjustanabstractconceptformillionsofpeople,becausetheconditionsofthe
internationalmarketinwhichtheyconducttradehasadecisiveimpactonwhethertheyareabletofeedtheir
families,toeducatetheirchildren,andtoenjoytheirbasicrights.
SouthernAfricaFloods
Unfairtradeseriouslyaffectsthelivelihoodoftheworlds2.5billionpoorfarmers.Richcountriesprovidetheir
domesticproducerssubsidiesofupto1billiondollarsonadailybasis,equivalenttoayearoffinancial
assistancetheyprovidetopoorcountries.Thissubsidisedproduceisthendumpedontopoorcountriesat
pricesbelowproductioncost,makingitimpossibleforlocalsmallholderfarmerstocompete.
FloodinginChina
SerbianFlood
FloodinginAfghanistan
Overthepastfewyearsthepricesofproducehavedeclined,givingsmallholderfarmersevenfewerbargaining
toolsandleavingthemunabletocoverproductioncosts.Forinstance,thepriceofcoffeebeansinthe
internationalmarkethasattimestumbledbyover50percent.
TyphoonHaiyan
YunnanYingjiang
Earthquake
Tensofthousandsofworkersindevelopingcountriesworkovertimenearlyeveryday,andstill,theycannot
affordevendailynecessities,muchlessmedicalcareandeducationfortheirfamilies.
CrisisinSyria
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ChinaandtheDeveloping
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UnfairTradePracticesInclude:
Dumping
Restrictedmarketaccess
Forcibleopeningof
markets
Patentrights
Globalcitizenship
education
Interactiveeducation
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Dumping
Dumpingisanunfairtradepracticewherebyproductsareexportedatprices
belowtheirproductioncosts.TheWorldTradeOrganization(WTO)hasanAnti
DumpingAgreement,whichallowsitsmemberstoprotecttheirdomestic
productsagainstunfaircompetitionfromproductsproducedinothercountries.
Thepurposeoftheagreementisnottodefinedumping,buttospecifyhow
WTOmembersaretorespondtoit.Nevertheless,therearecriticismsthatthe
contentsoftheagreementaretoogeneral,andthateconomicallypowerful
countries,suchastheEuropeanUnion(EU)andtheUnitedStatescanexploit
loopholestoaccuseothercountriesofdumpingpractisesusuallytargeting
developingcountries.
TheEUandtheUSdumptheirproduceandgoodswithlargesubsidieson
developingcountrieswhileconcurrentlykeepinginternationalpricesatlow
levels,whichseriouslyaffectthelivelihoodsofsmallholderfarmers.Stillthe
WTOhasfailedtoputastoptosuchunfairtactics.Makingordefending
againstallegationsofdumpingrequiressubstantialinputofhumanandfinancial
resources,andthisisoftenbeyondthemeansofthedevelopingcountries.The
A+
ambiguityandabuseofallegationsofdumpingandantidumpingadversely
affecttheinterestsofdevelopingcountriesininternationaltrade,asubject
whichmustbeaddressedduringthenegotiationsabouttheWTOagreements.
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