This is a scathing indictment of EU trade barriers at the expense of third world lives.
I haven't found similar reports on the effects of US trade barriers. But I am sure there are grave effects.
http://www.cne.org/pub_pdf/2003_09_04_EU_barriers_kill_PR.htm
PRE-CANCUN WTO MEETING REPORT SHOWS
EU TRADE BARRIERS KILL ONE
PERSON EVERY 13 SECONDS
BRUSSELS, 04 SEPTEMBER 2003 ?- A new report, EU Trade Barriers Kill, published today in the run-up to the Cancun ministerial meeting of the WTO by the Centre for the New Europe, the Brussels-based think tank, analyses the impact of EU trade regulations and barriers on the developing world.
A PDF copy of the full report, by Stephen Pollard, Alberto Mingardi, Dr. Sean Gabb, and Cecile Philippe is available for download here.
KEY FINDINGS
6,600 people die every day in the world because of the trading rules of the EU. That is 275 people every hour.
In other words, one person dies every 13 seconds somewhere in the world - mainly in Africa - because the European Union does not act on trade as it talks.
If Africa could increase its share of world trade by just one per cent, it would earn an additional £49 billion a year. This would be enough to lift 128 million people out of extreme poverty. The EU's trade barriers are directly responsible for Africa's inability to increase its trade and thus for keeping Africa in poverty.
If the poorest countries as a whole could increase their share of world exports by five per cent, that would generate £248 billion or $350 billion, raising millions more out of extreme poverty.
KEY EXTRACTS
Trade barriers imposed by the EU are more than just a technical issue. Lack of access to the European market - by far the richest in the world - slows development in the poorest countries of the world, condemns thousands of millions of people to poverty and kills many others. This paper quantifies, for the first time, the cost in human life to Africa of EU protectionism.
It is widely acknowledged that it was trade that enabled the "Asian Tiger" countries - Japan, Hong Kong, South Korea, etc - to develop as manufacturing economies. Opening their economies to the rest of the world allowed them to attract the investment in physical and human capital that brought them comparative advantages in the manufacture of a widening range of products.
It could be the same story for the very poorest countries now. For one thing they tend to have advantages in agricultural or textile production.
For the most part, however, this option is not available. Four main countries or trading blocs - the European Union, the United States, Japan and Canada - account for 75 per cent of world output. They are the obvious destinations for exports from the poorest countries. Yet while these countries talk endlessly about the liberalisation of world trade, they have been ruthless in keeping their domestic markets closed to agricultural and textile exports from the poorest countries.
The worst of the rich protectionists, however - by far - is the European Union.
The EU runs two sets of protectionist policies that could be almost designed to wreck the trading chances of those of the poorest countries that have comparative advantages in food and textiles.
First, there are the trade restrictions. Though the EU has a low industrial tariff of five per cent, its agricultural tariffs are far higher. These average 20 per cent, but rise to a peak of 250 per cent on certain products. For example, the tariff on Bolivian chickens is 46 per cent, and on Bolivian orange juice 34 per cent. On textiles, there are strict quotas on most important lines. These have been reduced or removed in the case of fairly unimportant products such as parachutes and umbrellas. But the European market remains barely open to the majority of low cost textiles from the developing world.
Added to open trade barriers are the complex rules of origin applied to imports from the developing world. These stipulate how much of a product must be made from local inputs to qualify for the preferential tariffs. According to a report published by the Centre for European Policy Studies, only a third of imports from developing countries eligible for preferential access are able to meet the strict criteria to comply with the rules of origin.
Even if an exporter from the developing world is able to comply with these regulations, there are then the further regulations on health and safety. These have a protectionist effect, and that again may be their intention. For example, one regulation requires that milk should be taken from cows by machinery and not by hand. This effectively shuts out all Indian milk products, which would otherwise, admittedly, enter only at prohibitive tariffs of between 76 and 144 per cent. Again, complex rules on aflotoxins cost sub-Saharan Africa $1.3 billion every year in lost exports of cereals, dried fruits and nuts per European life allegedly saved thereby.
Second is the agricultural subsidy handed out by the EU under the rules of the Common Agricultural Policy. This amounts to $41 billion a year, or $14,000 per European Union farmer (though half the spending goes to the biggest 17 per cent of farming enterprises). The CAP subsidy affects agricultural producers in the developing world in three main ways:
1. It completes the effect of tariffs and other barriers in shutting them out of a market in which they would otherwise have a comparative advantage. For example, the EU spends Euros 2.7 billion each year on subsidising European farmers to grow sugar beet, while it maintains high tariff barriers against sugar imports from the developing world.
2. It generates immense surpluses of foodstuffs that cannot be sold within the EU at the prevailing intervention prices. Much of these surpluses are exported at very low prices that undercut those charged by the unsubsidised producers of the developing world. A prime case of this is sugar sales in the Middle East. Countries like Sudan are crowded out of the sugar market in Egypt and Saudi Arabia.
3. Some of the surpluses are exported at subsidised prices to developing countries, thereby crowding out domestic producers. In Jamaica, some 3,000 dairy farmers are being driven out of business by imported milk powder from the EU. 5,500 metric tons are sent there each year at a cost to the European taxpayers of $3m. Many of the farmers are women.
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The Centre for the New Europe (CNE) is a pan-European policy research institute based in Brussels.
The First World countries must decide what it is they value first and formost, true free trade among nations, or protection of their national business interests. They cannot have it both ways. May the Third World stand strong in this regard.
Untill then the idea of "free trade" is, at best, an abstraction with no meaning, and at worst, a term of predatory economic hypocrisy.