More is needed to live up to its claim that it is a ‘Strategy for securing the benefits of greater openness… especially for the world’s poorest people’, according to trade development NGO, Traidcraft.
The paper reveals that, while the Government recognises the severe poverty in India, it is taking the same approach in its pursuit of Free Trade Agreements with developing countries as it is with wealthy countries like Canada and Japan.
And as part of a Free Trade Agreement, India would be forced to deregulate its financial sector which would expose it to greater international financial flows, potentially threatening the success India has had avoiding a financial banking crisis.
Traidcraft welcomes the Government’s commitment to flexibility in the trade negotiations with African countries and its bilateral aid programme, both of which promote regional integration.
However, in order to achieve this, a viable alternative to the current trade agreements on the table must be put forward by the Government.
Traidcraft director of policy, Paul Spray said: “For Africans living in poverty the Government’s white paper goes in the right direction but does not go far enough.
“The Government should have used this as an opportunity to extend common trading preferences to African countries and do away with the current trade agreement negotiations which have been poisoning the relationship between Africa and Europe.
“For the almost 800 million Indians living in poverty, the approach laid out in the Government’s white paper is just plain wrong.
“In spite of its recent growth rates, India cannot be compared to advanced economies. The Government must push for a trade agreement with India which allows for enough policy space to prioritize development strategies to address inequalities.”
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