Free Trade Enslaving Poor Countries

"Poor countries are being forced into very deep tariff cuts," Emily Jones, author of the Oxfam report 'Signing Away the Future' told IPS. "These are often being reduced to zero under reciprocal so-called free trade agreements they are being forced to sign with rich countries."

That means poor countries are having to open up their markets to subsidized agricultural products from places like the EU, she said.
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The North America Free Trade Agreement (NAFTA) has brought 1.3 million job losses in Mexico in ten years, Jones said. Increased exports to the United States have failed to generate growth, and some studies show that the real wages in 2004 were less than in 1994, Jones said.

The rules on liberalization of services in such agreements threaten to drive local firms out of business, reduce competition, and extend the monopoly power of large companies, the report says.

"When Mexico liberalized financial services in 1993 in preparation for NAFTA, foreign ownership of the banking system increased to 85 percent in seven years, but lending to Mexican businesses dropped from 10 percent of gross domestic product (GDP) to 0.3 per cent, depriving poor people living in rural areas of vital sources of credit."

[link to www.commondreams.org]