America and Europe are wrecking world economy - says aid agency

The economic superpowers are doing more than any anti-globalisation protests to derail the world economy - CAFOD said this week. The aid agency said that inflexibility in both the EU and US camps before the World Trade Organisation summit next month could prove disastrous, and poor countries will pay the highest cost. CAFOD's trade analyst Duncan Green, said: "In the face of overwhelming rejection by the developing countries, the EU continues to insist on launching a broad round of talks. They want to include innumerable new issues such as government procurement, competition and investment. Developing countries say they cannot cope with this number of parallel negotiations. In any case, developing countries are more concerned with sorting out agriculture, textiles, and the numerous problems that have arisen from the implementation of the Uruguay Round Agreements. "Meanwhile, the US is blocking any real discussion on the implementation of the Uruguay Round. For example, the US is refusing to discuss its abuse of anti-dumping mechanisms for protectionist purposes. This stance is unacceptable to developing countries. "The EU and US have promised a new development round focused on the needs of the poorest countries to be launched in November. Their actions so far show these promises to be empty. If the North really believes it needs a pro-development round of trade talks to rebuild confidence, it had better stop banging the table and start listening. "Unless the EU and US can bring developing countries on board then the WTO is in serious risk of stalling. This would be disastrous to the global economy, and especially to poor countries."