The European Union’s trade with the world’s poorest countries remains pitifully low and largely stagnant.
Developing countries account for one-seventh of the world’s population, but only one-fortieth of EU imports. The scope for growth is immense, and expanding trade is a win-win tool that will benefit developed and developing countries alike, as the more the poorest countries can export to the bloc, the more these countries will buy from the European Union. Up until now, EU trade policy has not focused enough on international development, and the bloc's development policy has lacked a focus on trade. The EU has taken welcome steps to remove barriers facing poor countries’ exports, but much remains to be done.
With a new EU trade commissioner due to take office on Nov. 1 — most likely current Home Affairs Commissioner Cecilia Malmström after her confirmation hearing this week — there's a new opportunity for the European Union to recognize that trade policy is not just about promoting the EU’s direct commercial interests — it can also be a key tool to stimulate economic growth in the developing world.
About the authors
Peter Lilley
Peter Lilley is co-chair of Trade Out of Poverty and current British MP. Before being elected to Parliament in 1983, Lilley worked as an economic consultant focused on aid and development programs in Africa and Asia, and chaired the U.K. Conservative Party’s Global Poverty Policy Commission advised by Bob Geldof. He is also a former secretary of state for Trade and Industry.
Yurendra Basnett
Yurendra Basnett is a development economist specializing in trade and development policies and advising governments, U.N. agencies and donors on aid for trade, WTO negotiations and regional trade agreements. He has worked in Uganda, South Sudan, Sudan, Namibia, Nepal, Vanuatu, Samoa and the Solomon Islands.
