AID FOR TRADE REPORT AGREED BY EUROPEAN PARLIAMENT

At the May session of the European Parliament in Strasbourg my fellow MEPs voted overwhelmingly in favour of my 'Aid for Trade' Report that calls for European Union (EU) Member States to make sure that the developing countries have the capacity to engage with, and benefit from, the global economy. In an effort to reduce poverty and provide decent work in developing countries the EU has taken the lead on aid for trade. It is now vital that the 2 billion in aid for trade agreed by Member States at the Gleneagles Summit, in Scotland, and at Hong Kong in 2005 is delivered by 2010. The member States are the key to hitting this target and I am pleased to say that the UK Labour Government is taking the lead in creating the necessary pressure. The UK has already committed an annual £100 million in aid for trade by 2010. Aid for trade must be focused on the eventual eradication of poverty. This means empowering businesses in developing countries, especially those engaged in fair trade. However, a fairer more open trading system is not enough. Despite significant increases in market access, the least developed countries share of world trade has halved over the last forty years. Aid for trade is needed to create the right conditions and infrastructure to kick-start economic growth. But it is hugely important that developing countries remain firmly in charge of how the aid for trade money is best spent. Aid for trade money should be demand-led and country owned. How it is used must be up to developing countries - if they want to focus efforts on upgrading a port or vital road link, or if they decide to implement a new customs procedure to speed up exports, the finance must be there to fit in with their own national development plans.† I believe that there is also a direct link between the speedy delivery of aid for trade and viable EPAs.

ECONOMIC PARTNERSHIP AGREEMENTS (EPAs) SHOULD BE LESS ONEROUS

European MPs have called on the European Commission to make the conditions for Economic Partnerships Agreements (EPAs) less onerous for the 79 African Caribbean and Pacific (ACP) countries with which it is negotiating. The Commission is currently negotiating EPAs with the ACP countries to bring its trading agreement with these former colonies into line with World Trade Organisation (WTO) rules by 1 January 2008. EPAs are controversial as they replace the current system ñ that whereby this group of former colonies benefit from one-way preferential access for their goods to be sold in the European market - under EPAs a reciprocal system will be introduced where the ACP countries will now also have to lower their customs tariffs and open their markets to EU goods. As with all bilateral agreements there is a risk that the stronger players will use the deal to strong-arm the weaker into ceding ground in key areas. The European Parliament has asked for duty-free, quota-free market access for ACP countries and have also demanded that bilateral negotiations on trade in services must abstain from pressuring ACP countries into offering liberalisation of basic public services. Furthermore agreements must include specific provision on core labour standards and, in an amendment sponsored by myself, it is required that there should be greater parliamentary scrutiny of the whole process.

SOCIALIST GROUP VICTORY FOR CONSUMERS OVER MOBILE PHONE CHARGES

Two years of hard work by the Socialist Group has led to a vote to end excessive charges for using mobile phones when on holiday or when travelling in Europe. The new legislation is going to halve the price of calls for using your mobile phone throughout the EU. In addition the legislation will require phone companies to keep their customers up-to-date with 'roaming charges' via text messages. The deal on roaming charges will introduce a new 'European Consumer Tariff' that automatically caps the cost of making a call at around 39p per minute, including VAT, for this year and falling further over the next two years. I believe that this achievement shows how concerted political activity at the European level can produce a good deal to meet consumer needs.

PARLIAMENT CREATES CLIMATE CHANGE COMMITTEE

Following majority support for the Socialist Group proposal, the European Parliament is to set up a Temporary Committee on Climate Change and I am delighted to have been appointed a member of that committee. Climate change is becoming a key issue of the EU and the Parliament with the Socialist Group calling for a worldwide alliance of parliaments to promote action on climate change. I will be looking specifically at the connection between trade and climate change. Climate change demands global solutions and the EU must make progress on a unilateral, bilateral and multilateral level. I also place importance on trade related ethical issues and will argue to have these included in the report which will be compiled by the Climate Change Committee.

NEGATIVE CONSEQUENCES OF THE EU BIOFUEL TARGETS

The EU has recently set a target to use 10% biofuels by 2020. Whilst this appears like a positive idea, on closer examination certain ethical concerns arise. Indonesia and Malaysia, in order to met the EU demand for biofuel, are logging vast amounts of high conservation rainforests to plant oil palms, the result of which is the loss of natural habitat for native wildlife such as the orang-utan. In addition, peat land is being burnt to make space for oil palms. This releases huge amounts of CO2 and in fact Indonesia is globally the third largest producer of CO2 emissions. This, and many other issues, I hope will be carefully considered by the Temporary Committee on Climate Change.

DEBATE ON PALESTINIAN GOVERNMENT OF NATIONAL UNITY

The European Parliament in Strasbourg has debated the humanitarian crisis in Palestine. The decision not to reinstate direct aid to the Palestinian Authority since the formation of the Government of National Unity (of which Hamas is a part) is having a dire effect on the Palestinian people who are suffering real hardship. The European Union does not recognise the new government and are unwilling to work with Hamas Ministers. I believe that the platform of the unity government is one that could form a basis for negotiations. During the debate I asked the European Commissioner for External Affairs to do everything in her power to get the EU Member Statesí Foreign Ministers to recognise the Palestinian Authorityís Government of National Unity and resume direct aid to alleviate the suffering of the people.

WORLD AIDS DAY CALL FOR AN VACCINE

On 18 May, World AIDS Day, I joined with my colleagues in the Socialist Group to urgently demand the allocation of sufficient funds and regulatory systems for AIDS vaccine research. At present the HIV virus affects 40 million people worldwide - over 95% of these are in the developing world. In order to be able to offer help to HIV sufferers the EU, and its 27 member States, need to increase financing for health. Current financing only meets 36% of that amount needed to meet the health requirements laid down by the Millennium Development Goals. I believe the EU should work hard to find an effective AIDS vaccine for vulnerable women and girls who are often subject to forced or unprotected sex, particularly in conflict zones. The Socialist group in the European Parliament are committed to ensuring more money is allocated to finding an AIDS vaccine.

MORE EFFORT NEEDED TO PROMOTE DECENT WORK FOR ALL

MEPs have given strong backing to an Employment and Social Affairs Committee report, which seeks to promote decent work for everyone both inside and outside the EU. The report urges Member States and candidate countries to ratify and fully implement the relevant conventions of the International Labour Organisation (ILO) and calls for a decent work development programme and minimum wages. Trade preferences with countries 'which seriously and systematically breach fundamental social rights' should be temporarily suspended. To improve working conditions within the EU we have called for broader access to lifelong learning, greater harmonisation of pension schemes and minimum wages ìas a safety-net to prevent people from being exploited.

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