News Release

June 26, 2002

To Help the World's Poor, G-8 Should Focus on Trade

KANANASKIS, Alberta -- Over the next two days leaders from the United States, Britain, Canada, France, Germany, Italy, Japan and Russia are meeting in Canada for their annual G-8 Summit. Topping their agenda this year are the issues of the world economy and African development aid. Brink Lindsey and Daniel Griswold, director and associate director, respectively, at the Cato Institute's Center for Trade Policy Studies, had these comments:

Brink Lindsey: "If the G-8 is serious about reducing global wealth disparities, particularly for Africa, members should start by focusing on their own hypocritical protectionist policies. Rich-country trade barriers cost poor countries an estimated $100 billion a year, or twice the total annual sum of foreign aid worldwide. Total rich-country farm subsidies are over $300 billion a year, or six times the total sum of annual foreign aid worldwide. At the same time that they are lamenting the plight of third world countries and pledging superficial aid packages, rich countries are essentially cutting off the most important lifeline for poor countries -- trade. Opening up their borders to products from poor countries is the most effective way for the G-8 to help nations pull themselves from the mire of poverty."

Daniel Griswold: "President Bush should use the G-8 summit in Canada to reaffirm his commitment to more open markets at home and abroad. As the Cato Institute's just-released Economic Freedom of the World 2002 report confirms, economic liberty and free trade lead to faster growth and higher incomes. The summit offers President Bush an opportunity to reassert U.S. leadership and to begin to repair the damage done by U.S. steel tariffs and farm subsidies. We cannot create a more secure and stable world without expanding trade and development, and that cannot be achieved without U.S. leadership."

"Economic Freedom of the World 2002 Annual Report"