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Publication of global commodities: A long term vision for stable, secure and sustainable global markets

HM TREASURY News Release (PN 59/08) issued by The Government News Network on 12 June 2008

Ahead of the G8 Finance Ministers meeting in Japan this week, the Treasury is today publishing an analysis of the trend and drivers in the commodity markets that have led to recent price increases: "Global Commodities: long-term vision for stable, secure and sustainable global markets".

A copy of the document can be found on the Treasury's website at http://www.hm-treasury.gov.uk/documents/international_issues/global_challenges/int_global_commodities.cfm

Notes for Editors

1. The document, Global Commodities, as well as analysing the trends and drivers behind recent price increases, also analyses the international impacts of volatility in the commodity markets, and sets out the United Kingdom's vision for how the international community can work together to ensure efficient and effective global commodity markets that are such a critical foundation of economic growth and fairness and prosperity for all our citizens.

2. The document sets out a framework of six key principles which the United Kingdom propose should guide policy on international, regional and national levels, and in the short, medium and long term:

* Economic stability - anchoring inflation expectations and delivering sustainable economic growth thorough sound macroeconomic policies and well-targeted assistance from the International Financial Institutions;

* Openness - allowing markets to function effectively, removing tariff barriers and export subsidies and restrictions, promoting structural reform and allowing all countries to trade;

* Cooperation - reform to the shape and role of the international commodity, trade and financial institutions, greater transparency and a radically different level of dialogue between producers and consumers;

* Innovation and investment - stimulating the supply side growth through greater expenditure on research and technology;

* Fairness - working nationally and through international institutions to ensure that the poor and those hardest hit by higher and more volatile commodity prices receive affordable access to the basic commodities they require; and

* Climate change - recognising that no approach to commodities will succeed that does not consider the impact on climate change, including the need for an international agreement to limit greenhouse gas emissions, and the need to ensure that growth and development are climate resilient.

Non-media enquiries should be addressed to the Treasury Correspondence and Enquiry Unit on 020 7270 4558 or by e-mail to public.enquiries@hm-treasury.gov.uk

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