DEVELOPING countries will be thrown deeper into poverty by the extreme capitalist TTIP trade deal between the US and EU, the Fairtrade Foundation said yesterday.

The hugely controversial Transatlantic Trade and Investment Partnership (TTIP) is feared to cut exports from developing countries, who have been shut out of the secret talks at which the pact is being thrashed out.

World leaders including Prime Minister David Cameron are also set to adopt United Nations sustainable development goals (SDGs) later this month, which aim to end global poverty and reduce inequality.

But the foundation argued that trade policies such as a reform of the EU sugar market would jeopardise the livelihoods of hundreds of thousands of sugar cane farmers in poor countries.

“Trade is a powerful way to lift poor countries out of poverty,” said Fairtrade Foundation chief executive Michael Gidney.

“The UK government must make sure its rhetoric on sustainable development is backed by its trade policy.

The reforms would remove a cap on EU production of sugar beet which, it is argued, will push 200,000 people in African, Caribbean and Pacific countries into poverty by 2020.

Lifting the cap would mean that small-scale sugar cane farmers would be unable to compete with European sugar beet farmers, who receive subsidies under the EU’s common agricultural policy.

Research by the Fairtrade Foundation revealed that Mozambique and Swaziland alone stand to lose out by more than $40 million (£26m) as their producers are exposed to the world market, hitting their incomes.

While Britain is among the biggest foreign aid donors, Mr Gidney said: “We need the poor to come first and the SDGs are a unique opportunity to initiate fairer, more sustainable trade.

“Otherwise it’s a case of giving aid with one hand and taking away through trade rules with the other.”

The foundation urged the government to ensure that the SDGs are “pro-poor” and drive fair and sustainable trade and called for a joined-up approach across departments to reduce poverty through trade.