Europe and the US must remove trade barriers and spread best practice if the poorest nations of the world are to reap the full benefits of globalisation, peers say today.

Following a 16-month inquiry, the House of Lords economic affairs committee says that globalisation is having a positive effect - but warns that rich nations must become less protectionist in areas such as agriculture.

The committee notes that the "opportunities of globalisation outweigh the dangers" but warns "shameful levels of poverty in areas such as sub-Saharan Africa remain".

Whilst it says globalisation is not to blame for the extreme poverty in these areas, the committee concludes it could be used as a force to rid the world of its blight.

Lord Peston, the chairman of the inquiry, said "We are optimistic, but not complacent. Globalisation has the potential to benefit everyone: but fairer distribution of these benefits cannot be achieved without far greater efforts to ensure the poorest countries are given the voice and tools to reap those benefits for themselves."

Whilst the committee says that the West should help the developing world to help itself, it warns trade barriers such as the common agriculture policy (CAP) remain an obstacle to true globalisation.

The report calls for the EU and the US to "to bring an end to the wholly objectionable and unjustifiable protection by developed countries of their agricultural and textile markets".

It also urges the developed world to work with the poorest nations "to improve the balance of power between developed and developing countries in international financial institutions and the transparency of their decision-making".

In an interview with ePolitix.com, Lord Peston warns that the West is guilty of "hypocrisy" in its dealings with the developing world.

"Having told the poor countries, 'put your house in order, start to modernise, embrace the global world' they start to succeed and either we do terrible things like subsidising our agriculture and protecting it," he said.

"To use my favourite football analogy it would be as if some football team in the premier league really had improved its position and then Manchester United changed the rules and said you have got to score three goals to count one."

"We are still very unhappy about the double standards that the rich countries have and we strongly argue that it is our duty to do more about that," added the peer.

"The CAP is an absolute disgrace - compare CAP subsidies with how much aid we give, you just see the imbalance there. You'd be better off giving no aid and get rid of all the CAP subsidies."