Nov 29, 1984

THIRD WORLD OFFER OF SPECIFIC TRADE NEGOTIATIONS SEEN AS DEPARTURE FROM TRADITIONAL VIEW.

GENEVA, NOVEMBER 27 (IFDA/CHAKRAVARTHI RAGHAVAN) -- In putting forward their readiness to consider specific negotiations in GATT on trade in goods, if certain conditions were met, the Third World had departed from its traditional position, and this should be appreciated by all, the Brazilian delegate to GATT, Amb. Paulo Nogueira Batista underlined Tuesday.-

Hitherto, Batista said, the Third World had been merely insisting on special and differential treatment to them. But they had now gone forward in proposing specific negotiations of trade in goods, covering manufactured and semi-processed goods as well as agriculture and natural resource products and encompassing the totality of tariff and non-tariff barriers.-

Answering questions at a press conference, Batista made clear that the "specific trade negotiations" proposed by the group of Third World countries, in the declaration submitted to the Contracting Parties on their behalf by India, was "something quite different from the new round of trade negotiations you are hearing about".-

The new round was advocated to cover the traditional areas of GATT competence as well as new areas like services, on which the stage was yet to be reached for considering whether there was need for any international regulations and rules, and if so on what basis or principles and where, Batista added.-

The GATT Ministerial declaration, he said, had set down three stages for the consideration of the services issue, and they were still in the first stage of preparation of national studies by Contracting Parties and for the exchange of such studies among themselves.-

So far only nine Industrial countries had submitted their studies, and many of these had come only in October and "we have not even had time to look at it".-

"Many of us in the developing world are still in the stage of preparing our studies. Even studies by countries like the U.S. and Japan suggested that they would be making revisions and additions".-

When all the studies were completed, there could be some exchange of views on the basis of the studies, but without any decision.-

The Ministerial declaration had called, at the third stage and after completion of the first two, for the GATT Contracting Parties to review the results of these examinations, and consider "whether any multilateral action in these matters is appropriate and desirable".-

It was only in the light of this determination that the question whether there should be any negotiations, and if so where and under what circumstances could be considered, Batista said.-

This was not only the view of the Third World countries, but also that of several Industrial countries who felt there was need for a great deal of caution on this issue.-

"This is not a north-south issue even though some developing countries appear to be in the forefront of the need for proceeding with caution. Many Industrial countries too acknowledge the need for great caution", Batista said.-

Speaking for Brazil that was why they had not even agreed to discuss or negotiate on the services issue even in UNCTAD, he noted.-

In the informal negotiations so far in GATT on the work programme, Batista said the Third World had been willing to consider a mechanism for continuing the exchange of information among CPs, for the GATT secretariat to provide the normal conference and other facilities, and for an exchange of views among CPs without any decisions through such a mechanism.-

The U.S. proposals, he explained, however went very much beyond it, and beyond even what the GATT Ministers had been able to agree.-

The great majority of the CPs were not prepared to agree to the U.S. proposal implying acceptance of GATT framework, and for injecting the GATT secretariat into the process, by asking it to put forward its own proposals on how the General Agreement would apply to the trade in services.-

This was the third step envisaged by the Ministers in which the CPs, and not the secretariat, were asked to take the responsibility of analysing and determining whether any international regulation and framework for services was appropriate, and if so whether any negotiations should take place, on what principles and rules, and where - in GATT or any other international organisation.-

"This is not a matter that can be left to the secretariat, and asking them to do so in such a contentious area would even harm the secretariat's integrity and independence".-

Even the U.S. was now understanding the need for caution before moving into any negotiations. Several of the service sectors in the U.S. were regulated by the various states, and it would take the federal government a long time to get the power to negotiate these internationally, Batista said.-

In explaining the Third World declaration on specific negotiations in trade in goods only, Batista said there was still a large unfinished agenda in the areas of traditional GATT competence.-

Under certain conditions, the Third World was willing to take the initiative in proposing and considering specific negotiations, under appropriate rules and modalities.-

But the issue of services was not so clear.-

Action in areas of agreed GATT competence and figuring on the work programme should not be held up for lack of faster movement in services.-

"It is not a constructive approach to establish such a linkage", Batista said.-

On counterfeit trade, the Third World position was that while they did not rule out some GATT involvement, work should first start in the World Intellectual Property Organisation (WIPO).-

Brazil, as member of WIPO, would be proposing it there and for work on a priority basis.-

Without exploring the possibilities in WIPO, some of the Industrial countries wish to negotiate a code on this in GATT, Batista complained.-

The Brazilian delegate, one of a key group of Third World negotiators, said he had not yet lost hope of reaching agreements on the work programme at the CPs session, and Third World countries would make every effort in this direction.-

Batista ruled out the idea of holding a special session of the CPs in May-June next year, after the western economic summit, as suggested by some western countries.-

Taking account of the progress so far in the work programme, there was no need for such a session in the short-run, Batista added.-