INDIAN INITIATIVE ON GSTP MINISTERIAL MEETING WELCOMED

Jul 77, 1985

INDIAN INITIATIVE ON GSTP MINISTERIAL MEETING WELCOMED

A formal Indian announcement, and the issuance of invitations, are yet to take place, and are to come out of New Delhi.-

But according to Group 77 sources here, the Indian government has decided on this step, and this information has been informally conveyed to other Group of 77 countries who are participating in the GSTP negotiations.-

The formal announcements are expected over the next week or so, Group 77 sources here said.-

The GSTP is a major plank in south-south cooperation in the Group’s Arusha programme for collective self-reliance (1979) and the Caracas Programme of Action on Economic Cooperation among Development Countries (ECDC), 1981.-

Some 70 country-members of the group have so far notified their intention to participate in the negotiations. Others would be free to notify and join the negotiations when it gets under way, as per the 1982 Ministerial declaration of the Group of 77 Foreign Ministers in launching the GSTP negotiations.-

Invitations for the New Delhi meeting are expected to get out to these 70 countries.-

But it is hoped that the convening of the meeting itself would act as an incentive to others to decide to participate in the negotiations and send in their notifications, and attend the New Delhi meeting.

The GSP Negotiating Committee of the G-77 have now agreed on some of the principles, modalities, and mechanisms of the negotiations, with a time-table for some preliminary steps, so as to begin bilateral and plurilateral exchange of concessions as of December 1, 1985.-

The GSTP itself is to be established in various stages, with negotiations at each stage of deepen and widen the mutual Third World trade, through tariff and non- tariff concessions, long-term trade agreements, and other steps.

The New Delhi meeting is aimed at giving the necessary political push to the negotiations, whose preliminaries have so far been handled at the level of experts and senior officials from the capitals.-

By now involving directly trade Ministers and securing their political commitments, it is hoped to accelerate the process of negotiations in the current first stage, and ensure the establishment of the GSTP within a year or so.-

The agenda for the New Delhi meeting is the GSTP issue, though it is envisaged that the Trade Ministers would be able to use the opportunity to discuss other trade matters of mutual interest.-

Apart from the direct issues of the GSTP negotiations, ancillary issues of trade finance, including perhaps linking of the various regional payments arrangements, and other steps to promote broader south--south ECDC measures could thus also figure in the New Delhi meeting.

The Ministers are also expected to use the opportunity for an exchange of views on north-south trade issues, and the increasing discriminatory protectionist measures against the Third World in the markets of the industrial countries.

Several Third World delegations here noted that in the current state of deadlock and impasse in the north-south dialogue, and in the context of the pervading economic crisis in the Third World, the New Delhi meeting would be an important political event of l985.-

It would show the Third World determination to undertake self-help and collective self-reliance to promote third World development, Group of 77 sources said.-