Oct 3, 1985

INFORMAL CONSULTATIONS IN GATT.

GENEVA, OCTOBER 1 (IFDA/CHAKRAVARTHI RAGHAVAN)— Informal consultations were under way Tuesday evening to find a consensus on a possible outcome for the special session of the GATT Contracting Parties.-

The chairman of the GATT CPs, Felipe Jaramillo of Colombia, suggested that the outcome could be in the form of a chairman's summing-up that would obtain a consensus among the CPs.-

The U.S. had earlier informally circulated a four-point proposal on the possible outcome stating:

-- The preparatory process leading to a new round has been initiated,

-- The process will be continuously pursued by a high-level of group of officials,

-- The senior officials would report to a resumed special session of CPs on November 29, and

-- The resumed special session will establish a Preparatory Committee to prepare the basis for launching a new round, not later than April 1986.-

According to some participants at the informal consultations of Jaramillo, several of the delegates requested the chairman to put down his ideas for summing up on paper, so that they could see how far it differed from the U.S. paper, to enable them to consider a possible consensus outcome.-

Delegates said that informal consultations were expected to continue throughout Wednesday, though the target still was to wind up the CPs special session on that day.-

Meanwhile at a press conference Tuesday evening, Indian delegate, Prem Kumar, said that since GATT competence did not extend to services, the "high-level body" to be created by the CPs could not be endowed with competence higher than that of GATT or its CPs.-

This meant, he said, that they could not deal with the trade in services issue either.-

India, he said, was not opposed to any international discussion or consideration of various aspects of services issues, provided it was done in "a neutral forum".-

If as a result of such consideration, it was felt that some aspects would have to be covered through a new agreement, or an amendment of GATT, it could be done, but only through a plenipotentiary conference or by unanimous agreement of GATT CPs.-

While the final outcome of the meeting of the-CPs was not clear, it seemed likely that a high level body to carry on the work would be set up, "with a wording that would not raise jurisdictional issues", he suggested.-

As far as GATT was concerned, he noted, that there were arrangements for discussion on "services", as a result of the 1982 GATT work programme, and the 1984 CPs session decisions, and this too could go forward in parallel.-

Other GATT delegation sources said that if any high-level body was set up, it could not deal with the issue of services, until the regular session of the CPs this november, when it was due to take a decision whether multilateral action was "desirable or appropriate".-

Perhaps till then a way would be found to duck the issue, and avoid a legal confrontation, one GATT delegate suggested.-

At a meeting of the informal Third World group later in the evening, members supported the idea of a high-level official group to continue consideration of the issues arising out of the CPs session, "but on an exploratory, rather than a preparatory basis for a new round", participants said.-

The meeting also supported the view that the mandate for the high-level group should be clearly laid down, and not left vague. Several of the participants also made clear that the mandate could not go beyond the competence of GATT.-

Such a high-level group, the meeting also felt, should report to the next regular session of the CPs, and not to any special session.-

The informal Third World group also agreed that as a pre-requisite to all this, at the CPs session, all Contracting Parties must "recommit themselves without reservation or qualifications to GATT’s principles and rules".-