Nov 13, 1985

GROUP 77 SEEKS STANDSTILL AND ROLLBACK ON RBPS.

GENEVA, NOVEMBER 11 (IFDA/CHAKRAVARTHI RAGHAVAN)— A standstill and rollback in use of Restrictive Business Practices (RBPs) in international trade transactions has been sought by the Group of Seventy-seven.-

The call for standstill and rollback is among the points contained in a draft declaration that the Group of 77 has suggested for adoption by the UN Review Conference on principles and rules for control of RBPs.-

The Conference, now in its second and final week, is reviewing all aspects of the implementation of "the set" (the set of multilaterally agreed equitable principles and rules for the control of RBPs) and proposals for the improvement and further development of the set.-

The Group of 77 has suggested that the Review Conference should forward the declaration to the UN General Assembly for adoption at its current fortieth session.-

The proposed declaration recommends that industrial countries should ensure a standstill and rollback on use of RBPs in international trade transactions, especially those affecting imports from the Third World countries, and repeal legislative or administrative measures that permit or encourage the use of such practices.-

The declaration would have the Review Conference agree that, despite the adoption of the set in l980, the objective of eliminating or effectively dealing with RBPs, including those used by TNCs, has not been attained, and there has been continued and intensified use of RBPs in international trade transactions, including by TNCs.-

Also, RBPs have been increasingly used, directly or indirectly, by some industrial countries as an instrument of protectionism and tocircumvent obligations to liberalise trade.-

In calling upon states to intensify their efforts to implement the set, the declaration would also recommend that states should make publicly available details of all RBPs affecting international trade transactions.-

Towards this end, they should establish or strengthen their notification procedures regarding use of such practices, and establish within UNCTAD a registry of such information open to all member-states.-

A special committee on RBPs should be established within the framework of UNCTAD to perform the function of monitoring the application and implementation of the set.-

When a state decides to undertake an investigation of an RBP that is likely to have adverse effects on international trade, and has implications for the laws, policies or national interests of another state, it should promptly notify such state of the investigations with a view to entering into consultations.-

Also, at each session of the special committee multilateral consultations, on a formal and informal basis, should be held for exchange of experience and views on policy issues relating. to control of RBPs in international transactions.-

At the international level, there should be continued work directed to establishing a legally binding instrument for the control and elimination of RBPs.-

The declaration also calls for a further session of the Conference to be held in 1990 to review all aspects of the set.-