In progress at UNHQ

GA/EF/2703

UNCTAD AND WORLD TRADE ORGANIZATION CAN COMPLEMENT EACH OTHER IN TECHNICAL COOPERATION ACTIVITIES, SECOND COMMITTEE IS INFORMED

13 November 1995


Press Release
GA/EF/2703


UNCTAD AND WORLD TRADE ORGANIZATION CAN COMPLEMENT EACH OTHER IN TECHNICAL COOPERATION ACTIVITIES, SECOND COMMITTEE IS INFORMED

19951113 The United Nations Conference on Trade and Development (UNCTAD) and the World Trade Organization can work together and complement each other in technical cooperation activities to integrate developing countries and countries in transition into the international trading system, the new Secretary-General of UNCTAD told the Second Committee (Economic and Financial) this afternoon.

The Committee this afternoon began its consideration of trade and development, science and technology for development and implementation of the Programme of Action for the least developed countries for the 1990s, under the general heading of sustainable development and international economic cooperation.

Addressing the Committee for the first time since his appointment in September, UNCTAD Secretary-General Rubens Ricupero said that less than a week ago, he had met with the Director-General of the World Trade Organization and they had agreed on a set of initiatives to that end. Among others, he cited the agreement that there would be meetings of the two bodies, chaired jointly by the two heads every six months. The first of those meetings would take place in mid-January 1996.

Introducing the report of the Trade and Development Board, its President, William Rossier, reviewed the Board's discussions on the preparations for the ninth session of UNCTAD, which South Africa had offered to host from 27 April to 11 May 1996. The Board had recommended to the General Assembly the adoption of the dates and place for the convening of UNCTAD IX, he said.

Other introductory statements were made by Olubanke King-Akerele, Managing Director of the Country Strategy and Programme Development Division of the United Nations Industrial Development Organization (UNIDO), and by Kari Nordheim-Larsen, Minister of Development Cooperation of Norway and Chairman of the High-level Intergovernmental Meeting on the Mid-term Global Review of how the Programme of Action for the Least Developed Countries for the 1990s was being carried out.

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Also this afternoon, the representative of the Philippines, speaking on behalf of the "Group of 77" developing countries and China, urged full implementation of the Uruguay Round agreements and the commitments agreed upon in the Final Act. He rejected unilateral protectionist actions and application of arbitrary trade measures which sought to link with those actions and measures domestic standards on environment, labour laws, human rights and other social issues.

The representative of the Russian Federation called for the activities of the Commission on Science and Technology for Development to be updated. He stressed the importance of studying the conversion of military technology in projects that would involve several bodies, including the United Nations Development Programme (UNDP). He said that safety through technology in the context of man-made disasters should become an important goal of the Commission's activities.

Statements were also made by the representatives of Spain (on behalf of the European Union), Marshall Islands, Bangladesh, Mongolia and Uruguay (on behalf of MERCOSUR). A representative of the Food and Agriculture Organization (FAO) also spoke.

In addition, the Committee decided this afternoon to hold another meeting later this month to consider the item on least developed countries again as the documentation on the matter was not available today.

The Committee will continue its deliberations tomorrow, 14 November, in the morning, following the special meeting of the Economic and Social Council in memory of the former UNCTAD Secretary-General Kenneth Dadzie, who died last month.

Committee Work Programme

The Second Committee (Economic and Financial) met this afternoon to begin consideration of trade and development; science and technology for development; and implementation of the Programme of Action for the Least Developed Countries for the 1990s. Those matters are being taken up as sub-items under the general heading "sustainable development and international economic cooperation".

Reports before the Committee address needs and problems of land-locked developing countries; the drafting of an international code of conduct on the transfer of technology; economic measures as a means of political and economic coercion against developing countries; translation of commitments made at the Uruguay Round into concrete actions; United Nations support system for science and technology in Africa; and the High-level Intergovernmental Meeting on the Mid-term Global Review of the Implementation of the Programme of Action for the Least Developed Countries for the 1990s.

The Trade and Development Board of the United Nations Conference on Trade and Development (UNCTAD) will have four reports before the Committee (document A/50/15, volumes I to IV). They refer to the second part of the Board's forty-first session (vol.I); first part of its forty-second session (vol.II); resumed eighth executive session (vol.III); and tenth executive session (vol.IV). (Volumes II to IV are not yet available.)

The report of the Trade and Development Board on the second part of the forty-first session and first part of the forty-second session (volume I) provides information on preparations for the ninth session of UNCTAD (UNCTAD IX), to be held next year. The theme of UNCTAD IX will be "promoting growth and sustainable development in a globalizing and liberalizing world economy". Discussions will focus on meeting the challenge of maximizing the developmental impact of globalization and liberalization, while minimizing the risks of marginalization and instability. The Conference will address issues such as promoting international trade as an instrument for development in the post-Uruguay Round world and promoting enterprise development and competitiveness in developing countries and countries in transition.

The report also contains agreed conclusions by the UNCTAD Board on structural adjustment policies; on least developed countries; on UNCTAD's contribution to the implementation of the United Nations New Agenda for the Development of Africa in the 1990s; and on the terms of reference of the Commission on International Investment and Transnational Corporations.

Annex I to the report contains the final communique of the 18th meeting of the chairmen-coordinators of the chapters of the "Group of 77" developing countries. In that communique they stressed their belief in the relevant role of UNCTAD which has been confirmed by recent developments in the world economy

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and institutional change, including the creation of the World Trade Organization; they reinforce the need for a policy-oriented trade forum with strong development perspective such as UNCTAD. They reaffirm the strong commitment of the members of the Group of 77 to the strengthening of UNCTAD, including the provision of adequate resources, and look forward to UNCTAD IX as a further important step towards global development.

A note by the Secretary-General (document A/50/341) transmits an UNCTAD progress report on actions relating to the needs and problems of land-locked developing countries. It contains information on UNCTAD's activities relating to those countries, including the Second Meeting of Governmental Experts from Land-locked Developing Countries and Representatives of Donor Countries and Financial Development Institutions; and a symposium to address their regional problems in improving transit systems which took place from 14 to 16 June in New York.

The report stresses that although physical infrastructure development remains a priority concern for many of those countries, the removal of non- physical barriers to the smooth movement of transit cargoes is assuming significant importance in the formulation of relevant policies. Those relate largely to simplifying and harmonizing customs and administrative procedures in ports and along the transit corridors.

Interstate cooperation is considered essential for such operations to be efficient, says the report, with bilateral agreements the most common instruments for that cooperation. In addition, in Africa, regional agreements within the context of regional integration schemes such as the Economic Community of West African States (ECOWAS), have been a major vehicle for promoting cooperative arrangements. The need to ratify international conventions relating to transit has been recognized, but few countries in Africa, Asia and Latin America have become parties to them.

On the whole, says the report, the implementation of agreed regional standards and practices has been unsatisfactory because of the lack of adequate mechanisms to monitor and enforce the agreed rules and practices. The Northern Corridor Transit Agreement, which sets out the terms and conditions for the use of the transit corridor from Mombasa, Kenya, to the land-locked countries of Uganda, Rwanda and Burundi is, perhaps, the most successfully implemented agreement. It created a small secretariat which has been active in reviewing problems arising from its implementation and assisting Member States to resolve them.

Another UNCTAD report before the Committee (document A/50/486) addresses the negotiations on an international code of conduct on the transfer of technology and considers options regarding the future course of action in that regard.

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The UNCTAD Secretary-General expresses the view that the negotiations on the current draft code of conduct should be formally suspended. Alternatively, the Assembly may wish formally to close the discussion on the code of conduct by publicly disseminating to interested groups the outcome of the work so far achieved by the United Nations Conference on an International Code of Conduct on the Transfer of Technology. A round-table meeting of eminent persons, including policy-makers at the governmental, business and academic levels could be convened to undertake a detailed examination of recent developments so as to facilitate the achievement of a better understanding of the principles which should govern international cooperation in the area of technology today.

On the suggestion to suspend negotiations, the report recalls that the negotiations on that code were launched by the Assembly in the 1970s, and that "at that time, the international milieu was drastically different from that which exists today". The preamble, objectives and principles of the draft code reflect the concerns and motivations of different groups of countries which sought, among other measures, to remedy abusive or anti-competitive practices in transfer of technology agreements. Those motivations and concerns found specific expression in the structure and coverage of the draft code, the centre-piece of which was chapter 4, on restrictive practices.

Recent years have witnessed a growing recognition of other concerns, including the increasing emphasis in government policies on attracting foreign direct investment and promoting technology transfer. Laws governing intellectual property rights are considered a key element in the strategic thinking of enterprises and governments and an important means used by firms to safeguard their technological assets.

Those developments which have given rise to conceptual and policy shifts, are of unique relevance to the discussions on the draft code of conduct, the report states. That uniqueness arises from the effect of such developments on international technology transfer. In the new economic environment, the international community is called upon to identify new parameters for a healthy competition that would be valid for all parties in an integrated world market.

According to the report, it would be important to assess the implications of those developments for the international transfer of technology, particularly to developing countries, and to assess their possible effects on enterprises and intergovernmental cooperation in such transfer. The report also refers to the identification of possible rules and principles that might enhance the stability and predictability required for such cooperation.

The Secretary-General's report on economic measures as means of political and economic coercion against developing countries (document

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A/50/439) contains a summary of the responses of seven States -- Colombia, Cuba, Ecuador, Estonia, Iraq, Japan and Madagascar, as well as the Commission on Human Rights -- to General Assembly resolution 48/168 of 21 December 1993 on the subject. There were also comments by the Commission on Human Rights and the International Law Commission. The report reviews relevant actions on

the part of United Nations bodies and through other multilateral instruments, and a summary of discussions by a group of internationally recognized experts on the concept and implications of coercive economic measures.

The Government of Colombia, in its response, noted that it continues to support the relevant provisions of the Assembly resolution relating to the non-legitimacy of the imposition of coercive economic measures.

The Cuban Government said such measures were inconsistent with the objectives and principles of the Charter and that the blockade against it imposed by the United States for more than 35 years had caused a loss to Cuba of over $40 billion. It expresses concern that the United Nations Secretariat has still not identified specific activities within the medium-term plan and programme budget for the proper implementation of Assembly decisions on the matter.

Ecuador and Estonia believed that the use of the measures had no justification or legitimacy unless authorized by the competent organs of the United Nations. Iraq called upon countries to desist from enacting laws that threatened the economic security of third world countries. Japan said it had voted against the General Assembly resolution and believed that it was inappropriate to discuss economic sanctions in general because that distorted their meaning, making it appear that they were unilateral measures taken by developed against developing countries. Madagascar in its response provided information about negotiating with the International Monetary Fund (IMF) concerning access to the Fund's Enhanced Structural Adjustment Facility.

The Commission on Human Rights said unilateral coercive measures against developing countries contradicted international law and also hindered the full realization of human rights, including the right to development, by people subjected to those measures. The International Law Commission said that at its forty-sixth session last year, it had provisionally adopted a draft article on prohibited countermeasures within the context of its codification and progressive development of law of State responsibility.

According to the report, the Department for Economic and Social Information and Policy Analysis convened an expert group meeting on coercive economic measures which discussed conceptual and legal issues, the problems of impact assessment and institutional arrangements. On institutional issues, the meeting agreed that coercive economic measures merited increased attention by multilateral bodies, and that deliberations within the United Nations

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should be supported by analytical and monitoring capacities in the Secretariat. The analytical work should focus on the refinement of applicable norms and criteria, and on the methodology for impact assessment.

The monitoring function would require effective information-gathering and assessment methods, as well as effective cooperation and coordination among various United Nations intergovernmental bodies and units of the Secretariat, based on clearly defined mandates.

A note by the Secretary-General (document A/50/740) provides information on the implementation of resolution 49/99, which called for the translation into action of the commitments made at the Uruguay Round regarding the least developed countries and net food-importing countries. It provides information on measures taken by the intergovernmental machinery of UNCTAD in that regard, including the convening of an informal brainstorming meeting of experts to explore policy options at the national and international levels.

Given the informal character of the meeting, no report was issued on its proceedings. However, the ideas emanating from that meeting were taken into account by the UNCTAD secretariat in formulating recommendations to the first session of its Ad Hoc Working Group on Trading Opportunities in the New International Trading Context, held from 9 to 13 October. At its first session, the working group decided to seek an agreed conclusion on those matters at its final session scheduled to be held from 4 to 8 December.

The note adds that UNCTAD IX, which is to take place from 27 April to 11 May 1996 in Johannesburg, South Africa, will also consider proposals for translating into action the commitments made at the Marrakesh Ministerial Meeting at the conclusion of the Uruguay Round regarding the least developed countries and net food-importing countries.

Science and technology for development

The Committee also has before it two notes of the Secretary-General, (documents A/50/125 and A/50/125/Add.1), transmitting, respectively, a Joint Inspection Unit (JIU) report on United Nations system support for science and technology in Africa and comments by the Administrative Committee on Coordination (ACC) on the Unit's report.

That report says the support of organizations of the United Nations system for implementation of the 1979 Vienna Programme of Action on science and technology for development had not matched the expectations and needs of many developing countries. The anticipated significant international financial support for the programme had not materialized. The system's science and technology policies and programmes were hardly coordinated around strategic goals, the report further states. It adds that institutional and

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programme adjustments appeared inadequate and that there was no common operational science and technology framework.

The report also finds that some fundamental prerequisites -- political, economic and educational -- would need to be fulfilled to stimulate and expand science and technology development in Africa. And the United Nations system's excessive emphasis on projects as a vehicle for technology transfer had, by all accounts, been responsible for the visible lack of impact of the organizations' collective efforts in Africa.

The United Nations system should concentrate increasingly on a few strategic areas such as coordinated policy reform initiatives which currently seemed to be left almost entirely to the Bretton Woods institutions, the report suggests. It calls for the sharpening of the awareness of national counterpart departments about science and technology issues and the building of policy formulation and institutional capacities.

In addition, the report recommends the establishment of a few pilot science and technology institutions as might be determined within the context of the United Nations New Agenda for the Development of Africa. The pilot projects could be national or subregional in scope and could be built on existing institutions or "from scratch".

The ACC in its comments on the JIU report (document A/50/125/Add.1) states that it supports the general thrust of its conclusions and recommendations which it goes on to describe as fair and constructive. It also agrees that much could and should be done to improve the activities of the United Nations system. The ACC states, however, that the report contains a number of shortcomings which, to some extent, diminished its value.

Also before the Committee is a report of the Secretary-General on science and technology for development (document A/50/649) which responds to General Assembly resolution 48/179. That resolution, among others, requested full implementation of programme 17, the medium-term plan for the period 1992-1997, and the activities planned in that area for the period 1994-1995. An important component of the work under programme 17 was the activity of the Commission on Science and Technology for Development. The Economic and Social Council recommended at its substantive session of 1995 that the Commission should provide a forum for exchange of views and interaction among partners of different networks and coordination schemes.

At its second session in May 1995, the Science and Technology Commission decided to focus during the second inter-sessional period on information technologies and their implications for development. Activities under programme 17 would focus on issues and areas that might help to provide fresh

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insights into the consideration of science, technology and innovative policies.

Also before the Committee is a report of the Secretary-General on the Second Industrial Development Decade for Africa.

Trade and Development

A report of the Secretary-General on the implementation of the programme for the Second Industrial Development Decade for Africa (1993-2002) (document A/50/487), to be issued, reviews the key issues involved as well as cooperation, coordination and harmonization of activities undertaken by various continental and international organizations.

The report notes that Africa's achievements in industrialization had been modest, with some notable exceptions in recent years. While there had been some progress in industrial growth, it had been insufficient to achieve structural transformation, the report states. It says factors accounting for the weak industrial performance in Africa included a weak base of technological capabilities and institutions, and an uncompetitive local supply structure. The industrial sector was concentrated on few activities, and there was a lack of industrial linkages that could be the basis for dynamism. The smallness of the manufacturing subsector in Africa was accompanied by a concentration on food products, textiles and non-metallic substances.

The Second Industrial Development Decade in Africa, the report states, was based on national programmes and the problem of financial resource mobilization would be a continuing concern. The Industrial Development Board of the United Nations Industrial Development Organization (UNIDO), at its fourteenth session in June, requested the agency's Director-General to assist in the preparation of a programme for entrepreneurial training and development and to provide in-depth evaluation of the implementation of the decade's programme and activities.

The report says the implementation of the second decade remained the primary responsibility of member States and should be included in their respective national plans. It also calls for national follow-up committees and progress reports.

Introductory Remarks

WILLIAM ROSSIER (Switzerland), President of the Trade and Development Board, introduced the Board's report on the first part of its forty-second session, held in Geneva from 11 to 20 September. During that session, debates were dominated by the preparations for UNCTAD IX, which South Africa had

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offered to host. The Board welcomed the offer to hold the event there, from 27 April to 11 May 1996. The Board recommended to the Assembly the adoption of the dates and place for the convening of UNCTAD IX.

Reviewing other questions considered by the Board in the period under review, he said those related mainly to the interdependence of economies. Short-term economic difficulties facing developing countries were slowing the world economy, and in particular concerned instability in financial markets. The debates had highlighted the serious problem of unemployment in the world economy. A multifaceted approach to combat unemployment was required, the Board had agreed. There was a consensus that the use of protectionist measures would not help anything and instead would be detrimentral to the economic growth of all countries.

The UNCTAD was an organization critical to the future of the development process. UNCTAD IX would offer Member States the opportunity to give UNCTAD new orientations and impetus, to renovate its working mechanisms, to establish new forms of cooperation, particularly with the World Trade Organization.

RUBENS RICUPERO, Secretary-General of UNCTAD, said trade provided a superficial explanation for unemployment. The analysis by UNCTAD showed that the main reason for that phenomenon today was the much lower level of growth and investment in the industrialized world. Thus, in tackling unemployment the desirable approach should not be to interfere with trade but to raise the tempo of investment and growth.

Financial instability did not only have an adverse impact on real economic activity and the scope for macroeconomic policies in the developed countries but also on the performance of developing countries, he said. That was an issue the UNCTAD secretariat had raised consistently over the past few years. "Indeed, we had repeatedly warned that the surge of capital flows to Latin America in several cases consisted of massive, but one-off [or one time only], receipts from privatization and of liquid short-term capital attracted by high interest rates and real currency appreciation." Capital flows had resumed at more modest levels to several countries in Latin America. However, the fragility and volatility of those flows would continue to require careful monitoring by governments.

Regarding preparations for UNCTAD IX, he said the main theme of the Conference was grounded in the realization that the twin processes of globalization and liberalization offered great opportunities for development, and at the same time, they represented multifaceted challenges for the international community and particularly developing countries. A major task of UNCTAD IX would be to identify ways of maximizing the development impact of globalization amd liberalization, while minimizing the dangers of instability and marginalization.

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Referring to the role of UNCTAD in the field of trade since the creation of the World Trade Organization, Mr. Ricupero said the main functions of the World Trade Organization were to facilitate the implementation, administration and operation of the Uruguay Round agreements; to administer the system for the settlement of disputes that might arise in connection with the disciplines introduced by the agreements; and to provide a forum for negotiations of further multilateral rules in trade-related areas. For its part, UNCTAD could provide a universal forum where international trade policy could be analysed and discussed from a development perspective. Its strength was to view trade issues in their relationship with finance, technology, investment, services and sustainable development. The UNCTAD could therefore play a role in establishing the groundwork needed to prepare the negotiation of further international trade agreements.

The UNCTAD and World Trade Organization could work together and complement each other in technical cooperation activities aimed at integrating developing countries and countries in transition into the international trading system, he said. Action had already been taken to begin to make that complementarity a reality. Less than a week ago, he had met with the Director-General of the World Trade Organization and they had agreed on a set of initiatives, among them that there would be meetings of the two bodies, chaired jointly by the two heads every six months. The first of those meetings would take place in mid-January 1996, and it would be oriented towards the themes of UNCTAD IX: economic globalization, liberalization and developing countries.

Another initiative agreed upon at that meeting was that the working relationship at all levels between the two organizations would be strengthened in areas such as research, trade and investment, trade and competition, trade and environment and trade and development. Also, they had decided to work together for a greater complementarity in technical cooperation among the World Trade Organization, UNCTAD and other organizations including the Bretton Woods institutions. They were in complete agreement that high priority must be given to Africa in their cooperation. There was an increasingly recognized delineation of functions between UNCTAD and the World Trade Organization and their member governments to map out the responsibility of each institution in furthering the international trade agenda, he concluded.

OLUBANKE KING-AKERELE, Managing Director of the Country Strategy and Programme Development Division of UNIDO, introducing the report on the Second Industrial Development Decade for Africa, said that while having goals similar to the first Decade, the second Decade was based on a strategic approach whereby each member country was involved in preparation of its national programme through realistic industrial programmes. The objectives of the second Decade included enabling African countries to remove the

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deficiences impeding structural transformation, as well as growth of their industrial sectors, with special focus on agro-industries and the local manufacture of transportation and telecommunication equipment.

Another objective of the Decade was to contribute to the creation of necessary conditions, including fostering of the environment and making possible intersectoral linkages -- between industry and agriculture, and industry and transport and communications -- to help establish a solid base for the accelerated self-reliant, self-sustaining industrialization of Africa.

She said a meeting on cooperation between the Organization of African Unity (OAU) and the United Nations system, held in Addis Ababa on 9 November, had adopted recommendations urging the organizations of the United Nations system to identify their assistance to African countries and organizations in the implementation of the programme for the Second Industrial Development Decade for Africa. Organizations of the system, including the World Trade Organization, were requested to cooperate with the joint OAU/Economic Commission for Africa (ECA)/UNIDO Committee in studying the implications of the Uruguay Round multilateral trade negotiations on African industry. The meeting also called on United Nations agencies to assist OAU in strengthening its industry division.

In addition, she continued, the meeting selected UNIDO as one of the lead agencies, along with the OAU, ECA, UNCTAD and the World Trade Organization, to organize seminars on details of the Uruguay Round for the benefit of the African business community, chambers of commerce, manufacturers' associations and senior trade officials. The UNIDO was also requested to cooperate with the OAU in the organization of an investors' forum during the Seventh All-African Trade Fair scheduled to take place in Lagos, in November 1996.

KARI NORDHEIM-LARSEN, Minister of Development Cooperation of Norway and Chairman of the High-level Intergovernmental Meeting on the Mid-term Global Review of the Implementation of the Programme of Action for the Least Developed Countries for the 1990s, introduced the report of the meeting which ended on 6 October at Headquarters. She said the meeting adopted a declaration and a document in two parts -- assessment of progress in the implementation of the Programme of Action since 1990 and a part containing recommendations to ensure that the Programme of Action was more effectively implemented throughout the remaining part of the Decade. The Programme of Action was adopted at the Second United Nations Conference on Least Developed Countries which took place in Paris in 1990.

In the declaration, she said, participants at the New York meeting reaffirmed their commitment to work cooperatively towards achieving the prime objective of the Programme of Action which was to arrest the further deterioration in the socio-economic situation of the least developed countries

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and to set them on the path of economic growth and sustainable development based on shared responsibility and strengthened partnership.

The meeting noted that the ongoing processes of economic globalization and liberalization were likely to have profound consequences for the future development of the least developed countries. The major challenges facing those countries in the second half of the 1990s, she went on to say, were to reverse the decline in economic and social conditions, promote sustainable economic growth, development and structural transformation and to avoid becoming further marginalized in the international economy. Broad guidelines were adopted to enable least developed countries to improve productivity and living standards. They included promotion of life-long learning, improvement in the health status of their population and strengthening the status of women.

She said one of the important elements of the agreement reached at the meeting was the commitment of the international community to assist least developed countries, both financially and technically, to fully and expeditiously implement the special and differential measures agreed to in the Final Act of the Uruguay Round of multilateral trade negotiations. The meeting also took note of the interests of the least developed countries with regard to setting up a safety-net to help those countries cope with any adverse effects resulting from the implementation of the Uruguay Round agreements.

The international community had an obligation to meet the challenge of the full implementation of the meeting's proposals, as well as the recommendations relating to least developed countries adopted by the major global conferences. She went on to announce that Norway intended to host a working group meeting in Oslo next year on the "20/20" initiative of the Social Summit in Copenhagen to make the initiative more specific and operational. [The 20/20 initiative is based on the idea of allocating 20 per cent of official development assistance (ODA) and 20 per cent of national budgets to basic social programmes.]

ENRIQUE A. MANALO (Philippines), speaking on behalf of the "Group of 77" developing countries and China, urged all States to assert the requisite political will to ensure an open, rule-based, equitable, secure, non- discriminatory and predictable multilateral trading system. They reiterated the need for the full implementation of the Uruguay Round agreements and for all Member States, especially the developed country partners, to implement fully the commitments agreed upon in the Final Act. They also said African countries needed assistance to enable them to identify measures to enhance their competitiveness and access to the developed countries' markets.

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The Group and China rejected unilateral actions of a protectionist nature, as well as measures in the form of new concepts seeking to apply domestic standards for the environment, labour laws, human rights and other social issues, by applying arbitrary trade measures and bilateral pressures against developing countries. They also urged the international community to adopt urgent measures to eliminate the use by some developed countries of unilateral economic coercive measures against developing countries that were not authorized by relevant organs of the United Nations or were inconsistent with the principles of the Charter.

He said the Group and China considered the ninth session of UNCTAD to be held next year in South Africa as the major intergovernmental economic and development event of 1996 within the United Nations, with the potential to further deepen the commitments reached in Cartagena and, more important, to advance the development dialogue by adopting action-oriented measures and decisions. The Group and China welcomed the recent appointment of the Secretary-General of UNCTAD which it described as a positive step towards strengthening that organization.

They also urged priority action to help the least developed countries, including the immediate fulfilment of the ODA target of 0.15 per cent of donor countries' gross national product (GNP) and the establishment of a safety net to enable least developed countries to cope with possible adverse effects of the Uruguay Round multilateral trade agreements. They also stressed the importance to developing countries of access to science and technology and called for their participation in and benefit from the rapid advances in those areas.

SANTIAGO GOMEZ-ACEBO (Spain) said the high-level meeting on the least developed countries had resulted in recommendations which, if implemented, would make a difference in their situations. While differences existed among those countries, there were signs of improvements in the economic growth rates of those countries as a whole. Still, little progress had been accomplished in overcoming many of the deep-rooted structural deficiencies and the problems relating to institutional and human resource development. Special support should continue to be given to the least developed countries, the majority of which were in Africa, in their efforts to attain sustainable development which would facilitate their integration into the international economy and allow them to benefit fully from the liberalization of trade and the increase in international flows of private resources.

While some encouraging signs in democratization had been registered in many least developed countries, civil strife and political instability in some of those countries had often impaired their development and given rise to emergency situations accompanied by human tragedies, he continued. Natural disaster had further wrought havoc in some economies. Political stability in least developed countries, the establishment of democratic systems, the

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promotion and respect for human rights and fundamental freedoms and transparency and accountability of public administration were a prerequisite for sustainable development. Participation by all sectors of society with special attention to greater participation by women in accordance with the Beijing Platform for Action was also essential.

Implementation of the recommendations in the Copenhagen Programme of Action, such as the elaboration of the 20/20 initiative by interested developed and developing countries should contribute to the achievement of a gradual reduction of poverty. Seen in the context of the follow-up activities to the Beijing Platform, emphasis should be given to the eradication of women's poverty. In addition, provision of means to ensure women's human rights was an important issue which needed specific follow-up activities.

YURIY N. ISAKOV (Russian Federation) said that despite the problems of transition his country had taken several measures to liberalize trade. His Government regarded its participation in the World Trade Organization as important to its participation in the international economy. Despite the positive trends in world trade development, he expressed concern over remaining protectionist measures targeted to countries in transition. His Government did not seek special benefits in trade, it just wanted to be treated on an equal basis. It was engaged in talks with several countries but not much had resulted from those trade talks.

He said the establishment of the World Trade Organization should not lead to the weakening of United Nations bodies, particularly UNCTAD. He welcomed the agreement reached on 9 November between the Secretary-General of UNCTAD and the Director-General of the World Trade Organization on coordination of actions between the two organizations. He supported measures taken in that regard as mentioned today by Mr. Ricupero to the Committee. Technical assistance provided by UNCTAD was highly valued by the Russian Federation. The UNCTAD was a unique forum for raising multisectoral issues in multilateral trade. He supported the theme of UNCTAD IX, defining the optimum ways of using the process of globalization and liberalization while reducing to a minimum the dangers of destabilization.

As to the Commission on Science and Technology for Development he said its activities must be updated. He stressed the importance of studying the conversion of military technology in projects that would involve several bodies, including the United Nations Development Programme (UNDP). He stressed the importance of safety through technology in the context of man-made disasters, which should become an important goal of the Commission's activities.

ESPEN RONNEBERG (Marshall Islands) said the Commission on Science and Technology for Development had yet to become involved in the practical evaluation of technologies that were either available to developing countries

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or might make a difference if they were made available. That was a clear and integral part of the Commission's mandate. There was a need for the Commission to foster cooperation, as well as to be a facilitator for making those contacts possible.

He said the Commission must be given more specific tasks on what it should be looking into as a functional commission of the Economic and Social Council. Instructions must be clear and unequivocal. His delegation would do its utmost to ensure that in the future it would have such instructions for the Commission. "We would want to be in a position as a national delegation to pose specific questions of a scientific and technical nature and to receive replies that are more than theoretical think-tank responses." In that way, the international community would have "a Commission which does exactly what its name entails".

REAZ RAHMAN (Bangladesh) said the least developed countries believed that they would have achieved more if their needs had been matched by external support measures by the international community. As a group, they had largely been unable to achieve the objectives of the Programme of Action, and their overall socio-economic situation had continued to deteriorate. Referring to the Mid-term Global Review Meeting, he said they expected the development partners to undertake promptly initiatives to implement various provisions of the recommendations adopted.

He said the least developed countries were in the process of drawing up a draft resolution which they expected to present to the Second Committee for approval. The results of the Mid-term Global Review would be annexed to the text, and asked delegations to fully support it. He requested the Secretary- General to draw the attention of the leaders of the Group of 7 major industrialized countries at their forthcoming summit in Lyons to the outcome of the review meeting. He also hoped the United Nations system would continue to play an important role in the implementation of the Programme of Action. He called on the UNCTAD Secretary-General to ensure that its unit on least developed countries was fully equipped to carry out its mandate. He also urged the United Nations Secretary-General to reinstate the mechanism for regular inter-agency consultation on the implementation of the Programme of Action.

L. ERDENECHULUUN (Mongolia), speaking on behalf of the Group of Land- locked Developing Countries, said the rise of their number to 29 had also been followed by an increase in the challenges they faced. They were in a doubly disadvantaged position to take part in the globalization of the world economy and international trade. Their geographic situation had tended to erode their competitive edge and to isolate them from the world trading system. Development of a cost-effective and efficient transit system was of crucial

Second Committee - 17 - Press Release GA/EF/2703 30th Meeting (PM) 13 November 1995

importance to them. The trend towards a sub-regional and regional approach to resolving their problems should be followed. An efficient and reliable transit system could be promoted by the use of international agreements, which should be tailored to their particular needs.

He said the global "Framework for Transit Transport Cooperation between Land-locked and Transit Developing Countries and the Donor Community" adopted at a meeting in New York in June was the most comprehensive document aimed at fostering cooperation both at the international and national levels for developing transit transport systems. He expressed confidence that the document would be adopted by the General Assembly and serve as a basis for future collective activities.

JEAN SYROGIANIS CAMARA, Director of the Office for External Relations of the Food and Agriculture Organization (FAO), said the twenty-eighth session of the agency held in Rome in October, had decided to convene a world food summit at the level of heads of State or government in Rome from 13 to 17 November 1996. One of the objectives of the summit was to serve as a forum at the highest political level to marshall the global consensus and commitment needed to redress food insecurity. It would also be aimed at raising global awareness of the food security problem and promote the search for solutions. He said the summit was not a pledging conference nor would it aim at creating new financial mechanisms, institutions or bureaucracy. Each participating country would consider independently how and what it might wish to contribute to the implementation of the strategies and plan of action that would be adopted by the summit. The summit was being planned with utmost care to keep costs at a minimum while at the same time ensuring a sound preparation.

JORGE PEREZ OTERMIN (Uruguay), spoke on behalf of the countries members of the Southern Common Market (MERCOSUR) -- Argentina, Brazil, Paraguay and Uruguay. He said that since the mid-1980s those countries had expressed the desire to integrate their economies and had taken measures to that end. In 1991, in Asuncion, a treaty had been signed founding MERCOSUR. A diplomatic conference on the institutional aspects of MERCOSUR had been held in Ouro Preto, Brazil, in 1994. He described measures taken, including the achievement of a zero-tariff target.

With the entry into force of the Ouro Preto Protocol, MERCOSUR would become a legal figure in international law, he said. A dispute settlement mechanism would then enter into force. The MERCOSUR supported the process of open regionalism. Negotiations with Chile and Bolivia on the establishment of a Latin American free trade zone and negotiations with the Andean Pact members were proof of that. An agreement between MERCOSUR and the European Union would be signed in December. The MERCOSUR was now a political and trade reality representing 200 million people and about 70 per cent of the gross domestic product of Latin America.

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For information media. Not an official record.