SUCCESS OF REFORM EFFORTS BY UNCTAD STRESSED IN SECOND COMMITTEE AS CONSIDERATION OF TRADE AND DEVELOPMENT BEGINS
Press Release
GA/EF/2747
SUCCESS OF REFORM EFFORTS BY UNCTAD STRESSED IN SECOND COMMITTEE AS CONSIDERATION OF TRADE AND DEVELOPMENT BEGINS
19961107 UNCTAD Needs 'Period of Stability' to Fulfil Its Cardinal Mission of Promoting Development, Says Trade and Development Board PresidentNinety per cent of reform within the United Nations Conference on Trade and Development (UNCTAD) was complete and its intergovernmental machinery had been drastically reduced to three commissions from an earlier total of more than 10, the Conference's Secretary-General told the Second Committee (Economic and Financial) this morning as it began consideration of trade and development.
Rubens Ricupero also stressed that any extension of multilateral trade disciplines must be a conscious decision of the international community taken with emphasis on the development perspective and the need for balanced and equitable approaches. The process leading to the tenth session of the Conference (UNCTAD X) -- to be held in Thailand in the year 2000 -- should provide opportunity for stock-taking, focusing on successes achieved, failures and lessons to be learned from the various development experiences as an attempt to identify what the common bases of understanding were in the emerging consensus on development strategies.
The endeavour of UNCTAD to promote international economic cooperation through trade, investment, services and technology was based on its cardinal mission of development and was human centred, the President of the Trade and Development Board, Patrick Sinyinza (Zambia) said. The Conference's mission in promoting economic and social justice was aimed at helping the poorest and should receive the fullest attention. Its intergovernmental machinery had been streamlined and it now needed a period of stability so that it could fulfil its mission in preparation of UNCTAD X.
Referring to reforms within UNCTAD, the representative of the United States said if the organization was to play a useful role in assisting development, it should focus on priority areas in which it had a comparative advantage. Moreover, measures which improved cost-effectiveness should be
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identified. There was need to monitor and, where possible, re-programme to more productive tasks the savings realized by the elimination of less useful activities.
Endorsing the outcome of the ninth session of the Conference (UNCTAD IX), held in Midrand, South Africa, in May, and acknowledging the efforts made to reform the Conference's secretariat, Cuba's representative said that the limits of that reform should be recognized and UNCTAD should now be given the green light to focus on substantive issues agreed upon at Midrand. Pressure on UNCTAD to go on reforming was unacceptable. Moreover, it should be given the resources necessary to effectively do its job.
Statements were also made by the representatives of Costa Rica (on behalf of the "Group of 77" developing countries and China), Russian Federation, China, Kazakstan, Tunisia, Brazil (on behalf of the Common Market of the Southern Cone-MERCOSUR), Norway, Republic of Korea, Sudan, Georgia and Ecuador. A statement was also made by the observer for Switzerland, and a representative of the European Community also spoke.
The Committee will meet again at 3 p.m. today to continue its deliberations.
Committee Work Programme
The Second Committee (Economic and Financial) met this morning to begin consideration of trade and development, including the outcome of the ninth session of the United Nations Conference on Trade and Development (UNCTAD IX) held in Midrand, South Africa, in May.
Midrand Declaration/Partnership for Growth and Development
The outcome of UNCTAD IX is transmitted in a note by the Secretary- General (document A/51/308). The six-part Midrand Declaration states that UNCTAD IX has responded to changes and challenges by initiating important reforms designed to give new and real meaning to the partnership for development.
The Declaration stresses that it is in the interest of all countries that a mutually beneficial multilateral trading system continues to develop. That requires the recognition of differential impacts on countries and the solidarity necessary to ensure that all will benefit -- a true partnership for development based on a clear definition of roles, the establishment of common objectives and development of joint action.
Also stressed is that the mandate of UNCTAD remains relevant as the focal point for dealing with trade and related issues of development in the United Nations system. It must build upon its comparative advantage and offer support appropriate to the needs of developing countries to ensure that they participate in the world economy on a more equitable basis.
The comprehensive United Nations reform process is designed to refocus and reinvigorate international cooperation for peace and development, it continues. Changes adopted at UNCTAD IX support the more focused work of UNCTAD through streamlining the intergovernmental machinery, improving the method and quality of expert input and focusing and integrating the secretariat's working methods. The results of those changes must be outputs that respond to the needs and demands of the member States.
At no time in world history has the destiny of all its many different peoples been so intertwined, the Declaration continues. That must lead to solidarity in action to eradicate poverty. It has been stated that "no one can do for us what we will not do for ourselves. Our challenge is to ensure that all human rights and fundamental freedoms, including the right to development as an integral part of fundamental human rights, are promoted and protected".
The final text of UNCTAD IX, entitled A Partnership for Growth and Development, provided the organization with new orientation for its activities in the next four years, which would include new and emerging trade and
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development issues of particular interest to developing countries and on which UNCTAD could have substantial impact. Also included are those relating to a multilateral framework for investment, enterprise development, technology and services infrastructure.
The Conference also streamlined the organizational machinery to reflect the new orientation, says the text. It recognized the need to revitalize and remodel the machinery to make it more responsive to the needs of a rapidly changing world economy.
The final document is presented in three chapters. Chapter I analyses challenges arising from globalization and liberalization and actions to be taken to maximize benefits and minimize risks. Chapter II discusses the contribution of UNCTAD to sustainable development. Chapter III is on the future work of UNCTAD and institutional implications.
The adoption of the final document of UNCTAD IX was the culmination of intergovernmental deliberations that started a year before the Conference at the Trade and Development Board, the governing body of UNCTAD. Negotiations on the document were finalized at Midrand by a Committee of the Whole, three drafting groups and several smaller groups which met throughout the Conference.
Chapter I of the final document contains an analysis of the world economy from the perspective of the interests of developing countries. It focuses on how those interests must be addressed and studied by UNCTAD in order to give an operational approach to their understanding and solution.
The document identifies "competition policy" as an important new policy area, and states that there is growing realization that anti-competitive practices can have a negative influence on trade opportunities. The relevance of the work carried out in UNCTAD on restrictive business practices was recognized by the Conference, which also stated that "the Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices is the only multilateral instrument on the importance of competition principles".
Addressing the new emerging issues facing the international community as a consequence of the Uruguay Round conclusion, the text states that a particularly important area is that of integrating trade, environment and development. In developing environmental policies with a potential trade impact, it is important to ensure that they are transparent and no more trade-restrictive than necessary to achieve the environmental objective.
Foreign direct investment is an instrument for integrating economies at the level of production into the globalizing world economy, the document states. A stable and transparent legal framework is necessary to encourage
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investment. Intellectual property protection is an essential component of an environment conducive to the creation and international transfer of technology. The Conference acknowledges that there is no comprehensive, multilateral investment framework that covers a great majority of countries. The desirability, nature, issues and scope of such a multilateral framework, and especially its development dimensions, are increasingly being analysed and discussed.
Addressing matters related to international trade in goods and services and commodity issues, UNCTAD IX called on members of the World Trade Organization (WTO) to implement their commitments fully and apply provisions of the Final Act of the Uruguay Round, taking into account specific interests of developing countries. The full realization of the anticipated benefits from the conclusion of the Uruguay Round also requires that confidence in the integrity and credibility of the multilateral trading system be upheld.
Chapter II of the conference text deals with the contribution of the organization to sustainable development and states that UNCTAD, "having a clear comparative advantage in tackling trade-related development issues", should continue to facilitate the integration of developing countries and countries in transition in the international trading system in a complementary manner with the WTO. It should promote development through trade and investment in cooperation and coordination with the UNCTAD/WTO International Trade Centre (ITC), relevant institutions of the United Nations system and other international organizations. Its work should be geared to the special needs of developing countries, particularly the least developed countries, and focus on development issues.
The main role of UNCTAD in the field of trade in goods and services should be to help maximize the positive impact of globalization and liberalization on sustainable development by assisting the integration of developing countries, particularly least developed countries, into the international trading system, according to the text. Specific interests of the economies in transition should also be taken into account. It should work towards analysing the impact of the Uruguay Round agreements on development; enhancing national capacities, in terms of human resources and administrative infrastructures; assisting countries in the process of accession to the WTO; and identifying impediments to trading success.
The institutional implications of UNCTAD's future work are addressed in chapter III of the text. The Conference recognized the need to revitalize and remodel UNCTAD's intergovernmental machinery and took measures to make it more efficient and responsive to the needs of a rapidly changing world economy. Among those measures are focusing its activities, streamlining its budget, reducing the number of meetings, rationalizing its publications and striving for better coordination and cooperation with relevant international organizations in order to strengthen complementarity.
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Also, the Conference welcomed the reform of the secretariat initiated by the Secretary-General of UNCTAD, and encouraged his further efforts to ensure that the internal organization of the secretariat is consistent with the priorities, objectives and intergovernmental machinery established by the Conference.
The intergovernmental machinery is being structured in accordance with UNCTAD's future work programme, which is focused on a few priority trade and development issues on which it can make a substantial impact, and also includes cross-sectoral issues, such as poverty alleviation, the document states. The machinery should be tightly structured and concentrate on programmes of interest and practical value to developing countries, particularly the least developed countries.
The Conference agreed that the Trade and Development Board is responsible for ensuring the overall consistency of UNCTAD's activities with agreed priorities, setting or adjusting those priorities for the period remaining up until the next session of the Conference. It should explore possibilities of increasing its budgetary authority over the work programme of UNCTAD and prepare respective recommendations to the General Assembly.
The Conference decided that the Board can set up subsidiary bodies, known as "commissions", as well as create new bodies and abolish existing ones, on the basis of the priorities of the organization and of the work accomplished. The new commissions will perform integrated policy work in their respective areas of competence, meeting once a year, in sessions as short as possible and not exceeding five days. The commissions will have specific mandates and greater delegation of decision-making on matters of substance.
The three new commissions are the following: Commission on Trade in Goods and Services and Commodities; Commission on Investment, Technology and Related Financial Issues; and Commission on Enterprise, Business Facilitation and Development.
A report of the Trade and Development Board on the work of its thirteenth executive session (Geneva, 8 July) is also before the Committee (document A/51/15 (Vol.I)). The main purpose of that session was to establish the three new commissions and approve the provisional agendas for their first sessions, which are annexed to the report.
Further, before the Committee is the Secretary-General's report on strengthening international organizations in the area of multilateral trade (document A/51/331). It states that the evolving cooperation between UNCTAD and the World Trade Organization at the working level of both secretariats covers the implications of the Uruguay Round agreements, particularly as regards new trading opportunities for developing countries and countries in
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transition arising from the implementation process. It also covers specific problems and challenges faced by the least developed and net-food-importing developing countries and issues of trade in services and trade and environment.
Also covered in the evolving cooperation are the new and emerging issues on the international trade agenda, in particular trade and investment, technical cooperation to increase institutional capacities of developing countries on trade policy issues, and the joint responsibility for the operation of the ITC, the report says.
At UNCTAD IX, Member States decided that the main role of UNCTAD in the field of trade in goods and services should be to help maximize the positive impact of globalization and liberalization on sustainable development by assisting in the effective integration of developing countries, the report says. Particular attention was to be paid to the least developed countries and certain developing countries with structurally weak and vulnerable economies.
According to the report such work, to be undertaken in cooperation with WTO and other relevant international organizations, would focus on enabling those countries to respond to the opportunities arising from the Uruguay Round agreements. The countries would be helped to derive maximum available benefit by, among other things, analysing the impact of the agreements on development. The UNCTAD would also assist countries in the process of accession to WTO, including by helping them to enhance their understanding of WTO rights and obligations, as well as by improving the transparency of their trade regimes.
Moreover, it would facilitate the understanding of the multilateral trading system by analysing, from a development perspective, issues on the international trade agenda, as identified by the Conference or the Trade and Development Board, including new and emerging issues, it says.
In addition, new tasks and mandates have been identified for UNCTAD in its work related to competition law of particular relevance to development, and issues of particular relevance to commodity-dependent countries, the report says. Moreover, in other three major areas of future UNCTAD work, including globalization and development; investment, enterprise development and technology; and services infrastructure for development and trade efficiency, substantive trade-related components have been identified.
The Conference also decided that in the area of international trade, UNCTAD's technical cooperation programme should focus on enhancing institutional and human capacities in order for developing countries to analyse new and emerging issues and to benefit from the opportunities arising from participation in the multilateral trading system and to comply with the obligations in that respect, it says.
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Also, the Conference has taken measures to make the intergovernmental machinery of UNCTAD more efficient and responsive to the needs of a rapidly changing world economy, the report states.
A report of the Joint Inspection Unit (JIU) entitled United Nations Conference on Trade and Development: review of institutional and programme issues (document A/51/152, of 30 May) deals with the mandate, role, functions and programmes of the organization. The report, the first ever by the Unit on UNCTAD, assesses the results of reforms within the UNCTAD secretariat and the strengthening of cooperative linkages between it and other institutions. It states that the rationale that led to UNCTAD's creation in 1964 remains valid today as it was three decades ago and that UNCTAD can be given credit for a long record of tangible achievements, notwithstanding the differences and shifts in the economic philosophies of Member States that have tended to inhibit its full potential.
The reinforcement of cooperation and coordination between UNCTAD and the Bretton Woods institutions at the policy-making and secretariat levels would, according to the report, appear highly desirable taking advantage of ongoing efforts to revitalize the overall policy coordination role of the United Nations in the economic, social and related fields. Greater use could be made of existing relationship agreements between the United Nations and the multilateral financial institutions to enhance cooperation and coordination on global development issues.
A number of other recommendations are proposed: UNCTAD should further enhance cooperation between its secretariat and those of the regional economic commissions and the departments dealing with economic and social issues at Headquarters; and it should continue to expand the cooperation arrangements and joint activities it has developed with other organs of the United Nations system.
The report urges UNCTAD to continue to give due prominence to the unique development needs of the least developed States, land-locked and island developing countries and should project their concerns more systematically throughout its secretariat and at the level of other organizations within the United Nations system.
On cooperation with the World Trade Organization, the report says the complementarity of their functions remained clear and that Member States could benefit from the related synergies between the two institutions. The policy analysis and consensus-building functions of UNCTAD could make essential contributions to the maturing of the intergovernmental consideration of trade issues to the point where they could be fruitfully negotiated in WTO. Cooperation between the two institutions can be developed under article V of the WTO Agreement which stipulates that the General Council of WTO "shall make appropriate arrangements for effective cooperation with other
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intergovernmental organizations that have responsibilities related to that of the WTO".
A note by the Secretary-General transmits his comments on the JIU report (document A/51/152/Add.1). He says the outcome of the ninth session of UNCTAD had reinforced its reform process. The final communique of the "Group of Seven" most industrialized countries, held in Lyon in June, had similarly highlighted UNCTAD's achievements in its reform process and held the organization as a model of reform for other parts of the United Nations system.
Commenting on the Unit's recommendations on strengthening UNCTAD's role, the Secretary-General's note says considerable efforts have been made in recent years to enhance policy and programme among the various entities comprising the economic and social sectors of the United Nations. Provision has consistently been made for the participation of Headquarters' departments and the regional commissions in the Trade and Development Board and the Conference, and that valuable contributions have been made. The note indicates that following the relevant recommendations of its ninth session, UNCTAD will be assessing, in close cooperation with the International Telecommunication Union (ITU), the practical trade implications of the emerging global information infrastructure and identifying areas for action.
The note states that a number of initiatives are contributing to reinforcing and systematizing cooperation between UNCTAD and WTO based on the complementarities of their functions. The two institutions hold meetings every six months, chaired jointly by their executive heads, to discuss issues of common concern. Working relationships at all levels are also being strengthened in such areas as research, trade and investment, trade and competition, trade and environment and trade and development. The relationship between the United Nations and the Bretton Woods institutions is being given special attention in the context of the current debate on the agenda for development and the restructuring of the economic and social sectors of the United Nations.
Also before the Committee is a note by the Secretary-General on specific measures in favour of island developing countries (document A/51/255). It transmits a report of UNCTAD on actions taken by countries, international organizations and intergovernmental bodies to implement the Programme of Action of the 1994 Barbados Conference on Small Island Developing States. It contains recommendations of a high-level panel which met at United Nations Headquarters in New York on 22 and 23 April this year to discuss the challenges faced by island developing countries, particularly in the area of external trade. The panel recommended the convening by mid-1997 of a second meeting of island developing countries and donor countries, similar to one held in 1990, to assess the progress in the implementation of its recommendations.
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A note by the Secretary-General (document A/51/288) transmits a report of UNCTAD outlining progress on measures designed to improve the transit transport environment in central Asia. It covers, among other things, the impact of economic change on trade and transit; and the main alternative transit transport routes for central Asia. The report stresses the greatly expanded role that trade with foreign countries will play in the growth and well-being of the central Asian countries, and therefore the critical importance of transit transport, given the remoteness from most world markets and the land-locked status of those countries. The report also contains highlights of recommendations of a technical meeting organized jointly by UNCTAD and the United Nations Development Programme (UNDP) in Ankara in November 1995.
Statements
PATRICK SINYINZA (Zambia), President of the Trade and Development Board, introduced its report. Focusing on the salient aspects of the forty-third session of the Board, held in Geneva in October, he said it had conducted its business in a very different way from the past. Particularly noteworthy in that respect was that the Board had held a segment for high-level participation, where issues of foreign direct investment and developments in a globalizing economy had been discussed. The informal discussions of that part of the Board had been chaired by the President of UNCTAD IX, the Minister for Trade and Industry of South Africa, Alec Erwin. The discussion on those items had been supported by the World Investment Report 1996.
It had been emphasized that the implementation of the Uruguay Round agreements was as important as their signing, he said. At the very least, there had to be a dialogue on how countries would work together on analysing problems that still existed. Moreover, their positions had to be supported by informed analysis. The Board had also considered other items, notably items on interdependence and global economic issues from a trade and development perspective, including rethinking development strategies and lessons from the east Asian experience. The Trade and Development Report 1996 had been used as a background document to address that item. The debate had been rich and had included a lively informal debate with outside experts.
At its ninth session, UNCTAD had outlined actions to promote the integration of the least developed countries into the world economy, he said. In elaborating those measures, the Board had given special attention to helping those countries maximize their potential opportunities and to minimize possible risks arising from the Uruguay Round agreements. The Board had also reviewed the progress in the implementation of the United Nations New Agenda for the Development of Africa in the 1990s, and considered UNCTAD's contribution to the United Nations System-wide Special Initiative on Africa.
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It invited donors to make extrabudgetary contributions to UNCTAD to carry out its activities in African countries and finance required technical assistance programmes.
Also among the items addressed by the Board was the question of improving the participation of developing countries experts in UNCTAD meetings, including the question of financing their participation, he said. The Board had also requested the Secretary-General of UNCTAD to finalize a strategy and plan of technical cooperation before the end of the year, in consultations with Member States, on the basis of the relevant Midrand decisions and proposals.
The endeavour of UNCTAD to promote international economic cooperation through trade, investment, services and technology was based on its cardinal mission of development and was human centred, he said. Its mission in promoting economic and social justice was aimed at helping the poorest and should receive the fullest attention. Its intergovernmental machinery had been streamlined and it now needed a period of stability so that it could fulfil its mission in preparation of UNCTAD X in the year 2000.
RUBENS RICUPERO, Secretary-General of UNCTAD, said the organization was living in the "spring of innovation". The UNCTAD had decided to drastically reduce its intergovernmental machinery to only three commissions instead of the more than 10. Each commission had precisely defined mandates with meeting days reduced by 50 per cent. The divisions of UNCTAD had been reduced from nine to four, with staff reassigned in accordance with the new priority areas of work. The new structure became operational 1 October.
He said 90 per cent of the reform had been completed and UNCTAD had made its contribution to the United Nations' changing budget limits. Close collaboration had been established with the World Trade Organization and the United Nations Industrial Development Organization (UNIDO). The UNCTAD was now concentrating on ensuring effective delivery of high-quality work. He appealed to support of member Governments to implement the recommendations of the ninth session of the Conference.
The credibility of future efforts at trade liberalization would depend on the experience in the implementation of the results of the Uruguay Round, he said. Specific measures to further the integration of developing countries into the trading system should be a prominent feature of future trade initiatives. Pending problems of implementation included less-than-average tariff reductions achieved for many products of particular export interest to developing countries; persistent tariff escalation in a number of sectors of interest to developing countries; frequent resort to the transitional safeguard mechanism provided for in the textiles agreement; and limited results from remaining service sectoral negotiation. Those problems should be addressed at the forthcoming WTO ministerial meeting in Singapore.
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The Marrakesh Agreements contained an impressive built-in agenda, including specific provision for new negotiations and reviews, he said. Some of the initiatives provided for in the Agreements implied the possible renegotiation of certain provisions, often involving issues of crucial importance to developing countries. The formulation of a specific work programme at Singapore to ensure the effective participation of all countries in the WTO built-in agenda would be of key importance. Additional issues such as trade and environment, trade and investment, trade and competition policy had been discussed. The proposals to include such issues on the trade agenda had arisen, in part from a perception that the remaining differences in regulatory regimes created unfair advantages. It was important that any extension of multilateral trade disciplines was a conscious decision of the international community taken with emphasis on the development perspective and the need for balanced and equitable approaches.
The process leading to UNCTAD X should provide opportunity for stock-taking, he said. There was need to focus on successes achieved, failures and lessons to be learned from the various development experiences. The UNCTAD X should try to identify what the common bases of understanding were in the emerging consensus on development strategies. That would provide a platform for concrete measures and policies. Globalization as a phenomenon was here to stay. It was a reality countries should come to terms with, he concluded.
ANA TERESA DENGO (Costa Rica), speaking on behalf of the "Group of 77" developing countries and China, said at their twentieth annual meeting on 27 September in New York, the Ministers for Foreign Affairs of the Group had adopted a ministerial declaration which had underscored the importance of trade and development. The Group had welcomed the outcome of UNCTAD IX which had reaffirmed UNCTAD's mandate as the principal organ of the United Nations for integrated treatment of development and interrelated issues in the areas of trade, finance, technology, investment and sustainable development. As a universal forum in the service of development, UNCTAD was well placed to contribute to new and emerging issues, such as investment and enterprise, while continuing to deal with persistent problems.
The Group reaffirmed its support to UNCTAD and urged the international community to provide it with political and financial support, she said. It was clear that globalization and liberalization brought challenges which affected all countries, but differently. Benefits in some countries had contrasted with instability and marginalization of others. That process had to be managed on the basis of principles of non-discrimination and avoidance of unfair competitive advantage, as well as the recognition of the need for safeguards and preferential treatment of developing countries.
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The Group attached special importance to strengthening and attaining greater universality of the international trading system and appreciated the process directed towards facilitating access to WTO to countries that were not its members, she said. It was imperative that, in the review of the implementation of the Uruguay Round agreements and its built-in agenda, problems and situations of developing countries be taken into account. Any attempts to undermine multilaterally agreed procedures on the conduct of international trade relations, by resorting to unilateral actions and extraterritorial coercive economic measures or to use environmental or social concerns for protectionist purposes should be deplored.
The Group was concerned that only limited progress had been made in the implementation of the Paris Programme of Action for the Least Developed Countries for the 1990s, she said. Concerning the issue of commodities, she said that sector continued to be the main source of export revenues and employment generation for most members of the Group. A more favourable international environment supportive of the commodities market was indispensable for the growth and reactivation of those countries. She expressed concern at the fluctuation in commodities prices. More efficient and transparent price formation mechanisms and commodity price risk management instruments were needed. Moreover, new market opportunities for processed and semi-processed commodities were needed.
JOSEPH J. CUNNANE, a representative of the European Community, said the Community had long played a leading role in efforts to assist developing countries. It was the least developed countries' largest trading partner, and provided about 60 per cent of their preferential export markets. In addition to the bilateral aid of its member States, the Community was also one of the largest donors of official development assistance (ODA) to the least developed countries, providing about $1.355 billion net ODA in 1994.
He recalled the agreement last year on the mid-term revision of the Fourth Lome Convention for the 70 African, Caribbean and Pacific (ACP) partner countries. The successful completion of the negotiations showed the vitality of that instrument of cooperation, which covered a long period but which had proved adaptable to changing needs. While preferences would continue to be granted to ACP countries, the negotiations on trade were not confined to a debate on preferential access, but on factors making for commercial success and the means to achieve such success. In the past year, the Community had also expanded its cooperation activities to other developing regions, including the Mediterranean, Latin American and Asian regions.
The new Generalized Preference Scheme which entered into force in January 1995 continued to make special provision for the least developed countries of Asia, he said. It was not surprising, therefore, that the Community welcomed the successful outcome of UNCTAD IX and was committed to its full implementation. The institutional changes should increase UNCTAD's
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effectiveness. The text gave a clearer picture of the scope of future work with an attempt to set priorities in areas where UNCTAD was likely to have a comparative advantage. He encouraged the Secretary-General of UNCTAD to vigorously pursue the ongoing reform of the secretariat to improve efficiency and effectiveness and reduce costs. Noting other features of the reform which the Community particularly welcomed, he stated that the text on commodity issues signified a continuing tendency towards a more market-oriented approach with emphasis on diversification and risk management.
The final Conference text recognized the importance of the services sector for developing countries and of assistance to those countries in their efforts to strengthen their capacities to better participate in and benefit from trade liberalization, he said. Enterprise development had been given a stronger focus within UNCTAD's trade-related work, which represented a shift in focus, towards assistance for a more endogenous supported development of the private sector. There was a recognition that market forces played a leading role in development, but also concern that that triggered considerable adjustment costs. Furthermore, the Conference was able to adopt the elements required for more dynamic progress towards the hoped-for large savings in world trade transaction costs as well as widening participation in international trade.
The Community believed that the results of Midrand would be of considerable importance in helping the least developed countries to integrate into the world economy and to play a significant role in the WTO, he said. The Ministerial Conference in Singapore next month would be the first in a series of such biennial meetings provided for in the WTO Agreement. They hoped the results would include a reaffirmation of the commitment to effectively implement existing WTO commitments by all members, with appropriate support for the least developed members, and a statement agreeing to a future work programme, including priority to negotiations on the accession of new members on the right terms and an undertaking to ensure the closer convergence of regional arrangements with the rules and objectives of the multilateral system.
VICTOR MARRERO (United States) said there was clear international consensus that recognized both the opportunities and challenges of economic globalization. The leap to participation in the global economy could be daunting for developing countries. In the short term, inequality and unemployment might be exacerbated but the rewards were great for those who persevered -- increased living standards for all, technological innovation and a proliferation of skilled job opportunities. The best intentions of the international community would be futile if not accompanied by the adoption of appropriate policy measures at the national level. The gains from trade could only be realized fully when the domestic economic house was in order.
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Sound monetary and fiscal policies helped keep inflation in check and exchange rates stable, he continued. Transparent licensing and regulatory regimes encouraged entrepreneurship and investment. Removal of subsidies and other market distorting mechanisms would allow a country's comparative advantages to emerge. Those were not easy measures to implement or maintain, even in developed countries, as entrenched interests would seek to protect their turf at every turn. None the less, significant progress was being made. The commitments and obligations under the Uruguay Round and the WTO were central to efforts to expand and open global trading. The United Nations, through UNCTAD and the WTO should work together with the international financial institutions and the developed countries to ensure a strong and fair multilateral framework of rules. Efforts should be continued to help integrate developing countries more fully into the global trading system.
Referring to UNCTAD's reforms, he said measures which improved cost- effectiveness should be identified. There was need to monitor and, where possible, re-programme to more productive tasks the savings realized by the elimination of less useful or practical activities. If UNCTAD was to play a useful role in assisting development, it should focus on those priority areas in which it had a comparative advantage. Member States now had the opportunity to ensure that UNCTAD's activities accurately reflected their priorities.
MIRTHA HORMILLA CASTRO (Cuba) said her delegation endorsed the statement by Costa Rica, on behalf of the Group of 77 and China. The UNCTAD IX had highlighted the importance of international trade and of the necessity to integrate developing countries into the world economy. In addition, it had stressed the need for consolidating a multilateral trading system that was open and non-discriminatory.
The UNCTAD was a special forum, she said. Its job of analysis and consensus-building was crucial in affording a view of the many items on the international economic agenda. Cuba endorsed the outcome of UNCTAD IX and acknowledged the efforts made to reform the Conference's secretariat. However, the limits of that reform should be recognized and UNCTAD should now be given the green light to focus on substantive issues agreed upon at Midrand. Pressure on UNCTAD to go on reforming was unacceptable. Moreover, it should be given the resources necessary to effectively do its job.
She stressed the importance of the preparations for the ministerial meeting of the World Trade Organization in Geneva, as well as the actual meeting to be held in Singapore. The particular difficulties that developing countries faced as regard the WTO commitments should be taken into account. The intent of members to include items not originally on the agenda of the WTO was worrisome. Also attempts at protectionism in the guise of concern for the environment were unacceptable. Moreover, extraterritorial laws promulgated by certain nations were against multilateral trade norms.
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VLADISLAV I. FEDORCHENKO (Russian Federation) said his country supported the decisions of UNCTAD IX on reform of its intergovernmental machinery and on the review and refocusing of its priorities. He hoped the ongoing restructuring of UNCTAD could help in the complete integration of developing countries, particularly the least developed ones and economies in transition, into the world economy and in the international trading system. The Russian Federation welcomed agreements reached between UNCTAD and the WTO to coordinate their activities in the field of technical cooperation, investment and the environment. It believed active steps should be taken in facilitating assistance to countries seeking to join the WTO.
He said the most serious problem faced by his country was the fact that western markets had not been totally opened to Russian goods and services. In most cases that was due to the fact that Russia was still considered to be a country with a non-market economy and, as a result, discriminatory barriers had been mounted to block Russian exports. There were also difficulties of organizational and technical nature, pertaining mostly to the country's insufficiently developed infrastructure of services for foreign trade relations. Those problems were also faced by countries with economies in transition. The export-gross national product (GNP) ratio in Russia was now 30 per cent. He called for assistance from UNCTAD, the WTO and the ITC to strengthen Russia's export capacity, improve its trade infrastructure and trade procedures.
YUAN SHAOFU (China) said that at the ninth session of the Conference two subjects had been particularly controversial. Those were: how to avoid marginalizing small and weak economies and help countries in different developmental stages benefit from economic globalization; and how should UNCTAD effectively fulfil its function as the representative of developing countries in the multilateral system of international trade.
He said the globalization and liberalization of the world economy had created new opportunities for economic development but had also disadvantaged economically-weak countries. As the Midrand Declaration of UNCTAD IX acknowledged, countries had to participate in the international trade system from different starting points. He called on the international community to implement the Declaration by helping developing countries formulate and implement economic adjustment and reform, and by creating an environment conducive to those countries' development.
The UNCTAD was the only intergovernmental body within the United Nations system that considered trade and related issues from the perspective of comprehensive development, he continued. Although a small number of countries were trying to weaken or abolish UNCTAD, it remained the most universal intergovernmental body on the question of trade and development, and therefore should become an important part of the global multilateral trade system. It should continue to formulate policies and rules on global trade to reflect the
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interests of all countries and to ensure that double standards were not applied. A link should be established between UNCTAD and the World Trade Organization so that the two bodies could complement, support and interact with each other.
At UNCTAD IX, the organization had adjusted its machinery to focus on priority issues, he said. It was now able to respond with greater flexibility to issues calling for urgent solutions. The latest report of UNCTAD on transit transportation in land-locked and transit developing countries contained valuable proposals. He hoped UNCTAD would put forth concrete proposals on how the developing countries could participate in the globalized economy in a fair manner.
He expressed concern over the possibility of negotiating a multilateral framework for investment on the basis of existing bilateral and multilateral agreements, adding that UNCTAD should participate in the formulation of such a framework so that consideration could be given to the goals of developing countries and a framework agreement reached that would reflect the interests of all parties in a balanced manner.
China was a developing country with a huge population, he said. Despite great achievements in economic development, made possible by domestic unity and stability, some 65 million citizens lived below the poverty line. Concerted efforts were needed in order to address their needs. China was ready to join the international community in the pursuit of joint development and common prosperity.
AKMARAL KH. ARYSTANBEKOVA (Kazakstan) said that the need for States to cooperate on matters of economic development was obvious. Kazakstan and other countries of the central Asian region were working to create sustainable economies with access to world markets to make the area a full-fledged member of the global economic community. She drew attention to the report of the Secretary-General of UNCTAD entitled "Progress report on measures designed to improve the transit transport environment in Central Asia" (document A/51/228). Kazakstan and the other central Asian States were part of the world-wide efforts to help land-locked and developing countries with transit and transport problems. She said the UNCTAD report underscored the basic needs facing the land-locked States of the area, which included improvement of the existing transport and transit environment, the development of alternative transit routes, and harmonization of the transit base appropriate to Kazakstan and the region. She commended the efforts made by UNDP, UNCTAD, ECE, ESCAP and the Economic Cooperation Organization to continue the evaluation of existing transit routes, new routes, and other possible routes.
She noted that the needs and problems of the land-locked and transit developing countries had been in discussion in various international forums. In the past four years, the General Assembly had supported the promotion of
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more effective cooperative arrangements between land-locked and transit developing countries and their neighbours to encourage the support of the donor community. A number of conferences had been held to promote the arrangements that constituted the framework for establishing an effective transit system. Greater international support, as well as studies on the special problems of the land-locked countries, were still needed to enable the integration of those nations into the world economy. Those would promote market-based reforms and contribute to an improved economic environment and global economic stability. It was as part of those efforts that Kazakstan would submit a draft resolution on the agenda item.
DINO BETI, observer for Switzerland, said UNCTAD IX had been a success and, as a result, the organization had emerged leaner, stronger and ready to face new challenges. He hailed the joint undertaking of the international community on multilateral cooperation. However, much work remained to implement the reforms of UNCTAD. The Midrand Declaration must be made an effective reality. The necessary decisions had been taken to get the new UNCTAD off the ground. However, the success of that effort could only be measured at UNCTAD X, four years hence.
He said that contradictions between the mandates emanating from the General Assembly and Midrand could not be ruled out. In such a scenario, the international community would have to decide on what was most appropriate. Right now, UNCTAD should be given the time it needed to enact reforms. The reforms within UNCTAD had been part and parcel of United Nations reforms, and those reforms should work in concert. He stressed the importance of keeping the Midrand process going. Speaking on the comparative advantages of UNCTAD, he said it enabled developing countries to be become better integrated into the global economy.
THAMEUR SAAD (Tunisia) said his country hailed the renewed acknowledgement of UNCTAD's mission. The cooperation between UNCTAD and the World Trade Organization was remarkable. The complementarity of their activities should help UNCTAD pursue its work of helping the integration of developing countries into the world trading system, thus enabling them to derive benefits from trade expansion. The issue of competitiveness in trade should be studied. He welcomed the assistance being given to African countries by UNCTAD to enable them to fully integrate into the international trading system.
He hoped that at the forthcoming World Trade Organization ministerial meeting in Singapore, UNCTAD would take a look at the new issues being introduced into the international trading agenda and their impact on the trade balance of developing countries. The World Trade Organization meeting should be an opportunity for countries to engage in dialogue on the effective implementation of the Marrakesh Agreements. Emphasis should be placed on the necessary balance between the Marrakesh and Uruguay Round Agreements on the
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one hand, and the new issues being introduced. There should also be a balance of interests between the developed and the developing countries. Only new issues with a direct bearing on trade should be addressed at the World Trade Organization meeting, he said.
CELSO AMORIM (Brazil), speaking on behalf of the member countries of the Common Market of the Southern Cone (MERCOSUR) -- Argentina, Brazil, Paraguay, and Uruguay, and also Bolivia and Chile -- said he welcomed the results of Midrand and the initiatives of UNCTAD Secretary-General Rubens Ricupero. It was to be noted that the organization had adopted a more focused programme of work and had reformed the structure of its secretariat. The Assembly must now send a positive message to it. Moreover, adequate resources for carrying on its programme of work adopted at UNCTAD IX must be provided.
The issues of trade, development and interrelated matters were the focal point of UNCTAD, he said. Any attempt to disregard that was not acceptable. The member countries of MERCOSUR hoped that the Singapore meeting would achieve balanced results. An open and fair multilateral trading system based on rules was important. The Singapore meeting would also provide an opportunity to assess the implementation of the Uruguay Round and for the approval of decisions with a view to consolidate the results of different agreements, especially those relating to agriculture and market access.
He stressed that efforts must be made to eliminate export subsidies and regulations dealing with domestic support policies that distorted trade. Moreover, access to developed-country markets for developing countries was important. Many proposals for including new issues in the agenda of the World Trade Organization had been made. Those issues were complex and their implications, particularly for developing countries, should be examined. The question of relationship between trade and internationally recognized core labour standards was a matter of concern. That matter was within the mandate and competence of the International Labour Organization (ILO), he added.
It was not true that developing-country exports were responsible for high rates of unemployment in developed countries, he said. In fact, exports from developing countries represented just 5 per cent of the gross domestic product (GDP) of the United States and Germany. He deplored neo-protectionism and the resort to environmental concerns for protectionist purposes. The proliferation of environmental labels and its restrictive effects on international trade was also a matter of concern.
Open regionalism had become an important factor for growth in international trade, he said. In 1990, interregional trade flows in MERCOSUR had been $4 billion. Last year they had reached $14.5 billion and were still growing. Another aspect of the open regionalism of MERCOSUR countries was the creation of free trade zones with countries and groups of countries and the
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constitution of a Free Trade Zone of the Americas, in compliance with the mandate of the Summit of the Americas held in Miami in December 1994.
JAKKEN BIORN LIAN (Norway) said special measures were required to ensure that all countries benefited from increased world-wide trade. Globalization had integrated a number of countries into the multilateral trading system and contributed to their sustained growth and improved social welfare. The poorest countries, however, had not benefited from the process, which had instead led to their marginalization. The UNCTAD played an important role in developing policies to counter marginalization and promote technical cooperation. A complementary relationship was needed between UNCTAD and the World Trade Organization, as delineated in the final document from UNCTAD IX.
He said Norway had initiated the organization of a ministerial meeting for the least developed countries to prepare for the Singapore process. The initiative had found support, and the meeting would be held next week.
Underlining the need for improved technical cooperation in the trade- related areas, he supported the efforts of UNCTAD and the World Trade Organization in that area. Activities within the two organizations, as well as work done by the Bretton Woods institutions and other system agencies, could be mutually supportive. All those involved in trade-related technical cooperation were responsible for ensuring that their respective operational activities were compatible with those of other organizations.
He supported the proposal for a high-level conference, with participation of national and international agencies involved in the trade-related development of the poorest countries, to be convened in Geneva next year. Such a conference could contribute to further cooperation among agencies and help define a common approach towards the trade-related aspects of the economic development of least developed countries. The UNCTAD IX had been a success. The UNCTAD had found its niche in the multilateral framework by addressing issues pertaining to a globalized and liberalized world economy. He welcomed the streamlining of the UNCTAD machinery, and said he was fully committed to implementing the outcome of the Midrand meeting.
HAYONG MOON (Republic of Korea) said the World Trade Organization meeting should ensure that regional trading arrangements evolved in an open, transparent and non-exclusive manner, converging towards the WTO's own objectives. There was pressing need to strengthen the organization's oversight of those arrangements, as 60 per cent of world trade occurred within those trading blocs, or among countries that had agreed to achieve free trade.
With regard to the new issues about trade and investment, competition policy and an interim agreement on government procurement, he said his country was open to discussions on them within the framework of the WTO. It, however, believed that the question of labour standards and trade should be left to
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other relevant organs rather than the WTO. His delegation also called for the strengthening of WTO's capability in safeguarding any reversion to protectionism.
He supported the strengthening of UNCTAD's mandate to enable it to provide top quality research and analysis, facilitate the full integration of the least developed countries and African States into the world economy, and to help address commodity trade issues. The emerging closer cooperation between UNCTAD and the WTO should be encouraged, he added.
HAMID ALI MOHAMMED ELTINAY (Sudan) said exports were the principal source of foreign currency for countries such as his, which had been severely affected by the decline in commodity prices. The decrease in ODA and protectionist measures had doubled such adverse effects. Moreover, efforts to diversify commodities had suffered from lack of resources. The Sudan was convinced that its economy had been adversely affected by negative production rates and the inadequacy of infrastructure. It had tried to redirect resources to sectors with a direct impact on development.
His Government had also started a process of economic liberalization, he said. A second national economic conference on the matter had been held on 24 October. The conference had stressed that the policy of liberalization should continue. Moreover, it had stated that the base of direct taxation must be broadened and import taxes eliminated. Also, a halt should be brought about to extrabudgetary expenditure. The President of the Sudan had called for the implementation of those measures.
In order to assist the least developed countries and to integrate them into the world economy, donor countries should renew their plans of assistance to developing countries, he said. Moreover, the lead of the Marrakesh Ministerial Meeting on measures for least developed countries should be followed; they should be provided with access to markets. In addition, African countries should be supported in diversifying commodities and their regional organizations must be supported as well so they can play a role in regional economic cooperation.
DAVID APTSIAURI (Georgia) expressed appreciation for the organization's work on modernizing the transport environment in central Asia and the neighbouring area. The work was extremely important for his country, located as it was at the crossroad of the eastern and western European marketplaces. In effect, the project represented the restoration of the ancient "silk road" from China to Europe through the Caucasus, which had always played a significant role in the region's business activities.
He said the renewal of that and other transit exits would facilitate the integration of his oil- and gas-rich region into the world economy, as well as further the market-oriented economic transformation. The creation of a Euro- Asian corridor had become a realistic project, as a result of negotiations among the leadership of Georgia and the governments of the Caucasus and central Asia. It could be considered an integral part of the entire regional transportation system.
He called for adoption of the draft resolution on the question of the transit environment in the land-locked States in central Asia and their
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transit developing neighbours. He requested that the United Nations system, relevant regional organizations, and the international donor community continue and enlarge their technical and financial support aimed at accomplishing that unique project.
MARJORIE ULLOA (Ecuador) said her country had chosen its own development model which focused on its productive sectors. That effort had not received adequate international support. Some developed countries were pursuing restrictive trade policies that impeded free trade and unless international trading regimes were enforced developing countries would suffer. Ecuador supported UNCTAD's new mandate which provided a focal point in efforts to ensure the full integration of developing countries into the world trading system.
Ecuador also supported UNCTAD's analytical and investigative work on changes in the global economy in relation to trade, development, services and technology, she said, adding that its analysis helped developing countries to create policies and maintain a constructive dialogue on international trading issues. She appealed to the World Trade Organization for help in Ecuador's negotiations with the European Union over banana export quotas and urged UNCTAD and the WTO to work together.
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