COMMITTEE IS TOLD MORE LIBERALIZATION IN FARM PRODUCTS TRADING WOULD STRENGTHEN GLOBAL TRADE AND DEVELOPMENT

8 November 1996

Press Release
GA/EF/2749

COMMITTEE IS TOLD MORE LIBERALIZATION IN FARM PRODUCTS TRADING WOULD STRENGTHEN GLOBAL TRADE AND DEVELOPMENT

19961108 Australia Says Agricultural Exporting Nations Seek Timely Implementation of Uruguay Round Agreements; Debate Continues on UNCTAD Reform

Global trade and development would be strengthened by further liberalization of trade in agricultural products, the Second Committee (Economic and Financial) was told this afternoon by the representative of Australia, speaking on behalf of the Cairns Group of agricultural exporting countries.

Speaking as the Committee concluded consideration of trade and development issues, he said the group would use the World Trade Organization (WTO) Ministerial Conference in Singapore to press for full and timely implementation of the Uruguay Round Agreements. Moreover, it would call for work on analysis and information exchange prior to the start of further multilateral negotiations on agriculture at the end of 1999.

The Cairns Group of agricultural exporting countries includes Argentina, Australia, Brazil, Canada, Chile, Colombia, Fiji, Hungary, Indonesia, Malaysia, New Zealand, Philippines, Thailand and Uruguay.

The representative of Canada welcomed the UNCTAD secretariat's initiative to examine how the East Asian development experience might be replicated for other developing countries. Calling for a focus by the organization on capacity-building in developing countries, she said its work programme should be result-oriented and policy-focused.

Access of the goods and services of the economies in transition to world markets, as equal partners, could play an important role in the revitalization of those economies rather than the credits furnished by international organizations, said the representative of Ukraine. She added that her country was not seeking any special terms, only equal and fair trade on the basis of generally accepted principles.

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The representative of Lao People's Democratic Republic expressed concern at attempts to introduce new concepts linking trade measures to domestic standards in environment, labour laws and other issues. He said the use of disguised protectionist measures in the form of new concepts would have a negative impact on economic growth and development, and would impose an unjustifiable economic and social burden on developing countries.

Statements were also made by the representatives of Iraq, Bulgaria and The former Yugoslav Republic of Macedonia.

Also this afternoon, the Committee heard the introduction of a draft resolution on international trade and development by the representative of Costa Rica, speaking on behalf of the "Group of 77" developing countries and China, and for Colombia, on behalf of the countries of the Non-Aligned Movement.

Under the draft's provisions, the General Assembly would endorse the outcome of the ninth session of the United Nations Conference on Trade and Development (UNCTAD IX) held in Midrand, South Africa, in April and May 1996, in particular the commitment on "A Partnership for Growth and Development". It would also take note of the report of the Trade and Development Board on its forty-third session and welcome the fact that UNCTAD, as part of the United Nations system and a contributor to its revitalization, had adopted far-reaching reforms.

The Assembly would deplore any attempts to bypass or undermine multilaterally agreed procedures on the conduct of international trading, by resort to unilateral actions, or environmental and social concerns for protectionist purposes. In addition, the Assembly invites preference-giving countries to continue to improve and renew their generalized system of preference schemes in keeping with the post-Uruguay Round trading system and with the objectives of integrating developing countries into the international trading system, while avoiding linking eligibility to non-trade considerations.

The representative of the Russian Federation, speaking on behalf of Belarus, Tajikistan, Krygzstan and Kazakstan, made a statement on the draft resolution.

The Committee will meet again at 3 p.m. Monday, 11 November, to begin consideration of issues pertaining to external debt crisis and financing of development.

Committee Work Programme

The Second Committee (Economic and Financial) met this afternoon to continue consideration of trade and development issues and to hear the introduction of a three-part draft resolution on international trade and development. (For background information on trade and development see Press Release GA/EF/2747 of 7 November).

Draft for Introduction

The three-part draft resolution on international trade and development (document A/C.2/51/L.16) is submitted by Costa Rica, on behalf of the "Group of 77" developing countries and China, and by Colombia, on behalf of the Non-Aligned Movement.

Under the provisions of its Part I, the General Assembly would endorse the outcome of the ninth session of the United Nations Conference on Trade and Development (UNCTAD IX) held in Midrand, South Africa, in April and May 1996, in particular the commitment on "A Partnership for Growth and Development". It would express its political will and responsibility with respect to implementing the agreed commitments.

It would take note of the report of the Trade and Development Board on its forty-third session and welcome the fact that UNCTAD, as part of the United Nations system and a contributor to its revitalization, has adopted far-reaching reforms, as embodied in the "Midrand Declaration and a Partnership for Growth and Development" adopted by consensus at its ninth session. The Declaration encompasses the Conference's programme of work, its intergovernmental machinery and its secretariat, as well as the strengthening of its cooperation with other institutions, especially its complementarity with the World Trade Organization (WTO) and its cooperation with the United Nations Industrial Development Organization (UNIDO) and relevant regional organizations.

Moreover, the Assembly would welcome the importance attached by UNCTAD IX to building a lasting partnership for development between non-governmental actors and the Conference. It would recognize the role of the UNCTAD as the focal point within the United Nations for integrated treatment of development and interrelated issues in the areas of trade, finance, technology, investment and sustainable development. In addition, it would recognize that the UNCTAD, having a comparative advantage in tackling trade-related issues, should continue to facilitate the integration of developing countries into the world economy.

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Also, the Assembly would invite the President of UNCTAD at its ninth session to consider convening a high-level review meeting two years prior to the Conference's tenth session.

By Part II of the draft, the Assembly would recognize that the WTO provide the framework for an open, rule-based, equitable, secure, non- discriminatory, transparent and multilateral trading system. It would stress that all members of the WTO should implement their commitments in respect of the Uruguay Round Agreements in a full, timely, faithful and continuous manner and that all provisions of the Final Act Embodying the Results of the Uruguay Round should be effectively applied.

Governments and concerned organizations would be urged to implement fully and expeditiously the Marrakesh Ministerial Decision on Measures in Favour of the Least Developed Countries, as well as to apply the Ministerial Decision on Measures Concerning the Possible Negative Effects of the Reform Programme on Least Developed and Net Food-importing Countries.

The Assembly would emphasize the importance of the inaugural Ministerial Conference of the WTO to be held in Singapore, in regard to reviewing the implementation of the Uruguay Round Agreements and its built-in agenda with a view to helping set the future direction of a rule-based multilateral trading system. It would further emphasize that the dispute-settlement mechanism of the WTO is a key element as regards the integrity and credibility of the multilateral trading system and the full realization of the benefits anticipated from the Uruguay Round.

Any attempts to bypass or undermine multilaterally agreed procedures on the conduct of international trading, by resorting to unilateral actions, or to use environmental and social concerns for protectionist purposes would be deplored by the Assembly. Moreover, the Assembly would emphasize the need for a balanced and integrated approach to environment, trade and development issues, through the examining of environmental issues from a developmental perspective which should be mutually supportive, while stressing that environmental policies and measures with a potential trade impact should not be used for protectionist purposes.

It would also emphasize that positive measures such as improved market access, capacity-building, improved access to finance and access to transfer of technology are effective instruments in regard to achieving the objective of sustainable development and in meeting multilaterally agreed objectives of multilateral environmental agreements.

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Under the provisions of Part III of the draft, the Assembly would request UNCTAD to continue to perform its special role in the field of trade and environment, as reaffirmed at its ninth session, in particular within the context of the forthcoming special session of Assembly for the purpose of an overall review and appraisal of the implementation of Agenda 21.

Moreover, it would stress the need for the Conference to continue to promote cooperation among the many international organizations interfacing in the trade and environment debate, including the WTO. It would reaffirm the need to implement as a matter of priority the United Nations New Agenda for the Development of Africa in the 1990s, taking into account the assessment and recommendations adopted at the Mid-term Global Review of the Implementation of the Programme of Action for the Least Developed Countries for the 1990s, especially those related to trade and development.

The Assembly would stress the need to give special attention, within the context of international cooperation on trade and development issues, to the implementation of the many development commitments geared to meeting the special development needs of small island developing states and of landlocked developing states. It would also stress the need to recognize that the transit developing countries needed adequate assistance to maintain and improve their transit infrastructure.

Further, the Assembly would strongly invite preference-giving countries to continue to improve and renew their generalized system of preference schemes in keeping with the post-Uruguay Round trading system and with the objectives of integrating developing countries into the international trading system, while avoiding linking eligibility to non-trade considerations and thereby detracting from the generalized system of preference schemes.

In addition, it would stress that the forthcoming South-South conference on finance, trade and investment, to be held in San Jose, Costa Rica, would be an opportunity for developing countries to advance initiatives related to "A Partnership for Growth and Development". Moreover, it would invite the international community to provide support to that Conference.

Introduction of draft

ANA TERESA DENGO (Costa Rica), speaking on behalf of the Group of 77 and China, and for Colombia, on behalf of the Non-Aligned Movement, introduced a draft resolution on international trade and development (document A/C.2/51/L.16).

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RICHARD ROWE (Australia), speaking for the Cairns Group of agricultural exporting countries -- Argentina, Australia, Brazil, Canada, Chile, Colombia, Fiji, Hungary, Indonesia, Malaysia, New Zealand, Philippines, Thailand and Uruguay -- said those nations were convinced that global trade and development would be strengthened by further liberalization of trade in agricultural products. They would use the WTO ministerial meeting in Singapore to press for the full and timely implementation of the Uruguay Round Agreements and for work of analysis and information exchange prior to the start of further multilateral negotiations on agriculture at the end of 1999. He said 1996 marked the tenth anniversary of the Cairns Group which was now firmly established as an influential force in the multilateral agricultural trade policy arena. At their most recent meeting, in Cartagena last June, they had acknowledged the importance of the Uruguay Round in charting a new direction for agricultural trade liberalization.

The effective and timely implementation of Uruguay Round commitments remained a top priority for the Group. They noted that the WTO agreement on agriculture recognized that agricultural trade reform was an ongoing process and that members had agreed to initiate further negotiations on the matter. To that end, the WTO committee on agriculture should further pursue the assessment of compliance with the Uruguay Round commitments, and a process of analysis and information on the agreement on agriculture. The group also reinforced the positive linkage between world food security and agricultural trade liberalization. In their view it was crucial for the UNCTAD secretariat to get on with the job of delivering the outcomes which had been envisaged at UNCTAD IX in South Africa.

KHALED S.H. AL-HITTI (Iraq) welcomed the outcome of UNCTAD IX. The processes of globalization and liberalization had led to the marginalization of many developing countries, he said, particularly the least developed countries. He emphasized the importance of lifting restrictions on transfer of commodities. The disparities between the North and South posed a challenge to the world community. Dialogue was required to tackle the challenge of globalization.

Moreover, economic measures must not be used for political purposes, he said. The developing countries must move to protect themselves from discrimination. To that end, South-South cooperation was important. Economic blockade was a weapon which was used to block the development of developing countries. Furthermore, it did not serve any group because it created instability. He called for earnest and sincere cooperation between the North and South. Such cooperation should be based on a solid and fair footing. Democratization of international economic relations was important and multilateral institutions must not be controlled by any one nation or group of nations.

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SVITLANA HOMANOVSKA (Ukraine) said her country faced significant anti- dumping problems which were unfair, discriminatory and protectionist. Her Government strongly believed that the access of the goods and services of the economies in transition to world markets, as equal partners, could play an important role in the revitalization of those economies rather than the credits furnished by the international organizations. Their ability to pay off those credits would be limited if the access of their goods to world markets was impeded. Ukraine was not seeking any special terms, she said, but only equal and fair trade on the basis of generally accepted principles. Ukraine and the other countries with economies in transition sought international assistance in their efforts to become full-fledged members of the WTO.

She said Ukraine was implementing economic reforms coordinated with the International Monetary Fund and the World Bank. The reform programme consisted of a comprehensive transformation of Ukraine's foreign trade regime in accordance with the norms and rules of the General Agreement on Tariffs and Trade (GATT) and the WTO.

ZVETOLYUB BASMAJIEV (Bulgaria) said his country supported the streamlining of the UNCTAD machinery, and the efforts of the UNCTAD Secretary- General to improve the efficiency and effectiveness of the organization. Globalization of the world economy and liberalization of the multilateral trading system in the framework of GATT/WTO after the Uruguay Round Multilateral Trade Negotiations had increased the potential for international trade to become a major factor of economic growth and sustainable development, and an important mechanism for integration of developing countries. That was the reason why the exploitation of the trading opportunities created by the Uruguay Round, and the identification of policies which would enable maximum benefits from those opportunities, was an important part of development policy of the economies in transition, including Bulgaria.

The universality of WTO which was of great importance to strengthening and improving multilateral trading systems must be realized as soon as possible, he said. Bulgaria looked forward to the upcoming Singapore Ministerial Conference. It commended the Economic Commission for Europe (ECE) for its productive effort in the areas closely connected with trade, such as transport of goods and communications.

KINGMANO PHOMMAHAXAY (Lao People's Democratic Republic) said that while international trade was a major engine of economic growth, it was also widely acknowledged that the efforts of the developing countries would receive greater support and resource flows through an open, equitable, predictable rule-based and non-discriminatory multilateral trading system with enhanced market access for products from developing countries.

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The first Ministerial meeting of WTO, to be held in Singapore next month, would provide a good opportunity to review the performance of WTO and the implementation of the Uruguay Round Agreements, in particular to ensure that trade liberalization did not lead to further marginalization of the poorest and least developed countries, he said. He called upon all Member States, especially the developed countries, to implement the commitments agreed upon in the Final Act, including measures to mitigate adverse consequences on the developing countries.

Another issue of concern was the attempt to introduce new concepts linking trade measures to domestic standards in environment, labour laws and other issues, he said. The use of disguised protectionist measures in the form of new concepts would have a negative impact on economic growth and development and would impose an unjustifiable economic and social burden on developing countries.

IGOR DZUNDEV (The former Yugoslav Republic of Macedonia) said his Government was interested in using UNCTAD mechanisms and machinery to promote its economic relations in Europe and other regions. It would like to see UNCTAD technical cooperation mechanisms equipped to help small- and medium- sized enterprises become more competitive. Regardless of its global role, UNCTAD's programmes should also be based on the particular interests of economies in a region. The UNCTAD could greatly help economies in transition and the developing countries in foreign investment and technology transfer. Such assistance would help them strengthen their economic capacities and prevent them form being marginalized.

Welcoming the consensus achieved at the UNCTAD's ninth conference on the role of UNCTAD, WTO and the Bretton Woods institutions, he hoped coordination of their work without negative competitiveness would result in the faster integration of all countries into the global economy.

DREW McVEY (Canada) said that following the 1996 Midrand Conference, UNCTAD was closer to its over-arching goal of facilitating the full integration of developing countries in world trade. Canada welcomed the close cooperation established between the WTO and UNCTAD in pursuit of that objective. Follow-up to Midrand was a critical part of reform of UNCTAD. She said she welcomed efforts to streamline UNCTAD's work, to reduce the length and number of meetings and inter-governmental negotiations, to focus discussions, to update publications policy and to improve the method and quality of expert input.

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The UNCTAD should focus on capacity-building in developing countries, she said. Its work programme should be results-oriented and policy-focused, and technical cooperation activities should be targeted to the groups and countries which were most likely to benefit from them. She stressed that studies and technical activities should be action-oriented and should focus on best-case examples of trade and development. In that context, Canada welcomed the initiative by the Secretariat to examine how the east Asian experience might be replicated for other developing countries.

The ongoing reform of both the process and substance of the UNCTAD programme should continue to be determined by the letter and spirit of the Midrand consensus, she said. In particular, the work of the Commissions and the discussions of the programme budget and the Medium-Term Plan in the Fifth Committee (Administrative and Budgetary) should be based on the Midrand conclusions. Moreover, work should begin as soon as possible on the technical cooperation plan agreed to at UNCTAD IX.

VLADISLAV FEDORCHENKO (Russian Federation), speaking also for Belarus, Tajikistan, Kyrgyzstan and Kazakstan, on the draft resolution on trade and development, said those countries might consider joining in the consensus after further discussions on the text. He said it should address the interests of all countries. The countries for which he spoke were carrying out reforms which should enable them to participate fully in international trade, but there were still impediments such as discriminatory laws and anti- dumping legislation, which should be removed. Those countries would like to see a stable trading environment, reciprocity and a most favoured trading nation status accorded them. They also sought the removal of discriminatory technology exports agreements. He appealed for an understanding of their position. He also said they would like to become part of the new trading mechanisms afforded by the WTO.

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