SECOND COMMITTEE HEARS CALLS FOR FLEXIBILITY IN ADMISSION TO WTO, MORE MARKET ACCESS TO LANDLOCKED COUNTRIES, END TO ECONOMIC EMBARGOES AND BLOCKADES
Press Release
GA/EF/2791
SECOND COMMITTEE HEARS CALLS FOR FLEXIBILITY IN ADMISSION TO WTO, MORE MARKET ACCESS TO LANDLOCKED COUNTRIES, END TO ECONOMIC EMBARGOES AND BLOCKADES
19971110 Consideration of Trade and Development ConcludesSeveral speakers this afternoon called for a more flexible admission policy into the World Trade Organization (WTO) and for the elimination of coercive economic measures against States, as the Second Committee (Economic and Financial) concluded its debate on trade and development issues.
The representative of China said the WTO should fully demonstrate its universality by admitting applicants, particularly applicants from developing countries. It should remove inappropriate obstacles posed by some Member States and admit new members under conditions congruent with the level and requirement of their economic development. Keeping some important trade partners out of WTO was against the trend of globalization and was harmful to the broader international economic cooperation as well.
The WTO had been functioning for two and one half years without any visible benefits to the developing countries, the representative of Pakistan said, adding that it had been working to the disadvantage of the developing countries. They were being asked not to take import control measures for balance of payment reasons. Those wishing to join WTO had, in several cases, been denied the benefits of developing countries' status at the time of their entry.
The representative of Libya said economic embargoes and blockades smacked of reactionary behavior at a time when the world was calling for integration and cooperation in combating poverty, ignorance and backwardness. He called on the international community to reject those unilateral laws which ran counter to the norms of international law and the United Nations Charter.
The imposition of coercive economic measures against other countries to achieve unjustifiable objectives was part of the dangerous trend towards unilateralism, the representative of Iran said. Unilateral actions and
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extraterritorial application of domestic laws adversely affected the economy and development of developing countries and had a negative impact on international economic cooperation. Coercive measures poisoned international cooperation in areas of peace and security and threatened the credibility of such values as confidence and the rule of law. The United Nations should discourage them.
The representative of Mongolia, speaking on behalf of the Group of Landlocked Developing Countries, said some measures introduced during the Uruguay Round were adversely affecting those countries. The Agreement on Agriculture, with its reduction of subsidies to producers, might lead to a rise in the world prices of basic foodstuffs. That, in turn, could create additional difficulties for landlocked developing countries, since most of them were net food importers.
The right of access of landlocked countries to and from the sea and freedom of transit through the territory of transit States by all means of transport, in accordance with international laws should be reaffirmed by the international community, the representative of Nepal said. Developed countries should give unfettered access to their markets to alleviate some of the problems of the landlocked developing countries. The special problems of landlocked developing countries should be addressed by the liberalization of trade regimes and the promotion of an open and secure multilateral trading system.
Statements were also made by Australia (on behalf of the Cairns Group), Belarus, Venezuela, Kazakhstan, Burundi, Iraq, Sudan, Kenya, Poland, Japan and South Africa, as well as by the observer for Switzerland.
The Committee will meet again at 11:30 a.m. on Tuesday, 11 November, to consider the report of the Economic and Social Council.
Committee Work Programme
The Second Committee (Economic and Financial) met this afternoon to continue consideration of trade and development, under the general heading of "macroeconomic policy questions". (For background information, see Press Release GA/EF/2790 of 10 November.)
Statements
J. ENKHSAIKHAN (Mongolia), speaking on behalf of the Group of Landlocked Developing Countries, said the lack of access to and from the sea, remoteness from world markets and absence of adequate transit infrastructure tended to erode the competitive edge of landlocked developing countries in the world trading system. In many cases, special security and customs arrangements for transit cargoes were needed which entailed high insurance and administrative costs. That was why most landlocked developing countries incurred significantly higher transport costs than their coastal neighbours.
Liberalization and globalization were bringing complications and problems for developing countries with structurally weak economies, he said. The landlocked developing countries faced the risk of being further marginalized from the world economy. Some measures introduced during the Uruguay Round were adversely affecting those countries. For example, the Agreement on Agriculture with its reduction of subsidies to producers might mean a rise of world prices of basic foodstuffs. That, in turn, could create additional difficulties for landlocked developing countries, since most of them were net food importers.
The Special Coordinator's office for the least developed, landlocked and island developing countries should be further strengthened with the necessary resources, both financial and human, to allow it to effectively continue carrying out its activities, he said. His Government was surprised to see that in the proposed programme budget for 1998-1999, the D-1 post in the Special Coordinator's office, which was the only post in the entire United Nations system that was responsible for activities related to landlocked developing countries, was proposed to be abolished. That post should be retained and further strengthened; its elimination would make it impossible for the United Nations Conference on Trade and Development (UNCTAD) to implement its mandate.
JOHN CRIGHTON (Australia), speaking on behalf of the Cairns Group of agricultural exporting countries, said the Cairns Group sought the removal of agricultural trade restrictions and distortions, and the promotion of mutually supportive trade and environmental policies in the interests of sustainable development and a free and fairer international trading system. The Group was disappointed that negotiations in the Organisation for Economic Cooperation and Development (OECD) had so far failed to develop effective disciplines on the use of export credits on agricultural products. All participants should
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make further efforts to complete that work as soon as possible, and all countries should refrain from actions which might destabilize international agriculture, such as those used in export subsidies and export restrictions. Regarding subsidies, the Cairns Group did not mean to deny the right of governments to assist farmers or industries in their economy. The Group was in favour of imposing discipline on support measurers so that they would not become trade distorting.
Full implementation of the agreements of the World Trade Organization (WTO) on Agriculture and Sanitary and Phytosanitary Measures was essential, he said. All WTO members should respect both the letter and the spirit of the disciplines in those areas. The Cairns Group supported efforts to include new members in the WTO. The accession of current and potential agricultural exporters and importers would have major and significant effects on agricultural trade. It was important, however, to ensure that new membership did not jeopardize the integrity of the WTO's rules-based system. New members would need to comply with WTO disciplines, particularly those relating to market access, domestic support and export subsidies.
ULADZIMIR GERUS (Belarus) said since the establishment of the WTO, very few countries had been able to enjoy the benefits of international trade due to the vulnerability of some States, such as the least developed countries. Belarus welcomed the decision of WTO to improve the trade situation of those vulnerable States.
For many East European countries, he said, WTO membership was a priority. A more flexible approach to membership was needed, especially for transitional economies such as Belarus. Application for WTO membership had not been as expeditious as might be wished. Belarus attached great importance to economic reforms. It had begun structural adjustment, its privatization programme was progressing well, it was liberalizing foreign trade, and carrying out other reforms. Belarus, as other transition countries, needed technical advise from UNCTAD with respect to membership in WTO.
ROSANNA FIGUERA (Venezuela) said her Government repudiated unilateral coercive measures that negatively affected the economies of developing countries. Such measures contradicted the basic principles of coexistence, international economic cooperation and the global consent related to the need of structuring a trade system that was open and non-discriminatory. Venezuela also rejected any protectionist measure that was based on labour-oriented or environmental arguments. Those issues must be dealt with in the corresponding multilateral forums, such as the International Labour Organization (ILO) and the WTO's Trade and Environment Committee.
There was a need to increase international cooperation efforts, especially on the part of donor countries and the multilateral financial institutions, to construct, improve and maintain installations related to transportation and storage, she said. It was also important to improve
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communications and the transit of merchandise from landlocked developing countries. Neighbouring transit countries, in the spirit of South-South cooperation, should cooperate to facilitate the solution to the problems faced by those countries.
Beyond simple aid, developing countries needed norms and procedures that guaranteed the existence of a multilateral trade system that was open, regulated, egalitarian, safe, non-discriminatory, transparent and predictable, she said. To that end, the full implementation of the Uruguay Round agreements was vital. The Final Act proposed measures to mitigate the adverse effects that the application of the agreements might have on developing countries. Furthermore, the agreements stressed that developing countries must have a special and differentiated treatment.
YUAN SHAOFU (China) said globalization and liberalization should be preceded by establishing a fair and non-discriminatory multilateral trade system and creating a favourable external economic environment which responded adequately to the needs of the developing countries and recognized the diversity and vulnerability of their economies. A fair, secure, non- discriminatory and predictable multilateral trade system required a new development partnership. The developed countries should fulfil their international obligations as development partners, forsake all forms of trade protectionism, cease all economic sanctions, provide market access to developing countries so as to increase their share in world trade and enable them to benefit more from globalization and liberalization.
He said those measures should be integrated with direct investment, commercial loans, official development assistance (ODA) and technology transfer to promote various processes related to the trade and development of developing countries, including trade policy reform. The World Trade Organization should fully demonstrate its universality by admitting applicants, particularly applicants from developing countries. It should remove inappropriate obstacles posed by some member States and admit new members under conditions congruent with the level and requirement of their economic development. Keeping some important trade partners out of WTO was against the trend of globalization and was harmful to the broader international economic cooperation as well.
AKMARAL ARYSTANBEKOVA (Kazakhstan) said her Government attached exceptional importance to solving the problem of access to world trade routes and, in cooperation with the international community, was taking appropriate steps to achieve that aim. Kazakhstan was paying particular attention to programmes to identify and establish routes for access to world markets, sea routes and truck routes. It was also working to establish an appropriate regulatory and legislative framework and a staff training system, and to strengthen cooperation with neighbouring States through which transit transport was conducted. Kazakhstan had already concluded 55 bilateral and
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multilateral agreements on international transport, and work was being actively pursued on Kazakhstan's accession to international transport conventions and agreements.
Under a special programme drawn up by her Government, the main sections of five international routes, with a total distance of about 7,000 kilometres, would be rebuilt and modernized by the year 2000, she said. Those routes ensured communication between the main industrially developed regions and other States of the region, as well as the bulk of the transit transport between neighbouring countries.
Many of the measures being conducted by her Government were being implemented with the assistance and direct participation of international and regional organizations, she said. Kazakhstan greatly valued the efforts of the United Nations, particularly UNCTAD and the United Nations Development Programme (UNDP), to develop a transit transport system in the landlocked Central Asian States. Her Government hoped that cooperation in that direction would continue and support the proposal for holding in 1999 at United Nations Headquarters the Fourth Meeting of Governmental Experts from Landlocked and Transit Developing Countries and Representatives of Donor Countries and Financial Developing Institutions.
AKRAM ZAKI (Pakistan) said it was disturbing to note that the WTO had been functioning for two and one half years without any visible benefits to the developing countries. Indeed, it was working to the disadvantage of the developing countries. Those countries were being asked to give up their right to take import control measures for balance of payment reasons. That was highly iniquitous. Developing countries wishing to join WTO had, in several cases, been denied the benefits of developing countries' status at the time of their entry to WTO. Despite the protection against unilateral actions guaranteed by the new agreements, the threats of unilateral actions had continued.
He said slowing growth rate in world trade, falling commodity prices and discriminatory trade liberalization were working to the detriment of the developing countries. The capacity of governments to analyze and monitor the increasingly complex global trade environment must be enhanced. Inputs were required from institutions that had the requisite expertise on trade, finance and development issues. UNCTAD's importance as a source of analysis on trade policy issues and as a provider of timely economic intelligence, could not be overemphasized. Pakistan was deeply committed to an equitable, fair, rule- based and non-discriminatory global trade regime. It was also committed to ensuring greater access of goods and services to its market. Pakistan hoped all countries, especially developed ones, would be guided by the same principles while formulating their trade policies.
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JEAN-BAPTISTE HAJAYANDI (Burundi) said landlocked developed countries faced major obstacles to development. Efforts to access international markets were hampered by their meagre capacity in the fields of transport and communications. One of the largest problems was the lack of adequate training for transport and communication officials. On the legal and political levels, the Secretary-General's report (document A/52/329) highlighted the lack of respect by transit countries concerning commitments to facilitate the passage of goods. His Government was in favour of reactivating the partnership between developing countries, transit countries and the donor community, with participation and cooperation of UNCTAD.
The Secretary-General's report also referred to the activities of the UNCTAD secretariat in Burundi's subregion, particularly its support in the review of the North Corridor Transit Agreement, he said. The use of the port of Mombassa, in Kenya was of capital importance for the other countries involved, including Burundi, Uganda, and the Democratic Republic of the Congo. UNCTAD's continued support, as the coordinating authority, would be important so Burundi could again fully use that corridor.
An economic embargo had been arbitrarily imposed on Burundi by other countries in the subregion, he said. Certain countries, however, had lifted the embargo, which had hurt their own countries. Burundi remained deprived of access to the Indian Ocean by waterway or rail. His Government condemned the economic and commercial sabotage directed at a poor landlocked country that had already been hampered by grave economic and social crises. The UNCTAD secretariat must continue its efforts to identify and address ways and means to support landlocked countries.
JAGRIT P. BHETWAL (Nepal) said the current practice of dealing with the issue of landlocked developing countries every two years was grossly inadequate for the urgent attention that it demanded. The special problems of landlocked developing countries, owing primarily to their physical and geographical handicap, should be addressed by the liberalization of trade regimes and the promotion of an open and secure multilateral trading system. All countries with shared interest in open, ruled-based, equitable, non- discriminatory and predictable multilateral trading system should assist the less privileged, particularly the least developed and the landlocked developing countries to develop the requisite capacity to compete with other developing countries. Greater efforts were required to enable all developing countries to negotiate and compete with the developed nations on a footing of equality.
He said the first step should be the reaffirmation and observance by the international community of the right of access of landlocked countries to and from the sea and freedom of transit through the territory of transit States by all means of transport, in accordance with international law. Active and
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consistent support and understanding from the developed countries by giving unfettered access to their markets would also help alleviate some of the problems of the landlocked developing countries.
ALI SULEIMAN AUJALI (Libya) said the efforts of developing countries and their aspirations for industrialization had been aborted. Instead of assisting those countries in developing their economies and enhancing their industrialization efforts, the developed countries had added more conditions. Official multilateral assistance had declined and bilateral aid was being burdened by excessive conditions imposed by developed countries. That impeded the transfer of modern technology due to the unfair terms and the unilaterally imposed coercive laws that prevented developing countries from achieving the degree of economic and technical development that would enable them to catch up with the developed countries.
The implementation of a structural adjustment programme in many African countries had not led to an increase in the per capita income, he said. Developed countries must realize that the imposition of a specific model, to be applied by all countries of the world, was impractical. It was impossible to write a universal prescription to treat political and economical ills, and such a solution ignored, intentionally and unjustifiably, the unique characteristics of each country. That was also true of attempts to impose a market economy on countries with no economies and no markets.
Policies of economic embargoes and blockades stemmed from archaic views and policies that had been rejected and superseded, he said. If it was acceptable in previous decades to use the methods of a boycott, today it smacked of reactionary behaviour at a time when the world was calling for integration and cooperation in combating poverty, ignorance and backwardness. His Government called on the international community to reject those unilateral laws which ran counter to the norms of international law and the United Nations Charter.
KHALED S. H. AL-HITTI (Iraq) said restrictions imposed on the movement of goods, services and capital should be removed from the international trading system. The gap between the North and South should be closed. The international community should ensure greater participation of the developing countries in the international economic system. There should be a more equitable partnership between developed and developing countries. On their part, the developing countries could minimize their marginalization through the strengthening of South-South cooperation.
He said coercive economic measures violated international law and were against the principles on which the United Nations was established. Such unilateral measures did not provide an enabling environment for the achievement of sustainable development. Those measures had grave consequences not only for the developing countries but for the developed countries as well. The most vulnerable segments of the society, such as women and children, were
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often the ones who suffered most from the imposition of such unilateral coercive measures. Iraq called on the countries which imposed those measures to eliminate them. International institutions which deal with economic, trade and development issues must be democratized. The agenda should be sustainable development based on equity and fairness.
MUBARAK HUSSEN RAHMTALLA (Sudan) said the General Assembly was aware of the adverse effects of restrictive economic measures. They hindered the efforts of developing countries to achieve development, as well as attempts by the international community to establish a non-discriminatory and open economic order and international cooperation. No State had the right to use or encourage economic, political or other measures in an endeavour to pressure other States or force them to be dependent and deny them the right to exercise its sovereignty.
The United States was the only State that imposed coercive measures unilaterally against developing countries, without approval by the United Nations, he said. That country had also taken hostile actions toward the Sudan. The President of the United States had resorted to a policy of double standard and hypocrisy and had acted ambiguously concerning Israel's policy of State terrorism.
The United States supported Israel, and the latter benefited from the former's veto power in the Security Council, he said. The United States should demonstrate its credibility as political and economic Power and lift restrictions which stood in the way of international cooperation. Those measures also imposed double standards and ambiguity concerning how certain entities in the international community were treated. Their only achievement was stirring up resentment among Muslims in general.
NELSON MUTURI (Kenya) said the developing countries' share in international trade remained low and continued to decline as a result of growing marginalization in the global economy. Most of them had not benefited much from the global trend of positive economic growth, in spite of their persistent efforts in the implementation of structural adjustment programmes. Marginalization of developing countries in the process of globalization and liberalization would further undermine the economic development of those countries. UNCTAD still had the comparative advantage in addressing trade- related development issues and should continue to facilitate the integration of developing countries into the international trading system in a complementary manner with the WTO. A balanced and integrated approach to environment and trade was needed. He was concerned that attempts to introduce environmental and labour standards in the world trading system would further undermine efforts of developing countries to expand their external trade.
He welcomed the WTO Plan of Action for the least developed countries adopted in Singapore in December 1996, aimed at providing concessionary market access to those countries and was encouraged by the initiative taken by the
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European Union and the United States Government in introducing substantial changes in their Generalised System of Preferences (GSP) in favour of the least developed countries in Africa. However, a lot remained to be done to ensure those initiatives attained their objectives. In that regard, he urged the international community to support the current efforts of the African, Caribbean and Pacific (ACP) countries in reviewing their trade relations with the European Union before the expiry of the current Lome IV Convention. Kenya was committed to regional integration within the framework of multilateral cooperation in trade and development. The East African cooperation among Kenya, United Republic of Tanzania and Uganda was undertaking major innovative steps to promote regional socio-economic integration.
ALEKSANDRA DUDA (Poland) said trade liberalization was urgent and that governments must adopt investment policies based on the multilateral principles of liberalization and equal treatment. Poland supported measures to ease access of developing countries' exports to world markets, which would improve their domestic economies' competitiveness, and recognized the WTO as the most important international economic relations institution. It had almost completely consolidated its liberalization obligations resulting from the Uruguay Round in customs policies. The Russian Federation, China and Ukraine must join the WTO soon and participate in the multilateral system of international trade.
Poland had recently signed the Information Technology Agreement (ITA), confirming its desire to win a larger share of the global information technology market, she said. It recognized the role of the reformed UNCTAD in promoting trade and development, especially in projects aimed at integrating developing countries into the world economy. A positive effect of the economic reforms Poland had carried out since 1989 was its transition from a recipient to a donor country. Poland offered to share its experience with developing countries and economies in transition.
Financial barriers kept developing and least developed countries from participating in the global economy, she said. Lending and borrowing countries must cooperate on debt forgiveness and rescheduling. Poland welcomed the joint International Monetary Fund (IMF) and World Bank initiative for heavily indebted poor countries. On the national level non-governmental actors, especially private business, played a role in development while governments should adjust their involvement in the economy. Poland supported United Nations activities promoting market-based economic reforms, structural adjustment, entrepreneurship and private sector development, capital flows, investments and trade expansion. International aid to countries that had undertaken economic reforms was vital and must continue.
JENO C. A. STAEHELIN, observer for Switzerland, said countries which liberalized market forces and competed vigorously on the world stage could expect faster growth and rapid development. Without denying the challenges of adjustment and liberalization, the willingness to open markets and to provide
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an enabling environment must be reaffirmed. An open trading system also played an important role for the essential flow of information and technology around the world, which brought new opportunities to developing countries. Globalization was a fact and all actors should take advantage of it.
Welcoming the increased participation of the private sector in UNCTAD, he said Switzerland had always recognized the role of the private sector in fostering development, especially in areas related to infrastructure, services and the environment. Measures to make private participation feasible -- including economic stabilization, demonopolization and introduction of sound tariff policies -- had the potential to strengthen incentives for better public sector performance as well. Switzerland supported the convening of the third United Nations conference on the least developed countries. That conference should take place early in the year 2001 and due attention should be paid at the conference to finding solutions to the suffering of the least developed countries through regional cooperation.
TAKASHI OKADA (Japan) said whether developing countries could take advantage of globalization depended on several factors. First, those countries should pursue sound macroeconomic policies and take steps to achieve market-oriented liberalization of their economies to attract a greater inflow of capital. They must also attach equal importance to enhancing socio- economic infrastructure, including telecommunications and transportation systems, as well as human capacity-building and institution-building. An external environment must also be created that was conducive to development. Commodity prices, exchange and interest rates must all be stable.
Japan was in favour of closer coordination between the United Nation system and international financial institutions, he said. Accordingly, his Government welcomed the decision to convene a high-level special meeting between Economic and Social Council and international financial institutions. There was also a need for greater access to the markets of industrialized countries for exports from developing countries. In order to address the circumstances of individual countries, all of those conditions must be met in an integrated manner. Therefore, there must be both a comprehensive and an individualized approach, with the cooperation of all the partners for development.
What divides the more successful economies from the less successful in global competition was simply the efforts of policy-makers and citizens to improve the competitiveness and attractiveness of their own economies, he said. Once a national government took the initiative in formulating its strategy for achieving that end, based on its awareness of the importance of ownership, the donor community must provide fully coordinated support in the spirit of genuine partnership.
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BAGHER ASADI (Iran) said the exercise of power through the application of illegal means, such as the imposition of coercive economic measures against other countries, to achieve unjustifiable objectives served as an unmistakable example of the emergence of the dangerous trend of unilateralism. Such actions and measures were not authorized by the relevant organs of the Organization and were commonly considered impermissible by the international community. Unilateral actions and extraterritorial application of domestic laws adversely affected the economy and development of developing countries and had a negative impact on international economic cooperation. That course of action also poisoned the overall atmosphere for international cooperation, even in areas of peace and security, and seriously threatened the credibility of such values as confidence and the rule of law, which were the foundation for international and inter-State relations.
An example of such actions were the coercive measures exercised by the Government of the United States against Iran, including the enactment of the legislation known as the D'Amato Act, he said. Application of that legislation against his Government stood in clear violation of the established rules of international law, including the principles of the United Nations Charter and the principle of freedom of international trade. It also ran counter to the treaty obligations of the United States with regard to Iran.
The United Nations was well placed to address the issue of unilateral coercive economic measures and its negative effects on all countries and the world economy as a whole, he said. The Organization should take effective action to discourage such actions by its Member States. The Second Committee and the Assembly should adopt a resolution reiterating and reaffirming the international community's established position against unilateral coercive economic measures. It would be a necessary first step in the right direction.
ANDRE OBERHOLZER (South Africa) said it was time for Member States to turn their attention to the consequences of recent financial crises and to understand that such shocks would reoccur. Economic growth and development could not be looked at, nor addressed, in isolation from broader societal concerns. In that regard, the work done by UNCTAD on economies in regress, as reflected in the Least Developed Countries Report of 1997, was extremely vital. That was an unfortunate phenomenon which affected some African countries and must be taken into account in the development efforts of African countries. His Government supported UNCTAD's intention to continue work in that area.
The need for the international community's development efforts to be mutually supportive and demand-driven had yet to be fully reflected in reality, he said. Therefore, his Government welcomed the launching of UNCTAD's Integrated Country Programme for the least developed countries. It would be interesting to see how the outcome of WTO's high-level meeting on the
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Integrated Framework for Trade-Related Technical Assistance to the least developed countries was taken up by the five other sponsoring agencies, other international actors and bilateral donors.
It must worry the proponents of the multilateral trading system that so many countries could hardly keep up with the plethora of current commitments, he said. There was a need to ensure that developing countries could develop a positive agenda. That was essential if the multilateral trading system was to survive. The necessary technical assistance and other support must be provided to ensure that all countries participated fully, not only in international trade but also in the rule-making process. UNCTAD's key role in that regard had been mentioned several times today by both developing countries and those with economies in transition.
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