Oct 17, 1987
EEC TROPICAL PRODUCTS MOVE WELCOMED WITH RESERVATIONS.
GENEVA OCTOBER 15 (IFDA/CHAKRAVARTHI RAGHAVAN) – The proposals tabled by the European community on the issue of liberalisation of the trade in tropical products were viewed by most participants in the Negotiating Group as "a positive and constructive step". The EEC tabled its proposals Wednesday afternoon in the group. Delegates reportedly reserved their detailed comments pending study in their capitals. Third world countries in their preliminary comments reportedly saw the EEC action as a positive and constructive step, and hoped other countries would also table their proposals or offers. Some of them noted that a number of product groups that the Negotiating Group had already identified as falling within the term "tropical products" had been excluded by the EEC: cut-flowers, all vegetable oils, unmanufactured tobacco and tobacco leaves, rice, tropical roots, and bananas. It was also noted that the EEC was introducing a new categorisation of "industrial" and "agricultural" tropical products, and taking out some of the products that the Negotiating Group had agreed to cover, and placing them in the category of agricultural products to be covered in the negotiations on agriculture. The concept of "burden sharing" in the EEC proposal was also contrary to the mandate of the Negotiating Group and the GATT "enabling clause". The enabling clause, incorporated into the GATT framework by a decision of the GATT Contracting Parties on November 28, 1979, provides for "differential and more favourable treatment" to third world countries by industrialised Contracting Parties without having to provide the same treatment under the GATT MFN clause to other industrialised CPS. The enabling clause also deals with the issues of "reciprocity" and "fuller participation" of third world CPS in GATT. On reciprocity, the enabling clause provides that the industrialised countries "do not expect reciprocity for commitments made by them in trade negotiations to reduce or remove tariff and other barriers to the trade of developing countries". It adds that "developed Contracting Parties shall therefore not seek, neither shall less-developed Contracting Parties be required to make, concessions that are inconsistent with the latter’s development, financial and trade needs". In the light of the enabling clause, Sri Lanka speaking for a group of third world countries reportedly pointed out, the EEC could not demand "sectoral reciprocity, as a condition for its own liberalisation of the trade in tropical products. Other participants also sought clarification from the EEC of its categorisation of "more advanced developing countries" who were being expected to accept "a fair degree of multilateral burden-sharing". The EEC was also asked to clarify its stand on its "particular responsibility" for associated countries. Did the EEC position about liberalisation refer to the reservation of the preferential margins of the ACP states as a whole or only of the least developed countries (LDCS) among them or of all LDCS? The EEC reportedly clarified on this that their intention to take account of the "expressed interests" of LDCS applied both to the ACP LDCS and others. ACP countries, who might lose by loss of preferential margins under the tropical products’ liberalisation, being compensated in some other way was also raised by some of the third world participants. However, the EEC reportedly did not respond. Responding to Japan, the EEC described its proposals as both an "offer" and "an approach". It left it to other CPS to put forward their own preferences in the approach to be taken for the negotiations in this sector. The U.S. reportedly clarified that the U.S. had put forward some proposals covering tropical products in the context of the negotiations on agriculture. This implied that the U.S. would not make any specific proposals on tropical products. Malaysia however reportedly underscored that the Uruguay Round negotiations involved separate negotiations on tropical products and on agriculture. Malaysia hence expected the U.S. to make a separate offer on tropical products. The chairman, Paul Leong Khee Seong of Malaysia, suggested that before the next meeting, due to be held on November 11-12 and expected to be the last meeting in the initial phase, other participants should also formulate their proposals and table them. The chairman also reportedly indicated that consultations would continue on both the issue of "extended coverage" would continue, and that without prejudice to this work should continue on the preparation of the background material for the negotiations.