CONSULTATIONS CONTINUE ON NEGOTIATING PLANS, SURVEILLANCE.

Dec 18, 1986

CONSULTATIONS CONTINUE ON NEGOTIATING PLANS, SURVEILLANCE.

GENEVA, DECEMBER 17 (IFDA/CHAKRAVARTHI RAGHAVAN) – Formal and informal consultations are continuing in GATT in efforts to finalise the negotiating plans for the negotiations in goods and for establishment or a surveillance mechanism for the standstill and rollback commitments of the Uruguay round, according to GATT sources.

Under the Punta del Este declaration, the negotiating plans for negotiations in goods have to be approved by December 19.

The group of Negotiations on Goods (GNG) and the Trade Negotiations Committee (TNC) of the Uruguay round held meetings Tuesday, and heard progress reports but did not reach any conclusions, participants in the meeting said.

There is now increasing acceptance of the central role of the GNG in the negotiations on goods, and it is likely that only the first phase of negotiating plans in each of the subjects for negotiations would be agreed to now, according to some participants.

The first phase n each of the subject areas for negotiations is mainly to cover study and development of negotiating issues, and collection of any needed data.

The subsequent negotiating phases of the plans would have further developed and would be subject to final approval of the GNG, these sources said.

Sources said that all third world countries, and many of the industrial countries too, are now favouring the view that simultaneously with the approval of negotiating plans, the surveillance mechanism for standstill and rollback commitments must be established.

While some drafts for the surveillance mechanism and its role are reportedly emerging, there are still some problems relating with the GNG and the TNC.

The U.S., while willing to have some subsequent role for the GNG is however still insisting that the reports of any surveillance mechanism should be to the TNC, for its appraisal and review.

A number of third world countries insist that since the TNC is to receive reports only from the GNG (and in the area of services from the group of Negotiations on services, GNS), all subsidiary bodies in the negotiations in goods could only report to the TNC through the GNG. The standstill and rollback being part of the GATT Contracting Parties’ decisions on negotiations in services, the surveillance mechanism too can thus report only through the GNG.

Third world countries want the GNG to have a say in the surveillance, specially in view of its overall coordinating role for the conduct of the negotiations in goods of which standstill and rollback commitments are an integral part.

The problem of structures or negotiating bodies under the GNG for various subjects to be negotiated is also still to be solved, with the U.S. continuing to baulk at the setting up of a separate group on textiles and clothing.

The Asian and several other countries are also disappointed that the negotiating plans readied so far do not provide for any "fast track" approach for the negations on tropical products.

Australia, Argentina and other members of the "Cairnes Group" of agricultural exporters are also reported to have some reservations because of their worry that agriculture trade issues may not receive priority in the negotiations.

At the meeting of the TNC, the U.S. is also reported to have said that by December 19 it must not only have negotiating plans for the negotiations in goods (as mandated by the Punta del Este declaration), but as a part of the package also a negotiating plan for services.

However a number of countries – Malaysia for the Asian, Egypt and Uruguay among them - reportedly objected to any such linkage, and viewed this as "a disturbing sign".

At a meeting of the informal group of third world countries later in the evening Tuesday, delegates insisted that agreement on negotiating plans and on surveillance mechanism should be seen as a minimum package.

While a large number of participants also insisted on simultaneous agreements on the structure of negotiations, namely establishment of negotiating bodies for various subjects, a few countries were apparently of the view that this issue could be tackled later, if necessary.

But there has been no support for the view of some of the industrialised countries that negotiating groups for individual subjects should be named wherever there is agreement, and others held up for the new year.

The GNG and the TNC are now scheduled to meet on December 19.