7:27 PM Oct 4, 1996

LDCS CONCERNED OVER MARGINALISATION

New York 3 Oct (TWN) -- The Least Developed Countries have expressed their concern over the continued marginalisation of their countries in world trade and their 'disquiet' that the LDCs as a whole may be adversely affected by the Agreements of the Uruguay Round of Multilateral Trade Negotiations.

In a Ministerial Declaration adopted at their meeting here on the occasion of the UN General Assembly, the group said that the LDCs would stand to suffer erosion of preferential margins, resulting in loss of export market shares and earnings, and would also face higher food import bills as a result of the Agriculture Agreement.

Earlier, the Ministers expressed concern over the limited progress made in implementing the Paris Programme of Action on LDCs and noted that the development problematique of these countries was further compounded by a process of rapid globalization in a liberalizing world economy, magnifying the susceptibility of the LDCs to powerful external forces and deepening their marginalisation.

Referring to the external debt burden of the LDCs and the recent multilateral debt initiative of the Bretton Woods Institutions, the Ministers said an assessment of the initiative would have to await finalization of the debt relief scheme. But the effectiveness of the scheme would critically depend on the nature of the eligibility criteria and the flexibility with which they are applied, the country coverage and the extent of relief provided.

On the trade front, the Ministers urged their development and trading partners to adopt specific and concrete measures to redress these problems and facilitate the LDCs ability to meet their obligations under the Agreements. In particular they called for financial, technical and technological support as agreed in the Uruguay Round agreements as also compensation for losses they would suffer from the implementation of these agreements.

Such measures, the Ministers said, should also result in reversal of the marginalization of the LDCs and ensure their integration into the global economy and strengthen their capacity to compete effectively in world trade.

The LDCs asked for assistance on a priority basis to mitigate the adverse consequences arising from the Final Act of the Uruguay Round, as also the proposal to accord duty-free treatment to all LDC exports.

"There has not yet been any visible action in implementing the special and differential measures afforded to LDCs in the various agreements of the Uruguay Round," they said.

The declaration stressed the importance of setting up 'safety net' measures to enable LDCs to tide over transitional difficulties. The Declaration specified in this connection technical assistance, food aid and debt relief, and additional preferences -- including in areas where trade liberalization is at an incipient stage -- exempting LDCs from tariff peaks and tariff escalation.

The LDC Ministers called on the Singapore Ministerial Conference to adopt a comprehensive plan of action for LDCs with concrete measures for market access.

The LDCs, the declaration said, confront the processes of globalization and liberalization with distinct disadvantages. Enhanced access to expanding global markets require efficient production structures capable of meeting increasingly exacting demands in terms of quality, cost and delivery structures -- requirements that sharply contrast with the salient characteristics of the export sectors of the LDCs.

The Declaration also called for strengthening the UNCTAD secretariat "entity" dealing with LDC issues to enable it to effectively coordinate the sectoral work and monitor the implementation of the Paris Programme of Action. The Ministers welcomed the special initiative launched by the UNCTAD Secretary-General in this regard, the steps taken to establish a Trust Fund for LDCs, and his decision to hold monthly consultations with heads of missions of LDCs in Geneva on the functioning of the new organizational arrangements.

The UNCTAD Secretary-General was also requested to commence the preparatory process at the level of the UNCTAD secretariat for the third UN Conference on Least Developed Countries.