Nov 16, 1985
TRADE-: SENIOR OFFICIALS GROUP WINDS UP WITHOUT REPORT.
GENEVA, NOVEMBER 14 (IFDA/CHAKRAVARTHI RAGHAVAN)— A senior officials group, set up to discuss the subject matter and modaliaties of a proposed new round of Multilateral Trade Negotiations (MTNs) in GATT, has wound up its work here, without being able to agree on a report of its work.-The group was set up at a special session (September 30 - October 2) of the Contracting Parties to the general agreement, and was mandated to report to the annual session of the Contracting Parties, due to begin on November 25.- A GATT spokesman said that the group found itself Wednesday night unable to agree on the terms of a report, since in essence it involved agreement on the wording of issues where there were fundamental differences.- As a result, the spokesman said, the chairman of the Contracting Parties, Felipe Jaramillo of Colombia, who had also chaired the group, would make a short report, "on his own responsibility", and this report would be "supplemented" by the summary records of all the substantive discussions of the group.- The spokesman said that among the unresolved problems Wednesday night was the view of some that the report should recommend the setting up of a Preparatory Committee for the launching of a new round, and their objection to making the summary record part of the report.-Asked whether the delegations concerned did not now want to stand by what they had said at the meeting, the spokesman said that the objection stemmed from their view that, if from the beginning they had known summary records would be presented, they would have made fuller explanation of their views on each item instead of remaining silent or merely expressing support.- According to third world delegations, the U.S. and EEC wanted a conclusion in the report for the setting up of a Preparatory Committee.- Also, these sources said, the EEC objected to the incorporation of the summary records in the report or even as an annex (as suggested by Switzerland).- The summary record, Third World sources explained, brought out that there was considerable difference of opinion among the Contracting Parties on a new round, its subject matter and modalities, and showed that the idea of preconditions like standstill and rollback were widely shared.- The summary record also brought out that the opposition to the U.S. thrusts did not come only from one or two countries as was made out, but from several others.- Third World sources said that while Jaramillo indicated that he would make a report as "I deem fit", several delegations had indicated that any report of substance that did not take care of their objections would force them to challenge it.- The GATT spokesman said Jaramillo was yet to draft the report and it was not known whether it would be merely procedural and formal or deal with any substance.- The group had held 11 days of meeting in four sessions, when it discussed the various items that could figure on a new round, the modalities for any such new round, and other issues (outside the GATT work programme). That had been put forward by various countries in their presentations in July to the GATT Council or at the special session.-Third World sources said a 73-page draft report prepared by the secretariat was jettisoned last Friday, when several Third World countries objected to it, on the ground that there was not adequate differentiation of the issues discussed, and that it had diffused the various issues of concern to Third World countries while highlighting those of the U.S. and others.- Third World sources said that at the senior officials meeting, a large number or Third World countries had underlined the need for credible and monitorable guarantees and actions on standstill and rollback of protectionism.- Specific proposals had been advanced for commitments on standstill of protectionism from individual countries, to be provided at the highest levels of government and backed by legislative authority where needed, and notified to GATT before any decision on setting up of a Preparatory Committee could be taken.- These countries had also called for commitments and agreements, prior to the launching of any new round on rollback of protectionist measures put in place by industrial countries in violation of GATT rules and principles.- Thirdly, they had said the issue of safeguards, or the emergency protectionist actions countries could take under article XIX of GATT, should be negotiated and an understanding reached on the basis of the highest priority in the new round, before any other issue could be negotiated.- Third World sources said that the draft report had "diffused" these viewpoints in its report.-Also, they complained, it placed the same emphasis on the issues within GATT competence in the work programme, and new issues like "services", "investment" and the like.-And while the so-called economic arguments for negotiations on services got much mention, the objections to the issue being dealt with in GATT were dismissed in a couple of lines, they complained.-After some discussions last week, it was agreed that the secretariat should draft a shorter report with a factual introduction, and incorporating under each issue the summary record of views expressed at the meetings by various Contracting Parties.-At meetings of the group this week, a second six-page draft of the secretariat providing a shorter summary of the outcome of the group, along with the summary records, also ran into trouble.-Third World sources said that the new secretariat draft too had tilted the balance by talking of "no objection in principle" to a new round and in effect suggesting the setting up of a committee by the Contracting Parties.-Also, the report had again failed to focus on the call by Third World countries for a standstill commitment before the launching of negotiations, and for high priority to negotiations on a safeguards agreement in the new round.-Efforts to negotiate a report on the basis of the new draft, and amendments proposed by a large number of Third World delegations, had to be given up when the European Community went back on its earlier agreement and declined to have the summary records of the meetings of the officials group as part of the report.-A Canadian suggestion that the chairman of the meeting should be authorised to submit a report on behalf of on the group was found unacceptable on the ground that it was the group that had mandated to provide a report and not the chairman.-Various Third World compromises like the setting up of a drafting group to prepare a report or for the chairman of the group to prepare a report for the consideration of the group were rejected by the EEC or the U.S., according to participants.-A suggestion by Uruguay that the chairman, in this situation, might present an oral report indicating that while there had been an useful exchange of views, found in the summary records, there was lack of agreement on a report, was not acceptable to the U.S. and EEC, Third World participants said.-The meeting was finally terminated Wednesday night, with the chairman saying that he would present a report as he deemed fit and on his own responsibility.-