HEADS OF DELEGATIONS TACKLE SERVICE ISSUES.

Sep 20, 1986

HEADS OF DELEGATIONS TACKLE SERVICE ISSUES.

PUNTA DEL ESTE, SEP. 17 (IFDA/CHAKRAVARTHI RAGHAVAN) --The committee of heads of delegations held a long discussion Wednesday afternoon on the controversial issue of services, and are to take up tomorrow morning the two remaining issues of intellectual property rights and investment issues.

According to participants in the meeting, the discussions on services did not show any change of position by the major protagonists on either side of the argument. But a large majority was reported to have supported the view that services should figure in the new round, in terms of the proposals in the Swiss-Colombian draft, W/47.REV.2.

However, Colombia, a cosponsor, is reported to have restated its views in the Plenary Monday, and put forward four points to be included in any such formulation.

-- Recognition of growing importance of services, usefulness of the process of exchange of information so far done in GATT, and recognition that it was time to create a framework on services.

-- The framework should be through negotiations in a committee on services that would be separate from the negotiations in goods under the supervision of the trade negotiating committee, and the committee con services to report directly to the GATT CPS.

-- There should be no cross-linkages between goods and services, and the efforts in services should not distract attention from the priority for trade liberalization in goods.

According to some participants, those supportive of the W/47.REV.2 position however showed some considerable nuances.

Several of them interpreted the formulation to mean the idea there should be no cross-linkages, that the development and national policy objectives behind national regulations should be taken into account, and that the issue whether it any framework evolved should be in GATT or separate would still have to be decided at the end of the process by GATT CPS themselves.

Earlier in the day, the committee discussed the issues of linkages between trade and monetary issues, and a very large majority, both of the third world nations and several industrial nations. argued for stronger formulations on this issue in any draft declaration.

The U.S. however appeared to be opposed to any formulation more specific or stronger than the vague formulation now in the W/47.REV.2 text, which has put them in the objections.