Sep 20, 1986

NEGOTIATIONS OUTSIDE GATT?

PUNTA DEL ESTE, SEP. 19 (IFDA/CHAKRAVARTHI RAGHAVAN) -- After night-long negotiations Thursday, negotiators in a small group were due to resume this morning their efforts to find acceptable solutions to the deadlock over the issues of services and new themes to be included in a new round of Multilateral Trade Negotiations.

The U.S. and its supporters last night would appear to have turned down the idea of a two-track approach, one inside GATT on issues in the area of goods, and other technically outside GATT to deal with services, and for determination at the end of the meetings as to what should be done about it.

The negotiators were due this morning to consider an alternative idea, apparently suggested last night by Sweden, namely, for all the negotiations to be conducted outside GATT, and for the negotiators to keep GATT advised at some point, when a determination could be made whether they should be incorporated in GATT or not.

This possibility holds some advantages as well as some disadvantages for third world nations.

On the one hand the negotiating process itself would bring out more differences and difficulties than is apparent now to some of those supporting the U.S. drive. On the other hand, it could enable not only negotiations to be run totally ad hoc, but even an attempt made to create a GATT plus, though it too has dangers for the major trading nations, since in fact the future markets for the growth of their goods exports lie in the third world.

The negotiators who met until about 0730 GMT of Friday, broke for a few hours and were due to resume Friday at 1300 GMT.

Iglesias has taken up the services issue first in the belief that if this is solved, other things could be easier of solution.