11:27 AM Jul 17, 1996

DEVELOPING COUNTRIES LOOK FOR BETTER COORDINATION

Geneva 16 July (TWN) -- The need for better coordination among developing countries in the runup to the first ministerial meeting of the WTO in Singapore was reportedly stressed by several speakers at an informal meeting of the developing countries at the WTO Tuesday.

The informal group has been meeting very infrequently. The last time it had met was to hear the OECD representative on their proposed Multilateral Agreement on Investment.

The Argentine Ambassador, Mr. Sanchez Arnau, who has been chairing the group, in opening the meeting said he had invited the WTO head, Renato Ruggiero, to attend the meeting but that Ruggiero could not come as he was away in New Zealand for the Apec meeting. Arnau said that he was transferring his responsibility of Chairmanship to the Ambassador of Zambia. However, the latter was not there to take over.

Several delegations used the occasion to comment on the preparations for the Singapore Ministerial Conference (SMC), with several stressing the need for better coordination among members of the informal group.

Tunisia, on behalf of the African Group told the meeting that a successful Singapore meeting will help the credibility of the WTO. Focus should be on implementation and technical assistance to developing countries in the area of implementation. On the built-in agenda the Marrakesh decisions should be implemented.

Morocco said there should be a balance in dealing with new issues, and some new issues of benefit to the developing countries should be examined. The Committee on Trade and Development (which Morocco is chairing) hoped to come forward with proposals to prevent the marginalisation of LDCs.

India said the focus at Singapore should be on implementation. The balance of rights and obligations built into the agenda cannot be disturbed. India also complained that there was a flood of non-papers on new issues, with some 22 papers so far for new agenda items. Delegations did not even have time to look at these things.

Tanzania said implementation was the most important issue. As for the 'trade and investment' issue sought to be brought on the agenda, the proposal to start a study or educative process, was an effort to bring new issues in by the backdoor, and an attempt to restrict the sovereign right of developing countries to control their investment policies. A similar exercise was undertaken in 1982, and services were brought in for exchange of information and ended up with a GATS agreement. Tanzania was apprehensive that if a study process is begun on trade and investment issue, they will end up with an MIA. Industrial countries should not raise controversial issues for Singapore. Otherwise, there will be confrontation with the developing countries.

Cuba supported Tanzania, and called for caution on new issues. The attempt to bring in labour standards should not be encouraged, Cuba said and accused the WTO secretariat of trying to push this on the agenda.

Colombia said implementation was very important and the SMC should look at the adverse impact of the Uruguay Round on developing countries. On new issues, their usefulness to developing countries has to be established and they could only discuss these issues, not negotiate.

Egypt called for practical steps for the group to follow up and coordinate. Zambia, as the new chair, should consider ways for the group to look at new issues. Developing countries need breathing space to see how the Uruguay Round has been implemented. The in-built balance of negotiated undertakings should be maintained and should not be upset through new issues.

Thailand on behalf of the ASEAN stressed the need for a balanced agenda at Singapore and said implementation and built-in agenda were two key issues for Singapore. As for the 'non-papers', only trade-related issues should be looked into.

Pakistan also stressed focus on implementation. The new issues will upset the objectives of the SMC and "we cannot have new issues."

Bangladesh said Singapore's priorities must be on implementation. As for new issues, these must first be discussed in the concerned organizations. This meant that workers rights should be discussed at the ILO, and competition policy and investment in UNCTAD. Corruption is a domestic issue. There should be focus at Singapore on implementing the special provisions for LDCs.

Hong Kong said there should be focus on implementation and built-in agenda as well as new issues. There should be focus under implementation on issues of interest to developing countries -- including tariff liberalization, special package of tariff liberalisation measures for LDCs and investment. Hong Kong also referred to the textiles and clothing issue and said it was up to the developing countries to push the implementation issues of concern to them at Singapore.

Nigeria felt that the new issues could only be delayed, but not indefinitely. A coordinated strategy was needed to and get developing countries on board in any compromise that mays be reached at Singapore.

Peru favoured the establishment of a group to coordinate positions among the developing countries. New issues should be looked at on their own merits. Peru was opposed to labour standards, but was willing to examine the investment question.

Singapore said that 50% of the SMC agenda was on implementation and the substantial built-in agenda, as well as on the trade and environment -- where there could be progress on domestically prohibited goods and on market access. There was need to look at the problem of marginalisation of LDCs, as well as how regional blocs could help the multilateral trading system. Singapore also called for expediting the accession of China to the WTO, noting that by 2020 China will be the world's major trading nation.

Singapore said that logic should be applied in dealing with this.