UNITED NATIONS
ECONOMIC AN'D'
SOCIAL COUNCIL
I, I -i; :
Distr.
GENERAL
E!CN.14!INF!37 10 January 1969 Original: ENGLISH
•
ECONOMIC COMMISSION FOR AFRICA Ninth session
Addis Ababa, 3-14 February 1969
Item 7(d)(ii) of the provisional agenda
DOCUMENTS OFFICE
L'I·~ L1
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~O TO BE TAKEN
our
ACTION IN GATT ON TRADE AND DEVELOPMENT (Note by the GATT Secretariat)
M69-54
TABLE OF CONTENTS
II. Co-ordinated work programme of GATT
Advance implementation of Kennedy Round reductions
Twenty-fifth GATT Session, November 1968
Committee on Trade and
Paragraphs
1 2
3 6
7 8
9 - 29 9 - 11 12 - 14
15 16
•
•
•
Agriculture and tropical products Industrial products
Part IV of GATT Development • Introduction
Recent activities in GATT I.
IV.
III.
Import restrictions affecting exports of
developing countries 17 - 18
Tariff reclassification and special tariff
. problems • 19 - 21
Expansion of trade among developing
countries • 22 - 24
Assistance to individual developing
countries under the provisions of Part IV
of GATT • • 25 - 26
Future work programme • 27
Expanded consultations with developing
countries • • • 28 - 29
v.
Technical assistance • • 30 35Export promotion • 30 - 32
Training programme • 33 35
I. Introduction
1. A large part of GATT's work in 1967-68 has been devoted to trade prob- lems of developing countries which now represent almost two-thirds of the total membership. This activity was reflected in the attention paid to these problems in the Kennedy Round, in the work of the GATT Committee on Trade and Development, and in the co-ordinated programme of work adopted at the twenty- fourth GATT session in November 1967. In November 1968, at their twenty- fifth session, the contracting parties to GATT agreed on a number of further steps to be taken for the implementation of the programme.
2. The present note focuses on those aspects of GATT's work that appear to .be of most direct interest to member countries of the ECA. It points to the .main results of discussions and consultations on these matters in GATT over
the.past two years and indicates lines for future action. The last section of. the note refers to work in the field of technical assistance which is assum- ing increasing importance.
II. Co-ordinated work programme of GATT
3. After the successful conclusion, in June 1967, of the Kennedy Round of trade negotiations, the contracting parties, in November of the same year, agreed to undertake a co-ordinated work programme under the three main head- ings of the programme for expansion of international trade. The main elements of the programme are as follows.
4. A Committee on Trade in Industrial Products was instituted to explore the opportunities for making progress towards further liberalization of international trade. An objective analysis would be made of the tariff situation as it will be when all Kennedy Round ooncessions have been fully implemented, and an in- ventory of non-tariff and para-tariff barriers affecting international trade would be drawn up.
5.
To examine problems in the agricultural sector it was decided that an Agriculture Committee should be established. The committee would explore possibilities for making progress in the attainment of the objectives of GATT with respect to all agricultural products important in international trade.6. Thirdly, there was agreement to undertake a number of measures relating specifically to trade problems of ~evelopingcountries. The developed GATT member countries were urged to take the broadest possible action on advance implementation, i.e., without phasing; of tariff concessions made by them in the Kennedy Round on products of interest to developing countries. The
Special Group on tropical products was reactivated to examine problems affect- ing trade in these products and i"ter alia study the incidence of internal charges and revenue duties in this connexion. Provision was made for machi- nery to examine quantitative restrictions rn&intained by developed countries on industrial products of export interest to developing countries, and the developed countries l;ere urged to give due consi.der-a'ti on to requests for the separate identification in their tariff classification of such products.
Contracting parties noted with satisfaction the initiative taken by develop- ing countries in GATT to explore possibilities of an exchange of tariff and trade concessions directed towards the expansion of their mutual trade. There was agreement that the consultations on the balance of payments and other trade and development problems of developing countries should in future give particular attention to the possibilities for alleviating and correcting these problems through various measures t<ithin GATT, due account being given to work done in UNCTAD and other international organizations. Finally, the
member countries agreed on a number of meaGur~s to help to solve special
tariff problems of developing countries, e.g., those relating to tariffs which disproportionately protect precessed products compared with primary products.
III. Twenty-fifth .GATT Sess~on, _November 196~
7. A principal outcome of the 1968 GATT session, which tcok place against the background of the recent difficulties on the international monetary scene, was the unani~ous reaffirmation by contracting parties of their con- fidence in GATT as the contractual basis for their trading relationship.
Their intention is to pursue, despite the current difficulties, the liberali- zation and expansion of international trade according to the principles and objectives of GATT, and to pursue rapidly the intensified work programme initiated in 1967.
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8. In view of the continuing decline in the developing countries' share of international trade and the urgent need for a substantial growth in their ex- port earnings, the need to give priority consideration to, and to take immedi- ate steps towards solving, the trade problems of these oountries was recognized.
In this connexion, governments agreed on a number of concrete measures, refer- red to below under the relevant items.
IV. Recent activities in GATT Industrial products
9. The Committee on Industrial Products at its first session in October 1968 considered a draft inventory of non-tariff barriers drawn up by the secretariat on the basis of notifications received from governments. The Committee noted, inter alia,that many developing countries had not presented notifications in respect of non-tariff barriers affecting their exports, and expressed the hope that a special effort would be made to facilitate collection of the required information. The need for early action in respect of non-tariff barriers was widely appreciated and the Committee agreed that it should devote parti- cular attention to the consideration given to barriers affecting exports of developing countries.
10. As regards the analysis of the post-Kennedy Round tariff situation, the Committee took note of a plan for work presented by the secretariat.
11. When considering the work on industrial products at the session in November 1968, the member countries agreed that the Committee, during its examination of non-tariff barriers, should explore possibilities for concrete action both with regard to reducing or removing such barriers and to deve- loping possible rules of conduct. The secretariat will assist developing countries to prepare notifications on barriers to their trade. It was also agreed that as soon as the basic documentation for the tariff study became available early in 1969, possible lines of action should be actively investi- gated by the Committee. The basic documentation should cover, on a priority basis, the following problems of particular interest to developing countries:
tariff differentials; specific duties; peak tariffs; and tariffs on industrial raw materials.
Agriculture and tropical products
12. The Agriculture Committee, established to examine the problems in the agrioultural sector, early in 1968 determined its programme of work which started by the assembly of documentation relating to eight products or groups of products, i.e., dairy products, cereals, beef and veal, other meats and meat products, fruit and vegetables, vegetable oils andoilseeds, tobacco, and wine. Members QJ: tne .. Commi ttee had by the end of 1968 supplied the greater part of the information requested. The examination in the Committee will cover two broad areas, namely international markets· and produ6tion policies.
13. The work programme was approved by the GATT members who requested the Committee to complete rapidly the identification of the problems affecting agricul tural trade and production so that it can proceed with the ··essential task of seeking mutually acceptable solutions.
14. Among commodities to which special attention has been given in GATT since the inception in 1958 of the programme for expansion of trade are tropical products. On the conclusion of the Kennedy Round the results for developing countries were assessed and it Was noted that although tariff concessions were granted by many contracting parties with respect to several tropical produots, the objective of tax and duty-free entry was not achieved for all of them. The contracting parties therefore agreed that the Special Group on Tropical Products should be ccntinued. During 1968 the Group has examined the problems of non-tariff regulations that apply to these products in principal importing countries and has asked the secretariat to undertake studies of the effects of revenue duties and internal fiscal charges in developed countries. In accordance with the wishes of the Group and the practice followed in past discussions, arrangements have been made for non- GATT countries having an interest in the products dealt with in· the Group (coffee, cOCOa, tea, vegetable oilseeds and oils, bananas, and spices) to be invited to take part in any consultation on action which may be undertaken to resolve some of the issues. GATT members have requested that in its work the Group shouid take into account the work done in other international bodies.
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Partrv of GA~.- Committee on Trade and Development
15. In 1967, when the Kennedy Round was in. its final phase, the Committee on Trade·.. and Development concentrated its action on providing guidance and giving impetus to the negotiations in so far as they affected the interests of developing countries.· With the Kennedy Round brought to a close, the Com- .mittee in. 1968 reverted to its earlier practice of periodic review·of imple-
mentation of the provisions of Part IV of the Agreement (dealing with trade and development) and other activities as indicated in its p!:,og'!:amll]eof. wo.rk,,... . .. ,.-...
- " . .
some of which are summarized below. It has also during 1968 dealt with matters included in the co-ordinated work programme related to the particular trade problems of developing countries •
.. Advanc.e .implementation of Kennedy Round reductions
l6..·Upon the conclusion of the trade negotiations a number of developed countries notified tariff concessions made by them on products of 1nterst to developing countries which would be implemented without phasing. During 1968
some further countries declared their willingness to take similar measures and ai;thetwenty-fifth session it was agreed that developed countries should make further efforts to explore, individually and jointly, the possibility of imPlementing immediately Kennedy Round concessions on additional products of interest to developing countries.
Import restrict10ns affecting exports of developing oountries
17. The Group on residual restrictions (import restrictions maintained con- trary to the GATT rules and not authorized by waivers) in the second half of 1968 held consultations with a number of developed countries who still main- tainrestriotions.Itwas found that while some progress had been made over the past year, ·the number of produots remaining SUbject to restriction in some developed oountries was still oon.siderable. As far as exports from developing countries are affected by such restrictions, these will continue to be kept under review by the Committee on Trade and Development.
18. The question of how to deal with the problem of residual restrictions was the subject of extensive discussion at the last GATT session. There was substantial agreement that the time had come to deal definitively with this problem which had been before GATT for many years and on which it was felt
that there was much room for progress in the removal of the restrictions con- cerned. The contracting parties requested the GATT Council to examine this question further.
~ariff reclassification and special tariff problems
19.
Developed countries in GATT have been urged to give early and sympathetic consideration to requests by developing countries for the separate identifica- tion in their tariffs of products for which developing countries have sought tariff concessions or duty-free entry. Some countries have supplied infor- mation covering action taken since the Kennedy Round, particularly in regard to hand-made andhand-loomproducts. Others have declared that they would give careful attention to .aotion in this field especially on the basis of specific requests by developing countries. Member governments have been invited to provide information on this subject in their notifications on the implementa-tion of Part IV.
20. In the field of special tariff problems faced by developing countries, the secretariat is engaged in studying two aspects, i.e., differential tariff rates affecting exports of processed goods in particular sectors, and the effects on exports of specific duties.
21. The Committee has given preliminary consideration to a study on the in- cidenoe of tariff rates in the major import markets on copper and oopper produots at different stages of processing. The second study on specific duties tends to show that, in respect of some products, these duties nre apt to have a SUbstantially higher inoidence on imports from developing countries than on imports 11nder the same tariff headings from developed countries. It has been agreed that the secretariat should continue with its studies of these problems.
"'".,
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Expansion of trade among developing countries
22. It is recalled that when in 1965-66 proposals for the establishment of preferences among developing countries were eiamined in'GATT, the contracting parties concluded that sue!. preferences, appropriately'administered and sub- ject,tothe necessary safeguards, can make an important contribution to the ,exl'ansionof tr.;td.e among developing. countries. In November 1967 the GATT ,,"members noted with satisfaction the initiative taken by developing countries
to explore the. possibili ties of an exchange of tariff and trade concessions ,among them, and also noted the setting up of a Trade NegotiatiOnS Committee
to establish a basis for such negotiations and that, in due course, the results of such negotiations would be brought to the contracting parties for their consideration, as necessary.
23. In October 1968 a series of consultations took place in Geneva to which many participating governments sent expert teams. These consultations were aimed at elioiting information on trade patterns, tariff levelsand import regimes, with. a view. to assisting the countries concerned in defining their .areas of interest and in drawing up specific lists of products on which
requests for concessions might be made, and in this way lay a concrete basis for the negotiations properly speaking, tobegin. There was agre!lment that these consultations had considerably facilitated th!l establishment of speci- fic lists and it was envisaged to hold a further round of discussions early in 1969. Non-GATT deve.loping':countries. 'have "been invLted. to join. in:the negotiations. It mayb'Oadded that the UNCTAD.secretariat has participated in th!l work of the Oommfttes 'and has provided assistance on ·technical matters.
24. In November 1968 the GATT session noted that multilateral ttadearrange- ments may be concluded between developing countries during 1969 within this
~rameworkand declared the intention of member governments to look at the results of these negotiations in a constructiv!l and forward-looking spirit.
Assistance to individual developing countries under the provisions of
Part IV of GATT ,.
25. In 1966 the Government of Chad requested, in the Committee on Trade and Development, that .the GATT consider the eff~cts on the economy of Chad of the situation in the world market for cotton. The examination by the
Committee resulted in conclusions relating largely to Chad's need for con- tinued financial and technical assistance in its efforts to increase producti- vity in cotton and to diversify the economy with a view to increasing the country's foreign exchange earnings.
26. At the 1967 session GATT members decided to draw the attention of govern- ments to these conclusions, especially to the contribution. which external assistance in certain areas could make to the economic growth and development of Chad. The secretariat was inst~cted to forward the report to other inter- national organizations for such action as they might wish to take, and to continue to keep the situation of Chad under review.
Future work programme
27. The Committee on Trade and Development will continue to examine problems in the field of tariffs and import restrictions. It intends to carry out a detailed examination of the difficulties encountered in the implementation of Part IV of GATT an1 to recommend appropriate measures. The member governments have agreed that in order to increase its effectiveness the Committee should, where appropriate, initiate consultations in respect of tariff and non-tariff barriers and related problems not elsewhere under examination in GATT affect- ing the exports of developing countries, with a view to seeking appropriate solutions for consideration by the 1969 GATT session.
Expanded consultations with developing countries
28. Mention should also be made of a new and potentially important, activit~·
within the co-ordinated work programme which, though not directly within the purview of the Committee on Trade and Development, is closely connected with its work.
29. Over the years, various procedures have evolved within GATT calling for periodic consultations ",here a group of countries representing the inter- national trading community as a whole meets with representatives of a parti- cular country which, under specific GATT rules, has been authorized to main- tain restrictions on its imports. Most commonly these consultations ccncern the use of quantitative restrictions which countries may, exceptionally, employ tc the extent necessary to cope with balance-of-payments difficulties.
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At the 1967 session, the contracting parties agreed that it would contribute to the sclution of problems facing developing countries if in these and simi- lar consultations particular attention were given to the measures which con- tracting parties could, individually or collectively, take to facilitate an expansion of the export earnings of the countries consulted. So far one such consultation has been held, that with Ghana, where a ful~ discussion was had of Ghana's export potential, especially with regard to non-traditional pro- cessed products and manufactures •. Numerous points were noted at which deve- loped trade partners as well as neighbouring countries could contribute by
their action to easing conditions under which Ghana exports. More consultations of this type are planned.
V. Technical assistance Export promotion
30. With effect from 1 Januar,y 1968, the activities of GATT and UNCTAD in the field of export promotion assistance to developing countries were inte- grated in the joint operation of the International Trade Centre. originally established in GATT in 1964 at the request of the developing countries.
31. A Joint Advisory Group met in May 1968 to review the current activities of the Centre and to recommend a worle progr~mmc for 1969. having regard to the demands made on the Centre by the developing countries. Governmental experts and advisers in the field of trade information and trade promotion from
seventy-two countries, of which forty-six from developing countries, and re- presentatives of a number of inter-governmental bodies participated in the meeting.
32. An important part of the Centre's operational programme in 1969, as re- commended by the Advisory Group, consists of projects in the field of training and trade promotion advisory missions to be financed by United Nations Technic&l Assistance funds on the basis of voluntary contributions. At the 1968 session member governments reaffirmed their support for the International Trade Centre and urged all developed countries to continue to make available adequate re- sources to the Centre for full implementation of its programme of work.
.
,, Training programme
33. The main form of teohnioal assistance provided by the GATT secretariat is in the field of training in commercial policy.
34. Two ~oursesara held at GATT headquarters in Geneva each year, one for English-speaking and one for French-speaking government Qfficials who have,
'~rmay in future have, responsibilities in the shaping and conduct of foreign ,trade policy in their countries. The of'f.ici aLs are p;,oposed by their, govern- , menta and participate under United Nations Technical Assistance fellowships.
, Since, 195.5 acme 250 officials from seventy-five countries, mostly developing countries, have attended the twenty-six courses in'Geneva. The value attached to these courses by governments is reflected in the growing number of applica- tions.
35.
In each year since 1962, the GATT secretariat, in collaborati~n'withECA arta.'w'ith financial support from United Nations Technioal Assistan~ funds, has arranged courses on foreign' trade and commercial policy in Africa. These COurses, held 'each time in a' different capdta.L, have' been attended by a total of 217 government officials of memter governments of the ECA. The 1967 courses were arranged in Lusaka and, Dakar and thOse held in 1968 in Accra and Kinshasa.Arrangements are under way to hold further courses in 1969. The,Director- General of ,GATT wishes to record his appreciation to the host governments for , their valuable assistance in the organization of these cour~es.
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