From: barnhart@gagme.chi.il.us (Mr. Aaron Barnhart)
Subject: IPS: TRADE: Third World supports GATT and rejects trade war
Originator: barnhart@gagme
Organization: Evanston, Illinois, U.S.A.
Date: Wed, 18 Nov 1992 05:49:45 GMT

Copyright Inter Press Service 1992, all rights reserved.  Permission to re-
print within 7 days of original date only with permission from 'newsdesk'.

Title: TRADE: Third World supports GATT and rejects trade war


geneva, nov 10 (ips/victor ego ducrot) -- third world countries
have backed a mandate by the trade negotiations committee (tnc) of
the uruguay round in the gatt negotiations to act as a mediator
in the conflict between the u.s. and the ec over farm subsidies.

according to an argentinian diplomat on tuesday, the developing
countries would ''pay the price for this irrational fight between
the major economic powers'', in the near future. consequently,
preventing a trade war between the united states and the european
community should be a high priority.

arthur dunkel, director general of the general agreement on
tariffs and trade (gatt), was ordered to ''help'' both parties
find a way to negotiate their disagreement on oil containing
seeds.

dunkel will travel to brussels and washington this week, in
order to meet heads of government and try to unblock the uruguay
round.

diplomats from the third world said that dunkel will have two
weeks to complete his mediation, after which he will report back
to the tnc.

the ec has said that the ''negotiations stay open'' which has
been interpreted as a mellowing of their initial reaction that
followed washington's announcement, last week, that it intends to
apply sanctions on the ec exports.

''we must be optimistic, but we know that a solution to the
problem depends on the responsibility that the leaders of
developed countries are willing to show,'' a latin american
diplomat said.

the disagreement over oil containing seeds has obstructed the
uruguay round, which aims to liberalise world trade in sensitive
sectors like agriculture, textiles, services, telecommunications
and ownership of knowhow.

the position of the third world in the conflict was outlined
last week, once the 300-million dollar sanctions that the united
states intends to apply to the ec exports, were confirmed.

argentina, bolivia, brazil, chile, colombia, costa rica, peru,
uruguay, venezuela, indonesia, malaysia, pakistan, the
philippines, singapore, tanzania and thailand sent a letter to the
us and ec governments, calling on them to reconsider and act in a
politically reasonable way.

the letter was also sent to the 'group of the seven' most
industrialised countries, stating that the uruguay round is
paralysed as a result of both parties' intransigence. (more/ips)

trade: third world supports gatt and rejects trade war(2-e)

trade: third (2)

''in it we outlined the position taken tuesday at the tnc
meeting, because we understand that the world's commercial future
cannot depend on the selfish whims of the most powerful,'' an
asian source stated.

the letter was also signed by australia, austria, finland, hong
kong, hungary, new zealand, norway, poland and sweden.

according to the gatt and the united nations conference on
trade and development (unctad), a trade war between the united
states and the ec, which would also involve japan, the third party
in dispute, would affect the south above all.

a trade war would imply the global victory of protectionism,
and this would mean that the third world would lose 20 percent of
its already limited markets.

''the short sightedness of the developed countries is
incredible. while they realise they are on the verge of a
catastrophic recession, their leaders start up a controversy that
could end in an even greater recession,'' the argentinian diplomat
said.

at a joint statement of ec foreign affairs ministers of monday ec
ministers expressed ''grave concerns at the dangers inherent in
the present situation''.

the council reaffirmed its commitment to a ''fair, global,
balanced and successful gatt agreement including substantial
results, not only in agriculture, but also in other areas, in
particular market access and services.''

''the council warned that such action could only lead to a
retaliatory spiral, which would damage both sides through a slump
in business confidence and lost jobs''.

the proposed 300 million dollar sanctions, which could be
increased to one billion dollars, would become operative on
december 5, if no agreement has been reached by the parties at
that time.

the u.s. claims that the ec subsidies cause losses in trade to
exporting countries, including various third world countries worth
up to two billion dollars per year. the ec estimates the figure at
no higher than 450 million dollars per year.

most third world countries back the u.s. position because,
various sources explained, it is the ec that most threatens their
exports through the application of tariffs, quotas and subsidies.

liberalisation of world trade through the uruguay round in the
gatt negotiations would mean a 200 million dollar global increase
on trade, of which 15 to 20 percent would take place in the third
world. (end/ips/trd/sp/ie/ved/da/dp/mv/mf/92).