LAUNCHING of URUGUAY ROUND the Most Complex and Ambitious Programme of Negotiations Ever Undertaken by GATT

LAUNCHING OF URUGUAY ROUND The most complex and ambitious programme of negotiations ever undertaken by GATT

A plenary meeting during the Contracting Parties Session in Puma del Este.

Meeting in Punta del Este (Uruguay) from 15-20 September on the occasion of the Special Session of the GATT Contracting Parties, ministers of GATT member counties adopted a Declaration launching a new round of multilateral trade negotiations - the Uruguay Round. The Declaration falls into two parts. As contracting parties, the ministers adopted Part I of the Declaration regarding trade in goods. It establishes the objectives and principles of the negotiations, and the launch of issues on which negotiations will take place. The Declaration provides for a standstill and rollback on trade restrictive or trade distortive measures under which governments undertake not to increase existing levels of protection and to phase out their existing breaches of GATT disciplines. As representatives of governments meeting on the occasion of the Session, the ministers further decided to launch a negotiation on trade in sen ices, and adopted Part II of the Declaration in that regard. It has been agreed that these negotiations will not be placed within the legal framework of GATT, but that GATT practices and procedures will nevertheless applv to them. Ministers then adopted the Ministerial Declaration as a whole as a single policy commitment launching the Uruguay Round. The negotiations are to extend over four years.

1 Ministerial Declaration on the Uruguay Round

Ministers, meeting on the occasion of the Special Session of Contracting Parties at Punta del Este, have decided to launch Multilateral Trade Negotiations (The Uruguay Round). To this end, they have adopted the following Declaration. The Multilateral Trade Negotiations (MTN) will be open to the participation of countries as indicated in Parts I and II of this Declaration. A Trade Negotiations Committee (TNC) is established to carry out the Negotiations. The Trade Negotiations Committee shall hold its first meeting not later than 31 October 1986. It shall meet as appropriate at Ministerial level. The Multilateral Trade Negotiations will be concluded within four years.

PART I - NEGOTIATIONS ON TRADE IN GOODS

The Contracting Parties meeting at Ministerial level Determined to halt and reverse protectionism and to remove distortions to trade Determined also to preserve the basic principles and to further the objectives of the GATT Determined also to develop a more open, viable and durable multilateral trading system Convinced that such action would promote growth and development Mindful of the negative effects of prolonged financial and monetary instability in the world economy, the indebtedness of a large number of less-developed contracting parties, and considering the linkage between trade, money, finance and development Decide to enter into Multilateral Trade Negotiations on trade in goods within the framework and under the aegis of the General Agreement on Tariffs and Trade.

commodity markets and the importance (ii) The launching, the conduct and the A. Objectives of an improved trading environment implementation of the outcome of the Negotiations shall aim to providing, inter alia, for the ability of negotiations shall be treated as parts of a (i) bring about further liberalization and indebted countries to meet their single undertaking. However, expansion of world trade to the benefit financial obligations; agreements reached at an early stage of all countries, especially less-developed may be implemented on a provisional or contracting parties, including the (iv) foster concurrent co-operative action a definitive basis by agreement prior to improvement of access to markets by the at the national and international levels the formal conclusion of the reduction and elimination of tariffs, to strengthen the inter-relationship negotiations. Early agreements shall be quantitative restrictions and other non- between trade policies and other taken into account in assessing the tariff measures and obstacles; economic policies affecting growth and overall balance of the negotiations. development, and to contribute towards (ii) strengthen the rôle of GATT, continued, effective and determined (iii) Balanced concessions should be improve the multilateral trading system efforts to improve the functioning of the sought within broad trading areas and based on the principles and rules of the international monetary system and the subjects to be negotiated in order to GATT and bring about a wider coverage flow of financial and real investment avoid unwarranted cross-sectoral of world trade under agreed, effective resources to developing countries. demands. and enforceable multilateral disciplines; (iv) Contracting Parties agree that the (iii) increase the responsiveness of the principle of differential and more GATT system to the evolving B. General principles favourable treatment embodied in international economic environment, Part IV and other relevant provisions of through facilitating necessary structural governing negotiations the General Agreement and in the adjustment, enhancing the relationship (i) Negotiations shall be conducted in a Decision of the Contracting Parties of of the GATT with the relevant transparent manner, and consistent with 28 November 1979 on Differential and international organizations and taking the objectives and commitments agreed More Favourable Treatment, account of changes in trade patterns and in this Declaration and with the Reciprocity and Fuller Participation of prospects, including the growing principles of the General Agreement in Developing Countries applies to the importance of trade in high technology order to ensure mutual advantage and negotiations. In the implementation of products, serious difficulties in increased benefits to all participants. (continued on p. 3)

2 MINISTERIAL DECLARATION <«*•_«

standstill and rollback, particular care Standstill appropriate mechanisms to carry out the should be given to avoiding disruptive (i) not to take any trade restrictive or surveillance, including periodic reviews effects on the trade of less-developed distorting measure inconsistent with the and evaluations. Any participant may contracting parties. provisions of the General Agreement or bring to the attention of the appropriate the Instruments negotiated within the surveillance mechanism any actions or (v) The developed countries do not framework of GATT or under its omissions it believes to be relevant to the expect reciprocity for commitments auspices; fulfilment of these commitments. These made by them in trade negotiations to notifications should be addressed to the reduce or remove tariffs and other (ii) not to take any trade restrictive or GATT secretariat which may also barriers to the trade of developing distorting measure in the legitimate provide further relevant information. countries, i.e. the developed countries do exercise of its GATT rights, that would not expect the developing countries, in go beyond that which is necessary to the course of trade negotiations, to make remedy specific situations, as provided contributions which are inconsistent for in the General Agreement and the D. Subjects with their individual development, Instruments referred to in (i) above; financial and trade needs. Developed for negotiations contracting parties shall therefore not (iii) not to take any trade measures in seek, neither shall less-developed such a manner as to improve its Tariffs contracting parties be required to make, negotiating positions. Negotiations shall aim, by appropriate concessions that are inconsistent with methods, to reduce or, as appropriate, the latter's development, financial and Rollback eliminate tariffs including the reduction trade needs. (i) that all trade restrictive or distorting or elimination of high tariffs and tariff measures inconsistent with the escalation. Emphasis shall be given to (vi) Less-developed contracting parties provisions of the General Agreement or the expansion of the scope of tariff expect that their capacity to make Instruments negotiated within the concessions among all participants. contributions or negotiated concessions framework of GATT or under its or take other mutually agreed action auspices, shall be phased out or brought Non-tariff measures under the provisions and procedures of into conformity within an agreed Negotiations shall aim to reduce or the General Agreement would improve timeframe not later than by the date of eliminate non-tariff measures, including with the progressive development of the formal completion of the quantitative restrictions, without their economies and improvement in negotiations, taking into account prejudice to any action to be taken in their trade situation and they would multilateral agreements, undertakings fulfilment of the rollback commitments. accordingly expect to participate more and understandings, including fully in the framework of rights and strengthened rules and disciplines, Tropical products obligations under the General reached in pursuance of the Objectives Negotiations shall aim at the fullest Agreement. of the Negotiations; liberalization of trade in tropical products, including in their processed (vii) Special attention shall be given to (ii) there shall be progressive and semi-processed forms and shall the particular situation and problems of implementation of this commitment on cover both tariff and all non-tariff the least-developed countries and to the an equitable basis in consultations measures affecting trade in these need to encourage positive measures to among participants concerned, including products. facilitate expansion of their trading all affected participants. This opportunities. Expeditious commitment shall take account of the Contracting Parties recognize the implementation of the relevant concerns expressed by any participant importance of trade in tropical products provisions of the 1982 Ministerial about measures directly affecting its to a large number of less-developed Declaration concerning the least- trade interests; contracting parties and agree that developed countries shall also be given negotiations in this area shall receive appropriate attention. (iii) there shall be no GATT concessions special attention, including the timing of requested for the elimination of these the negotiations and the implementation measures. of the results as provided for in B(ii).

Surveillance of standstill Natural resource-based products C. Standstill and rollback Negotiations shall aim to achieve the and Rollback Each participant agrees that the fullest liberalization of trade in natural implementation of these commitments resource-based products, including in Commencing immediately and on standstill and rollback shall be their processed and semi-processed continuing until the formal completion subject to multilateral surveillance so as forms. The negotiations shall aim to of the Negotiations, each participant to ensure that these commitments are reduce or eliminate tariff and non-tariff agrees to apply the following being met. The Trade Negotiations measures, incuding tariff escalation. commitments : Committee will decide on the (continued on p. 4)

3 MINISTERIAL DECLARATION «.^

Textiles and clothing GATT Articles include the development of adequate Negotiations in the area of textiles and Participants shall review existing GATT arrangements for overseeing and clothing shall aim to formulate articles, provisions and disciplines as monitoring of the procedures that would modalities that would permit the requested by interested contracting facilitate compliance with adopted eventual integration of this sector into parties, and. as appropriate, undertake recommendations. GATT on the basis of strengthened negotiations. GATT rules and disciplines, thereby also Trade-related aspects of intellectual contributing to the objective of further Safeguards property rights, including trade in liberalization of trade. (i) A comprehensive agreement on counterfeit goods safeguards is of particular importance to In order to reduce the distortions and Agriculture the strengthening of the GATT system impediments to international trade, and Contracting Parties agree that there is an and to progress in the MTNs. taking into account the need to promote urgent need to bring more discipline and (ii) The agreement on safeguards: effective and adequate protection of intellectual property rights, and to predictability to world agricultural trade - shall be based on the basic principles ensure that measures and procedures to by correcting and preventing restrictions of the General Agreement; and distortions including those related enforce intellectual property rights do - shall contain, inter alia, the following to structural surpluses so as to reduce not themselves become barriers to elements: transparency, coverage, the uncertainty, imbalances and legitimate trade, the negotiations shall objective criteria for action including the instability in world agricultural markets. aim to clarify GATT provisions and concept of serious injury or threat Negotiations shall aim to achieve greater elaborate as appropriate new rules and thereof, temporary nature, degressivity liberalization of trade in agriculture and disciplines. and structural adjustment, bring all measures affecting import compensation and retaliation, Negotiations shall aim to develop a access and export competition under notifications, consultation, multilateral multilateral framework of principles, strengthened and more operationally surveillance and dispute settlement; and rules and disciplines dealing with effective GATT rules and disciplines, international trade in counterfeit goods, taking into account the general - shall clarify and reinforce the taking into account work already principles governing the negotiations, disciplines of the General Agreement undertaken in the GATT. by: and should apply to all contracting parties. (i) improving market access through, These negotiations shall be without prejudice to other complementary inter alia, the reduction of import MTN Agreements and Arrangements initiatives that may be taken in the barriers; Negotiations shall aim to improve, World Intellectual Property (ii) improving the competitive clarify, or expand, as appropriate, Organization and elsewhere to deal with environment by increasing discipline on agreements and arrangements negotiated these matters. the use of all direct and indirect in the Tokyo Round of Multilateral subsidies and other measures affecting Negotiations. Trade-related investment measures directly or indirectly agricultural trade, Following an examination of the including the phased reduction of their Subsidies and countervailing measures operation of GATT Articles related to negative effects and dealing with their Negotiations on subsidies and the trade restrictive and distorting causes; countervailing measures shall be based effects of investment measures, on a review of Articles VI and XVI and negotiations should elaborate, as (iii) minimizing the adverse effects that the MTN agreement on subsidies and appropriate, further provisions that may sanitary and phytosanitary regulations countervailing measures with the be necessary to avoid such adverse and barriers can have on trade in objective of improving GATT effects on trade. agriculture, taking into account the disciplines relating to all subsidies and relevant international agreements. countervailing measures that affect international trade. A negotiating group In order to achieve the above objectives, will be established to deal with these the negotiating group having primary issues. E. Functioning responsibility for all aspects of agriculture will use the of the GATT system Dispute settlement Recommendations adopted by the Negotiations shall aim to develop Contracting Parties at their Fortieth In order to ensure prompt and effective understandings and arrangements: Session, which were developed in resolution of disputes to the benefit of accordance with the GATT 1982 all contracting parties, negotiations shall (i) to enhance the surveillance in the Ministerial Programme and take account aim to improve and strengthen the rules GATT to enable regular monitoring of of the approaches suggested in the work and the procedures of the dispute trade policies and practices of of the Committee on Trade in settlement process, while recognizing the contracting parties and their impact on Agriculture without prejudice to other contribution that would be made by the functioning of the multilateral alternatives that might achieve the more effective and enforceable GATT trading system; objectives of the Negotiations. rules and disciplines. Negotiations shall (continued on p. 5)

4 MINISTERIAL DECLARATION (aM

(ii) to improve the overall effectiveness as required take into account relevant and decision-making of the GATT as an G. Organization aspects emerging in other groups; institution, including, inter alia, through of the negotiations involvement of Ministers; (iv) also decide upon inclusion of A Group of Negotiations on Goods additional subject matters in the (iii) to increase the contribution of the (GNG) is established to carry out the negotiations; GATT to achieving greater coherence in programme of negotiations contained in (v) co-ordinate the work of the global economic policy-making through this Part of the Declaration. The GNG negotiating groups and supervise the strengthening its relationship with other shall, inter alia: progress of the negotiations. As a international organizations responsible guideline not more than two negotiating for monetary and financial matters. (i) elaborate and put into effect detailed trade negotiating plans prior to groups should meet at the same time; 19 December 1986; (vi) the GNG shall report to the Trade (ii) designate the appropriate mechanism Negotiations Committee. F. Participation for surveillance of commitments to standstill and rollback; In order to ensure effective application of differential and more favourable (a) Negotiations will be open to: (iii) establish negotiating groups as treatment the GNG shall, before the (1) all contracting parties, required. Because of the formal completion of the negotiations, (2) countries having acceded interrelationship of some issues and conduct an evaluation of the results provisionally, taking fully into account the general attained therein in terms of the (3) countries applying the GATT on principles governing the negotiations as Objectives and the General Principles a de facto basis having announced, stated in B(iii) above it is recognized that Governing Negotiations as set out in the not later than 30 April 1987, their aspects of one issue may be discussed in Declaration, taking into account all intention to accede to the GATT more than one negotiating group. issues of interest to less-developed and to participate in the Therefore each negotiating group should contracting parties. negotiations, (4) countries that have already informed the Contracting Parties, at a regular meeting of the PART II - NEGOTIATIONS Council of Representatives, of ON TRADE IN SERVICES their intention to negotiate the terms of their membership as a Ministers also decided, as part of the the work of relevant international contracting party, and Multilateral Trade Negotiations, to organizations. (5) developing countries that have, by launch negotiations on trade in services. 30 April 1987, initiated GATT procedures and practices shall procedures for accession to the Negotiations in this area shall aim to apply to these negotiations. A Group on GATT, with the intention of establish a multilateral framework of Negotiations on Services is established negotiating the terms of their principles and rules for trade in services, to deal with these matters. Participation accession during the course of the including elaboration of possible in the negotiations under this Part of the negotiations. disciplines for individual sectors, with a Declaration will be open to the same view to expansion of such trade under countries as under Part I. GATT (b) Participation in negotiations relating conditions of transparency and secretariat support will be provided, to the amendment or application of progressive liberalization and as a means with technical support from other GATT provisions or the negotiations of of promoting economic growth of all organizations as decided by the Group new provisions will, however, be open trading partners and the development of of Negotiations on Services. only to contracting parties. developing countries. Such framework shall respect the policy objectives of The Group of Negotiations on Services national laws and regulations applying shall report to the Trade Negotiations to services and shall take into account Committee.

GATT FOCUS Newsletter published 8 times a year IMPLEMENTATION OF RESULTS in English. French and Spanish by the GATT Information Service UNDER PARTS I AND II Centre William Rappard, 154 rue de Lausanne, 1211 Genera 21 When the results of the Multilateral Contracting Parties shall decide (1eL il 02 il) Trade Negotiations in all areas have regarding the international ISSN 0256-0119 been established, Ministers meeting also implementation of the respective results. on the occasion of a Special Session of (End)

5 LAUNCHING OF "URUGUAY ROUND" STATEMENT BY THE CHAIRMAN

Before proposing adoption of the Ministerial Declaration on the Uruguay Round, the Chairman noted that the purpose of the Declaration was to launch multilateral trade negotiations on goods and services. This involved taking three decisions: the first would be to adopt, as the Contracting Parties, Part I of the Declaration, relating to negotiations on trade in goods: the second would be to adopt Part II, on trade in sen ices, as representatives of Governments meeting on the occasion of the Special Session of the Contracting Parties at Punta del Este; thirdly, again as representatives of Governments meeting on the occasion of the Special Session of the Contracting Parties at Punta del Este, to adopt the Declaration as a whole.

He then made the following specific negotiations, that of redressing He then clarified that it was understood points: growing, disequilibria in world trade that paragraph F(b) was interpreted as and of achieving, in the spirit of the meaning that (a) all participants in the Representatives of certain governments Preamble to the General Agreement, a multilateral trade negotiations have the had expressed concern regarding a greater mutuality of interests. right to participate in all negotiations on all issues and that (b) non-contracting number of problems relating, in - However, it had been represented that particular, to commodities, natural parties shall only be precluded from the foregoing proposal might lead to a participation in decisions of contracting resource-based products and tropical trading system incompatible with the products. Those governments were parties relating to the results of these basic objectives and principles of negotiations. concerned that solutions to their GATT, the guarantor of the open and problems be found and implemented non-discriminatory trading system. quickly. Specific proposals had been put The conference had noted requests by forward by certain African governments. - Nevertheless, it was common ground certain governments, not at present While he was sure that this conference that growing disequilibria in world covered by the provisions in the attached great importance to those trade constituted a serious problem Declaration on participation, to take concerns, it had not been possible to and would need to be tackled by the part in the multilateral trade complete consideration of the proposals countries concerned by various policy negotiations. The Director-General was at the conference. It had, therefore, been means including macro-economic authorized, upon request by such agreed that the proposals would be policy, exchange rates, structural governments, to keep them informed of considered by the Trade Negotiations reform and trade policy. progress in the negotiations. Committee foreseen in the Declaration. - It was furthermore agreed that in the No delegation present would see in the negotiations every contracting party Declaration all the points that it wished In order to participate fully in the should make genuine efforts to ensure negotiations, developing countries would to be included when this meeting had mutual advantages and increased opened. Many of the specific concerns of require technical support. There was benefits to all participants, in agreement that technical support by the delegations would have to be pursued in accordance with the principles of the the negotiations themselves, and this was Secretariat, adequately strengthened, GATT. should be available to developing as it should be. countries participating in the Some proposals had been received negotiations. regarding the setting up of negotiating groups for the negotiations. These Some governments had expressed proposals would be formally circulated Coming GATT activities concern over trade measures applied for after the Session. non-economic reasons. Tentative programe of meetings for He noted that there were certain issues raised by delegations on which a November He then summarized discussions that consensus to negotiate could not be 5-6 Council (special and regular had taken place on the objectives of the reached at this time. These issues meetings) negotiations: included the export of hazardous 10-11 Committee on Customs Valuation substances, commodity arrangements, 11-12-14 Committee on Trade and - There had been a proposal to include, restrictive business practices and Development among the objectives of the workers' rights. 17-19 Textiles Surveillance Body 24-27 42nd Session of the Contracting Parties December Trade Negotiations Committee meets 2-4 Textiles Surveillance Body on 27 October 4-5 Committee on Tariff Concessions 8 Textile Committee The Trade Negotiations Committee established by the Ministers at Punta del 8-9 Meat Market Analysis Group Este to oversee the new round of multilateral trade negotiations is to hold its first 10-12 Committee on Balance-of- Payments meeting on 27 October. This will be mainly devoted to organizational questions. 11-12 International Meat Council The meeting of the TNC will be followed by the first session of its two subsidiary 15-16 Committees on Milk Powders, negotiating groups: that on goods and that on services. Milk Fats and Cheeses 15-17 Textiles Surveillance Body

6 Press Excerpts (Selected articles received in Geneva. GATT translation.)

Wintry rainstorms pelted the Uruguayan seaside resort of Pun ta del Este last week, forming an ominously fitting backdrop for the historic meeting of government ministers. Officials from 74 countries had arrived there to confront the ill wind of protectionism, which is threatening to freeze international trade and economic growth. The ministers, who at times donned Uruguayan wool sweaters and huddled around space Enrique Iglesias (right), Minister for Foreign Affairs of Uruguay, Chairman of the Ministerial Session and Arthur heaters, struggled to agree on an agenda Dunkel (left), Director-General of GATT, during a press conference. for a multiyear series of talks that they hope will create warmer trade The participants agreed on the need for The nature of world trade has been relationships around the world. Declared liberalization and expansion of world changing, and these talks are an attempt Uruguayan President Julio Maria trade, strengthening of GATT's role, to extend the present rules to new Sanguinetti as he opened the five-day increased co-operation to link expansion circumstances. Falling commodity meeting: "We have to decide whether we of international trade to the economic prices, for example, have set off a fierce are going to promote active and vigorous growth and development of the third competition in export subsidies for farm trade with equal opportunities for all, or world (...). products, a destructive practice that whether we will choose the path of trade ought to be illegal. Another example: wars." This decision reflects the will of the trade in goods is now growing international community to inject some (Time Magazine) comparatively slowly, which makes trade order into the trading system and in services such as insurance and finance prepare the future of economic relations. a particularly inviting sector for (Le Figaro) expansion. (Washington Post) We cannot speak here of "winners and losers", since the negotiating stage, The round is significant in more than which will go on for several years, will one respect. First of all, it constitutes a begin a few months from now, and solemn commitment by political leaders The news out of Punta del Este, because only time will tell whether what all over the world to respect the rules Uruguay, indicates that the global was agreed here will actually be useful they are going to lay down, to strive for community is not coming unraveled. It for the participating countries (...). trade expansion and hence employment, also reminds us that the forces for to block any protectionist leanings. The economic co-operation outweigh calls Each country fought for what it horizon is that of the year 2000. for the type of go-it-alone divisiveness believed, and defended-as we would Secondly, the number of participating of the late 1920s and early '30s that logically assume-the interests of its countries has increased greatly (more helped spur global economic chaos. people. The negotiations here in Punta than double the forty-six in the Kennedy del Este were not merely meetings of round); this reflects changes in the The Punta del Este session involved a experts or specialists on a particular structure of trade and the world good portion of the world's top subject. They were negotiations of economy. Thirdly-and without doubt government trade specialists. Their task peoples, because those who came here, most importantly-the new round will was difficult enough: seeking agreement from the United States to the smallest cover everything which is now the on a new set of guiding principles that developing country, represented their subject of international transactions, could ensure a continually expanding peoples, and brought from their in many and not merely as hitherto, trade in world commerce. The sessions were cases far-off lands, an opinion which goods alone. often acrimonious. But the results were reflected the feeling of millions (...). better than almost anyone had expected. (Agence Europe) No one can deny that there now also (Christian Science Monitor) exists a better understanding, on the part of the developed world, of the The trade talks at Punta del Este have developing world. Beyond differences of ended in success-in the sense that they did not end in disaster. But at this For, in all modesty, GATT is in the interests, this was a constant reality process of doing what no international during the talks, and later became an earliest stage of an exceedingly intricate negotiation, that is success enough. organization of comparable size had ever important element in the negotiations been able to dream of attaining-cleaning themselves. Nobody stamped out of the meetings in a huff. Nobody managed to strip any of up the past and building the future. (El Dia Uruguay) the major subjects off the agenda (...). (continued on p. 8)

1 LAUCHING OF "URUGUAY ROUND" More equitable Warm welcome from international and dynamic financial circles framework

The decision to launch a new round of implementation of the standstill and for world trade multilateral trade negotiations in GATT rollback commitment made at Punta del has been greeted with satisfaction by Este was essential for reducing Speaking before the Development bodies of the International Monetary protectionism and to the success of the Committee of the International Fund and the World Bank meeting in new round". The Commonwealth Monetary Fund and the World Bank Washington at the end of September finance ministers, meeting at St. Lucia in on 29 September. Arthur Dunkel. during the annual meetings of the IMF late September, "expressed relief that the Director-General of GATT, and the World Bank, as well as by the agreement reached at Punta del Este for commented on the launching of a finance ministers of the Commonwealth. a new round of trade negotiations new round of multilateral trade reduced the dire threat of a trade war and opened up new possibilities for negotiations. The Interim Committee "warmly increased trade and prosperity (...). They welcomed the recent Ministerial hope this first step would lead to a "It is hoped that the launching of Declaration on the Uruguay Round of period in which protectionist barriers these negotiations will create a multilateral trade negotiations, which is would be rapidly dismantled and a climate of confidence conducive to aimed at halting and reversing stimulus, thereby, given to the world investment and job creation. The protectionism and developing a more economy. They emphasized the immediate impact of this signal will, open multilateral trading system, importance of such liberalization for the of course, depend a great deal on the thereby reaffirming the role of trade exports of developing countries in as policy in facilitating sustainable effectiveness with which the much as it assists them to service debt commitments on standstill and economic growth. Given the difficulty of and to diversify out of their current the task, the Committee urged rollback of protective measures are over-dependence on commodities. They implemented by governments", he governments to make every effort to stressed, further, the link between ensure an early and successful agricultural protectionism in major said and highlighted the following conclusion to the new round." industrial countries and the weakness in points: many commodity markets. They called • "First, the Declaration addresses For the Development Committee, the for radical adjustment measures by these decision constituted "a significant step countries to remove such distortions. itself to some deep-rooted problems in strengthening and expanding the They noted, in particular, the specific which underlie the erosion of the international trading system". It inclusion of agriculture in the agreement trading system; it emphasizes the considered that "effective reached at Punta del Este. need for a new understanding on safeguards based on the GATT principles, and the need to bring into the framework of GATT such long- Press Excerpts (continued) neglected sectors of trade as agriculture and textiles." GATT came into existence in the ministers in Punta del Este this week immediate aftermath of the war as a have sent a signal to the world that the • "Secondly, the Declaration seeks pure fruit of the industrial society, of open trading system can be revitalized in to expand the area of trade machinery. It largely disregarded what such a way as to reinforce, not drag liberalization in many sectors of makes up our past-agriculture-and what down, growth and stability in the world traditional concern to developing constitutes our future-services, i.e. economy. countries." broadly speaking all those economic (Financial Times) activities that involve more brainpower • "Thirdly, the Declaration than physical effort. In deciding to addresses itself to the need to make relocate their organization at the centre the GATT more responsive to of the ancient and modern flows of developments in the trading international trade, the members of Although the discussions had been bitter environment, so that it can be a more GATT are at the same time restoring the during the closing stages, the dynamic and adequate instrument for lustre that was beginning to dim. representatives of many delegations regulating trade flows over the end of present at the negotiations expressed the century." (Journal de Genève) confidence after adoption of the Ministerial Declaration. It was stated a • "Finally, the decision to launch a number of times that there were no negotiation on trade in services Ministers of the 92 nations which losers at Punta del Este, that the path subscribe to the General Agreement on had been traced for in-depth represents an effort to establish a Tariffs and Trade should be liberalization of world trade which framework of multilateral co congratulated for a double success. Not would ultimately be beneficial to all operation in an area which is of only is the agenda the broadest in the countries, whether developing or growing importance to the economies GATT's history, but is has all the marks industrialized. It was generally of a very large number of countries of positive consensus, not merely of recognized that the "spirit of Punta del defensive compromise. where problems are only now Este" was a good omen for the coming beginning to be identified." By overcoming deeply-felt differences, negotiations. especially between north and south. (Neue Ziircher Zeitung)