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