the developing countries to act as a bloc in GATT on G77 lines in now increasing.
This serves to accentuate the role of those who set themselves up as leaders of
this Group. India and Brazil have been prominent in this regard. Neither seems
to see much advantage in a new Round: and Brazil takes a particularly negative
line on services (apparently distrusting any international initiatives in this
sector, even in UNCTAD, because of a preference for national "self-sufficiency").
We will need to demonstrate to the developing countries, including some of the
NICS, that many of them are wholly dependent on an open trading system and that a
policy of self sufficiency runs counter to all the trends towards increasing
interdependence in the world economy and to their interests. If they turn their
backs on the GATT, or try to turn it into another UNCTAD, they will lose their
one effective forum for exerting pressure for improvements in developed countries'
trade policy.
Conclusion
21.
The GATT needs a new Round soon to give it new impetus. The present work
programme is drawing to its end and a new political commitment is needed to secure
real progress in new and often contentious areas. For the UK, a new Round offers
the prospect of progress in priority trade policy fields. But we need proper
preparation and broad agreement as among GATT members on the agenda. The position
of developing countries will be crucial. A GATT Round which produced no consensus
and broke up in acrimony would be positively harmful. Equally, GATT's authority
and the multilateral trading system itself could be severely weakened if GATT does
not have the confidence to address major new issues through a Round. We shall be
feeling our way between these two potential pitfalls. But, on balance, we feel
the GATT has to take the risk of embarking on a Round.
ITP Division
Department of Trade and Industry
Fohminnu
1005
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