B.
Suggested Topics for the Next Phase of the Informal Dialogue
It is proposed that the reforming countries of Latin America participate all 1994 informal workshops, except for the one on maritime transport. In this area, DAES and OECD Member countries have particular issues to address which, according to the technical opinion of the Maritime Transport Committee, would be more effectively done among these parties alone.
a)
8.
Trading Relationships and Trade Policies
The high priority of this workshop was confirmed by the Trade Committee in recent discussions. The topics for 1994 will be selected in the light of the outcome of the Hong Kong workshop (11-12 October 1993). The draft agenda for the 1993 workshop (SG/IW/TC/A(93)1] was discussed in an informal meeting of the Working Party of the Trade Committee with representatives from the DNMEs on 15 June 1993. The 1994 workshop would cover trade issues of common interest and concern such as strengthening the multilateral trading system, trade issues of the 90s, regional integration, and mutual trade relations, but further definition of the topics will depend on the discussions in Hong Kong and developments in international trade and trade relations, in particular concerning the Uruguay Round.
b)
9.
Labour Market Adjustment:
National Experiences and Policies
Significant realignments in the economy naturally produce change in the workforce and the way in which labour markets function. Both the DNMES and OECD countries share concerns on how effectively labour markets adjust to dynamic long-run economic forces and how the process might be made more effective. The purpose of this workshop would be to examine and further our understanding of the ways in which firms, institutions, and individuals in the labour market adjust to changes brought about by technology, new products, new demand patterns or other factors. Some of the questions that the workshop would address are: how extensive are the structural changes in employment and labour supply, including migration ? What has been the relative importance of different types of adjustment mechanisms ? Have there been any impediments to change and what, if any, has been the role of policy to assist change? In the context of industry employment shifts, what are the determinants of relative wages and how have they changed in response to demand or supply shifts ?
c)
10.
Taxation
This workshop was agreed to by the Group as part of the 1993 Work Programme, but had to be deferred until 1994. It should be seen as part of the series on taxation which began with the Sydney workshop in 1992 on Taxation and Investment Flows. It will address transfer pricing practices of DNMEs and compare their experiences with those of the OECD countries. Foreign direct investment into and from the DNMEs increasingly takes place by means of multinational enterprises (MNEs), many of which operate on a global basis. Appropriate transfer prices have to be determined for the transactions between the related entities of the MNEs. Both the tax authorities of the DNMEs and of the OECD countries have a common interest in ensuring that each transfer price corresponds to an arms-length price. Consequently, a review of country practices, taking account of the guidelines set out by the OECD, would be useful to tax authorities and to the MNEs.