U.S. trade push resisted in Geneva

Press, 17 November 1982, Page 9

U.S. trade push resisted in Geneva

NZPA Geneva Round-the-clock prepara- ’ tions for a big trade conference in Geneva next week have failed to reach an accord on American proposals to ease world trade in services and high technology, according . to a draft text completed yesterday. The draft declaration, designed as a statement of support for the free trade rules of the General Agreement on Tariffs and Trade, simply lists the ideas as still under discussion. Trade diplomats said that this had left little time for Washington, which has been pushing hard to extend G.A.T.T. rules to these key growth areas for American exports, to have them accepted in time for the meeting of 88 Trade Ministers from November 24 to 27. (New Zealand’s delegation to the conference will be led by the Minister of Overseas Trade, Mr Cooper.) The final draft text also avoided explicit mention of a proposal on protectionist measures which would bind G.A.T;T. members to stop blocking imports and ease existing import curbs. Although ■ the European Economic. • Community strongly opposed any close look at the. highly protected area of farm products, the draft shows agreement to set up an agricultural committee '•'and start a two-year study on ..how to ease the farm trade. . . Diplomats preparing the

conference, the first of its kind since 1973, put in two all-night sessions at the week-end to complete the text. But several said that the draft was still insufficient and discussions would continue until next week. The American- proposals, which would widen G.A.T.T.’s scope from only manufactured goods to services such as banking, shipping, and insurance, have met stiff opposition from developing countries wary of opening their economies to American business. The United States earns 41 per cent of its export revenues, from service exports . and American trade officials have singled put this issue as their most important goal at the meeting. x , Other American ideas still not accepted in the prepara: tofy meetings are for G.A.T.T. rules on trade in high . technology goods, an area not yet defined in G.A.T4.’s precise contract, and for more liberal rules on trade-related clauses requiring 'foreign firms to use certain levels of local labour and materials or export certain levels of their output.' On the farm trade, the draft text said that the proposed study would “cover all measures affecting trade, market access and competition and supply in agricultural products, including subsidies and other forms of assistance.” ' . .

But an American , proposal for “north-south” negotia-

tions to reform the way trade is'conducted between fast-growing Third - World States and industrialised countries finds no specific mention in the text. Developing countries’ bitterly opposed the idea as an attempt to make States such as Hong Kong and South. Korea give up tariff concessions all Third World countries now enjoy in trade with the industrialised world. <■ American officials argued that the idea, which would also have called for better access to Third World markets, would work out better on balance for the developing States. Another unresolved issue is the improvement of G.A.T.T.’s dispute settlement procedures. G.A.T.T. can set up panels to arbitrate in a trade dispute, but until now the side judged to be the offending party could block implementation of ’ the panel’s decision. The text, divided into an introductory declaration and a section treating specific issues, opens with the admission that G.A.T.T. rules have been ignored more and more frequently as protectionist pressures have mounted. “In the field of trade, the responses of governments to the challenges- of the crisis have too often, been inadequate and inward-looking,” it said. “Import restrictions have been applied outside G.A.T.T. disciplines, thus undermining the multilateral trading system.” -