20000325

G-77 preparatory body

slates use of sanctions

on political grounds

RECORDER REPORT

KARACHI: The preparatory and steering committee meetings held to draw up on agenda for the South Summit of Heads of State of G-77 countries to be held in Havana, Cuba, from April 10-14, 2000, have recommended strong denunciation of the use of economic sactions, which were guided by political considerations, according to a fax message received here from Anwar-ul-Haque, Secretary General, G-77 Chamber of Commerce and Industry from Havana, Cuba.

The meetings held in Havana from March 21-23 further recommended that no new trade negotiations be undertaken within the framework of WTO till such time as all the pending issues and problems arising from previous agreement of WTO are resolved and that countries overburdened with foreign debts should be exempted from fulfilling the roles established by WTO.

The discussion held during the preparatory meetings, pertaining to WTO concluded on the unanimous opinion that the concept of globalization by WTO rules to benefit developing countries has in fact caused negative impact on fragile economies of developing countries. Further the promised sharing of welfare of each nation by developing countries through application of WTO rules and agreements has failed to achieve any results. Therefore, businessmen of the South were unanimous in their views to recommend deferring of talks on issues within WTO framework unless the earlier promised benefits for developing countries are assured and problems arising out of the agreement are resolved.

Other recommendations made for the consideration of Heads of States' summit include : Upgrading, strengthening and coordinating the participation of the nations of the South in the talks held within the framework of WTO, creation of a consultative commission of the South for coordination of policies and modernisation of production, stimulating direct investment among the nations of the South, facilitating optimal use of existing information networks among our nations and extending their scope.

Ñ To encourage the establishment of a system of registration-cum-comparison of the best practices, and to create a consortium or corporation of the nations of the South in the telecommunications sector. To stimulate and foster the performance of small and medium enterprises which are recognized as tool for generating employment and preferential treatment for low cost finances.

Ñ To promote and increase exchange of specialists and technicians among G-77 countries and encourage the creation of specialized centres to train managers and professionals from nations of the South in issues relating to access to the markets, trade and competition.

Ñ To encourage agreements that facilitate the supply of primary raw materials between the nations of the South and to extend and expand upon the scope of trade activities with the sectors of tourism and culture and other services. To promote regulations relating to medicines,etc that are adopted to the charasteristics, opportunities and needs of our countries and to create a permanent commission of the chamber of industry and commerce of the Group of G-77 with the aim to ensure that agreements which have been adopted are compiled with.

Ñ Creation of a Bank of South to enhance the negotiating capacity of developing countries which presently is monopolist due to control by the North. The bank is expected to promote exports and provide imports substitution growth in developing countries.

Ñ The creation of re-insurance company in the South for generating income for South countries through activities of re-insurance.

To upgrade the mechanisms to increase aid among countries of the South. The creation of debtors club for taking common stance on negotiations with creditors was also recommended. The businessmen also recommended to the South summit to seek compensation from creditors for the profound imbalances caused to their economies by the policies implemented to deal with the foreign debt. The role of South in the shape of greater representation in the re-designing of new world financial order was also recommended.

The Heads of State have been asked in another recommendation to call for moratorium so that a sustainable economic growth is assured. It was also recommended to establish Science and Technology Centre providing cost effective technological support.

The FPCCI delegation comprising Tariq Sayeed, Eng. M. A.Jabbar, Sheikh Shakeel Ahmed Dhingra and Amar Qureshi assisted by Anwar-ul-Haq, Secretary General, G-77 Chamber of Commerce and Industry took part in all the debates and deliberations during the course of three-day meetings. Several proposals put forward by the FPCCI delegation were also adopted. Pakistan side was the major contributor in the formulation of final draft recommendations which will be placed for consideration before the South Summit of Head of States in Havana in April 2000.