1. The Ministers of the Asian Group of the Group of 77 and China met in Amman, Hashemite Kingdom of Jordan, from 9 to 11 January 1996, to reconfirm their solidarity and commitment to the objectives of development, international trade and prosperity of the region and to coordinate their preparations for the ninth session of the United Nations Conference on Trade and Development, to be held in Midrand, Republic of South Africa, in April/May 1996.
2. The Ministers recalling the declaration made by the Heads of State/Government of the Movement of Non-Aligned countries at the 11th Summit Meeting in Cartagena and the Ministers for Foreign Affairs of the Group of 77, convened in New York in September 1995, reaffirming their belief that is the foremost concern of international cooperation. They expressed their determination to bring development to the centre stage of international deliberations.
3. The Ministers reaffirmed that UNCTAD's central role must continue to be that of a universal forum for intergovernmental deliberations and negotiations, confidence and consensus building, policy formulation, offering of alternative paths to development, monitoring of implementation and follow-up, and technical cooperation. In this regard, they further reaffirmed their commitment to the process of adapting UNCTAD's methods of operation as adopted in Cartagena, as well as to the concept of a new partnership for development and the emphasis on the search for consensus. Consensus-building, however, should not be at the expense of the development needs and objectives of developing countries.
4. The Ministers believed that this adaptation process should ensure the involvement of Ministers in action-oriented development policy dialogue and coordination.
5. The Ministers recalled the vital role played by the Group of 77 and China in UNCTAD and other international forums in promoting developing countries' interests in international economic negotiations and consensus-building. They reiterated that the solidarity and cohesiveness of the Group of 77 and China should be further enhanced by establishing more effective mechanisms for coordination among themselves in order to pursue more effectively their objectives on substantive issues in international economic negotiations.
6. The Ministers noted that the 1990s continue to witness fundamental upheavals and changes in the international economic system. Major development challenges that faced the developing countries in the 1980s still persist. The international economic environment is being weakened by high levels of instability and unpredictability. The rapid pace in the interrelated process of liberalization and globalization in the world economy has not only increased the opportunities for growth and development but also introduced new complexities and risks for developing countries.
7. The Ministers noted that there has been decline and stagnation in many developing countries, in particular in the least developed countries, and the gap between the developed countries and the developing ones has been further widened, despite the structural adjustment efforts and economic reforms undertaken by many of them.
8. The Ministers, determined to address the principal problems facing their countries through a renewed sense of common purpose in seeking opportunities for strengthening international cooperation for development, expressed their sincere hope that their partners from the developed countries would use the unique opportunity offered by UNCTAD IX to achieve a positive, realistic and action-oriented outcome from the Conference to reinvigorate development cooperation in the interrelated issues of trade, investment, technology, services, finance, commodities and the environment with a view to revitalizing the development of the developing countries through multilateral cooperation in the spirit of genuine partnership.
9. The Ministers expressed concern that, while enhancing opportunities for growth and development, globalization and liberalization also carry substantial risks of marginalization of developing countries and corresponding increases in poverty. The Ministers agreed that the reduction and, ultimately, the elimination of poverty should be a high priority for the international community. The number of poor and hungry in the developing countries, of which more than two-thirds live in Asia, has doubled over the past several years in much of the developing world, including the least developed countries, where social and economic problems have reached crisis proportions. They recognized that, among the developmental challenges faced by the developing countries, the most pressing are eradicating poverty and promoting the transformation of the productive structures of their economies, including the diversification of the commodity sector, to enhance international competitiveness. The Ministers emphasized the special effort needed at UNCTAD IX to tackle the intractable problems of backwardness and poverty in most developing countries, in particular the least developed countries, low-income countries and other structurally weaker economies. This will require developed countries to provide the urgent provision of an unprecedented package of financial, technological, managerial and investable resources, supported by a very high degree of international cooperation involving both private and public-sector institutions.
10. The Ministers recognized that improved conditions of market access in developed countries for all products from developing countries, including the stabilization and strengthening of commodity markets in order to improve developing countries' terms of trade, would provide the necessary conditions for eradication of poverty and sustainable development and would complement trade liberalization and restructuring programmes in developing countries. This would enable them to play a more dynamic role in sustaining world trade and the balanced growth of the world economy. In this context, they noted with serious concern the emergence of incompatibility between trade policies in developed and developing countries. While an increasing number of developing countries are unilaterally liberalizing their trade regimes, trade policy in the developed countries is drifting towards greater protectionism and managed trade through utilizing measures such as anti-dumping and countervailing duties. As a result, the comparative advantage in international competition of the developing countries has been further eroded. The Ministers emphasized that strengthening of commodity markets requires measures to create conditions for achieving improved real price levels. In this regard they also stressed the need to inject new rigour into international commodity cooperation. They stressed the importance of diversification, the promotion and development of resource-based industries, improved marketing practices and the availability of adequate compensatory financing by developed countries for ensuring the contribution of the commodity sector to development.
11. The Ministers agreed that the Uruguay Round Agreements should be implemented in letter and spirit and that further trade liberalization should take place in products and sectors of interest to developing countries including textiles and agriculture. The Ministers noted that the results of the Uruguay Round will subject all WTO members to similar conditions of competition in international trade. Although there are provisions for differential, favourable and flexible treatment of developing countries relating mainly to longer timeframes for the implementation of general obligations applicable to all WTO members, there are some transitional costs for developing countries. The new multilateral rules of the trading system relating to agriculture, subsidies, sanitary and phyto-sanitary, technical barrier to trade, TRIPs, TRIMs and services should not constrain the policy options of developing countries for achieving developmental goals in the agricultural, industrial and services sectors and for increasing the competitiveness of their exports. The Ministers also expressed concern that the use of trade remedies and other measures, as well as the resort to unilateral and extra-territorial measures could, in effect, limit the trading opportunities of developing countries arising from the implementation of the Uruguay Round Agreements. They requested UNCTAD to provide technical assistance and recommend appropriate measures for those countries which are adversely affected by the implementation of the Uruguay Round Agreements in order to enable them to overcome the negative effects.
12. The Ministers expressed their deep concern at the continuing use of coercive economic measures against developing countries, through inter alia unilateral economic and trade sanctions which are in clear contradiction with international law. In this respect, they objected to the new attempts aimed at extra-territorial application of domestic law, which constituted a flagrant violation of the principles of the United Nations Charter and of the WTO rules.
13. The multilateralization and liberalization of the world economy promised by the successful culmination of the Uruguay Round is taking place at a slow pace for the developing countries in areas of interest to them. Protectionist tendencies are gaining strength in developed countries through the linking of trade to non-trade issues such as concern for human welfare and the environment. The economic troubles of the developed countries are being blamed on developing countries on the unfounded pretext of cheap imports from them. The Ministers viewed with concern the slow opening up of the markets in developed countries in sectors in which they have comparative advantage.
14. The results of the Uruguay Round contain a "built-in" agenda for future trade negotiations, particularly in the areas of agriculture and trade in services, where it is foreseen that the process of liberalization and introduction of stricter multilateral disciplines will be pursued in future negotiations. There is also provision in the TRIMs Agreement for possible future parallel negotiations on investment and competition policy. The Ministers agreed that UNCTAD IX should provide a forum for a better understanding of these interrelated issues in order to clarify the interests of developing countries and the policies and measures needed to protect these interests. The Conference should initiate the multilateral dialogue that will be needed to forge a consensus on an appropriate competition regime in support of existing multilateral disciplines.
15. The rapid expansion in the services sector and the growth of international trade in services have prompted the adoption of a multilateral framework of principles and rules to govern such trade -the General Agreement on Trade in Services (GATS) of the Uruguay Round. The inclusion in the GATS of the movement of natural persons as a mode of supply of services was a major step forward. However, the Ministers considered that the limited character of commitments with respect to the movement of natural persons is a matter of concern for some developing countries which needs to be addressed. A balanced approach is needed which will liberalize the movement of labour services in tandem with the further liberalization of investment, so as to enable developing countries to benefit from globalization. Recognizing that the services sector of most developing countries is at an early stage of development, developed countries should assist them in fostering the development of this sector.
16. Noting the concern of developing countries of the limited outcome of the negotiations in WTO relating to the movement of natural persons as service providers, the Ministers called for renewed steps to bring about progress in these areas taking into account the principle of transparency and non-discrimination.
17. The universality of the WTO, which is of great importance to strengthening and improving the multilateral trading system, must be realized as soon as possible in order to ensure the full success and validity of multilateral trade negotiations and arrangements. Developing countries which are seeking accession to the WTO and which are in the early stages of their integration into the international trading system should be given every opportunity to achieve accession on balanced terms that are consistent with their levels of their economic development and their trade, financial and development needs. In particular, WTO members should refrain from placing excessive demands on these countries which are onerous and could retard their development, or which are not covered by the provisions of the WTO agreements.
18. The ability of developing countries to participate effectively, exercise their rights and meet their obligations in the WTO will be an important determinant of their further integration into the international trading system. In this regard, the Ministers agreed that there is an urgent need to strengthen developing countries' capacity in the areas of trade development, policy formulation and negotiation and institutional adaptation. The international community should extend appropriate technical cooperation to countries, both WTO members and non-members.
19. The Ministers supported the concept behind the GSP and emphasized its continued validity in the post-Uruguay Round period. They urged the donor countries to avoid introducing policies and measures that would only render the GSP schemes less effective in achieving the objective of development. They expressed concern over the adoption of graduation mechanisms in certain schemes that will exclude many developing countries from the purview of these schemes without them achieving a significant level of industrialization and development. They also opposed inclusion of conditionalities, either positive or negative, in the GSP schemes, as this is against the basic principles of universality, non-reciprocity and non-discrimination. Ministers urged the preference-giving countries to strengthen GSP schemes through simplification of procedural complexities, particularly in relation with rules of origin and also to increase product coverage to include all items of export interest to developing countries and also deepen the margin of preference to ensure that the preferences granted to the developing countries are not eroded as a result of the Uruguay Round Agreements. They also requested UNCTAD to study the possible extension of GSP concepts into new areas including services and investment.
20. The Ministers expressed their concern at the slow implementation by the Paris Club of the Naples Terms in the area of official bilateral debt in favour of the poorest and most indebted debtor countries. They urged that Paris Club creditors revise their eligibility criteria so as to include all low-income countries with debt-servicing difficulties in the list of countries benefiting from the largest debt reduction. Generous coverage of debt to be considered for debt reduction is also necessary. The Ministers expressed concern at the serious debt problems of the LDCs which necessitate concrete measures to alleviate substantially the debt burden and increased concessional financing, including inter alia cancellation or equivalent relief for ODA debt, in accordance with Trade and Development Board resolution 165(S-IX), expeditious implementation of the most concessional treatment under the Paris Club Naples Terms, adoption of debt reduction and debt relief programmes by non-Paris Club creditors who have not yet done so, expeditious consideration of ways to address the issue of multilateral debt, reduction of commercial debt through the IDA Debt Reduction Facility and alternative mechanisms. Recognizing the interlinkages of the issues of debt and trade, the Ministers agreed that UNCTAD should hold consultations on a regular basis with other international organizations, in particular the WTO and the Bretton Woods institutions, to study the interaction between trade and debt in a comprehensive manner, taking into account the efforts which have been made to promote market liberalization and market access in the framework of the WTO negotiations. The Ministers agreed that UNCTAD IX provides an appropriate forum to examine the debt problems facing developing countries with a view to making effective, equitable, development oriented and durable solutions, and to help them exit from the rescheduling process.
21. The Ministers noted with concern the continuing volatility in international money markets, particularly of short-term capital flows and exchange rates. They felt that the increased vulnerability of developing countries after liberalization and globalization calls for appropriate measures to mitigate the adverse effects of this volatility.
22. The Ministers recognized that, in order to benefit from the increased mobility of capital, developing countries must possess adequate technological infrastructure including energy, telecommunications, transport, water, and skilled personnel. In this context, the Ministers noted with serious concern that the technological gap between developed and developing countries is widening and that the changes in the patterns of international competitiveness being brought about by the new technological revolution and the globalization process are placing developing countries at a further disadvantage in the production of goods and services and in their conduct of efficient trade. Recognizing the efforts being made by the developing countries to build up their technological capabilities, including support for research and development, Ministers stressed that developed countries must support and contribute to this process by, inter alia, ensuring unhindered access of developing countries to new and emerging high technologies that are vital for their development and trade competitiveness on favourable terms and conditions. They believed that restrictions on the transfer of technologies, material and equipments that are needed by the developing countries in their development process should be removed without any selectivity and discrimination.
23. The Ministers recognized that the globalization of investment has become a key factor in production strategies and world trade. The increasing role of TNCs as foreign investors, owners and purveyors of technology and operators of global marketing distribution and services networks in the world economy is also recognized. Most FDI flows, however, are directed towards a few countries and sectors and are negligible for the least developed countries. Efforts will have to be made to attract inward FDI flows in order to ensure that more developing countries benefit from such flows. The Ministers therefore called for positive policies and measures to be adopted by developed countries' Governments to ensure that the dynamism, global resources and vast capabilities of the TNCs are harnessed and directed towards indigenous technological capacity-building in developing countries, for the expansion of their export opportunities and for measures to ensure their preferential access to competitive structures and tools for gaining competitiveness such as information and transport networks, distribution and marketing channels and key services. In this context, the Ministers requested UNCTAD to undertake preliminary work in identifying and clarifying issues of interest to developing countries concerning a multilateral framework on investment, bearing in mind the work undertaken in other organizations. The Ministers also saw great scope for increasing and promoting the activities and operations of developing-country transnationals as vehicles of trade, technology and production cooperation in other developing countries.
24. The Ministers expressed concern at the increasing use of environmental conditions as a disguised form of protectionism in developed countries. They noted that the priority in developing countries is development, including issues such as poverty alleviation, investment in the social sector and preservation of their natural resource base. Externally imposed environmental concerns will adversely affect the development process, which will in turn defeat the objective of promoting environmental protection. They emphasized that environmental problems with a cross-border effect should be addressed through the framework of multilateral environment agreements, which should take into account the special development needs of developing countries. Environmental standards in sectors of interest to developing countries should be arrived at in consultation with the producing countries. They also asserted that environmental standards for developing countries should be promoted not through trade-restrictive measures but only through positive measures which provide facilitating mechanisms related to transfer of technology, including the relaxation of intellectual property rights, and finance. They emphasized the need for UNCTAD to continue its work in this field to evolve concepts, build consensus and reach international understanding, clarify issues and examine the developmental implications of environmental measures. The principles of international cooperation, multilateralism and transparency should form the basis of the approach to these issues for any negotiations and regulatory measures.
25. The Ministers urged that any action at the national and international levels, as well as in the evolution of international environmental law and economic and regulatory tools, should always take into account the special needs and concerns of developing countries. They further emphasized that international cooperation in this area should ensure that the burden of any negative effects on growth -or threat thereof - from measures to address global environmental problems should not be disproportionately borne by the developing countries. Developed countries should make provision for adequate, new and additional financial transfers to developing countries and provide for assured access to environmentally sound technologies, facilitating the transfer of such technologies on concessional preferential and non-commercial terms. The Ministers emphasized the close link between ecological sustainability and eradication of poverty on the one hand and rationalization of consumption patterns in developed countries on the other.
26. The Ministers recognized that the overwhelming majority of enterprises in developing countries are of small or medium size and their combined economic and social weight is significant. Because of their labour-intensive character, they play an important role in creating employment and in upgrading skills through on-the-job training of workers with limited experience and knowledge. By providing self employment or wage employment, they add to existing income opportunities, thus helping to fight poverty. SMEs promote the development of rural industry and play a crucial role in enhancing the participation of women in production and in entrepreneurial activities. In view of the increased competitive pressures on the enterprise sector brought by liberalization and globalization, Ministers asserted that UNCTAD IX provides opportunities for policy dialogue on resource flows and improved conditions for market access and transfer of technology so that SMEs can benefit from their adaptability to swiftly changing market conditions and to new technological developments.
27. Ministers reaffirmed their commitment to technical cooperation being strengthened, expanded and integrated in all relevant areas of UNCTAD's work. That concept of integration should be carried further, so that technical cooperation can both contribute to policy analysis and assist Governments in implementing the results of their deliberations.
28. The Ministers noted the open and flexible nature of recent efforts in economic cooperation among developing countries and considered this trend to be very supportive to the global economy. In their view, the increased openness of cooperation among developing countries and with developed countries creates more viable economic spaces in the global economy and helps to harmonize international norms and rules, including those deriving from the WTO and those prevailing among groups of developing countries. They also noted with satisfaction the positive developments of regional cooperation in the Asian, African, Pacific and Latin American regions. The Ministers reaffirmed the great importance of financial and monetary cooperation among developing countries and with developed countries. In this context, they will seek to encourage cooperation in extending trade-financing and to underpin further expansion of South- South trade, harmonization of financial policies and regulations and, where appropriate, increased monetary integration and cooperation, in particular in exchange rate policies. They reiterated their support for the effective use, where relevant, of clearing and payments arrangements of developing countries.
29. The Ministers noted the importance of GSTP in promoting South South cooperation and making GSTP more effective. They emphasized the need to further vitalize the GSTP and extend its reach in the light of the new reduction of barriers and tariffs brought about by the conclusion of the Uruguay Round. Reaffirming their support for the new trading system ushered in by the Uruguay Round, the Ministers considered that collaborative efforts among the developing countries would enhance their preparation for the future negotiations, enable them to take advantage of the new opportunities opened to them and contribute to their effective use of the institutional instruments of the WTO.
30. The Ministers believed that regional trading arrangements should be outward oriented and avoid the risks of trade and investment diversion detrimental to the interest of developing countries. Potentially restrictive methods such as those relating to rules of origin and preferential arrangements and agreements should not result in further departure from the MFN principle, thus weakening the multilateral trading system. It must be emphasized that WTO rules and regulations regarding regional trading arrangements should address the economic effects of these arrangements in a comprehensive manner. UNCTAD IX should provide an opportunity to identify the conditions necessary for ensuring that regional arrangements become more open and outward-looking and that they complement and strengthen the multilateral trading system and to see how they might enhance the development of developing countries and take into account the interests of countries not party to them. Evolving concepts of regionalism would also need to be examined in order to benefit from the positive experiences of regional groupings, especially where these might be pertinent for suggesting innovative solutions to intractable problems such as poverty, environmental protection, unemployment, debt and infrastructural development.
31. The Ministers noted with appreciation in the context of economic cooperation among developing countries, the generous financial assistance given by some developing countries towards this purpose.
32. The Ministers noted the importance of effective and efficient market economy systems in bolstering economic growth in developing countries. Deficiencies in laws and regulations, inappropriate administrative planning and resource allocation, poor enterprise management and low efficiency and productivity may be just a few factors contributing to economic failures. The Ministers believe that cooperation between developed and developing countries will be of vital significance for the establishment and development of dynamic market economy mechanisms in these developing countries. In this respect, UNCTAD IX will be a good opportunity for developing a meaningful programme for cooperation.
33. The Ministers agreed that addressing the risks of marginalization calls for international cooperation to assist developing countries in building and improving their capacities to compete and survive in a globalizing and liberalizing world economy. The Ministers were deeply concerned with the downward trend in official development assistance in relation to the GNPs of developed countries. They urged developed countries to take steps to reverse the trend to bring about an increased flow of resources and to improve the quality of these flows through multilateral and bilateral channels in order to assist developing countries inter alia in strengthening infrastructures, improving economic policies and strategies, and enhancing marketing skills and techniques. Bilateral ODA should be considered and offered in the light solely of the development needs of the recipient countries and should be devoid of adverse external interference of a non-developmental nature.
34. Ministers noted that the least developed countries as a group have suffered declines in per capita incomes, as well as in their share in global trade; many of the objectives of the Programme of Action for the LDCs for the 1990s have not been met. Their overall socio-economic situation has continued to deteriorate, thereby further complicating the adverse effects of marginalization. Despite the recovery in the world economy, the situation in the LDCs continues to be precarious, with the overall external environment facing LDCs remaining very difficult. The debt burden continues to be high for many LDCs, ODA flows have been around half of the agreed target, and market access has been constrained by erosion of preferences. The challenges facing LDCs are to reverse the decline in economic and social conditions, to promote sustainable development and to avoid becoming further marginalized in the international economy, particularly in the face of globalization in the post-Uruguay Round era.
35. An intensified policy commitment by the international community will be required to meet these challenges faced by LDCs. The LDCs, which have the primary responsibility for their own development, will continue to implement economic reform programmes. However, the tasks facing LDCs are colossal and beyond their capacity to implement on their own. External financial, technical and commercial cooperation, will be of critical importance in shaping the future growth and development of LDCs. Donors need to implement expeditiously the agreed menu of aid targets set out in the Programme of Action and reiterated in the Mid-term Review and fulfil their commitment to providing a significant and substantial increase in the aggregate level of external support to LDCs, keeping in view the requirements of new countries added to the list of LDCs following the Paris Conference. Efforts should be made to ensure funding of the multilateral financial institutions and programmes which are major sources of financing for LDCS.
36. Concrete action should be taken to fully and expeditiously implement the Marrakesh Declaration as it relates to LDCs and give effect to the Ministerial Decision on measures in favour of the LDCs with a view to enhancing LDCs' participation in the multilateral trading system. A safety net should be set up to mitigate possible adverse effects of the Uruguay Round Agreements on LDCs, comprising, inter alia, the following main elements: improved market access, financial transfers, debt relief and food aid. The international community should help LDCs promote trade links and should take appropriate measures to support such links, particularly sub-regional and regional trade. Their trading and investment opportunities must be increased in order to better integrate them into the international trading system.
37. The serious debt problem of the LDCs necessitates strengthened efforts to alleviate the debt burden including debt cancellation as recommended by the Mid-term Review. The debt reduction strategy should address official, bilateral, multilateral and commercial debt. This will be critical to the revitalization of growth and development in LDCs.
38. An effective follow-up of the outcome of the Mid-Term Global Review, as well as of the conclusions and recommendations relating to LDCs adopted by major global conferences, will be essential. The Ministers noted that the General Assembly consider convening a third conference on the least developed countries, at the end of the 1990s, in order to make a comprehensive appraisal of the implementation of the Programme of Action and to decide on subsequent action.
39. UNCTAD, which is the focal point at the global level for the monitoring, follow-up and review of the implementation of the Programme of Action for the LDCs, should continue to give high priority to issues pertaining to LDCs, and the Trade and Development Board should continue to conduct the annual review.
40. The Ministers noted the special development problems and needs of land-locked developing countries arising from the adverse impact of their geographical handicaps. In this context the developed countries, international organizations and regional commissions should provide necessary resources to implement the recommendations of the Global Framework for Transit Transport Cooperation between land-locked and transit developing countries and the donor community, recently adopted by the General Assembly. This will enable these countries to minimize the risk of their marginalization in the world economy and to participate effectively in the rapid globalization process.
41. In addition, the Ministers recognized the special needs of small Island Developing States (SIDS), particularly their vulnerability associated with geographic isolation, limited resource-base and accessibility to markets, and urged the full implementation of the programme of action adopted at the Global Conference on Small Island Developing States, held in Barbados, by the international community. The Ministers agreed that UNCTAD will play a vital role in the strengthening of SIDS to enable their effective participation in global trade and investment.
42. The Ministers stressed the significance of the forthcoming ninth United Nations Conference on Trade and Development in the context of realizing the development objectives of the developing countries of Asia which would be achieved mainly by their own efforts. The Ministers recognize the importance of self-reliance and international cooperation in order to meet their development objectives. They agreed to work in close cooperation with other developing countries to promote these objectives. They expressed the hope that the developed countries would participate in the Conference in a spirit of accommodation and partnership and contribute to its success.