SAARC NEWSLETTER, VOL.X, NOS.9&10 SEPTEMBER-OCTOBER 1999
NEWS FROM THE SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION
INFORMAL SESSION OF THE SAARC COUNCIL OF MINISTERS IN NEW YORK

An informal meeting of the SAARC Council of Ministers was held in New York on 28 September under the Chairmanship of the Minister of Foreign Affairs of the Government of Sri Lanka. The meeting considered a wide range of issues and particularly the recommendations of the Group of Eminent Persons (GEP).

The Council of Ministers had detailed deliberations with the Association of the Southeast Asian Nations (ASEAN) and the European Union (EU) with a view to forging closer practical cooperation with these regional organisations.

As part of cooperation with the EC, a two-member team visited the SAARC Secretariat in October 1999 to finalise modalities for implementing projects in four areas as indicated below:

i. facilitating access into the Single European Market, including directives, official documents etc. related to the Single European Market;

ii. implementation of the EU-GSP scheme, including cumulative rules of origin;

iii. drawing on the EU experience for the SAFTA process; and

iv. evolving common standards and harmonisation with international obligations, including certification, testing etc.

SAARC COMMERCE MINISTERS MEET IN MALDIVES ON WTO ISSUES

As a follow-up to the New Delhi Meeting of SAARC Commerce Secretaries on WTO issues (May 10-12, 1999), a second Meeting of Commerce Secretaries was held in Maldives (August 7-8) preparatory to the SAARC Commerce Ministers Meeting held on August 9th 1999. Underlining the importance of the forthcoming Seattle Meeting, the Ministers emphasized the need for the SAARC Member States to participate actively so as to effectively project the region’s collective concerns. The Ministers issued a Joint Statement and agreed on the need to continue the consultative process as developments evolved.

JOINT STATEMENT BY THE SAARC COMMERCE MINISTERS

ON THE FORTHCOMING THIRD WTO MINISTERIAL CONFERENCE (SEATTLE)

Pursuant to a decision taken at the Second Commerce Ministers Meeting in Islamabad and thereafter endorsed at the Colombo Summit to intensify consultations among SAARC Member States on WTO related Issues, the Commerce Secretaries of SAARC Countries held two Consultative Meetings respectively in New Delhi (10-12 May 1999) and in Bandos Island, Maldives (7-8 August 1999) with a view to adopting a common position well in advance of the forthcoming Third WTO Ministerial Conference scheduled to be held in Seattle later this year.

2.The Commerce Ministers of SMRC Countries are of the view that:

a.preparations in the WTO General Council are for the forthcoming Seattle Ministerial Conference and not for any new or fresh round of multilateral trade negotiations as is being proposed by some countries. There has been no agreement so far nor any consensus on structuring future work as a new Round of Negotiations, much less on a single undertaking;

b.it is premature, accordingly, to discuss at this stage, the contours of any new negotiating agenda or the question of 'a single undertaking', unless members are satisfied with the details of the scope or the nature of the agenda before them. The mandated negotiations and the mandated reviews taken together with implementation issues provide a sufficiently broad agenda for consideration;

c.there is a move to further overload the VVTO agenda with new issues such as social clauses, environment, 'governance', labour standards etc. Since these are not trade related, they should be kept out of the multi-lateral trading system;

d.The SAARC region should strongly emphasize that expeditious action be taken for the full and fair implementation of existing agreements and commitments made thereon, with special reference to the impact on developing and Least Developed Countries, and that imbalances and asymmetries in these Agreements be addressed as a clear priority. This would enhance the credibility of the multilateral trading system among developing and least developed countries;

e.there is a need to deepen and broaden concessions already provided under S&D clauses in favour of developing and least developed countries. Operationalisation of these clauses need to be addressed as stand-alone issues to balance the substantive obligations already assumed by the developing and least developed countries under the Uruguay Round;

f.the Uruguay Round negotiations did not result in greater market access for the exports of developing and least developed countries as was expected, due to the existence of 'tariff peaks', the phenomenon of tariff escalation, and the use of non-tariff barriers, in respect of products of export interest to the developing and least developed countries. Action should be taken to ensure effective market access for the exports of these countries;

g.there is a need for meaningful integration of the textile and clothing sector under GATT. Measures which would result in increased market access for textile and clothing items need to be considered. These would include, inter-alia, adequate and faster coverage of items for meaningful integration, regular monitoring of the process of integration by the Textile Monitoring Body, dis-allowing unilateral modification of rules of origin to the detriment of developing and least developed countries, avoidance of arbitrary anti-dumping, anti- subsidy or safeguard measures by developed countries and full and effective compliance with the special and differential treatment provisions;

h.increased commitment should be sought from developed countries with regard to market access in services especially by way of movement of natural persons;

i.With regard to the TRIPS agreement, extension of the moratorium on applicability of the non-violation clause be sought as also a finite extension of the transition period for the implementation of the provision of TRIPS for the developing countries, which is at present scheduled to end on 1/1/2000. There is a need to prevent piracy of traditional knowledge built around bio-diversity and to seek the harmonisation of the TRIPS Agreement with the UN Convention on Biological Diversity so as to ensure appropriate returns to traditional communities. It would be desirable to join forces with other developed and developing countries for the grant of higher level of protection by way of geographical indication to products apart from wines and spirits so that products of export interest to the region could benefit. The relevant provisions of the TRIPS Agreement relating to meaningful transfer and dissemination of technology to developing and least developed countries should be effectively operationalised;

j.as regards the TRIMS Agreement, there should be an extension of the transition period for developing countries for removal of trade related investment measures. There should be no further amplification of the list of such measures under the disciplines of the TRIMS Agreement. Greater flexibility in the TRIMS Agreement for developing countries is important to enable them to pursue their developmental objectives. In particular, the local content requirement is important as it (i) promotes domestic activity in raw material and intermediate inputs; (ii) encourages ancilliary industry to upgrade production level; (iii) affects saving in foreign exchange spendings thus impacting balance of payment situations; and (iv) establishes a balance between FDIs and national growth levels;

k.in view of the increasing marginalization of LDCs in world trade, the following measures, among others, should be taken within the framework of the WTO to enhance their participation in the multilateral trading system:

a)Least developed country applicants for WTO membership should be allowed to accede on a fast-track basis with obligations commensurate with their stage of development. The duration of the accession process should be shortened, conditions simplified, and these must not be more restrictive than those applied to other LDCs during the change of their membership from GATT to WTO. In the case of LDCs the transitional period provided under various Agreements should commence from the date of their accession;

b) Special and differential provisions under all WTO Agreements and Decisions should continue to be a integral part of the multilateral trading system,

c) LDCs should be granted duty-free access on an autonomous basis for their exports. These should be exempt from anti-dumping duties, safeguard actions an non-tariff barriers;

d) Rules of origin, including those under unilateral preferential regimes such as the GSP1 applicable to LDCs should be harmonized and tailored to promote their participation in global production chains;

e) Export subsidies should be exempt from competitiveness thresholds and non-actionable categories of subsidies expanded to include subsidies for development, diversification and upgrading of industries.

f) All notification requirements should be made simpler and deadlines for full implementation of all Agreements extended to match their technical capacities.

g) The proposed legal advisory centre and a special cell for LDCs in WTO should be established as soon as possible:

h) Technical assistance should be regarded a right for LDCs and adequate resources should be made available under the WTO regular budget, and

i) Developed countries should give priority to the concessional transfer of technology to LDCs.

l. the use of unilateral trade measures inconsistent with International law, WTO Agreements and the basic tenets of a multilateral trading system should be rejected, and

m. representatives of SAARC Countries accredited to the WTO in Geneva should consult more closely and coordinate their positions on all matters relating to the preparatory process leading to the Third Ministerial Conference in Seattle.

SAARC NETWORK OF RESEARCHERS HOLD ITS SECOND MEETING

The SAARC Network of Researchers on global financial and economic issues met in Colombo on August 10th to decide on its research agenda. A number of subject areas were identified which ranged from WTO related matters to longer-term research subjects such as the Creation of a South Asian Energy Grid, Sustainable Fisheries Development Policy, EC Cumulative Rules of Origin under GSP etc.

The Network also decided to bring out a South Asian Economic Journal. For the first two years the Colombo-based Institute of Policy Studies (IPS) would be responsible for bringing out the Journal, the first issue of which is to be launched at the time of the Summit in Kathmandu.

The Network also decided to bring out a Directory of Research Institutes in South Asia working on South Asian economic cooperation issues. Such a directory would list research and academic institutions including Government Departments/ Ministries, Chambers of Commerce and Industry etc. in each Member State and would provide contact details along with brief annotations on the specific areas of research specialization.

SCCI DELEGATION CALLS ON SAARC SECRETARY-GENERAL

President of the SAARC Chamber of Commerce and Industry, Kantikumar R.Podar led a delegation that called on the Secretary General in August. The delegation held detailed consultations on various on-going and fresh initiatives to accelerate the process of regional economic cooperation. The Secretary-General recalled the positive and proactive role played by the Chamber and hoped that such interaction could be intensified.

The Chamber received a briefing on WTO issues as also the initiative taken by the SAARC Commerce Ministers including their Joint Statement on issues likely to come up for discussions at the Seattle WTO Ministerial Meeting.

Key issues raised by the SCCI are expected to be brought before relevant meetings of SAARC for attention.

DRAFT CONVENTION ON CHILD WELFARE IN SOUTH ASIA FINALISED

The draft Convention on the Regional Arrangements for the Promotion of Child Welfare in South Asia has been finalised by the SAARC Technical Committee on Health and Population Activities at its seventeenth meeting held in Colombo on August 12-14. The meeting, attended by all member States was chaired by Dr. (Mrs.) Dula de Silva, Deputy Director General of Health Services (Public Health) of the Ministry of Health and Indigenous Medicine of Sri Lanka. The SAARC Secretariat was represented by Director Thinley Dorji at the meeting.

The three-day meeting of the TC was inaugurated by Hon. Pavithra Devi Wanniarachchi, Deputy Minister of Health and Indigenous Medicine, who in her inaugural address, highlighted a number of pressing problems faced by the SAARC region, which she felt could be solved by collective thinking and pooling knowledge. The Deputy Minister also reiterated that SAARC must harness the technological and scientific progress which the world is experiencing, to serve the poor, in particular, the children.

During its review of the activities in the past year, the Committee considered, inter alia, recommendations of the expert group meeting on Poisoning and Chemical Safety held in Kathmandu on 17-19 May, and expressed concern on drinking water safety.

It felt that studies need to be undertaken to determine the extent and type of contaminants as a matter of priority. It also reviewed the need for a focal institute for Malaria which the Committee had been considering for some time. Nepal agreed to explore the possibility of the Vector Borne Disease Control Centre in Hetauda assuming the role of Focal Point for Malaria. Member States were also urged to send updated information on networking arrangements among institutes in the field of Population Research Training so that Bangladesh could collate the information. Similarly, it was also agreed that information on national laws in the field of health would be updated to facilitate harmonisation of laws at the earliest. The Committee recommended that the SAARC Secretariat carry out a Situation Analysis of Children in South Asia, using selected key indicators.

A brief presentation on the establishment of an International Centre for Tropical Medicine was made to the Committee by Prof. Janaka de Silva, Dean of the University of Kelaniya, Sri Lanka, who said that the Centre would make available its training and education facilities to the trainees of Member States.

COMING EVENTS

Following is tentative list of activities scheduled to be held in October:

14 1st meeting of the Heads of National TV/Radio organisations, India.

15-16 18th meeting of the SAVE Committee, India.

26-28 Seminar/workshop on Networking Arrangements among National Apex Institutions, Law Enforcement Agencies and NGOs with regard to Supply Control, Demand Reduction, De-addiction, Rehabilitation and Reintegration of Drug Addicts in the Society, Nepal.

27-29 Workshop to consider Comprehensive Land Use Planning by on line Management of Land Records for achieving food security, India.

27-30 SAARC Seminar on Axle Loading Limitation and Control, Pakistan

SAARC MEMBER STATES HOLD CONFERENCE ON Y2K

The Ministry of Science and Technology of Bangladesh hosted the SAARC Y2K Conference at Dhaka on 25-26 September. The Conference, sponsored under the SAARC Japan Special Fund, was attended by participants from Bangladesh, Bhutan, India, Maldives, Nepal and Sri Lanka and the SAARC Secretariat. During the 2-day Conference, in addition to the presentation of a number of Technical Papers on the subject, Member States exchanged information on the status of Y2K preparedness in their respective countries, evaluated sectoral dependencies, identified deficiencies and discussed problems faced in addressing the Y2K issue in their respective countries.

The Conference agreed on a 10-point draft Recommendation, which called on the Member States to, inter-alia, declare their Y2K readiness at the earliest. The Conference also encouraged greater cooperation, sharing and exchange of information among the experts in the region and called on the national Y2K Coordinators of the SAARC countries to keep in contact for sharing and exchange of information on the progress of Y2K readiness. It was also agreed that the SAARC Secretariat may work as the co-ordinating agency for collaboration and facilitating joint-efforts for the SAARC member countries in addressing the issue.

MEET ON SAARC CONSORTIUM OF OPEN AND DISTANCE LEARNING HELD SAARC is working on a programme for cooperation and collaboration to promote open and distance learning in the region with emphasis on reaching remote and disadvantaged sectors of the population and on alleviating poverty through the programme.