SUNS #4616 Tuesday 29 February 2000

south-north development monitor SUNS [Email Edition]

contents

Trade: Services talks linked to agriculture, implementation (Chakravarthi Raghavan, Geneva)

Finance: Banks continue retreat from emerging markets (Chakravarthi Raghavan, Geneva)

Trade: WTO sustainability assessment by EU draws cautious response (IPS, Brussels)

Trade: Who's liable for damages from GM crops? (IPS, Washington)

Agriculture: Consumers voice opposition to GM foods (Someshwar Singh, Geneva)

Environment: The case for DDT (IPS, Mexico City)

Development: Traditional knowledge under the spotlight (IPS, Rome)

TRADE: SERVICES TALKS LINKED TO AGRICULTURE, IMPLEMENTATION

Geneva, 27 Feb (Chakravarthi Raghavan) þ A new round of negotiations for liberalisation of trade in services was kicked off Friday at a special session of the WTO Council on Trade in Services (CTS), but it became clear that progress in these talks is linked to progress in agriculture, mandated reviews and implementation concerns of developing countries.

The CTS is chaired by Amb. Sergio Marchi of Canada.

Though Marchi and the secretariat tried to set the services talks on its own track, with meetings at 4-5 week intervals and for some work to be done in regular sessions of the CTS, and others at negotiating sessions, this approach did not fly, participants later said.

The Mercosur countries made it clear that they expected parity and parallelism in all aspects (procedural and substantive) of the services negotiations and that on agriculture.

FINANCE: BANKS CONTINUE RETREAT FROM EMERGING MARKETS

Geneva, 28 Feb (Chakravarthi Raghavan) -- International bank claims on emerging markets fell sharply by $31 billion in the third quarter of 1999, even as bank lending activities expanded sharply in industrial countries to $238 billion, the Bank of International Settlements (BIS) has reported in its February 2000 quarterly review.

Emerging economies of Asia in 1999 saw a shift from current account deficits to large surpluses in 1999, obviating a need for fresh bank credit. The region has also witnessed large equity inflows in addition.

[Other data show that such equity inflows have been largely for mergers and acquisitions, particularly in the wake of bankcruptices and distress sales of enterprises hit by the financial crisis]