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July 2016 SOUTH AGAINST RESTRICTING OR DOWNGRADING UNCTAD'S MANDATE They stressed the importance of UNCTAD as a focal point in the UN system for trade and development and related issues as well as a platform for addressing developing countries’ concerns. By Kanaga Raja The broad mandate of the United Nations Conference on Trade and Development (UNCTAD) covering trade, development and all inter-related issues must not be restricted or downgraded but instead be revitalised at the upcoming UNCTAD-14 conference, developing countries have urged. The views of the developing countries came during the thirtieth special session of the Trade and Development Board (TDB) on 13 June, just ahead of the UNCTAD-14 meet in Nairobi, Kenya to be held from 17-22 July. The developing countries also voiced concern over the slow pace of negotiations on the draft outcome document for UNCTAD-14, arguing that much more remains to be done, especially on issues of importance to the developing countries. Jamaica, on behalf of the G77 and China, said that the group takes note of the progress made in certain areas as reflected in the text as has been presented for translation and transmission. "We regard this text as a living document on which focused work must now intensify. We recognise that with only 26 working days left before the start of UNCTAD-14, we have a difficult path ahead of us in the negotiations, if we are to ensure that we have a document that is worthy of consideration by our ministers." Speaking on the process, Jamaica said that the G77 and China stands ready to engage fully in an intensified process of negotiations. "In this regard, we suggest that the accelerated programme of work under your direction (President of the TDB), be so organised as to enable focussed and sustained attention to each sub-theme in turn." The G77 and China said that it will seek to deepen engagement with other group coordinators at the level of ambassadors complemented by experts as appropriate to seek to bridge gaps on a number of issues. "We do so in the hope that this will facilitate progress in the ongoing negotiating and drafting track," it said. The African Group noted that progress has been made towards agreement on the draft outcome document. It was however concerned that much more remains to be done especially on issues that are of significant importance to the mandate and work of UNCTAD and those of relevance to the developing countries. It was particularly concerned by some of the expressed views that are not in the best interests of UNCTAD as an organisation and for developing countries in general. While the developing countries have been constructive in the negotiations, the reactions from the other side of the table have been discouraging as they are either aimed at re-negotiating agreed principles or to draw red lines around issues that are of particular importance to the developing countries, said the African Group. "As the issues are known by all of us, however, we will not be amenable to downgrading agreed issues or re-negotiate agreed principles, nor will we be willing to limit or downgrade the mandate and work of UNCTAD in the outcome of the fourteenth ministerial meeting." The African Group also expressed concern over the attempts to shift the obligations of the international community to national governments alone or to other multilateral agencies. The unresolved issues only need political will from all of us, said the African Group, expressing hope that "we will continue to resolve most if not all of them before we go to Nairobi." Chile, on behalf of the Latin American and Caribbean group of countries (GRULAC), aligning itself with the G77 and China statement, said that during the process in recent months, the group has actively participated in the negotiations on UNCTAD's mandate for the forthcoming four years. It believes in the importance of UNCTAD as the focal point within the UN system for trade and development, and related subjects in the areas of finance, technology, investment, and sustainable development. "Because of this, we call for an intensification of the negotiating process," it said, adding that for the group, a mandate for UNCTAD which is revitalised is essential because it is only in this way that it will be beneficial and useful for all members, in particular for developing countries. It also believed that UNCTAD must have an active role in contributing to the achievement and success of the 2030 Agenda for Sustainable Development and its mandate must go beyond the simple mandates and declarations that we had previously. GRULAC underlined that it should contain substantial elements including the difficulties and necessities which face countries in special situations such as the Least Developed Countries (LDCs), the Land-Locked Developing Countries (LLDCs), Small Island Developing States (SIDS), and the Small and Vulnerable Economies (SVEs). Particular attention should also be paid to the specific challenges of middle-income countries. Pakistan, on behalf of the Asia-Pacific Group, aligning itself with the statement of the G77 and China, said that UNCTAD is the focal point in the UN system for trade, development and inter-related issues of finance, technology and investment. Its platform and services remain critical for developing countries, said Pakistan, adding that UNCTAD-14 "offers us an opportunity to reiterate and strengthen the mandate of UNCTAD." The landmark outcome document agreed last year by the international community has lent a sense of urgency to revitalise UNCTAD in all its three pillars to better serve the global development agenda. Pakistan noted that the draft outcome document of UNCTAD-14 has been under negotiation for the past several months now. Members of the Asia-Pacific Group, as part of the G77 and China, are actively participating in these deliberations. The Asia-Pacific Group was concerned over the slow pace of the negotiations. It believed that every effort should now be made to clear the text and secure agreement on all outstanding issues. "We specially note with concern that numerous elements important to developing countries unfortunately are being ignored by other groups." According to Pakistan, the success of the conference hinges on its ability to deliver on issues of concern to developing countries. "Simply discarding issues of concern to developing countries would not be acceptable." The notion of comparative advantage should not be allowed to limit the role of UNCTAD to a few areas and restrict its broad mandate covering trade, development and all inter-related issues. Pakistan emphasised that this mandate has been reaffirmed in recent UN outcomes including the Addis Ababa Action Agenda, which also called for the strengthening of the organisation. UNCTAD, both as an organisation and intergovernmental machinery, should be enabled to treat all inter-related trade, investment and development issues in a comprehensive manner. "We believe that emphasis should be given to the most important pillar of UNCTAD's work, which is consensus-building. Regrettably, efforts are being made to downgrade [the] consensus-building pillar of UNCTAD." This would be a great disservice, not only to developing countries but to developed countries as well, Pakistan stressed. It noted that the global economy remains fragile. Persistently high levels of unemployment, stagnant economic growth and unprecedented income inequalities are leading to an unravelling of consensus within and amongst countries on international economic and trade regimes. In such a situation, said Pakistan, it is incomprehensible as to why this organisation's mandate to discuss trade and economic matters in an integrated manner is sought to be eroded. Developing countries attach great importance to issues such as technology transfer, debt management, tax evasion and tax avoidance, as well as implementation of the SDGs. Being the focal point for trade, development and inter-related issues, it is only natural for UNCTAD to treat these matters in all its three pillars. Pakistan expressed concern that settled principles of trade and development are being questioned. "Developing countries attach great importance to principles such as the right to development, special and differential treatment and policy space. These principles must clearly be reflected in the final document," Pakistan underlined. Issues relating to the state of Palestine, unilateral coercive measures as well as challenges confronted by countries in special conditions including hosting of a large number of refugees in protracted situations are important to members of the group. These must be treated appropriately in the text, said Pakistan. Bangladesh, on behalf of the LDCs, aligned with the statement of the G77 and China. It said that for the LDCs, it is important that the outcome document emphasises the need for policy space and special and differential treatment in any multilateral agreement given the different levels of development. This has been recognised for a long time, both in UNCTAD and other UN fora, as well as the World Trade Organisation (WTO). It was of the strong view that UNCTAD should continue to work within its mandate, and any text that limits its mandate cannot be accepted. It also underlined the importance of the cotton sector for economic growth in many of the LDCs. It wants to see specific reference to cotton and action by UNCTAD in this regard. Bangladesh also strongly felt that the consensus-building pillar needs to be reactivated in order to revitalise UNCTAD. The intergovernmental machinery needs to focus on specific global challenges where global action is required. For instance, tax evasion and avoidance is a global challenge and global action is required to address this issue. UNCTAD would be the appropriate forum to initiate discussion on this very important global issue, with a view to achieving consensus building regulation, it said. Bangladesh also called for faithful implementation of Article 66.2 of the TRIPS Agreement. Paraguay, on behalf of the Land Locked Developing Countries (LLDCs), concurred that the negotiating process needs to be speeded up. The 2030 Sustainable Development Agenda recognises trade as an engine for inclusive growth and poverty reduction. The LLDCs, however, continue to be marginalised in terms of trade flows and investment, and this is because of the distance from ports, and transit and transport systems that are not well developed leading to high costs for trade and investment. Paraguay supports negotiations leading to a broad holistic document that makes UNCTAD a forum to contribute to designing policies. It called for the paragraphs on the LLDCs in terms of, amongst others, transport, transit, infrastructure, productive capacities, technology, particularly ICT, be developed and that resources be maintained. Barbados, on behalf of the Small Island Developing States (SIDS), associating itself with the G77 and China statement, noted that a number of paragraphs that remain outstanding are of critical importance to the SIDS. "In fact, there is still much work left to do," it said. It said that there is need to urgently intensify the collective efforts during the interim period between now and Nairobi. This intensification of work must be coupled with the requisite exercise of good faith in negotiations and political will to work towards an UNCTAD which will be empowered to deliver on its mandate as the focal point in the UN system on trade and development and the inter-related issues of finance, technology, investment and sustainable development. According to Barbados, it is vital that the outcome document reflect the principles which are sacrosanct to the sustainable development discourse on which we have reiterated within the respective context in the international outcomes which we have all agreed, which have made the year 2015 a truly historic year for the global development agenda. "Amidst the divergences between members, we think that there are some basic parameters on which we all can agree. Chief among these is that our role is to draft for our ministers a document which is not only worthy of ministerial decree but one which will define UNCTAD's mandate for the next quadrennium and which is aimed at meaningfully addressing the needs of this organisation's main beneficiaries, developing countries," it said. Egypt, on behalf of the Arab Group, associating itself with the G77 and China statement, said that the Nairobi outcome document is an essential point to translate the international vision agreed upon in various documents issued last year, beginning with the Sendai framework on risk reduction to the 2030 Agenda into clear implementation mechanisms. The Arab Group believes that the Nairobi document must be a step forward in the field of implementation and not only a repetition of what has been previously agreed upon in other frameworks. The Nairobi document must reflect the central role of UNCTAD not only as an organisation specialised in trade and development and related issues such as finance and investment in the UN system but also the cumulative experience of UNCTAD in dealing with various issues related to its mandate. The Arab Group said that it is also essential for the document to include a real evaluation of challenges and opportunities of the international economy especially developing countries. In this context, issues such as tax evasion, debt management, criteria to measure finance flows including ODA, are basic elements of the document, considering its direct link to efforts to achieve development especially in developing countries. The Arab Group further said it is essential to enhance UNCTAD's role in providing support to the Palestinian people as one of the most vulnerable categories and one most in need of international support in order to achieve sustainable development. China expressed support for the G77 and China and Asia-Pacific group statements. Due to its limited resources, the work of UNCTAD should focus on priorities such as major global issues related to trade and development so as to maximise the utility of its limited resources, it said. It said development requires a favourable international environment of which policy space is an indispensable and key part. Policy space has become an internationally accepted concept which has been stated in the Addis Ababa Action Agenda and in the SDG outcome document. Nicaragua aligned itself with the G77 and China and GRULAC statements, while the African Union Commission aligned itself with the African Group statement. The European Union noted that during the last few weeks there had been intense, almost daily meetings, and some good progress has been made. However, at the same time, the EU said it recognised that there is still a lot of ground to cover in too short a time-frame. In previous meetings, the EU and its member states gave extensive statements on what and how in their view the way forward should look like. The EU asked for the meeting to refer to those statements. The negotiations continue to be conducted in an excellent spirit and with excellent compromise and commitment - it has been constructive - "but we are still very far behind. We will need to speed up the process. We will need to show flexibility, and we shall have to have greater direct engagement among delegations." He urged all member states to continue to work constructively and to accelerate the process so that "we can get to Nairobi with a clean text." – Third World Network Features. -ends- About the author: Kanaga Raja is the editor of the South-North Development Monitor (SUNS) is Geneva, Switzerland.
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