GATT MINISTERIAL -- CURRENT STATUS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83M00914R000600030035-9
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 4
• Document Creation Date: December 19, 2016
• Document Release Date: February 20, 2007
• Sequence Number: 35
• Publication Date: November 15, 1982
• Content Type: MEMO

Approved For Release 2007/02120 :'CIA-RDP83M00914R0006000300
EXECUTIVE tSECRET ARIAT
.Routing Shpffl
TO'
DDC.
EXDIR2
16C/FAD/OEA
77 Y.
19 C/IPD/OIS
21
Remarks:
SUSPENSE
ACTION
pproved For Release 2007/02/20' CIA-RDP83M00914R000600030035
DATE i INITIAL
 ed For Release 2007/02/20: CIA-RDP83M00914R0006000300
OFFICE OF THE SECRETARY OF THE TREASURY
WASHINGTON. DC. 20220
Novinber 15, 1982
UNCLASSIFIED
MEMORANDUM FOR THE VICE-PRESIDENT
THE SECRETARY OF STATE
THE SECRETARY OF DEFENSE
THE SECRETARY OF AGRICULTURE
THE SECRETARY OF COMMERCE
THE DIRECTOR, OFFICE OF MANAGEMENT
AND BUDGET
CHAIRMAN, COUNCIL OF ECONOMIC ADVISORS
ASSISTANT TO THE PRESIDENT FOR
NATIUNAL SECURITY AFFAIRS
ASSISTANT TO THE PRESIDENT FOR
POLICY DEVELOPMENT
UNITED STATES TRADE REPRESENTATIVE
DIRECTOR OF CENTRAL INTELLIGENCE
SUBJECT Senior Interdepartmental Group on International
Economic Policy (SIG-IEP)
Attached is a status report on the GATT Ministerial by
Ambassador Brock for discussion at the SIG-IEP meeting to be
held on-Tuesday, November lb,-.at 1:30 p.m., in the Roasevelt
Room (White House). There will also be consideration of
follow-up on the pipeline.
Attendance will be principal, plus one.
David E. Pickfo
Executive Secretary
Attachment
UNCLASSIFIED
Aoiroved For Release 2007/02/20: I - 4R000600030035-9
; ; 3f :
 Approved For Release 2007/02120: CIA-RDP83M00914R000600030035-9
'GATE' MINISTERIAL -- cURPjW STATUS
The UPc=Wmg GATT Ministerial has taken on increasing significance as a
result of current trade frictions, Not only are we faced with a global
economic recession, but this difficult situation has been exacerbated by
bilateral tensions such as those resulting from the pipeline sanctions,
European Community agricultural subsidies, and an increasing number of
safeguard actions being taken Outside of GATT This situation has required
the United states to reaffirm its commitment to ensure that the upcoming
Ministerial provides an opportunity to confront the problems facing the
trading system.
In the enrrent situation, an unsuccessful Ministerial could open the door to
increased protectionism, bilateralism,and a general deterioration of the
multilateral trading system.- If the Ministerial doge not produce concrete
results :to istpreve the trading eystem, it will threaten the maintenance of
GATT as the cornerstone of U.S. trade policy,
Between Julys. And the . end, of October, the Preparatory Committee for the
Ministerial met continuously In Geneva. The preparations are now being
handled by the GATT Council. We.are now in a crucial stage of negotiations
on the decisions to be considered by the trade ministers. Unfortunately,
many countries are allowing short-term bilateral problems to overshadow the
longer-term considerations vital to the multilateral trade system.
As you know, it appears that the final Ministerial document will contain
three components, a political statement, decisions to improve the current
operation of the trading system, and the establishment of a future work program.
The political statement will'be a eon assessment of the problems facing the
international trading system and a commitment to avoid restrictive actions and
to further trade liberalization. The United States has met with mixed success
in seeking agreement on the breadth and strength of the political statement to
be made. To date, the Japanesn and the Swiss have been supportive and caamsit-
ted to the U.S. position. Australia has had overly ambitious expectations for
the Ministerial and hats to date been unwilling to compromise. The European
Community has insisted on characterizing the Ministerial as primarily a stock-
taking exercise, an approach v feel is defeatist and an abrogation of
Ministerial responsibility. Brazil and India are unwilling to discuss any
liberalization in the face of the current economic conditions, and as leaders
of the less developed countries, are blocking progress,
The second component to the Ministerial, improvements in the current operation
of the trading system, encompasses safeguards, dispute settlement, and agriculture.
We have now heightened our focus on these as immediate concerns to the trading
system, The primary problem in the negotiation of a Safeguards Code is the
issue of selectivity. The EC and the LI)Cs have not been forthcoming on the
issue of consensual selectivity. We believe that the LUCs could be persuaded
to join the U.S. position if the EC did so. The primary issue in the agri-
cultural sector is subsidies. The EC has found it difficult to support any
 Approved For Release 2007/02/20: CIA-RDP83M00914R000600030035-9
rollback of agricultural subsidies because these subsidies fora the backbone
of the Cassaon Agricultural? Policy (CAP) price Support program. The prima
problems in the area of dispute settlement are the mechanics of the iY
work, and the lack of c
palitical will among parties to disputes to accept
ept
panel reports and recommendations,
In order to ensure the continuation of the GATT system, the U.S. feels it is
essential that the Ministerial address developing country concern. To date,
the U.S. proposal for North/South negotiations has not received the degree of
support hoped for, although we are continuing our efforts to persuade other
countries, Finally, in order to remain-r*levant, the GATT must branch out
into new areas. The increasing significance of world trade in services makes
it imperative that CATT rules be developed for this sector of international
trade. A future work program in the GATT should also address trade in high
technology products and trade-related performance requirements as issues of
growing importance.
If we can resolve our conflicts on the agenda with the European Community,
Brazil, and India, I believe we can mova'ahead. T have impressed upon these
countries the need for us to address the contentious issues flexibly, and with
a view to resolving differences. i will be devoting much of-my time to working
with these countries in a renewed covanitment to putting aside current trade
problems and. ensuring that we take full advantage of this opportunity to retain
and improve the GATT.
U 10