Statement by Ms.P. Narangua,
Deputy Permanent Representative of Mongolia to the
United Nations on agenda item 97 (c)
Trade and Development
New York, 12 November 1999


Mr. Chairman,

        My delegation fully associates itself with the statement made on this issue by the Representative of Guyana on behalf of the Group of 77 and China.

        International trade has increasingly become the main engine of economic growth. However, recent crisis in developing countries has contributed to the slowdown of world trade, which marked in value terms its strongest decline since 1982, and in the widespread fall in commodity prices. The downward trend in the prices of some primary commodities severely hurt such countries as Mongolia, the income of which depends to a large extent on few export items.

        The Secretary Generals' report on the work of the Organization pointed out that ''Countries enter the global trading system from very different starting points, and globalization and liberalization affect them unevenly.. Problems of access to markets, capital and technology remain pervasive, and many developing countries find it extremely difficult to make the institutional transformations necessary for a beneficial integration into the world economy.''

        My delegation agrees with the concerns of developing countries, mentioned in the Secretary Generals' report on International trade and development that the Uruguay Round and its implementation did too little to improve market access for developing country exports and that weaker human and institutional capacities as well as lack of financing have not permitted many developing countries to use the WTO system to pursue their trade interests.  The business community in many developing countries still does not have a clear idea as to how the multilateral trading system can serve its interests.

        Although technical, health ant safety standards and regulations are important tools to which countries may resort, there is a risk for developing country exports to become more often subject to excessive sanitary and phyto-sanitary standards. The use by developing countries international standards set by developed do not always meet the requirements in the importing markets thus reducing export opportunities for many of them.

Mr. Chairman,
        Since UNCTAD IX, many developing countries have underwent through difficult and turbulent times, caused by financial turmoil, increasing thus the risk of further marginalization. Unfortunately, the LLDC's were not an exception. They have not been able to take advantage of the opportunities offered by the emerging liberalized and globalized world economy.
        Though Ambassador of Lao People's Democratic Republic, Chairman of the Group of LLDC's made a statement on behalf of the group, nevertheless I would like to add the following. UNCTAD is playing a lead role in focusing the attention of the international community on the problems of LLDC's. As pointed out in the Secretary Generals' report, this group of countries spend 17,7 per cent of their export earnings on transport services, compared with an average of 8,7 per cent for all developing countries. Bearing in mind the role that UNCTAD is able to play, my delegation would like UNCTAD to maintain and even reinforce furthermore its activities in this field. The problems of LLDC's should be clearly addressed and reflected in the preparatory process as well as in the decisions to be adopted at UNCTAD-X.

        In our view, cooperation of LLDC's with their transit neighbors as well as donor countries and international organizations should be at inter-regional, regional, sub-regional and national levels and cover the relevant areas of infrastructure, human resources development, financing, marketing, information gathering and dissemination. Special attention should be given to implementing the measures outlined in the Global Framework for Transit Transport Cooperation between Landlocked and Transit Developing countries and the Donor Community. Time has come for all the parties concerned to address the difficulties hindering the implementation of the Framework and other recommendations made at the tripartite meetings.

        In this regard, my delegation suggests to have regular meetings to review the implementation of the measures, to exchange views on practical aspects in the field of trade and export promotion and to explore ways and means of strengthening the triangular cooperation in this critical area. Likewise, my delegation fully supports the proposal to convene a Ministerial Meeting on transit transport issues to give the needed emphasis on the problems of landlocked and transit developing countries. In order to expect meaningful results from such a meeting, all parties concerned should undertake adequate preparatory work.
        In the end all the parties, including the transit neighbors and donor countries would gain from increased flow of trade. In this respect, Mongolia is looking forward to the sub-regional transit transport negotiations to be held next spring between Mongolia and its immediate neighbors.

Mr. Chairman,
        In order to establish the appropriate basis for new multilateral negotiations, we have to first look at the present international trading system and identify the shortcomings of the Uruguay Round Agreements and their implementation. Attention needs to be focused more on market access. Tariff levels are still high in many areas of export interest to developing countries. One of the priorities should be aimed at providing developing countries, especially the most vulnerable ones, with a justified degree of flexibility, including the use of special and differential treatments. Assistance for developing countries in their preparations for the next round of multilateral trade negotiations should also be encouraged.

        There is also a need to preserve the right of developing countries with specific needs and difficulties to take certain measures in solving their problems.
        My delegation supports the countries wishing to accede to the WTO agreements and hopes that all pending processes for accession could be completed expeditiously.

        Finally, Mr. Chairman, my delegation would like to emphasize once again the important role of trade, as an effective instrument in the management of globalization, which could, if properly used, minimize negative aspects of globalization and maximize its benefits to be shared equitably by all countries of the world.

Thank you.