By Niveen Wahish Trade ministers and private entrepreneurs from the Group of 15 strongly criticised the economic policies of industrialised nations, complaining that they have a negative impact on the interests of developing nations. Malaysian Prime Minister Mahathir Mohamad described as "immoral" the market practices of the North. Mahathir, addressing the G-15 Business Workshop organised by the Egyptian Federation of Industries and the Egyptian Ministry of Trade on the fringe of the summit, said that free-trade policies and economic liberalisation should benefit all parties. However, he added that economic freedom has been misused. Alluding to the severe crisis that has hit financial markets in Southeast Asia, Mahathir said that in the search for maximum profit, the powerful are ready to make the poor even poorer and stressed that the "free market must be regulated and everyone must benefit." To this end, the group's trade ministers affirmed that during the upcoming World Trade Organisation (WTO) meeting, they will lobby for the effective application of Uruguay round agreements, giving special attention to the implementation of articles which grant preferential treatment to developing countries. Egyptian Trade Minister Ahmed El-Geweili announced that G-15 members had gathered not only to coordinate positions and determine their common interests and differences, but also to demand improved access to international markets for the products of developing countries. "We have to protect our interests and find solutions to trade barriers," Geweili said, referring to restrictive procedures introduced by some countries for protectionist purposes, such as anti-dumping procedures, high customs tariffs and sanitary specifications. "We want to make sure that the interests of developing countries are fully taken into account in the WTO framework and ensure that developing countries play a leading role in drafting international economic agreements," said Geweili. Echoing the same sentiment, Ahmed Ezz, a leading Egyptian industrialist, said that restrictive procedures make it difficult for developing nations to benefit from bilateral and multilateral agreements signed with the North. "There is an imbalance in the responsibilities and obligations of both parties," Ezz said. Citing the rules of origin as an example, he said they are complex and biased in favour of developed countries. "It is very difficult for developing countries to make full use of multilateral trade agreements with these very restrictive rules on origin," he said. Ezz added that other issues that should be brought up for discussion with industrialised nations include anti-dumping measures and specifications, which, he said, are used as restrictive, protectionist tools, making it very difficult for developing countries to penetrate the markets of the North. Sharing the same view, Rub Ricupero, secretary-general of the United Nations Commission on Trade and Development (UNCTAD), told the workshop that "anti-dumping is being used to a great extent nowadays as the protectionist tool of rich countries." He pointed out that most developing countries lack the financial resources and expertise to deal with dumping cases and warned that anti-dumping should be closely examined in future negotiations, in view of its serious consequences. "Anti-dumping investigations have an effect when they are announced, even before they are concluded," he said. Ricupero suggested that in order to avoid fallouts in multilateral and bilateral agreements, the G-15, as a group of developing countries, should know what it wants. He warned that the conflict of interests among G-15 members may be preventing a unified position from being achieved. He recommended that coalitions should be formed within the group to lobby for a specific, concrete objective. "With a concrete interest and a just cause, you can make a difference," he said. Another key factor which Ricupero viewed as essential for avoiding imbalances in future multilateral agreements is the inclusion of the private sector. "There should be close association between private sector and governments. This is the basis for a more balanced negotiation in the future," Ricupero said. "By better integrating the private sector in developing countries, we can make sure that imbalances in negotiations will not happen." Ricupero said UNCTAD was ready to train the private sector in developing countries in the art of negotiations to prepare it to play what he described as a vital role in WTO negotiations in the year 2000. The offer was seized upon by attending businessmen who requested Ricupero to prepare the training groundwork by the time the G-15 meets again, in Bali, India. While the private sector in developing countries was considered an essential component of international trade negotiations, it was also cited as the propeller for greater trade and investments between the group's members. According to Geweili, the basic role of governments is to sponsor the growth of the private sector and to facilitate its role in the development process. The role of governments, he added, is to map out the framework within which the private sectors of the group can interact. Geweili said that hope is pinned on the private sector to raise the trade volume between group members above the current rate of nine per cent. But it is not only trade that needs to be promoted. Figures reveal that G-15 members are recipients of limited foreign investment. Foreign direct investment (FDI) flowing into G-15 countries reached $48 billion in 1996 -- only 13.8 per cent of total FDI money during that year. To deal with this problem, delegates stressed that their governments have to make greater efforts to revitalise investment between group members, especially in light of the available opportunities and incentives granted to investors. With the same goal in mind, a pioneer agreement was signed by representatives of the Chambers of Commerce and Industry of each group member, allowing for the creation of a single G-15 chamber to be based in Cairo. The new chamber aims at establishing stronger ties between the other chambers and boosting efforts to increase the group's trade, investment and economic development.
