Leutwiler Report
Leutwiler Report: in late 1983, about one year after the inconclusive 1982 GATT Ministerial Meeting which was seen by many as the low point in the GATT history, the Director-General of the GATT assembled a group of seven eminent people from business, government and academia, led by Dr Fritz Leutwiler, then chairman of the Swiss National Bank. The Group's task was to look at the state of the international trading system, the fundamental reasons for the difficulties it faced and to make proposals for action. The resulting report, Trade Policies for a Better Future, appeared in March 1985. Its fifteen recommendations influenced considerably the impetus for a new round of trade negotiations and the mandate for it. Most of them can be seen reflected in the Uruguay Round outcome, though not necessarily with the same degree of ambition. In summary, the recommendations were that (i) the making of trade policy should be brought into the open in each country, (ii) agricultural trade should be based on clearer and fairer rules, (iii) a timetable should be established to bring grey-area measures within GATT rules, (iv) trade in textiles and clothing should be fully subject to GATT rules, (v) rules on subsidies should be made more effective, (vi) the GATT codes on non-tariff distortions should be improved, (vii) the rules permitting free-trade areas and customs unions needed to be clarified and tightened up, (viii) there should be more international surveillance of trade policies and actions, (ix) emergency safeguard protection should be provided only in accordance with the rules, (x) greater emphasis should be placed on encouraging developing countries to take advantage of their competitive strength and to integrate them more fully into the trading system, (xi) the possibility of multilateral rules for trade in services should be explored, (xii) dispute settlement procedures and implementation of panel recommendations should be improved, (xiii) a new round of GATT negotiations should be launched, (xiv) a permanent Ministerial-level body should be established to encourage prompt negotiations on problems, and (xv) efforts towards satisfactory resolution of the world debt problem, adequate flows of development finance, better international coordination of macroeconomic policies and greater consistency between trade and financial policies. Of the two recommendations (vii and xv) that received insufficient attention during the Uruguay Round, the former is now under consideration in the WTO, and the latter would have been incapable of resolution solely within the mandate of the GATT. A permanent ministerial body remains to be established, but agreement on a WTO Ministerial Conference at least biennially goes part of the way.
Source: http://ctrc.sice.oas.org/trc/WTO/Documents/Dictionary%20of%20trade%20%20policy%20terms.pdf
Web site to visit: http://ctrc.sice.oas.org
Author of the text: W. Goode
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