Introduction

In the past, and for a variety of reasons, participation by developing countries in the General Agreement on Tariffs and Trade (GATT) has been minimal. However, as a result of changes in the international trading environment and the slowdown in world output and trade growth, the developing countries have generally taken a greater and more active interest in the Uruguay Round that was launched in September 1986. But the developing countries have not reached an overall consensus on the level of involvement and the positions they will take on the issues being discussed in the GATT negotiations. This is not surprising given the wide range of topics on the Uruguay agenda and the diversity within the developing countries.

Nonetheless, it is imperative that the developing countries continue their participation in the negotiations. If the developing countries hesitate to take part in the latest GATT round, or if they enter only with a defensive stance with respect to their old rights, little will be gained. There is an even greater danger in that the industrialized countries may agree amongst themselves and leave the developing countries out in the cold.

The trend towards regionalism, especially by the United States and the European countries, is particularly alarming and will likely have a significant impact on the Uruguay Round and the position of the developing countries in the global market. The impending consolidation of the European countries in 1992 and the recent increase in U.S. bilateral arrangements, in particular the U.S.-Canada Free Trade Area pact, raises questions as to the commitment of these countries to the multilateral framework and the chances of success in strengthening the GATT system. Moreover, the trend towards regional blocs implies a closing of markets for developing country exports.

Developing Countries' Passive Participation in Past GATT Rounds

Although GATT is a post-World War II organization that is related to the United Nations, many developing countries that became independent after the war did not become GATT members until much later. For example, while Indonesia became a member of GATT early in its independence in 1949, the Philippines did not join until the end of the Tokyo Round in 1979. Thailand's membership was even later in 1982. Big oil countries such as Saudi Arabia and Venezuela are not members at all. Mexico has only just acceded to the GATT, and China will participate in the latest round as an observer.