A BRIEF HISTORY OF UNCTAD.

Foundation
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In the early 1960s, growing concerns about the place of developing countries in international trade led many of these countries to call for the convening of a fullfledged conference specifically devoted to tackling these problems and identifying appropriate international actions. The first United Nations Conference on Trade and Development (UNCTAD) was held in Geneva in 1964. Given the magnitude of the problems at stake and the need to address them, the conference was institutionalized to meet every four years, with intergovernmental bodies meeting between sessions and a permanent secretariat providing the necessary substantive and logistical support. Simultaneously, the developing countries established the Group of 77 to voice their concerns. (Today, the G77 has 131 members.) The prominent Argentinian economist Raul Prebisch, who had headed the United Nations Economic Commission for Latin America and the Caribbean, became the organization&apo;s first Secretary-General.

Phase 1: The 1960s and 1970s

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In its early decades of operation, UNCTAD gained authoritative standing:

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as an intergovernmental forum for North-South dialogue and negotiations on issues of interest to developing countries, including debates on the New International Economic Order. for its analytical research and policy advice on development issues.

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Agreements launched by UNCTAD during this time include:

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the Generalized System of Preferences (1968), whereby developed economies grant improved market access to exports from developing countries. a number of International Commodities Agreements, which aimed at stabilizing the prices of export products crucial for developing countries. the Convention on a Code of Conduct for Liner Conferences , which strengthened the ability of developing countries to maintain national merchant fleets. the adoption of a Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices. This work later evolved into what is today known as Trade and Competition Policies.

Furthermore, UNCTAD was a key contributor to:

the definition of the target of 0.7% of gross domestic product (GDP) to be given as official development aid by developed countries to the poorest countries, as adopted by the United Nations General Assembly in 1970. the identification of the Group of Least Developed Countries (LDCs) as early as 1971, which drew attention to the particular needs of these poorest countries. UNCTAD became the focal point within the UN system for tackling LDC-related economic development issues.

Phase 2: The 1980s

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In the 1980s, UNCTAD was faced with a changing economic and political environment:
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There was a significant transformation in economic thinking. Development strategies became more market-oriented, focusing on trade liberalization and privatization of state enterprises. A number of developing countries were plunged into severe debt crises. Despite structural adjustment programs by the World Bank and the International Monetary Fund, most developing countries affected were not able to recover quickly. In many cases, they experienced negative growth and high rates of inflation. For this reason, the 1980s become known as the lost decade, particularly in Latin America. Economic interdependence in the world increased greatly.

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In the light of these developments, UNCTAD multiplied efforts aimed at:

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strengthening the analytical content of its intergovernmental debate, particularly regarding macroeconomic management and international financial and monetary issues. broadening the scope of its activities to assist developing countries intheir efforts to integrate into the world trading system. In this context,


the technical assistance provided by UNCTAD to developing countries was particularly important in the Uruguay Round of trade negotiations, which had begun under the General Agreement on Tariffs and Trade (GATT) in 1986. UNCTAD played a key role in supporting the negotiations for the General Agreement on Trade in Services (GATS). UNCTADs work on trade efficiency (customs facilitation, multimodal transport) made an important contribution to enabling developing economies to reap greater gains from trade. UNCTAD assisted developing countries in the rescheduling of official debt in the Paris Club negotiations.

promoting South-South cooperation. In 1989, the Agreement on theGlobal System of Trade Preferences among Developing Countries (GSTP) came into force. It provided for the granting of tariff as well as non-tariff preferences among its members. To date, the Agreement has been ratified by 44 countries. addressing the concerns of the poorest nations by organizing the first UN Conference on Least Developed Countries in 1981. Since then, two other international conferences have been held at 10-year intervals.

Phase 3: From the 1990s until today

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Key developments in the international context:

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The conclusion of the Uruguay Round of trade negotiations under the GATT resulted in the establishment of the World Trade Organization in 1995, which led to a strengthening of the legal framework governing international trade. A spectacular increase in international financial flows led to increasing financial instability and volatility. Against this background, UNCTADs analysis gave early warning concerning the risks and the destructive impact of financial crises on development. Consequently, UNCTAD emphasized the need for a more development-oriented international financial architecture. Foreign direct investment flows became a major component of globalization. UNCTAD highlighted the need for a differentiated approach to the problems of developing countries. Its tenth conference, held in Bangkok in February 2000, adopted a political declaration The Spirit of Bangkok as a strategy to address the development agenda in a globalizing world.

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In recent years, UNCTAD has

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further focused its analytical research on the linkages between trade, investment, technology and enterprise development. put forward a positive agenda for developing countries in international trade negotiations, designed to assist developing countries in better understanding the complexity of the multilateral trade negotiations and in formulating their positions. Expanded work on international investment issues, following the merger into UNCTAD of the New Yorkbased United Nations Centre on Transnational Corporations in 1993. expanded and diversified its technical assistance, which today covers a wide range of areas, including training trade negotiators and addressing traderelated issues; debt management, investment policy reviews and the promotion

of entrepreneurship; commodities; competition law and policy; and trade and environment. Towards UNCTAD XI
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UNCTAD has continued to play a crucial role in emphasizing the development dimension of issues in the fields of international trade and investment and related areas. In particular, UNCTAD has been addressing the imbalances of globalization and the need to overcome the supply constraints of developing countries, so as to ensure development gains and poverty reduction. This is captured in the theme of the UNCTAD XI Ministerial Conference, Enhancing coherence between national development strategies and global economic processes towards economic growth and development, particularly of developing countries.

Established in 1964, UNCTAD promotes the development-friendly integration of developing countries into the world economy. UNCTAD has progressively evolved into an authoritative knowledge-based institution whose work aims to help shape current policy debates and thinking on development, with a particular focus on ensuring that domestic policies and international action are mutually supportive in bringing about sustainable development. The organization works to fulfil this mandate by carrying out three key functions:
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It functions as a forum for intergovernmental deliberations, supported by discussions with experts and exchanges of experience, aimed at consensus building. It undertakes research, policy analysis and data collection for the debates of government representatives and experts.
y It provides technical assistance tailored to the specific requirements of developing countries, with special attention to the needs of the least developed countries and of economies in transition. When appropriate, UNCTAD cooperates with other organizations and donor countries in the delivery of technical assistance.

The Secretary-General of UNCTAD is Dr. Supachai Panitchpakdi(Thailand), who took office on 1 September 2005. In performing its functions, the secretariat works together with member Governments and interacts with organizations of the United Nations system and regional commissions, as well as with governmental institutions, non-governmental organizations, the private sector, including trade and industry associations, research institutes and universities worldwide.

World Trade Organization

The Agreement Establishing the World Trade Organization was signed on 15th March 1994 in Marrakesh after many years of effort. WTO is the successor of the General Agreement on Tariffs and Trade (GATT). It is based on the results of the Uruguay round of multilateral trade negotiations (19 agreements, 24 decisions, 8 conventions and 3 declarations). The Czech Republic became one of the original members of the WTO, today the WTO includes 149 member states and approx. 30 countries are in the process of accession ( the more important players that have not joined so far are for example the Russian Federation and Ukraine). WTO is an intergovernmental organization; not only individual states, but also customs unions can become members.

Main objectives and functions of the WTO

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To increase overall living standards, achieve full employment and a steadily growing rate of real income through higher effective demand, production and trade in goods and services, which allows an optimal use of world's resources in accordance with sustainable development. The WTO seeks to achieve these goals by means of negotiating binding rules of international trade, liberalization (removing barriers to trade) and ensuring transparency and stability of trade among its members. The organization provides a forum for trade negotiations and settles disputes arising from conflicting interests of member states.

Basic Principles of Negotiations in the WTO

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The organization's decisions are made by consensus, i.e. universal agreement of all members. The WTO follows a set of principles in making rules and liberalizing trade. These include: the mostfavourednation clause (all WTO members have to be treated in the same way); national treatment (no difference in accession to markets between domestic and foreign producers); predictability, stability and transparency (business partners have to be able to rely on the binding character and longterm constancy of trade rules). The so called development aspect is also very important. It means supporting development and economic reforms in developing and the least developed countries (it is used asymmetrically to favour the developing countries).

WTO Agreements and Member Obligations

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Multilateral agreements (about 60 agreements) are legal text obligatory for all WTO members. They cover areas of trade in nonagricultural goods (GATT 1994), agricultural products (Agreement on Agriculture), services (General Agreement of Trade in Services, GATS), intellectual property rights (Agreement on Trade Related Aspects of Intellectual Property Rights, TRIPS). Another type of agreements includes texts dealing with protective measures, setting out trade rules, trade policy reviews, dispute settlement and many other areas. Multilateral agreements are completed by Charters of concession that contain binding conditions for access to the market of each WTO member. In the field of goods they include customs duties and the permitted levels of export subsidies, in the field of services there are possibilities of foreign suppliers to provide services. Two plurilateral agreements have also been negotiated in the WTO on trade in civil aircraft and on government procurement, which have been signed optionally by only some of the member states. The Czech Republic acceded to these agreements only after joining the European Union.

Structure of the WTO

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The top decisionmaking body is the Ministerial Conference, which meets at least once every two years. Between the conferences the WTO is administrated by the General Council that consists of representatives of individual member states. It has essentially the same powers as the Ministerial Conference. Various spheres of trade are covered by bodies such as the Goods Council, the Services Council, the Intellectual Property Council. Executive bodies are individual committees and working parties, which are in charge of specialized parts of trade (for example committees for agriculture, market access, sanitary and phytosanitary measures, technical barriers to trade, subsidies and countervailing measures, antidumping, customs evaluation, rules of the origin of goods, licences, investment and protective measures, committee for trade and development, etc). The Secretariat provides administrative and technical support for the above mentioned bodies. It is headed by a directorgeneral, who is elected by membersfor a fouryear term. Currently this position is held by the French representative Pascal Lamy (former EU Commissioner for Trade). The WTO is based in Geneva, Switzerland.

Position of the Czech Republic in the WTO Czechoslovakia was a founding member of GATT and never left the organization, although it did not participate actively in its work since 1989. After the split of Czechoslovakia to the Czech and Slovak Republics, both states joined GATT. The Czech Republic is a founding member of the WTO. Agreements and conventions of the WTO are the basic framework in which we carry out our trade policy, even after the accession to the EU.

The position of the Czech Republic in the WTO has changed after 1st May 2004. It continues to be a member, but in accordance with the principles of the EU common trade policy it ceased to act on its own. EU is a customs union from the WTO's point of view, and it is represented in the WTO by the representatives of the European Commission. A common approach of the EU to the WTO negotiations are formulated in Brussels, eventually on coordination meetings in Geneva. The European Commissions' mandate for negotiation is approved by the General Affairs and External Relations Council (GAERC). Specific issues are handled by the Committee for the Implementation of the Article 133, COREPER and GAERC.

Definition Agreement between two or more (usually neighboring)countries to remove trade barriers, and reduce or eliminate customs duty on mutual trade. A customs union (unlike afree trade area) generally imposes a common external-tariff (CTF) on imports from non-member countries and (unlike a common market) generally does not allow free movement ofcapital and labor among member countries.