New York, 3rd October 2002

Mr. Chairman,

During the General Debate of this Committee, we stated that we are before an historic juncture, in a year made special by the fact that it has been one of commitments to ensure a new era. A special year because two consensus like Monterrey and Johannesburg, each one with its virtues and shortcomings, make us hopeful for the transformation of the international economic order to make it more equitable. With optimism we can state that there are possibilities for intensifying international cooperation, transforming international economic relations, if we act upon the adopted commitments and if there is no resistance in this General Assembly to the natural evolution of the consensus and the construction of the conditions for fair economic relations.

Commodities, external debt, and the international financial system are issues that concern the Group of 77 and China. The economic difficulties faced by developing countries highlight the importance of searching for new and imaginative formulas to channel resources and technologies towards the development of developing countries and to address the debt problems of developing countries. The present world economic situation is unfavorable for all. In spite of the efforts that developing countries are making, the difficulties are enormous for the weakest, for the least developed countries and for the middle-income countries that depend upon the export of manufactures and agricultural goods and commodities, whose prices and tariffs deepen the crisis. Regrettably, there is not enabling international environment and in fact, the indicators are even more negative than they were last year. The challenge ahead is monumental and we must overcome it, lest we run the risk that present disparities become permanent and the credibility of the multilateral system comes into question. If favorable conditions are not created, if we do not act immediately, we would be creating the conditions to perpetuate the predicament of the developing world.

In this regard, we call upon developed countries to adopt timely and appropriate macroeconomic policies and measures to increase economic growth to ensure greater global economic stability through the full and effective participation of developing countries in decision making towards the solution of world economic problems. Likewise, we urge the developed countries to renew the political will and the spirit of an international alliance for development, as well as the creation of a favorable international economic environment and the adoption of effective measures in order to support the efforts of developing countries to achieve sustained economic growth, sustainable development and the strengthening of their democratic systems, at the same time that we reconfirm the fundamental role of national governments in the development process of each country.

Developing countries continue their immeasurable efforts to mobilize national resources in favor of the development of our countries. Nonetheless, these efforts are lessened due to the lack of additional external resources that, as we have been reiterating all along, should be provided for, without conditionalities, in order to effectively tackle the needs of economic and social development in the developing countries. Today, many of our countries are under precarious economic and social conditions as a result of the enormous burden of external debt. In this regard, we regret that, in spite of the numerous initiatives brought forth in the last decade by the international community, the debt crisis persists as one of the principal obstacles for developing countries, including middle-income countries. We, therefore, renew our urgent call upon the international community, particularly the developed countries and the international financial institutions to adopt effective and equitable measures for a durable solution to the debt problems of developing countries, including through cancellation and the increase of concessional financial flows toward all developing countries. In this regard, we welcome the decision reached at the International Conference on Financing for Development held in Monterrey, to create a link between debt sustainability and a particular country’s ability to reach its development goals. It is also important to facilitate the effective and full implementation of enhanced HIPC, which should be fully financed through new and additional resources.

Commodities from developing countries face each day more unfavorable external conditions that impede the effective realization of the development of the economies of our countries, which depends on those products. Undoubtedly, trade is a determining factor to propel the development of economies dependant on commodities and therefore, access to markets on the basis of a multilateral trade system, which is universal, predictable, transparent, open, rule-based, non-discriminatory and equitable, together with meaningful trade liberalization is something whose validity persists. Therefore, we emphasize the importance of improved and predictable access to markets for commodities of developing countries to the reduction of tariffs and the elimination of tariff peaks and escalations, of trade-distorting protectionist practices, of non-tariff barriers, as well as of agricultural subsidies. We also express concern for the high impact of anti-dumping and anti-subsidy measures and reiterate that they should not be used with protectionist aims. In this context, we would also reiterate our concern that, in spite of the expectations raised at the Doha Ministerial Conference, little progress has been made to date in the trade negotiations in Geneva.

The Group of 77 and China would like to reiterate the need to consider the especial needs and particular problems of land-locked developing states. While addressing the transit transport requirements of landlocked developing countries, concerns of the transit developing countries should be fully taken into account. In this context, we welcome the decision of the General Assembly to convene an International Ministerial Meeting on Transit Transport Cooperation to be held in 2003. We would like to express our wholehearted support for its timely preparation.

Many are the expectations created and many the hopes of developing countries. We must honor these commitments responsibly. Let us show our indisputable solidarity and international cooperation in favor of an economic and social development that can hold the promise of a better future.

Thank you very much, Mr. Chairman.