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Economic co-operation preferred to nuclear disarmament at SAARC '98

P Jayaram in Colombo

The Colombo declaration draft of the SAARC summit skirts the explosive nuclear issue, even as it seeks to infuse renewed urgency to economic co-operation among the member states.

Though since its inception, the summit declaration has ritually called for nuclear disarmament and total elimination of nuclear weapons, the Colombo declaration is silent on the issue.

The atomic tests by India and Pakistan have apparently created a serious dilemma for the officials who drafted the document.

However, informed sources say the issue, in all probability will be incorporated in the final declaration. The draft will take into account the different perspectives of the member states, particularly the main players -- India and Pakistan.

The nuclear tests will figure not only in the bilateral talks between Indian Prime Minister Atal Bihari Vajpayee and his Pakistani counterpart Nawaz Sharief, but also during their discussions with other SAARC leaders.

It is understood it would be strange if the summit's known stand on disarmament suddenly did not find place in the Colombo declaration, particularly against the background of the atomic tests by India and Pakistan. The last SAARC was held in Male in June last year.

The relevant chapter on disarmament in the Male declaration thus stated: ''Noting that the end of the Cold War had created unprecedented opportunities in the field of disarmament, the heads of state of government recognised the need for the international community to pursue nuclear disarmament as a matter of highest priority.

''In this regard, they recognised the need to start negotiations through the conference on disarmament and to establish a phased programme for the complete elimination of nuclear weapons within a specified framework of time, including a nuclear weapons convention.''

In fact, successive SAARC summits have supported the lofty ideal of nuclear disarmament. Addressing a news conference on Friday, Sri Lanka's Foreign Minister Lakshman Kadirgamar said though nuclear tests were not on the agenda of the summit, it could figure during the discussions.

''I didn't say the SAARC summit will avoid the nuclear issue. Whether it would be taken up or not is entirely up to the leaders,'' he said.

However, Kadirgamar said the main thrust of the conference would be economic co-operation among the member states. Referring to SAARC '98 as an ''economic summit,'' he added it should respond to the challenges posed by the liberalisation and globalisation of economies.

''The obstacles and opportunities inherent in these fast evolving developments could best be met and the full potential of South Asia realised through effective, practical, regional integration as well as through continued bilateral cooperation among the member states,'' reads the draft declaration.

It notes the benefits of liberalisation have been disappointingly ''asymmetrical.'' The process had proceeded at a much slower pace in areas of special interest to developing countries.

It says the least developed countries have particularly been marginalised through a series of developments. Such factors included the shrinking of overseas donor assistance, concern about the erection of protectionist barriers, tendency to impose arbitrary norms relating to labour conditions, environmental regulations, governance and other extraneous issues to regulate trade exchanges.

The declaration warned that these factors result in restricting product access for developing countries into the markets of developed countries. The draft also calls for collective strategies to promote a rule-based, non-discriminatory and equitable international trading system so that the interests and concerns of developing countries do not suffer.

The draft calls for ''firm, collective responses" on the emerging issues relating to copyright, patents, marketing franchise, including food grains, plants and herbs indigenous to South Asia. This was essential to preserve the bio resources of the region from unregulated commercial exploitation by extra-regional interests.

The draft states that the heads of state would see that potential efforts are made to formulate a new multilateral investment agreement. An agreement, which does not overlook the need to ensure the continued independence of developing countries to formulate specific investment policies appropriate to their stage of development.

In an obvious reference to the financial crisis in South East Asia, the declaration expresses concern about the shortcomings of the international monetary and financial system. It added that it was due to their tardiness in anticipating impending financial market crisis that preemptive remedial actions could not be adopted.

The document also stresses the need to strengthen individual financial systems of the SAARC countries. This can be attained through enhancing institutional capacity, surveillance mechanism as well as through closer consultations on, and coordination of macro-economic policies.

On the South Asian Preferential Trade Agreement, the leaders are expected to decide on accelerating the progress in the next round of negotiations. The leaders may extend deeper preferential tariff concessions to products that are actively traded among the member countries.

They are also expected to declare their decision to remove discriminatory practices, non-tariff barriers and structural impediments in trade. This would include items in respect of which tariff concessions have already been granted and rules of origin on the domestic content requirement.

The declaration says the benefits of economic liberalisation would be more extensive and better balanced through the inclusion of trade-creating joint ventures, investment and trade in-services such as tourism. It also calls for strengthening regional cooperation, cultural unity and enhancing political cooperation among member states.

As a practical step towards making South Asia into a single telecommunication territory. The draft calls for implementation of the recent decision by the SAARC communication ministers to reduce the telecommunication tariffs to the lowest extent possible within the region during 1998.

UNI

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