US embassy cable - 04COLOMBO497

UNCLAS SECTION 01 OF 02 COLOMBO 000497 
 
SIPDIS 
 
EB/MST FOR NISSEN; US MISSION GENEVA FOR KEHOE; PLEASE PASS 
USTR FOR BOHLING 
 
E.O. 12958: N/A 
TAGS: ECON, ETRD, CE 
SUBJECT: ADDITIONAL GSL RESPONSE ON UNCTAD XI 
 
REF: A. SECSTATE 62119 
 
     B. COLOMBO 458 
 
1.  Per Ambassador's letter (Ref A), post received a response 
from Trade Minister Ravi Karunanayake regarding the inclusion 
of Doha Development Agenda (DDA) issues at UNCTAD XI. 
Karunanayake's response, repeated in full below, mirrored 
Trade Secretary Wickremesinghe's response (Ref B) that the 
GSL will support US desires to avoid reopening sensitive DDA 
topics as part of UNCTAD.  In particular, Karunanayake notes 
"we have already advised our representatives in Geneva not to 
support G-77 position (sic), which may lead in any way to 
re-interpretation of the DDA."  The following is the text of 
Karunanayake's letter: 
 
Begin Text: 
 
Dear Ambassador Lunstead, 
 
I thank you for your letter of 9th March 2004, sharing 
thoughts of your Government on the preparatory work being 
undertaken in Geneva for the 11th Session of the UNCTAD to be 
held in Brazil in June this year. 
 
I agree that following the initiative taken by Ambassador 
Zoellick to address Trade Ministers of the WTO members, 
negotiations of the Doha Development Agenda has gathered 
momentum and that we should collectively endeavour to work 
towards agreeing to a framework agreement on important 
negotiating issues, viz. agriculture, NAMA (Non-Agricultural 
Market Access Negotiations) and services by July this year. 
Therefore, given that the DDA negotiations are at a sensitive 
stage, preparatory work being undertaken for the UNCTAD XI to 
be held in Brazil, should send a positive political message 
to complement and advance the DDA.  At this point, therefore, 
UNCTAD engaging in a negotiating process to interpret the DDA 
or re-construe the Doha Ministerial Declaration may not 
facilitate such a process. 
 
However, given the fact that the main theme of the UNCTAD XI 
Conference has already been agreed to after an extensive 
debate, viz., "enhancing the coherence between national 
development strategies and global economic processes towards 
economic growth and development, particularly of developing 
countries," the sub themes should now support the overall 
theme without much rhetoric or re-writing the DDA. 
 
I would also like to take this opportunity to thank you for 
sharing the non-paper that was delivered in Geneva, on 
parameters and themes for the Ministerial text on trade, as 
well as on the sub themes covering Inter-connection of trade 
and development, special attention to poorer countries, and 
UNCTAD contribution.  On inter-connection of trade and 
development, we share the view that it is in everyone,s 
interest to work together toward the objective of full 
integration of all countries into multilateral trading 
system; we also accept that growth rates have accelerated for 
those developing countries that have experienced an increase 
in the ratio of trade to GDP.  We ourselves have reduced 
tariffs (more) significantly than many developing countries 
and experienced increased in the ratio of trade to GDP. 
Therefore, we agree that the Ministerial text should 
underscore the theme of enhancing the synergies between trade 
and development. 
 
As regards the theme on UNCTAD institutional contribution, we 
believe that UNCTAD contribution should include providing 
technical assistance to developing countries and supporting 
their efforts for national policies that are aimed to enhance 
the synergies between trade and development.  We agree, that 
in advancing UNCTAD,s institutional contribution in these 
areas, we should focus on the paragraphs that you have 
referred to in the non-paper in the preparatory work for 
UNCTAD XI. 
 
As highlighted in the non-paper we recognize that there are a 
large number of paragraphs in the draft text that covers DDA 
in its entirety.  The inclusion of almost all the Doha Agenda 
issues in the UNCTAD draft Ministerial with different 
interpretations in effect would amount to renegotiating the 
Doha Declaration and creating a parallel process of 
negotiations in another arena, which we should avoid at this 
stage of negotiations as progress is being made in the WTO. 
 
I may add that taking into account the concerns expressed in 
your letter and having studied your non-paper, we have 
already advised our representatives in Geneva not to support 
G-77 position, which may lead in any way to re-interpretation 
of the DDA.  I may also mention that Director-General of 
Commerce Mr. K.J. Weerasinghe and his team of officials will 
monitor closely the preparatory process, and the draft text 
and will provide necessary guidance and instructions to our 
representative in Geneva 
 
Yours Sincerely, 
 
Ravi Karunanayake 
Minister of Commerce and Consumer Affairs 
 
End Text 
LUNSTEAD