However, their most important achievement at that time was seen as the adoption of Part IV of the GATT, which freed them from reciprocal reciprocity with industrialized countries in trade negotiations. In the view of many developing countries, this was a direct result of UNCTAD I`s call for a better trade deal for them. While services currently account for more than two-thirds of global output and employment, they account for no more than 25% of total trade on a balance of payments basis. But this proportion – apparently modest – should not be underestimated. Indeed, balance of payments statistics do not cover any of the types of supply of services defined in the GATS, namely supply by a commercial presence in another country (mode 3). Moreover, even though they are increasingly self-negotiated, services are also essential inputs for the production of goods and, as a result, value-added services account for about 50% of world trade. The provision of many services often involves the simultaneous physical presence of the producer and the consumer. There are therefore many cases where, in order to be economically viable, commercial obligations must extend to the cross-border movements of the consumer, the establishment of a commercial presence on a market or the temporary movement of the service provider. The format of the present report is as follows: section II deals with general principles and obligations, including dispute settlement and institutional rules.
Section III analyses by sector the specific sectoral provisions contained in the annexes, decisions, declarations and agreements. The most notable success was the agreement on a memorandum of understanding on fundamental elements for the negotiation of a global subsidy arrangement, which was eventually included in a new international agreement on cereals. . . .