[News Terms] UN Conference on Trade and Development to Which Xi Jinping Sent a Congratulatory Message

Xi Jinping "China Will Forever Remain a Developing Country"
UNCTAD Launched to Address Trade Imbalances Between Developed and Developing Nations
South Korea Changed Status from 'Group A' to 'Group B' Since Joining in 1965

Chinese President Xi Jinping stated in a video congratulatory message sent on the 12th to commemorate the 60th anniversary of the United Nations Conference on Trade and Development (UNCTAD) that "China has always been a member of the Global South (a term generally referring to emerging and developing countries mainly located in the Southern Hemisphere)" and "China will forever remain a developing country."

According to China News Network on the 13th, in his congratulatory message sent to UNCTAD, which marked its 60th anniversary the previous day, President Xi mentioned, "China will actively expand imports from other developing countries, strengthen trade, investment, and development cooperation, and support the implementation of the UN '2030 Agenda' for sustainable development."

President Yoon Suk-yeol, visiting the United States, is delivering the keynote speech at the 78th United Nations General Assembly held at the UN Headquarters in New York on September 20 last year (local time).
[Photo by Yonhap News]

The United Nations Conference on Trade and Development (UNCTAD) is a permanent organ of the UN General Assembly established in 1964. It was created with the purpose of correcting trade imbalances between developed and developing countries, supporting the industrialization and international trade of developing countries, and addressing the North-South issues. It is also known as the United Nations Conference on Trade and Development, with its headquarters located in Geneva, Switzerland.

After World War II, many countries in Asia and Africa gained independence, but the poor economies of these underdeveloped countries, caused by rapid population growth and fragile economic structures, emerged as a major problem in the postwar global economy. Additionally, there was growing opposition to economic organizations dominated by developed countries, such as GATT (General Agreement on Tariffs and Trade), which governed world trade at the time, leading to demands for fundamental improvements in North-South relations.

In response, in July 1962, government representatives from Asian, African, and Latin American countries gathered and issued the Cairo Declaration, calling for the establishment of a new trade organization. From March to June 1964, the first UNCTAD, the largest international economic conference ever held, was convened in Geneva, Switzerland, hosted by the UN, and it officially launched in December of the same year with the approval of the UN General Assembly.

The highest policy-making body of UNCTAD, the International Conference (General Assembly), meets once every four years and functions as a ministerial-level meeting. Between the General Assembly sessions, a mid-term review conference is held every four years to assess the implementation of the General Assembly's outcomes. UNCTAD has a permanent executive body called the Trade and Development Board, and under it, three committees: the Committee on Trade in Goods and Services and Commodities, the Committee on Investment, Technology and Related Financial Issues, and the Committee on Enterprise Development. There are 192 member countries, and South Korea joined in 1965.

Member countries are informally grouped by regional interests into ▲Group A (Asia and Africa), ▲Group B (developed countries), ▲Group C (Latin America), ▲Group D (communist countries), and others. Among these, Groups A and C have formed a separate organization called the 'Group of 77' to negotiate with developed countries, acting as a strong negotiating bloc for developing countries and exerting significant influence within UNCTAD.

South Korea belonged to the G77 at the time of joining but withdrew from the G77 after joining the Organisation for Economic Co-operation and Development (OECD) in 1996. At the closing session of the 68th UNCTAD Trade and Development Board held in July 2021, South Korea's status change from Group A (Asia and Africa) to Group B (developed countries) was unanimously approved.

In his video message, President Xi pledged, "To assist in the implementation of the '2030 Agenda,' China will donate 20 million US dollars (approximately 27.4 billion KRW) to UNCTAD over the next five years to ensure that no country is left behind."

President Xi also evaluated that UNCTAD has made significant contributions over the past 60 years in promoting cooperation among developing countries, establishing dialogue channels between developing and developed countries, and building a new international economic order.