WORLD TRADE
ORGANIZATIONWT/MIN(03)/ST/2
10 September 2003
(03-4737)
MINISTERIAL CONFERENCE
Fifth Session
Cancún, 10 - 14 September 2003Original:  French
SWITZERLAND
Statement by H.E. Mr Joseph Deiss
Federal Counsellor
Head of the Federal Department of Economic Affairs
The world economy needs a positive signal.  The poor countries are anxious for a boost to
their development.  The most advanced countri es impatiently await a recovery.  The Cancún
Conference thus comes at a crucial point in time.
Decisive progress is necessary in our negotiati ons so as to place the Doha Round on the road
to success.
Our main lines of action are the following:
- Gradual liberalization of trade in goods and services;- strengthening of the multilateral system and of links with other international
institutions;
- adjustment by the WTO to the increasingly diverse situations of its Members.
The state of the negotiations prompts me to make a qualified assessment of progress.First of all, I welcome the agreement reached on facilitating the import of generic medicines
by certain poor countries.
I also welcome with satisfaction the maintenance of the level of ambition agreed at Doha with
regard to market access.
On the other hand, I regret the fact that neither the negotiations on rules nor those on issues of
harmonization such as the environment meet our expectations.
We shall have to redouble our efforts in these fields in order to achieve the ambitious
objectives that we set for ourselves in Doha.
Three topics are of particular importance to Switzerland, agriculture, industrial products and
the Singapore issues.
On the agricultural question, our aim continues to be the establishment of a legal and
economic order that allows types of agriculture that have different objectives and structures to
co-exist.WT/MIN(03)/ST/2
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We have all made a commitment to the gradual opening up of agricultural markets, the
lowering of domestic support levels and a sharp reduction in export subsidies.
However, the agricultural restructuring that emerges from this Round must be socially
acceptable.
Switzerland is prepared to make substantial concessions in order to attain the level of
ambition agreed at Doha.
With regard to export subsidies, we can even go beyond the provisions of the draft Ministerial
Text.
I now turn to the crux of the problem as we see it, and for that reason I shall speak in English.
Although Switzerland is ready to pursue agricultural reform, the proposed Text goes too far with
regard to market access.  We will therefore ask for modifications of the Text in order to establish the
necessary balance between the concessions made by the different participants.  We will focus on two
essential issues here in Cancún:  first of all on the capping of tariffs, because such capping will haveexorbitant consequences for my country.  Furthermore, we will focus on tariff rate quotas where we
face similar difficulties.  The points we are raising are of paramount importance to us and we need an
acceptable result for this Conference to be a success.
In our view, adequate border measures are necessary – both in developing and industrialized
countries – in order to achieve the non-trade objectives included in the WTO Agreements.  To our
mind, this is a matter of honouring our constitutional mandate on multi-functionality.
Indeed, the great diversity of agricultural situations, their specific features and the needs and
expectations of consumers cannot be ignored.
In this connection, geographical indications and product labelling are instruments of
paramount importance.  It is for this reason that Switzerland is calling for the extension of the more
effective protection afforded by geographical indications to all products.
I now turn to industrial products.  In this field, market liberalization must be continued.
Switzerland advocates a substantial reduction in customs duties, their comprehensive binding
and sectoral initiatives in which all Members participate.
This negotiation should also contribute to  reducing the significant disparities between
Members at the same level of development.
The reduction of protection in the most closed ma rkets will also help to stimulate south-south
trade.
Switzerland considers the present Text to be a bare minimum.  It is essential that we define
the basic parameters of this negotiation here in Cancún, so that it can be successfully concluded as
quickly as possible.
I should now like to deal with the Singapore issues.
Among these issues, priority should be given to the decision to launch negotiations on
investment.
A multilateral agreement on investment does not solely benefit the industrialized countries.WT/MIN(03)/ST/2
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On the contrary, such an agreement is of particular importance to the developing and newly
industrialized countries.  The level of security for investors is greater than with innumerable bilateral
agreements.
The Singapore issues have been on the WTO agenda since 1997.  Nothing more needs to be
said about the preliminaries.  It is now time to launch the negotiations.
Our Conference must lay down clear guidelines by:- Confirming our commitment to continue opening up the markets for goods and
services on an ambitious, balanced and reasonable basis;
- redefining our approach to special and differential treatment in order to meet the
specific needs and situations of developing countries;
- completing and modernizing the WTO rules so as to consolidate the foundations of
our Organization and adapt it to contemporary economic realities.
In this connection, we must all work together to find a solution to the problem raised by the
African countries regarding cotton.
Lastly, I sincerely thank President Vicente Fox and yourself, Mr Chairman, for your warm
welcome and I also thank your authorities and the S ecretariat for their excellent work in preparing for
this Conference.
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