WORLD TRADE WT/MIN(96)/ST/44
11December 1996
ORGANIZATION(96-5257)
MINISTERIAL CONFERENCE Original: French
Singapore, 9-13December 1996
LUXEMBOURG
Statement byH.E. Dr.Georges Wohlfart
Secretary ofState forForeign Affairs, External Trade andCooperation
Tenyears ago,inPunta delEste, wetookupachallenge: achallenge toembark onanalmost
all-embracing round ofinternational trade negotiations. InMarrakesh wesigned theproduct ofthese
unprecedented negotiations. Wealsoundertook tobring toasuccessful conclusion thepartoftheRound
which wasleftunfinished.
Ourtasktoday istomeasure thework thathasbeendone since Marrakesh. Wealsohave
thetaskofconfirming andcompleting ourfuture programme ofwork inorder topursue theobjective
ofconsolidating multilateralism.
Noonecandispute thattheoverall outcome ofthese twoandahalfyears ofapplication of
theMarrakesh Agreements hasbeenapositive one.Since 1995thevolume ofworld tradehascontinued
togrow ataround 8percent, twice asrapidly asworld production.
Thereform ofthedispute settlement system hasproved itsworth andtheequality ofallMembers
oftheWTO withrespect totherights andobligations recorded intheAgreements isnoweffectively
ensured.
Furthermore, theextraordinary interest intheWTO, reflected inthelodging of33applications
tojointhe128current Members confirms theperspicacity ofthose whoinitiated theUruguay Round.
Ittherefore seems there aregrounds foroptimism, especially astheMarrakesh Agreements
haveonlyrecently beenincorporated inournational legislation, withtheresult thatthenewmultilateral
system hasnotyethadtimetodeliver infull.
Thishaving beensaid,theapplication ofthese Agreements alsohasadownside. Theservices
sector remains largely outside theliberalization process. Afurther setback inthenegotiations onthe
liberalizationoffinancialservicesandbasictelecommunicationsnextyearwouldunderminethecredibility
oftheprocess begun under theauspices oftheWTO.
TheWTO nowprovides uswithapermanent forum fornegotiations. Thisisofthegreatest
importance ifwearetoadapt thecurrent regulatory framework toarapidly changing system.
What arethechallenges ahead?
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Thefirst,itseems tome,istoplace thedeveloping countries, especially theleastdeveloped,
inaposition toparticipate more effectively ininternational trade, sothattheycantrulybenefit from
theadvantages ofliberalization.
Weshould thenensure thecomplementarity ofthesystem established bytheWTO andthe
various regional integration arrangements. Reopening thequestion oftheWTO 'suniversal vocation
would poseaserious threat tothepromising venture begun inMarrakesh.
Iwould alsoliketomention theso-called newissues, which arethemost controversial.
There isnopointindenying theobvious. Theestablishment ofafairandpredictable multilateral
system which guarantees freecirculation ofgoods andservices while respecting thefundamental
principles setoutintheMarrakesh Agreements willinevitably mean broadening thescope ofour
discussions.
Thechangeswhichthedevelopmentsininternationaltradehavebroughtaboutforoureconomies
areconsiderable. Globalization requires constant adaptation. Ourpublic opinion isextremely sensitive.
Itisintheinterests oftheliberalization process nottoexclude certain issues from ourdiscussions.
Wedonotwanttomake social standards afactor thatdivides North andSouth. Wedo,however,
wishtofindmutually acceptable solutions which prevent anyrecourse toprotectionism while making
thedevelopment ofinternational trade asource ofwelfare andsocial progress forall.
Thesubject ofsocial standards should beraised, inthefirstinstance, intheInternational Labour
Organization. Likethecurrent President oftheEuropean Union, wetooregret thattheDirector-General
ofthatOrganization wasnotabletotakepartinourdiscussions. Weshould atleastdefine the
arrangements forcooperation between theILOandtheWTO.
Particularattentionhasalreadybeengiventotherelationshipbetweentradeandtheenvironment.
Wehopethatthecurrent work willshortly leadtoconcrete results.
Italsoseems tomethattheWTO should paymore attention tothesubject offoreign direct
investment. FDI,which isgrowing faster thaninternational trade, reached arecord levelof$315 billion
in1995. Itmainly takes place within anetwork ofbilateral agreements. Theestablishment of
multilateral ruleswillreinforce theimpact offoreign investment andbring anincrease inthenumber
ofrecipient countries. Toavoid repeating positions which arewellknown, Ishallconfine myself to
underlining Luxembourg 'ssupport forthemajor contribution which theEuropean Community has
made tothepreparations forthisConference, andIassociate myself entirely withtheremarks of
Commissioner SirLeon Brittan.
Singapore isaperfect example ofexceptional economic growth duemainly tothedevelopment
ofinternational trade. Iwould liketothank youverywarmly foryourhospitality andIamsurethat
under yourChairmanship ourConference willbecrowned withsuccess.