WORLD TRADE
ORGANIZATIONWT/MIN(98)/ST/89
20 May 1998
(98-2131)
MINISTERIAL CONFERENCE
Second Session
Geneva, 18 and 20 May 1998Original:  English
FIJI
Statement Circulated by Hon. Berenado Vunibobo,
Minister for Foreign Affairs and External Trade
We join everyone here to celebrate the 50th Anniversary of the Multilateral Trading System.
We have, together, come a long way from October 1947, when the General Agreement on Tariffs and
Trade (GATT) was signed by twelve developed a nd eleven developing countries here in Geneva.
Today, we see the name of the organization changed to World Trade Organization (WTO), and its
membership increased to 132, and a queue of 31 countries yet to join.  This is definitely a sign of faith
and confidence in the Organization.
Such manifestation of enthusiasm and esprit de corps had given rise to high expectations.
However, on the basis of the Organization's performance to date, these expectations, for some of us,
have yet to be fully realized.
It is interesting to note that the establishm ent of the GATT coincided with the decolonization
process of the UN; and 50 years hence, many of the countries that had attained their politicalindependence remained imprisoned in dire poverty, if not economic dependency.
Notwithstanding such despondency, we take this opportunity to congratulate the new
Members who have recently joined WTO.  It is sa d to note, however, that some prospective members
have had to be subjected to gruelling cross-examinations in the process of their accession.  One
wonders whether there were undue political or commercial undercurrents that were providing the
motivation for such cross--examinations!
We acknowledge that there is growth in world tr ade with the assistance of GATT and now the
WTO.  However, for small island countries like ours, we are disadvantaged in many ways from
realizing the full impact of this growth in world tr ade.  We thus characterize this growth by unequal
sharing of the gains resulting from it, giving rise to global disparity, and marginalization from the
centre of global economic activities.
Progress since membership
Despite these difficulties, we remain committed to multilateralism.  For small economies like
ours, sometimes we just do not have a choice!
Since becoming a Member of the WTO in 1996, we have joined the World Customs
Organization (WCO), and have adopted in full the Customs Harmonized Commodity Description and
Coding System.WT/MIN(98)/ST/89
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We came before the WTO Trade Policy Review Committee in 1997, explaining the steps we
have taken to align our trade policies with the requirements of the WTO.  The Review Panel
commended Fiji on its initiatives and reform processes.
We have substantially simplified our trade regime since early 1990.  Most import licences
have been removed, and subsidies for some primary commodities have been withdrawn.  Maximumtariffs on almost all lines of traded goods have been reduced.
Fiji is also currently working towards the formulation of a Services Policy that would
effectively serve as a guideline towards liberalizing the services sector in line with the General
Agreement on Trade in Services.  Furthermore, foreign investment legislation is to be introduced with
clear and transparent guidelines for investment.
We are about to introduce anti-dumping legislation which aims to address the issue of
dumping in Fiji by the levying of appropriate dutie s.  This will, of course, conform to the Anti-
dumping Agreement (Agreement on Implementation of Article VI of the GATT 1994).
We have developed a programme with WIPO to update intellectual property legislations and
provide a more efficient intellectual property rights administration as suggested by the TRIPS
Agreement.
There has also been considerable progress in the corporatization and privatization of public
enterprises.
All these changes have had to happen within our limited financial and manpower resources.
Consequently, our compliance has taken time.  Moreover, the procedures adopted, or to be adopted,
are highly technical and complex.  For us, these procedures are resource and time-consuminal.
Our commitment to structural readjustment and trade liberalization under the WTO
Arrangement remains.  The pace for our move towards freer trade cannot be the same as the
developed countries because of the vast difference in our economic strengths and status.  There is in
reality no level playing field, least of all, for small island states, still developing and trying to remain
solvent with limited resource bases.  We need flexibility!
Assistance from WTO/special case for developing countries
We appreciate the WTO agenda of trade liberalization and recognize the benefits that global
economic integration might bring.  However, as I have alluded to earlier, we, the small island states,
are faced with severe development problems, complicated by our lack of competitivity, lack of
resources, our smallness, vulnerability to external shocks, lack of economies of scale, unfavourable
terms of trade, remoteness from markets, and many other obstacles not unknown to the general
membership of this Organization.
Apart from all these serious drawbacks, we are further disadvantaged by the constant erosion
of our margin of preferences as a result of the dismantling of preferential agreements.  All this is
happening whilst our reform processes are yet to be completed.  This poses a real threat to our
survival.  We cannot underplay or underestimate its impact and consequences.  The concomitant risks
this will bring are indeed considerable.
Small island states also have other severe handicaps including need for capacity building,
skill training, lack of human and financial resources.  We propose therefore that WTO accepts in
principle the specific categorization of this group of disadvantaged states, so as to ensure that special
and differential treatment, and other specifically-designed package of concessions, can apply to them.WT/MIN(98)/ST/89
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Moreover we believe that preferential trade for developing countries should continue for
some time to give us the opportunity to integrate into the global economy. Such an integration is our
collective objective.  And we are collectively responsible for its attainment.  We propose therefore
that the rules of the WTO be adjusted to take into account the real needs of developing countries,
especially small island states like ours. Furthermore, that there be a reasonable and a realistictransitional period to enable us to put into good use the benefits of our trade preferences.  It is critical
therefore that this Organization accepts the principle of extending the waiver on the Lomé Convention
when such an extension is submitted for consideration.
We therefore request that more effort by WTO be directed towards our genuine areas of
concern.  There is definitely need for more time and technical assistance from the WTO for our
various reform adjustments.  Greater commitment to technical assistance and other forms of
assistance from developed economies is a matter of urgency.
Liberalization in agricultural trade
We note the built-in agenda of the WTO, including further liberalization in agricultural trade,
and that the next round of negotiations will start in 1999.  While we are fully committed to trade
liberalization, we believe however that negotiations have to take a realistic pace in order that the
interests of those who are naturally or circumstantially disadvantaged are adequately andimaginatively taken into account.
Completed negotiations
We welcome the negotiations that have been completed since the Singapore meeting, for
instance, financial services, basic telecommunications and guidelines for recognition of qualifications
in the accountancy sector.
Stalled issues
However, we feel that there were some very important issues that were raised at the
Ministerial Conference in Singapore that have become stalled somewhat, like the Movement of
Natural Persons Supplying Services under the Agreem ent.  Such should be reactivated.  This specific
issue will especially enhance the trade capability of developing countries and the least-developedcountries.
Similarly, immigration policies amongst Member States should be liberalized.  To enhance
the level playing field ethos, capital mobility and labour mobility must be part of the same package.
New issues
Whilst we are still heavily involved in the implementation of current obligations, it is hardly
fair and proper for us, small island states, to be increasingly burdened with new issues being brought
into the WTO agenda.  Whilst we feel that we may not collectively influence the contents and thedirection that the agenda would take, we request however that genuinely important issues should be
prioritized.  This would apply of course to both the built-in agenda and the new issues.  Moreover, we
should not neglect the critical concerns of the disadvantaged nations.  If we do, then we are jointly
responsible for allowing unbridled trade liberalizati on to become the excuse, even if unwittingly, for
inflicting further injustice upon the small and the weak.
We note, too, that the WTO Committee on Trade and Environment has brought
environmental and sustainable development issues into the mainstream of WTO work.  We
congratulate the Committee for accepting that environment preservation is integral to multilateralWT/MIN(98)/ST/89
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trade, and that it has a direct impact on trade and investment policies, especially on small island states
like Fiji with fragile and highly vulnerable environmen t.  This is imperative in light of the real threat
of global warming and other human-induced natural disasters, arising out of misdirected economic
development, and insensitivity to the fragility of our geographical existence, and to the universe as a
whole.
It has to be recognized that whilst developing countries are being urged, if not pressured, to
do more to protect their environment, e.g. more controlled logging, developed economies seem
determined to build more cars; but worse, to shift polluting manufacturing operations and even
hazardous waste storage to sites in developing countries with monetary inducement.
General remarks
Despite being a small player in global trade, we agree that the direction of the changes
towards an open and liberalized system is a practical approach to sustaining economic growth, andbecause it is influential in creating, encourag ing and improving competitiveness.  We further
recognize that our potential for greater economic growth lies in a multilateral trading system that is
fair, transparent and manageable.
We are simply requesting, however, that the pace that developing countries are expected to
adopt towards liberalization be measured, carefully monitored and assisted, and recognizing theconspicuous absence of equity in resources and capabilities among nations.
The survival and enhanced economic development of small island states, like Fiji, therefore
require that special trade arrangements continue fo r some time in order that they can be given hope,
and a lifeline, to compete in global trade.  We acknowledge that there are calls and demands on us for
substantial reforms and adjustments with a time-bound framework.  Often, these demands can bemisconceived and unreasonable, for we cannot bring about these desired changes unless we are given
adequate time and preferred assistance to facilitate, manage and bring into reality our smooth
integration into the global economic order.
We are merely seeking fairplay and justice!
This is our greatest challenge!  If this special anniversary of the multilateral trading system
and its objectives are to be meaningful, then WTO must re-orientate itself to seriously uplifting the
standard of living of the majority of the global population.  President Clinton said in his address on
the eve of the 50th Anniversary of the multilateral trading system:  "The WTO was created to lift the
lives of ordinary citizens;  it should listen to them".  If it fails, those who come after us in the next 50
years down the road will still be wondering whether we did care way back in 1998.
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