. /.WORLD TRADE
ORGANIZATIONWT/MIN(03)/ST/88
12 September 2003
(03-4877)
MINISTERIAL CONFERENCE
Fifth Session
Cancún, 10 - 14 September 2003Original:  English
SWEDEN
Statement by H.E. Ms Lotta Fogde
State Secretary for Trade
The WTO Agreements of today reflect the ambiti ons and aspirations of former generations of
trade ministers and governments:  before th e UN Millennium Goals were formulated, before
Kofi Annan started the UN Global Compact, before the failure of Seattle.  The key purpose for the DohaDevelopment Agenda must be to close the gap between  the trading system of yesterday and the trading
system of tomorrow.  A modern trading system must  more effectively address the needs of peoples and
countries in all parts of the world, and have coherence as a guiding light.
At this Meeting, that means we have to agree to reform the rules for trade in agriculture.  As it
is, they are detrimental to development.  Let me make  just one point in this hotly debated area.  Export
support for industrial production has been outlawed for ov er forty years.  It must also be phased out in
agriculture.  We should have stopped treating agricultu ral trade separately from all other sectors a long
time ago.  Change is long overdue.  The proposal on co tton, tabled by four of the poorest countries in the
world, demands nothing more than that we treat cotton in accordance with the basic principles and rules
of the multilateral trading system.  We cannot deny them this fundamental right.
Also, it is time to assert that preferences - be it for agricultural or industrial products - are a
complement, not a substitute, to increased openness on a broad multilateral basis.  Trade preferences can
be important as a means to expand the export opportun ities of poor countries.  But some claim that we
need to keep existing preference margins.  I strong ly disagree.  We need full integration of developing
countries in the global economy - not the integration of these countries in the EU or US economies.
On industrial goods, the track record of the existing trading system is more encouraging.  Low
average tariffs in many countries have spurred an impressive expansion of global trade and growth, not
least to the benefit of developing countries.  The tim e has come for other countries to follow suit.  That
would unleash the vast potential for South-South trade.  We also need to make the overall simplification
of trade the core of the agenda on market access.  Simplification means eliminating nuisance duties and
tariff escalation, and reducing non-tariff barriers.  On top of that, we need an agreement on trade
facilitation in the WTO.  Today, too many re sources are wasted on outdated, complicated and
nontransparent procedures at the border.  There are no losers from an agreement on trade facilitation,
nobody is asked to make concessions.  There are onl y winners - consumers, producers and governments
in developed and developing countries alike.
Here in Cancún, we have the chance of our generation to lay the ground for the trading
system of decades to come.  We must create modern and robust rules that reflect the values of our
citizens.  The slow progress, or even backtracking, of the Doha Development Agenda on issues such
as environment won't do in the future.WT/MIN(03)/ST/88
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In the UN and elsewhere, we have already agreed on a comprehensive agenda to promote
sustainable development and to halve the number of people that live in poverty.  At Doha, we obliged
ourselves to make the WTO coherent with these ambitions as regards the environment.  Regrettably,
on the social dimension of sustainable development no similar commitments could be reached.  What
is worse, however - so far no tangible results have been achieved even on the minimalistenvironmental agenda.  Here in Cancún, we should solve the relatively simple issue of granting
observer status for secretariats of multilateral environmental agreements.  Then we should go on to
make sure environmental goods and services can be traded freely and that WTO rules cannot, and
should not, overrule environmental conventions.
The way we conduct our business at WTO meetings is important.  I would like to thank the
Chairman of this Ministerial Meeting, Foreign Minister Derbez, for his efforts to actively involve allWTO Members in our deliberations.  More concrete steps need to be taken to further improve the
participation of all Members in the WTO decision-making process.  This should be matched by a
general modernization of WTO working methods, where participation and transparency are key.  This
will also ensure that the WTO becomes more responsive to the changing demands of all Members in
the future.
Finally, the quest for compromise should not detract us from facing the challenges of today
and of coming generations.  We need to show flexibility and seek common ground, without lowering
our ambitions in this round of negotiations.  WTO Member States must realize that this is a unique
opportunity to create the open, fair and legitimate trade rules that we need in the future.
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