WORLD TRADE
ORGANIZATIONWT/MIN(03)/ST/106
12 September 2003
(03-4883)
MINISTERIAL CONFERENCE
Fifth Session
Cancún, 10 - 14 September 2003Original:  English
GEORGIA
Statement by H.E. Mrs. Tamar Beruchashvili
Deputy Minister of Foreign Affairs
At the beginning, allow me take this opportunity and on behalf of my delegation express
our sincere condolences on the tragic death of Mrs Anna Lindht, Foreign Minister of Sweden.
We have lost a great European and good friend of Georgia.
I am honoured to join my colleagues today, to present my country's vision on a
Development Round, to share with you our appreciation of its merits, and to warmly invite you to
consider its principal goal:  that countries taking part in the process of globalization must
likewise enjoy its benefits.  This process should also serve to advance national interests, as wellas capitalize upon the unique individuality of each.  Thus, global economic integration should
accelerate economic growth and alleviate poverty.
Georgia, together with a group of newly acceded countries, has been actively involved in
elaboration of the Doha Declaration and ongoing negotiation on Development Agenda.
In Doha, Georgia headed the coalition of newly acceded countries and managed to
incorporate their position in Article 9 of the Ministerial Declaration that says that a wide range of
obligations on market liberalization undertaken during the accession process should be given
special attention.  In addition Article 38 underlines a need of the technical assistance for newly
acceded low-income countries in transition to ensure their full integration in multilateral trade
system.
These very issues have underpinned the position of Georgia to obtain real and meaningful
flexibility provisions in the process of further negotiations on Doha Development Agenda.
I want to stress that Georgia as a small, low-income economy facing all challenges of
transition is strongly in favour of progressive, balanced and equitable liberalization and consider
it as a key principle for globalization;  however we have a number of concerns to highlight.
First, I would like to remind the Members that in Doha our Ministers have unanimously
recognized the extensive market access commitments undertaken by recently acceded countriesthat often go far beyond those negotiated during the Uruguay Round.  I would like to underline
that Georgia undertook enormous commitments during accession negotiations that ensured very
liberal market access conditions including agriculture.  Georgia has no export subsidies, and does
not maintain any trade distorting domestic support measures, in addition we bound 100 per cent
of our tariffs.
Therefore, any measure towards further tariff liberalization, which represent only means
to protect our domestic producers, could harmfully affect our economy, particularly agriculture.WT/MIN(03)/ST/106
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We continue to express our strong expectation that these concerns would be adequately reflected
in the new text of framework for modalities.
Second, Georgia is actively involved in tariff negotiations for non-agricultural products.
We would seek the adequate compensation and acknowledgement of our excessive commitmentsand highly liberal tariff structure (total average 7.2 per cent, out of which around 5 per cent for
non-agricultural goods).  We are glad that some of the Members shared our approach that the
countries which have already "paid" should not be taxed again, or should pay less, and therefore
the "Swiss formula" of tariff reduction is more fair than a formula independent from initial tariff
rate.
We are glad that the Geneva process, in spite of all obstructions and differences on a
number of key issues, gives us an example of such an understanding.  As a result the position of
newly acceded countries on meaningful flexibility provisions has already been reflected in the
framework for modalities for market access for non-agricultural products.  We hope that this
approach will be extended to the agricultural products as well, giving us lower tariff reductions,
longer implementation period, right to use exemptions for Special Products and other flexibleinstruments in order to respond to countries' real developmental needs.
It should also be recognized that Georgia as well as other newly acceded countries are
still in the process of fulfilling their accession obligations, and they hardly afford further market
liberalization without possibility to carefully evaluate the results of steps already undertaken.  Asyou are well aware, Georgia is not classified in the category of neither developing nor
least-developed country, but in real sense, its macroeconomic parameters are much more lower
then many WTO developing Members.
We have to remember that this "development" round is not just about "developing
countries";  it is about global economic development and global governance.  It concerns
everyone.  Therefore the outputs of this Round should support all member countries' economic
development by means of a fair allocation of the burden of obligations undertaken.
Despite all challenges, Georgia does not limit its participation in negotiations by market
access issues only.  We strongly support establishment of multilateral system of notifications and
registration of geographical indications for wines and spirits.  We also hope that theCancún Declaration will give the green light to expand this system to other products as well.
Georgia welcomes progress achieved in the field of TRIPS and public health, which on the one
hand provides poor countries access to vital medicines and on the other hand gives a clear
example of the best compromise.
We believe that Cancún is about the action needed to ensure that commitments and
promises made in Doha are respected.  Cancún is about outcomes.  And to achieve those
outcomes, it must be based on cooperation, not confrontation.  The win-win principle on which
the international trading system rests must be well demonstrated during these days.
Five minutes time-limit does not allow us to touch upon, all problems.  However, I cannot
leave out the issue of technical assistance and other supporting instruments of vital importance
for my country.
In recognition of the fact that development policies are about the strategic allocation of
scarce resources, great caution should be exercised in ensuring that the capacity-building
programmes meet the real needs of the countries' development agenda.WT/MIN(03)/ST/106
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The greatest challenge for the WTO will be to achieve the integration of new Members
and developing economies into the multilateral trading system, and more broadly, into the global
economy.  Against this backdrop all Members should join forces to achieve this goal.
And finally, I would like to congratulate new Members that joined WTO after Doha:
Armenia, Macedonia, Nepal and Cambodia, and wish them successful integration into the
Organization.
Let me express our thanks and the words of our profound appreciation to the hosts of this
Conference, to the Government of Mexico, which have created and provided excellent conditions and
facilities for our productive work and fruitful discussions that, we hope, w ill ultimately ensure the
successful accomplishment of our important tasks.
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