WORLD TRADE
ORGANIZATIONWT/GC/W/119
30 November 1998
(98-4813)
General Council Original:  Spanish
PREPARATORY PROCESS FOR THE 3RD MINISTERIAL CONFERENCE
OF THE WTO
Communication from the Dominican Republic and Honduras
The following communication, dated 23 November 1998, has been  received from the
Permanent Mission of the Dominican Republic.
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I. PARAGRAPH 9(a)(ii) OF THE GENEVA MINISTERIAL DECLARATION
(MAY 1998)
A. AGREEMENT ON AGRICULTURE
1. In addition to the contribution made by our delegations jointly with El Salvador, Cuba and
Nicaragua, we would like to make the following remarks which we consider essential if the
forthcoming round of agricultural negotiations is to achieve balanced results for all WTO Member
countries.
(a) Market access
2. The Uruguay Round Agreement on Agriculture required the developing countries to comply
with far-reaching commitments on market access and domestic political reform.  However, the sudden
liberalization of agricultural markets can also have a destabilizing effect on small and vulnerable rural
economies, with serious social and political consequences for our countries.  In order to avoid this
situation, it is essential to ensure better market access for the agricultural products of countries which
depend heavily on agricultural-based export industries for their future development and economicgrowth.  Although the future opening up of world markets will have to take place in a balanced
manner which provides all countries with an equitable opportunity to export agricultural products and
takes due account of the needs of importing countries, special consideration will have to be given to
agricultural products – including value-added products – from developing countries with small
and vulnerable economies.
(b) Export subsidies
3. Everyone recognizes that government export subsidies distort international trade, creating
situations of unfair competition in which producers from developing countries have had to face
serious difficulties in order to be able to compete on international markets.  International
organizations such as the OECD have reported with concern that there has been an increase in real
terms of such income transfers with a highly damaging effect on market access possibilities for our
countries.  We must draw up clear objectives for the forthcoming negotiations, setting initial domestic
assistance levels in view of their elimination by the developed countries at the next round of
negotiations.  We recognize, on the other hand, that the elimination of subsidies could, in the short
and medium term, have a negative impact on the net food-importing countries, and that we shouldtherefore provide for financial and technical assistance programmes to allow those countries toWT/GC/W/119
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overcome such difficulties as they might encounter. There is a growing need for us to commit
ourselves in that respect during the next negotiations.
(c) Net food-importing countries
4. We propose that the Decision on Net Food-Importing Countries be revised in order to bridge
the gap between intentions and achievements.  In doing so, we must take account of the points
mentioned in paragraph 3 of this document and give due consideration to other specific conditions inthe developing countries with small and vulnerable economies.
(d) Export credit
5. We are equally concerned by the WTO Secretariat's note (document WT/L/271 of
7 May 1998) in which it reports that the work on the development of disciplines to govern the
provision of export credit for agricultural products  has not yet begun.  The new agricultural round will
have to tackle this issue, which has been pending since 1994.
6. Finally, in many developing countries the agricultural sector is not only the sector which
occupies the largest portion of the population, but it is also crucial to their economic welfare, their
export revenue, their social cohesion and their food security.  We must acknowledge that the
developing countries are at different stages of development, and therefore have different needs .  We
consider that the forthcoming negotiations should pay particular attention to the specific needs and
conditions of the developing countries with small and vulnerable economies, ensuring totally freeaccess to the products that are of the greatest interest to them.
B. 
GENERAL AGREEMENT ON TRADE IN SERVICES (GATS )
7. The initiation of the progressive liberalization process through successive rounds of
negotiations is one of the elements provided for in Article XIX of the GATS.
8. We would hope that the preparatory process for the new round would include the
establishment of guidelines and procedures to govern our negotiations.
9. These guidelines and procedures should include arrangements for ensuring the application of
the objectives of the GATS, in particular the provisions of Article IV and paragraphs 1 and 2 of
Article XIX.
10. It will be important to define how the process will promote "the interests of all participants on
a mutually advantageous basis" and secure "an overall balance of rights and obligations"
(Article XIX:1), allowing developing countries to attach to their market-access commitments
conditions "aimed at achieving the objectives referred  to in Article IV" (Article XIX:2) to foster our
increasing participation in international trade in services.
11. We are far from certain what to expect in this regard.
12. Firstly, we are concerned by the apparent resistance to any reference to technology transfer,
even on a commercial basis, to increase the competitiveness of our services exports as prescribed inArticle IV:1(a).
13. Nor do we know how it will be possible to comp ly with Article IV:1(b) in this new round if
efforts at launching parallel negotiations on electronic commerce are able to thrive on the pretext that
they would be dealing with "digitalized information" as a topic that is intrinsically distinct from trade
in services or trade in goods.
14. As far as we are concerned, electronic commerce is the supply of services by electronic means
for the production, distribution, marketing, sale or delivery of goods and services.  Thus, electronicWT/GC/W/119
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commerce makes it possible to ensure the cross-border supply of professional services, the access of
our hotels to computer reservation systems or the presence of our tourist industry as a whole in global
distribution systems.  Thus, the negotiation of elec tronic commerce outside of the scope of the GATS
would amount to non-compliance with Article IV:1(b) of the GATS.
15. The various transport sectors are also examples of cross-border supply of services which
should be adequately represented in the liberalization schedules of the developed countries in order toimprove our access to distribution channels and information networks as provided for in
Article IV:1(b) of the GATS.  However, we have  seen no significant changes in the regulatory
frameworks of certain developed countries.  This is evidence of the maintenance of the same
protectionist attitudes that brought about the failure of our last attempt to liberalize maritime transport
under the GATS.
16. Furthermore, discussions concerning the anti-competitive business practices affecting this
sector have led to conflicts which once again bode ill for the consideration of our interests, vulnerableas they are to excessive transport costs deriving from the lack of free competition in the setting of
rates and the allocation of transport routes.
17. As you are surely aware, Mr. Chairman, in the Caribbean basin maritime transport rates vary
by as much as 300 per cent depending on whether or not the shipping company participates in the
collusive practices of the maritime conferences.
18. If we are to achieve higher levels of trade liberalization in tourism services, we shall have to
consider during 1999 how to deal with air transport under the GATS.  Indeed, the future expansion of
our trade in tourism is threatened by the distortions which characterize world air transport networks,
many of them competition-related, with a tangible impact on the capacity of our countries to attract
tourists on regular flights.  Thus, we must enhance our capacity for bargaining with the tour operators
who control the charter flights.  These elements must be considered within the working programme
mentioned in paragraph 5 of the GATS Annex on Air Transport Services, in the light of Article XIX
of the GATS.
19. For all of the above reasons, during the new round of services negotiations our market-access
commitments with respect to services will be conditional upon liberalization commitments on air andmaritime transport in accordance with Article IV:1(b) of the GATS.
20. Regardless of the results of the ongoing discussions on competition policy in the working
group created in Singapore, the case of basic telecommunications proves that the effectiveness of the
market access achieved in the services negotiations under the GATS depends on additional regulatory
commitments to combat anti-competitive business pract ices, such as those mentioned in general terms
under Article IX of the GATS.
21. Thus, the liberalization commitments that our countries wish to obtain in the transport sector
should include additional regulatory commitments to  ensure appropriate competition safeguards as
established in the negotiations on basic telecommunications.  The Council on Trade in Services
should start working immediately on categorizing anti-competitive business practices affecting
maritime transport alongside the discussions to be held under a paragraph 5 of the GATS Annex on
Air Transport Services.
22. With respect to the modes of supply that are of interest to our countries, we shall continue
making every effort to ensure that the provision of services through commercial presence, also known
as "foreign direct investment", continues to be covered by the GATS.  Otherwise, we would be
ruining the integrity of this important Agreement when the application of the provisions favourable to
our interests has been pending ever since they were signed in Marrakesh.
23. We are also interested in making sure that the developed countries make commitments which
will at least bind their existing legislation with respect to the movement of natural persons, inWT/GC/W/119
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compliance with Article IV.1(c).  In this respect, the results of the GATS have been rather
unfavourable as regards the potential of our countries.   And if we have all been able to comply with
the provisions of GATS Article XI concerning the liberalization of payments and transfers for current
transactions relating to our specific commitments, th en we must all be able to make commitments that
allow for the supply of services through the movement of natural persons.
II. PARAGRAPH 9(a)(iii) OF THE GENEVA MINISTERIAL DECLARATION
(MAY 1998)
A. AGREEMENT ON TRADE -RELATED ASPECTS OF INTELLECTUAL PROPERTY RIGHTS (TRIPS )
24. Ever since the end of the Uruguay Round, all countries, developed and developing alike, have
been racing against time to ensure due compliance  at the national level with the provisions of this
Agreement.  However, during the transition period granted to the developing countries, we have seen
selective unilateral pressures unleashed against countries that have tried to exercise their legitimate
rights in full compliance with the letter and spirit of the Agreement.
25. This unilateral selectivity seems to favour certain provisions of the TRIPS Agreement and to
seek to convince countries of the irrelevance of certain other provisions whose application would
ensure a balanced impact of the Agreement on the balance-of-payments situation of the WTO
Member countries.
26. The application at the national level of Articles 6 (Exhaustion), 31 (Other Use) and
40 (Control of Anti-Competitive Practices in Contractual Licences) has aroused particular interest.
27. Our countries, which are currently initiating the process of ratification of this new legislation,
are waiting to see how this truly paradoxical situation evolves.
28. During these preparatory discussions, in which the WTO Member countries are proceeding in
anticipation of the important decisions to be adopted at the Third Ministerial Conference, we wish torequest that the review and possible amendment of the TRIPS Agreement begin with a detailed
examination of compliance with its objectives (Article 7) and its principles (Article 8).  If we were
able to confirm compliance, including by the developing countries that chose to forgo the transition
period granted to them, we would be in a position to contribute with some hope to the examination
and review process.
29. If, as our delegations fear, it appears that "technological innovation and … the transfer and
dissemination of technology … in a manner conducive to social and economic welfare and to a
balance of rights and obligations" have not been promoted, the WTO Member countries will have to
seriously consider the terms under which to proceed with the review and possible amendment of this
Agreement in accordance with Article 71.
30. In the meantime, the WTO Member countries should initiate parallel discussions under
Article 64 (paragraph 3) of the TRIPS Agreement, on the scope and modalities for complaints of thetype provided for under subparagraphs 1(b) and 1(c)  of Article XXIII of the GATT 1994.  This could
mark the beginning of a process which would deter unilateral selective actions while opening up the
whole array of rights and obligations already provided for in the Agreement, permitting us to enter our
forthcoming discussions at less of a disadvantage.
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