WORLD TRADE WT/MIN(96)/DEC/W
13December 1996
ORGANIZATION(96-5315)
MINISTERIAL CONFERENCE
Singapore, 9-13December 1996
DRAFT SINGAPORE MINISTERIAL DECLARATION
1. We,theMinisters, have metinSingapore from 9to13December 1996
forthefirstregular biennial meeting oftheWTO atMinisterial level, ascalled
forinArticle IVoftheAgreement Establishing theWorld Trade Organization,
tofurther strengthen theWTO asaforum fornegotiation, thecontinuing
liberalization oftrade within arule-based system, andthemultilateral review
andassessment oftrade policies, andinparticular to:
assess theimplementation ofourcommitments under theWTO
Agreements anddecisions;
review theongoing negotiations andWork Programme;
examine developments inworld trade; and
address thechallenges ofanevolving world economy.Purpose
2. Fornearly 50years Members have sought tofulfil, first intheGATT
andnow intheWTO, theobjectives reflected inthepreamble totheWTO
Agreement ofconducting ourtrade relations with aview toraising standards
ofliving worldwide. Theriseinglobal trade facilitated bytrade liberalization
within therules-based system hascreated more andbetter-paid jobs inmany
countries. The achievements oftheWTO during itsfirst two years bear
witness toourdesire towork together tomake themost ofthepossibilities that
the multilateral system provides topromote sustainable growth and
development while contributing toamore stable and secure climate in
international relations.Trade and
Economic
Growth
3. Webelieve that thescope andpace ofchange intheinternational
economy, including thegrowth intrade inservices anddirect investment, and
theincreasing integration ofeconomies offer unprecedented opportunities for
improved growth, jobcreation, anddevelopment. These developments require
adjustment byeconomies andsocieties. They also pose challenges tothe
trading system. Wecommit ourselves toaddress these challenges.Integration
of
Economies ;
Opportunities
andChallengesWT/MIN(96)/DEC/W
Page2
4. We renew our commitment totheobservance ofinternationally
recognized core labour standards. The International Labour Organization
(ILO) isthecompetent body tosetanddeal with these standards, andwe
affirm oursupport foritswork inpromoting them. Webelieve thateconomic
growth and development fostered byincreased trade and further trade
liberalization contribute tothepromotion ofthese standards. Wereject theuse
oflabour standards forprotectionist purposes, andagree thatthecomparative
advantage ofcountries, particularly low-wage developing countries, must inno
way beputinto question. Inthisregard, wenote thattheWTO andILO
Secretariats willcontinue their existing collaboration.Core Labour
Standards
5. Wecommit ourselves toaddress theproblem ofmarginalization for
least-developed countries, andtheriskofitforcertain developing countries.
Wewillalsocontinue towork forgreater coherence ininternational economic
policy-making andforimproved coordination between theWTO andother
agencies inproviding technical assistance.Marginalization
6. Inpursuit ofthegoal ofsustainable growth anddevelopment forthe
common good, weenvisage aworld where trade flows freely. Tothisendwe
renew ourcommitment to:
afair, equitable andmore open rule-based system;
progressive liberalization andelimination oftariff andnon-
tariff barriers totrade ingoods;
progressive liberalization oftrade inservices;
rejection ofallforms ofprotectionism;
elimination ofdiscriminatory treatment ininternational trade
relations;
integration ofdeveloping and least-developed countries and
economies intransition intothemultilateral system; and
themaximum possible level oftransparency.Role ofWTO
7. Wenote thattrade relations ofWTO Members arebeing increasingly
influenced byregional trade agreements, which have expanded vastly in
number, scope and coverage. Such initiatives can promote further
liberalization and may assist least-developed, developing and transition
economies inintegrating intotheinternational trading system. Inthiscontext,
wenote theimportance ofexisting regional arrangements involving developing
andleast-developed countries. The expansion andextent ofregional trade
agreements make itimportant toanalyse whether thesystem ofWTO rights
andobligations asitrelates toregional trade agreements needs tobefurther
clarified. Wereaffirm theprimacy ofthemultilateral trading system, which
includes aframework forthedevelopment ofregional trade agreements, and
werenew our commitment toensure that regional trade agreements are
complementary toitandconsistent with itsrules. Inthisregard, wewelcome
theestablishment andendorse thework ofthenew Committee onRegional
Trade Agreements. We shall continue towork through progressive
liberalization intheWTO aswearecommitted intheWTO Agreement and
Decisions adopted atMarrakesh, andinsodoing facilitate mutually supportive
processes ofglobal andregional trade liberalization.Regional
AgreementsWT/MIN(96)/DEC/W
Page3
8. Itisimportant that the28applicants now negotiating accession
contribute tocompleting theaccession process byaccepting theWTO rules
andbyoffering meaningful market access commitments. Wewill work to
bring these applicants expeditiously intotheWTO system.Accessions
9. TheDispute Settlement Understanding (DSU) offers ameans forthe
settlement ofdisputes among Members that isunique ininternational
agreements. Weconsider itsimpartial andtransparent operation tobeof
fundamental importance inassuring theresolution oftrade disputes, andin
fostering theimplementation andapplication oftheWTO agreements. The
Understanding, with itspredictable procedures, including thepossibility of
appeal ofpanel decisions toanAppellate Body and provisions on
implementation ofrecommendations, has improved Members 'means of
resolving their differences. Webelieve thattheDSU hasworked effectively
during itsfirsttwoyears. Wealsonote therolethatseveral WTO bodies have
played inhelping toavoid disputes. Werenew ourdetermination toabide by
therules and procedures oftheDSU and other WTO agreements inthe
conduct ofourtrade relations andthesettlement ofdisputes. Weareconfident
thatlonger experience with theDSU, including theimplementation ofpanel
andappellate recommendations, will further enhance theeffectiveness and
credibility ofthedispute settlement system.Dispute
Settlement
10. Weattach high priority tofullandeffective implementation ofthe
WTO Agreement inamanner consistent with thegoal oftrade liberalization.
Implementation thus farhas been generally satisfactory, although some
Members have expressed dissatisfaction with certain aspects. Itisclear that
further effort inthisarea isrequired, asindicated bytherelevant WTO bodies
intheir reports. Implementation ofthespecific commitments scheduled by
Members with respect tomarket access inindustrial goods and trade in
services appears tobeproceeding smoothly. With respect toindustrial market
access, monitoring ofimplementation would beenhanced bythetimely
availability oftrade and tariff data. Progress has been made also in
advancing the WTO reform programme inagriculture, including in
implementation ofagreed market access concessions anddomestic subsidy and
export subsidy commitments.Implementation
11. Compliance with notification requirements has not been fully
satisfactory. Because theWTO system relies onmutual monitoring asameans
toassess implementation, those Members which have not submitted
notifications inatimely manner, orwhose notifications arenotcomplete,
should renew their efforts. Atthesame time, therelevant bodies should take
appropriate steps topromote full compliance while considering practical
proposals forsimplifying thenotification process.Notifications
and
Legislation
12. Where legislation isneeded toimplement WTO rules, Members are
mindful oftheir obligations tocomplete their domestic legislative process
without further delay. Those Members entitled totransition periods areurged
totake steps asthey deem necessary toensure timely implementation of
obligations asthey come intoeffect. Each Member should carefully review all
itsexisting orproposed legislation, programmes andmeasures toensure their
fullcompatibility with theWTO obligations, andshould carefully consider
points made during review intherelevant WTO bodies regarding theWTO
consistency oflegislation, programmes andmeasures, andmake appropriate
changes where necessary.WT/MIN(96)/DEC/W
Page4
13. The integration ofdeveloping countries inthemultilateral trading
system isimportant fortheir economic development and forglobal trade
expansion. Inthisconnection, werecall thattheWTO Agreement embodies
provisions conferring differential andmore favourable treatment fordeveloping
countries, including special attention totheparticular situation ofleast-
developed countries. We acknowledge thefact that developing country
Members have undertaken significant new commitments, both substantive and
procedural, andwerecognize therange andcomplexity oftheefforts thatthey
aremaking tocomply with them. Inorder toassist them inthese efforts,
including those with respect tonotification andlegislative requirements, we
will improve the availability oftechnical assistance under the agreed
guidelines. Wehave alsoagreed torecommendations relative tothedecision
wetook atMarrakesh concerning thepossible negative effects ofthe
agricultural reform programme onleast-developed and netfood-importing
developing countries.Developing
Countries
14. Weremain concerned bytheproblems oftheleast-developed countries
andhave agreed to:
aPlan ofAction, including provision fortaking positive
measures, forexample duty-free access, onanautonomous
basis, aimed atimproving their overall capacity torespond to
theopportunities offered bythetrading system;
seek togive operational content tothePlan ofAction, for
example, byenhancing conditions forinvestment andproviding
predictable and favourable market access conditions for
LLDCs 'products, tofoster theexpansion anddiversification of
their exports tothemarkets ofalldeveloped countries; andin
thecase ofrelevant developing countries inthecontext ofthe
Global System ofTrade Preferences; and
organize ameeting with UNCTAD andtheInternational Trade
Centre assoon aspossible in1997, with theparticipation of
aid agencies, multilateral financial institutions and least-
developed countries tofoster anintegrated approach to
assisting these countries inenhancing their trading
opportunities.Least-Developed
CountriesWT/MIN(96)/DEC/W
Page5
15. Weconfirm ourcommitment tofullandfaithful implementation ofthe
provisions oftheAgreement onTextiles andClothing (ATC). Westress the
importance oftheintegration oftextile products, asprovided forintheATC,
into GATT 1994 under itsstrengthened rules anddisciplines because ofits
systemic significance fortherule-based, non-discriminatory trading system and
itscontribution totheincrease inexport earnings ofdeveloping countries.
Weattach importance totheimplementation ofthisAgreement soastoensure
aneffective transition toGATT 1994 byway ofintegration which is
progressive incharacter. Theuseofsafeguard measures inaccordance with
ATC provisions should beassparing aspossible. Wenote concerns regarding
theuseofother trade distortive measures andcircumvention. Wereiterate the
importance offully implementing theprovisions oftheATC relating tosmall
suppliers, new entrants andleast-developed country Members, aswell asthose
relating tocotton-producing exporting Members. Werecognize theimportance
ofwool products forsome developing country Members. Wereaffirm thatas
partoftheintegration process andwith reference tothespecific commitments
undertaken bytheMembers asaresult oftheUruguay Round, allMembers
shall take such action asmay benecessary toabide byGATT 1994 rules and
disciplines soastoachieve improved market access fortextiles andclothing
products. Weagree that, keeping inview itsquasi-judicial nature, theTextiles
Monitoring Body (TMB) should achieve transparency inproviding rationale for
itsfindings and recommendations. Weexpect that theTMB shall make
findings and recommendations whenever called upon todosounder the
Agreement. We emphasize theresponsibility oftheGoods Council in
overseeing, inaccordance with Article IV:5 oftheWTO Agreement and
Article 8oftheATC, thefunctioning oftheATC, whose implementation is
being supervised bytheTMB.Textiles
and
Clothing
16. The Committee onTrade andEnvironment hasmade animportant
contribution towards fulfilling itsWork Programme. TheCommittee hasbeen
examining and will continue toexamine, inter alia,thescope ofthe
complementarities between trade liberalization, economic development and
environmental protection. Full implementation oftheWTO Agreements will
make animportant contribution toachieving theobjectives ofsustainable
development. Thework oftheCommittee hasunderlined theimportance of
policy coordination atthenational level inthearea oftrade andenvironment.
Inthis connection, thework oftheCommittee hasbeen enriched bythe
participation ofenvironmental aswell astrade experts from Member
governments andthefurther participation ofsuch experts intheCommittee 's
deliberations would bewelcomed. The breadth andcomplexity oftheissues
covered bytheCommittee 'sWork Programme shows thatfurther work needs
tobeundertaken onallitems ofitsagenda, ascontained initsreport. We
intend tobuild onthework accomplished thus far,andtherefore direct the
Committee tocarry outitswork, reporting totheGeneral Council, under its
existing terms ofreference.Trade and
EnvironmentWT/MIN(96)/DEC/W
Page6
17. Thefulfilment oftheobjectives agreed atMarrakesh fornegotiations
ontheimprovement ofmarket access inservices -infinancial services,
movement ofnatural persons, maritime transport services and basic
telecommunications -hasproved tobedifficult. Theresults have been below
expectations. Inthree areas, ithasbeen necessary toprolong negotiations
beyond theoriginal deadlines. Wearedetermined toobtain aprogressively
higher level ofliberalization inservices onamutually advantageous basis with
appropriate flexibility for individual developing country Members, as
envisaged intheAgreement, inthecontinuing negotiations andthose scheduled
tobegin nolater than 1January 2000. Inthiscontext, welook forward tofull
MFN agreements based onimproved market access commitments andnational
treatment. Accordingly, wewill:
achieve asuccessful conclusion tothenegotiations onbasic
telecommunications inFebruary 1997; and
resume financial services negotiations inApril 1997 with the
aim ofachieving significantly improved market access
commitments with abroader level ofparticipation inthe
agreed time frame.
With thesame broad objectives inmind, wealso look forward toa
successful conclusion ofthenegotiations onMaritime Transport Services inthe
next round ofnegotiations onservices liberalization.
Inprofessional services, weshall aimatcompleting thework onthe
accountancy sector bytheend of1997, and will continue todevelop
multilateral disciplines andguidelines. Inthisconnection, weencourage the
successful completion ofinternational standards intheaccountancy sector by
IFAC, IASC, andIOSCO. With respect toGATS rules, weshall undertake
thenecessary work with aview tocompleting thenegotiations onsafeguards
bytheendof1997. Wealsonote thatmore analytical work willbeneeded on
emergency safeguards measures, government procurement inservices and
subsidies.Services
Negotiations
18. Taking note thatanumber ofMembers have agreed onaDeclaration
onTrade inInformation Technology Products, wewelcome theinitiative taken
byanumber ofWTO Members andother States orseparate customs territories
which have applied toaccede totheWTO, who have agreed totariff
elimination fortrade ininformation technology products onanMFN basis as
well astheaddition byanumber ofMembers ofover 400products totheir
listsoftariff-free products inpharmaceuticals.ITA and
PharmaceuticalsWT/MIN(96)/DEC/W
Page7
19. Bearing inmind that animportant aspect ofWTO activities isa
continuous overseeing oftheimplementation ofvarious agreements, aperiodic
examination andupdating oftheWTO Work Programme isakeytoenable the
WTO tofulfil itsobjectives .Inthiscontext, weendorse thereports ofthe
various WTO bodies. Amajor share oftheWork Programme stems from the
WTO Agreement and decisions adopted atMarrakesh. Aspart ofthese
Agreements anddecisions weagreed toanumber ofprovisions calling for
future negotiations onAgriculture, Services andaspects ofTRIPS, orreviews
andother work onAnti-Dumping, Customs Valuation, Dispute Settlement
Understanding, Import Licensing, Preshipment Inspection, Rules ofOrigin,
Sanitary and Phyto-Sanitary Measures, Safeguards, Subsidies and
Countervailing Measures, Technical Barriers toTrade, Textiles andClothing,
Trade Policy Review Mechanism, Trade-Related Aspects ofIntellectual
Property Rights and Trade-Related Investment Measures. Weagree toa
process ofanalysis andexchange ofinformation, where provided forinthe
conclusions andrecommendations oftherelevant WTO bodies, ontheBuilt-in
Agenda issues, toallow Members tobetter understand theissues involved and
identify their interests before undertaking theagreed negotiations andreviews.
Weagree that:
the time frames established inthe Agreements will be
respected ineach case;
thework undertaken shall notprejudge thescope offuture
negotiations where such negotiations arecalled for; and
thework undertaken shall notprejudice thenature ofthe
activity agreed upon (i.e.negotiation orreview).Work
Programme
and
Built-in
Agenda
20. Having regard totheexisting WTO provisions onmatters related to
investment and competition policy and thebuilt-in agenda inthese areas,
including under theTRIMs Agreement, andontheunderstanding thatthework
undertaken shall notprejudge whether negotiations will beinitiated inthe
future, wealsoagree to:
establish aworking group toexamine therelationship between
trade andinvestment; and
establish aworking group tostudy issues raised byMembers
relating totheinteraction between trade and competition
policy, including anti-competitive practices, inorder toidentify
anyareas that may merit further consideration intheWTO
framework.Investment
and
CompetitionWT/MIN(96)/DEC/W
Page8
These groups shall draw upon each other 'swork ifnecessary andalso draw
upon andbewithout prejudice tothework inUNCTAD andother appropriate
intergovernmental fora. Asregards UNCTAD, wewelcome thework under
way asprovided forintheMidrand Declaration andthecontribution itcan
make totheunderstanding ofissues. Intheconduct ofthework ofthe
working groups, weencourage cooperation with theabove organizations to
make thebest useofavailable resources andtoensure thatthedevelopment
dimension istaken fully into account. The General Council will keep the
work ofeach body under review, andwilldetermine after twoyears how the
work ofeach body should proceed. Itisclearly understood that future
negotiations, ifany, regarding multilateral disciplines inthese areas, willtake
place only after anexplicit consensus decision istaken among WTO Members
regarding such negotiations.
21. Wefurther agree to:
establish aworking group toconduct astudy ontransparency
ingovernment procurement practices, taking into account
national policies, and, based onthisstudy, todevelop elements
forinclusion inanappropriate agreement; andTransparency
in
Government
Procurement
direct theCouncil forTrade inGoods toundertake exploratory
andanalytical work, drawing onthework ofother relevant
international organizations, onthesimplification oftrade
procedures inorder toassess thescope forWTO rules inthis
area.Trade
Facilitation
22. Intheorganization ofthework referred toinparagraphs 20and21,
careful attention will begiven tominimizing theburdens ondelegations,
especially those with more limited resources, andtocoordinating meetings
with those ofrelevant UNCTAD bodies. The technical cooperation
programme oftheSecretariat willbeavailable todeveloping and, inparticular,
least-developed country Members tofacilitate their participation inthiswork.
23. Noting thatthe50th anniversary ofthemultilateral trading system will
occur early in1998, weinstruct theGeneral Council toconsider how this
historic event canbestbecommemorated.
*****
Finally, weexpress our warmest thanks totheChairman ofthe
Ministerial Conference, Mr.YeoCheow Tong, forhispersonal contribution to
thesuccess ofthis Ministerial Conference. Wealso want toexpress our
sincere gratitude toPrime Minister Goh Chok Tong, hiscolleagues inthe
Government ofSingapore and thepeople ofSingapore fortheir warm
hospitality andtheexcellent organization they have provided. Thefactthat
thisfirstMinisterial Conference oftheWTO hasbeen held atSingapore isan
additional manifestation ofSingapore 'scommitment toanopen world trading
system.