WORLD TRADE
ORGANIZATIONWT/MIN(01)/ST/96
11 November 2001
(01-5674)
MINISTERIAL CONFERENCE
Fourth Session
Doha, 9 - 13 November 2001Original:  English
LITHUANIA
Statement by H.E. Mr Evaldas Ignatavi čius
Deputy Minister of Foreign Affairs
I am glad to have this opportunity to address you on behalf of Lithuania at the Fourth
Ministerial Conference of the World Trade Organization here in Doha, Qatar.  It is my pleasure and
duty to present you our thoughts and share our opinion on the agenda and objectives of thisconference.
This Fourth Ministerial Conference in Doha is very important to us, since it is the first
Ministerial Conference where my country participates as a fully fledged Member of the WTO.  After
a complex accession process we are happy to be in the WTO "club" and to have this opportunity toparticipate in the discussion on global trade issues.  It  strengthens our feeling that we are a part of the
integrated world economy, able to enjoy benefits and fulfil obligations arising thereof.
The current situation in the world places a huge responsibility on the WTO, as a global
Organization.  It is WTO that can help us to restore confidence in the future of global economy.  We
believe that launching a new WTO negotiations round would strongly contribute to that.  Since a
success of a new round is very important to the world community, we must be very cautious.  Failureof Seattle must be taken into account, and mistakes that contributed to the failure must not be
repeated.  We live in a diverse world, a world where numerous interests struggle.  The WTO is the
right place to compile those interests and find the best solution.  It is already clear that focus purely on
trade development is not the best path to reach global welfare.  Many other factors, such as social
problems, health and environmental protection, should be reflected in the outcomes of thisconference.
We urge the WTO to reconsider the process of globalization.  No way does this mean we
have to stop integrating economies.  On the contrary, this process must continue and gain tempo.
However, in order to solve complex problems that arise, we have to develop a broad and flexibleattitude.  We must understand that economic welfar e, human health and environment protection are
equally important nowadays.  Therefore, we do call for sustainable development.
This is where so-called "new issues" come into play in the WTO agenda.  Seeking transparent
and rule-based global trading system, Lithuania supports the idea that investment, competition,environment and also development issues related to trade, as well as trade facilitation and
transparency in government procurement should be subject to further regulations in the WTO context.
Such regulations could lead to faster development and growth in the countries of economies
in transition.  One might doubt effectiveness of negotiations, when multiple issues are being
discussed.  We do agree that this might be difficult.  On the other hand, this can not be avoided, given
the complexity of problems that we face.WT/MIN(01)/ST/96
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We all know perfectly that any theory is of little empirical worth if it cannot be applied in
practice.  Provisions governing free trade will only be effective if their implementation is feasible.
Here it is necessary to stress the experience of Uruguay Round results when the commitments did not
bring expected outcome, especially for the developing countries and countries in transition.  Since
these countries experience certain difficulties implementing Uruguay Round Agreements, we must alltogether find a solution to improve the situation.  We are obliged to do it for the sake of global
integration.
In fact, misbalance in the current trade system, which was created by the Uruguay Round, is
one of the major reasons contributing to a need to renegotiate world trade policy.  This misbalance is
especially obvious when we come to talk about agricultural issues.  The balance and benefits to all
Members are essential, and we believe that Article 20 of the Agreement on Agriculture is a solidbackground for that.  Lithuania believes that Article 20 should serve as a basis for further negotiations
on agriculture.
The agricultural sector for Lithuania, as well as for most other countries in transition, is the
most sensitive sector in terms of economics, politics, and social security.  Transformation of theagricultural sector, switching from planned economy to market-oriented model, was very painful,
compared to other sectors, and the situation was ex aggerated even more by loss of traditional markets.
From the very beginning of economic reforms the Government of Lithuania took measures to
restructure the agricultural sector having an aim to increase its efficiency and competitiveness
including trade liberalization measures, often even more liberal than those of most participants of theUruguay Round.  Being sure that present problems are temporary, Lithuania continues its agricultural
reform.  However, it is necessary to maintain an appropriate trade policy mechanism to ensure the
continuation of reforms and to prevent destruction of the sector.  In other words, some level of
flexibility in negotiations is required for economies in transition.
Lithuania, as recently acceded country, recognizes benefits of the substantial progressive
reductions in support and protection in the long run.  That is why we made commitments to liberalize
our agriculture policy upon accession - just five months ago.  However, due to the specific situation of
recently acceded countries, a special treatment to them is required.  A solution, encompassing
increased international competition, respective flexibility and recent accession commitments must be
found.  Otherwise, liberalization according to the uniform model applied to the developed countries
will cause deeper distortion of the Lithuanian agricultural sector, creating tremendous economic andsocial problems.  We are sure that other countries recently acceded to the WTO are facing the same
difficulties and have similar needs in agriculture as well as in other sectors, therefore we support their
legitimate requests.
We are not convinced that Lithuania, as well as other recently acceded countries, needs to
make further commitments for substantial improvements and reductions in a new round, because we
have already made those just recently, upon accession.  It should be well-known that recently acceded
countries have made substantial market access commitments, often going far beyond those which had
been made during the Uruguay Round.  There is a major threat that new commitments, resulting in
double liberalization, could destabilize the situation in recently acceded countries, which mightdeteriorate the liberalization process instead of improving it.  Let me assure you once again that we
understand the importance of liberalization and global integration and we support efforts to lift market
restrictions.  That, however, must be done in a sophisticated way in order to achieve a mutually
acceptable result.  Straightforward actions are not an option in this case.  A problem is complex,
therefore a wise solution, accounting for many variables, must be found.
We would also like to emphasize the lack of balance between trade and non-trade interests.
Allow us to express the opinion that non-trade concerns in agriculture are not a token, to which a
tribute has to be paid.  It is a real issue, which must be accounted for.  Only by finding a balanceWT/MIN(01)/ST/96
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between trade and non-trade concerns a fair and balanced agricultural trading system can be
established.
Therefore, taking into account the aim to base further liberalization on a mutually
advantageous basis and an overall balance of rights and obligations and the coexisting concernexpressed hereby, recently acceded countries seek flexibility and appropriate accommodation of their
concerns in the Ministerial Declaration and further process of negotiations.
We do hope that a new round will encompass those multiple issues that we have pointed out,
thus contributing to the image of the WTO as a uni versal system.  However, in order to be truly
universal in every meaning of this word, the WTO still has to expand its borders.  Such major players
in the world trade arena as the Russian Federation and other CIS countries must be taken aboard.  It isin the interests of all of us.
Having said all that, I would like to stress once again that a balanced agenda of the new WTO
round reflecting interests of all the Members of the WTO should be built and followed in further
negotiations.
As a final comment once again I would like to say that Lithuania strongly supports calls to
start a new round of negotiations on trade liberalization.  The WTO is understood as the global and
authoritative forum of progressive and globally advantageous liberalization.  The WTO is also seen as
a well-founded body for establishing, strengthening and clarifying rules and principles of theinternational trading system.  Mr Chairman, dear representatives of Member countries, it is our duty
to justify this perception and to prove that we are able to cope with problems arising in a way to
wealth and prosperity of the whole world.  Wishing all the best for this conference, I would like to
thank the distinguished authorities of Qatar for all th eir hard work and efforts that were put in order to
organize this conference and for the hospitality we have been shown.  Let us hope that this favourableatmosphere will contribute to favourable results of this conference.
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