EMBARGO: NOT FORPUBLICATION BEFORE
0001 HRS GMT FRIDAY 19DECEMBER 1997
PRESS/85
8December 1997
WTO SECRETARIAT RELEASES 1997 ANNUAL REPORT
Secretariat examines recent successes andfuture challenges
Thenew"WTOAnnualReport1997",publishedtoday(Friday19December),containsadetailed
account ofthethirdand,perhaps, busiest yearoftheWorld Trade Organization sofar.Following
theunequivocal voteofconfidence given bytheWTO 'sfirstMinisterial Conference inSingapore last
December, themember governments tackled awide range ofissues during 1997 toensure thatthe
WTO remains avibrant, relevant andmultilateral rules-based system.
TheReport highlights some ofthemajor trends intrade policy during 1997. Forexample,
on15February, 69governments agreed towide-ranging liberalization measures inbasic
telecommunications services. On26March, forty governments agreed tocutcustoms duties on
information technology products, beginning on1July1997 andwiththeaimofeliminating allduties
onthese products by2000. International trade ininformation technology products amounts tosome
US$600 billion annually, while domestic andinternational revenue generated inthebasic
telecommunications sector isroughly thesame amount.
Awhole chapter oftheReport isdevoted toexploring indepth theinteraction between trade
policy andcompetition policy. While itrecognizes theadverse effect oncompetition thatgovernment
trade measures mayhave, thechapter focuses ontheeffects thatenterprise practices canhave in
restricting ordistorting trade. Itexamines thenational legalmeans employed bygovernments toprevent
orremedy suchenterprise behaviour andthepossible areas where enhanced international co-operation
might beexplored.
Initsreview ofdevelopments inworld trade in1996, theReport provides amore detailed
analysis, confirming andexpanding onthefindings oftheWTO Secretariat 'spreliminary assessment
published inApril 1997. TheReport examines ingreater depth trade flows byregion andproduct,
intra-trade ofregional integration agreements, andtrends incommercial services trade. World trade
slowed down markedly inrealandnominal terms in1996. Realmerchandise exports grew by5per
cent-much lessthaninthetwopreceeding years -butremained above thesluggish growth ratesof
theearly 1990s. There wasalsoageneral slowdown byregion, withonlyAfrica ontheexport side
andLatin America ontheimport siderecording higher growth in1996 thanin1995. Theanalysis
issupported byafullvolume oftrade statistics andcharts.
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Initsprospective lookat1997, theReport states thatworld tradeandoutput growth areexpected
toaccelerate incomparison to1996. TheReport 'searlyassessment oftradein1997isbased oneconomic
indicators available atthetimeofwriting inAugust 1997. Events during theautumn arenotcaptured
intheassessment. Nevertheless, itappears thattheforecast ofglobal growth intrade of7percent
inrealterms for1997remains broadly inlinewithexpectations. Theeffects ofdevelopments inAsian
financial markets willbecome apparent indatafor1998. Regarding theSouth EastAsian region, the
Report maintains that,while recent developments inthefinancial sector inanumber ofthesecountries
willcontinue toposepolicy challenges inthemonths ahead, most oftheeconomies concerned are
expected togrow atratesabove theworld average in1997.
TheReport summarizes under fourmainpoints thetrade policy challenges confronting WTO
member governments inthemonths andyears ahead:
- the"built-in agenda" carried overfromtheUruguay Round mustbecarried forward
expeditiously;
- theimportance ofensuring thatregional trade arrangements arecompatible withthe
rules andobjectives oftheWTO 'smultilateral trading system;
- future negotiations andthecontinuing WTO work programme musttakefullaccount
oftheneeds ofallthemembership, especially those countries facing risks of
marginalization;
- thenewareas ofwork identified byMinisters atSingapore inrelation totrade and
investment, trade andcompetition policy, transparency ingovernment procurement,
andtrade facilitation must beeffectively addressed under theterms oftherelevant
mandates.
Reflecting theverybroad scope oftheWTO, theReport alsogives anaccount oftheactivities
oftheinstitution, highlighting some ofthemajor issues which weredebated ornegotiated bythemember
governments inthevarious councils, committees andworking parties. Intotal, theWTO nowhas
64suchbodies and27legal instruments under itspurview, compared with20bodies and10legal
instruments in1986 under theformer GATT.
Notes toEditors
1. TheReport comprises 2volumes andcovers theperiod to31August 1997. Volume Icontains
thedescriptive commentary andanalysis ofworld trade, developments intrade policy, thework of
theWTO, andaspecial chapter ontrade andcompetition policy. Volume IIisdevoted exclusively
totrade statistics intheform oftables andcharts.
2. Copies ofthe2-volume Report areavailable onsaleinEnglish, French andSpanish, priced
SFr75,from WTO Publications, World Trade Organization, Centre William Rappard, 154ruede
Lausanne, CH-1211 Geneva 21Tel:(4122)7395208 or5308 Fax: (4122)7395792 Email:
publications@wto.org. TheWTO Internet site(http://www.wto.org) provides afacility forordering
on-line.
3. Review copies areavailable forjournalists, oneperrequest, fromtheInformation andMedia
Relations Division, WTO Secretariat, Centre William Rappard, 154ruedeLausanne, CH-1211
Geneva 21(Tel: 022-739-5019, Fax:022-739-5458).
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