WORLD TRADE
ORGANIZATIONWT/MIN(01)/ST/54
11 November 2001
(01-5634)
MINISTERIAL CONFERENCE
Fourth SessionDoha, 9 - 13 November 2001Original:  English
MALAYSIA
Statement by the Honourable Dato Seri Rafidah Aziz
Minister of International Trade and Industry
Since 1996, soon after the completion of the Uruguay Round, and the establishment of the
WTO, calls have been made to launch a new round of trade negotiations to strengthen the multilateral
trading system and to respond to the rapid changes brought about by the process of globalization.
Clearly the UR could not realize a trading system that would be relevant right into the
21st Century.  However, the multilateral trading system continued to show resilience and more
countries are applying to become members of the WTO.
Malaysia takes this opportunity to welcome China as a new WTO Member and express
confidence that China will be able to contribute  towards the strengthening of the global trading
system and defend the WTO rules and disciplines.
This Ministerial Conference in Doha was convened with the high expectation that there will
be the launch of a new Round of Multilateral Trade Negotiations, with emphasis to the residual issues
unresolved during the last Round.
Discussions during the meeting of Heads of Delegations yesterday indicate that while there is
that overriding objective and agreement to launch a new round, there are still divergences in positions
pertaining to the issues on the table that constitute the basis for the agenda of a new round.
While some aspects of individual issues can lend themselves to flexibility and compromise,
there are particular issues that are clearly extraneous to trade, that must be cleared off the agenda rightfrom the start.  Any attempt to bring such contentious issues into WTO discussions will only serve to
widen the dissenting positions, as many countries are strongly opposed to bringing in those issues intothe WTO.  Labour standards clearly has no place in the WTO, and no country should attempt to
reintroduce it into the present or future discussions.
The linking of environment to trade has been and will continue to be contentious, as there is
the valid concern that the environment factor can indeed be used for protectionist purposes.  Malaysia
cannot accept the presumption that investment issues would be ready for decision on negotiating
modalities for the Fifth Session, and that investment issues be even part of the negotiating process.
The other new issues, namely competition and government procurement have much to do
with sovereign rights of governments to determine domestic policies to achieve particular
developmental goals.  The imposition of multilateral rules and disciplines in these areas, without a
clear and thorough understanding of the rami fication and manifestation, can impinge upon and
undermine those sovereign rights.WT/MIN(01)/ST/54
Page 2
It cannot be denied that countries which vie for foreign direct investments must have in place
Investment Regimes that are attractive, predictable and business friendly.  But binding universally
applicable investment rules and disciplines, wi thout adequate flexibilities may result in the
marginalization of domestic economic considerations.
Malaysia agrees to the ongoing process of clarifying and explaining the new issues, but
without any objective of undertaking negotiations.
Perhaps, in order to enable WTO Members to benchmark their individual practices and
regimes, the WTIO can initiate the evolution of Best Practice Modules for the areas of Investment,
Competition and Government Procurement, emphasizing the aspects of transparency, predictabilityand administrative integrity.  Such reference to Best Practice Benchmarks can assist WTO Membersto improve their own practices and rules, without having to subscribe to multilateral disciplines that
are linked to dispute mechanism.
The experience of many WTO Members during the Uruguay Round shows that even the most
innocuous of subjects can take a life of its own, and evolve into something never envisaged in the firstinstance.  In 1986, mandate was given to negotiate rules to combat counterfeiting.  In 1994 this had
evolved into the Agreement on TRIPS with far-reaching implications and difficulties for developing
countries.
Malaysia does not want to see a repeat of such a situation, especially when new issues have
not been extensively and exhaustively discussed and elaborated from all aspects.
It is for this reason that Malaysia urges the WTO to adopt new approaches when dealing with
issues that impinge on sensitive domestic policies.  The WTO cannot treat the new issues in the same
manner as market access for goods and services.  We may need to look into the possibility of startingwith non-binding guidelines which carry no pena lty clauses or dispute settlement procedures.
In short, the WTO must have a realistic approach when dealing with these new issues that are
not ready to be dealt with in negotiations, but require continued educative process for better
understanding of the many implications.
Implementing commitments made in any Multilat eral Trade Round have been proven to have
high element of cost to many WTO Members and the question of capacity building has always been
raised.
Malaysia would like to propose that the WTO establish a special unit within its structure, that
can formulate and implement programmes such as in Human Resource Development, technical andlegal assistance and other necessary capacity building measures than can directly involve the
personnel of WTO Members requiring such assistance.  The unit can also serve as the conduit for
channelling financial assistance to WTO Member countries, which come from International FinancialInstitutions.
Malaysia supports the launching of a new Round, but it is important that the consensus
approach continue to prevail in the decision-ma king.  We should not subject ourselves to purely
political expedience, or to be dictated by the need to send signals to the world.
After all, the WTO is the world.  The signals in the WTO Conference are there for us to
discern and to make out.  For Malaysia, the signals that we have detected are as follows:
(a) Many countries are comfortable launching a new round with a limited agenda
package which contain the mandated issues and also industrial tariffs.WT/MIN(01)/ST/54
Page 3
(b) Many countries are not ready to discuss negotiations on the new or Singapore issues,
but can go along with further work on the educative process.
(c) Developing countries' concerns on issues such as Special and Differential Treatment,
tariff peaks and tariff escalation, and market access must be seriously addressed.
(d) Development objectives must be given due weightage, and not be marginalized in the
attempt to introduce and implement multilateral rules and disciplines.
(e) Extraneous and non-trade issues such as labour standards must not be brought into
WTO discussions.
Increasingly, domestic political constituency considerations are driving decision-making and
negotiating positions of economic majors, rather than realistic economic considerations.
It is important that the integrity of the WTO and WTO work programmes be maintained and
not be tarnished by countries sidetracking from trade issues.
Malaysia hopes that the Doha Ministerial can come to a positive conclusion, so that WTO
Members can mutually benefit from the future work of the WTO.
Certainly the launch of a new Round here in Doha would put the multilateral trading system
on to a higher plane.  But to launch a new Round, a consensus is mandatory, and as at this point of
time a consensus is not forthcoming.
Malaysia would like to reiterate the possibility of launching a new round based on a limited
agenda package, which  comprises of the mandated issues of implementation, services, agriculture
and market access for non-agricultural products.
The new issues should be considered as a separate phase of the round, to be examined
thoroughly by all Members before any decision on bringing them into any negotiating process can be
made.
Malaysia feels that trying to have an all-encompassing agenda package that includes new and
contentious issues which clearly cannot garner broad support, let alone a consensus, will certainly
result in this Doha Ministerial not launching a new Round.
The choice is whether Members continue to have widely divergent positions well beyond
Doha, or that we judiciously and realistically agree on key  issues that can constitute a viable and
manageable agenda for work in a new Round of multilateral trade negotiations, which can be
launched here in Doha.  We can choose to either have a Doha failure or a Doha new Round.
__________