99-3772 MOREPRESS RELEASE
PRESS/137
14 September 1999
MOORE DELIVERS FIRST SPEECH AS DIRECTOR-GENERAL
"TRADE FOR DEVELOPMENT – THE WAY AHEAD"
          In his first speech as Director-Gen eral of the World Trade Organization, Mike Moore today
(14 September) addressed the Group of 77 Ministerial Meeting in Marrakesh, Morocco, charting his
priorities on the way ahead for trade and development.  Mr. Moore is the first Director-General of theGATT or the WTO to address the G77.
Mr. Moore reiterated his commitment to assist developing countries in the trading system by
ensuring that trade liberalization continues in a way that brings real benefits to all countries;  that rules
are developed in ways that are useful and practical for developing countries; that procedures for“contingent” protection are applied fairly so such measures do not become a substitute for old-
fashioned protectionist barriers; that access to dispute settlement mechanism is available on an
equitable basis; and that information about the WTO’s activities is readily available to all Members.
Highlighting his particular concern for the least-developed countries, Mr. Moore said he
wanted to build on the initiative to get duty-free access for all products of export interest to LDCs.  He
urged the Group of 77 Ministers to send a strong message to the WTO’s forthcoming MinisterialConference in Seattle supporting this initiative.
Mr. Moore emphasized the contribution to development made by the WTO’s principles of
progressive trade liberalization and enforceable rules. They enhance the independence of sovereign
states through negotiated agreements reached by consensus among Member governments and agreedby their parliamentary process, and are the best guarantee that consumers and producers have in
developed and developing countries, he said.
The full text of Mr. Moore’s speech is attached.PRESS/137
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MORETRADE FOR DEVELOPMENT – THE WAY AHEAD
Address to the Group of 77 Ministerial Meeting
Marrakesh, Tuesday 14 September 1999.PRESS/137
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MOREYour Majesty, Your Royal Highnesses, Excellencies, Ladies and Gentlemen:
Before getting down to my subject, I should like to thank the Kingdom and Government of Morocco,
and my good friend Ambassador Nacer Benjelloun, who chairs the Group of 77 in Geneva, most
warmly for giving me this opportunity to speak to you today.  It was of course at Marrakesh, here in
this very building, that the WTO was established under the inspired guidance of his late Majesty,King Hassan II.
Morocco has always made an outstanding contribution to the development of the multilateral trading
system, particularly through the vision and determination of its Ministers and Officials.  I would like
to pay particular tribute to Ambassador Hassan Abouyoub, who as Trade Minister did so much to help
set the WTO on the right track.
For all these reasons, I am pleased to give my first formal speech as Director-General in Marrakesh,
not only because this is the birthplace of the WTO, but because it enables me to advocate a cause to
which I am totally committed:  that the WTO is a family in which every Member has an equal place at
the table.
We are here in preparation for the two major international events of importance to world trade and
development:  the third Ministerial Conference of the WTO – perhaps the most important held so far,
coming as it does at the end of the first implementation phase of the Uruguay Round Agreements, and
on the verge of new negotiations;  and the tenth Conference of UNCTAD, which will help define the
trade and development agenda for the new millennium.
I recall that, at the opening session of the 1994 Ministerial Conference, the then Crown Prince (now
His Majesty King Mohammed VI) paid tribute to the constructive part played by developing countries
in ensuring the success of the negotiations.  He also made the link between the development strategy
of developing countries and access to industrialized countries' markets, and the need for the latter tobe more responsive to developing countries' expectations.  His Majesty was right then, and he is  right
now.  I hope we can honour him in Seattle by agreeing on significant steps to assist developing
countries in the trading system.  I have made this commitment from my first day on the job.
From Public Apathy to Controversy
The Uruguay Round began in the face of public apathy.  No-one can say this about the planned
Ministerial.  One thing I can assure you:  in Seattle there will be no apathy – (and that's a deliverable!)
Now we have gone from apathy to anxiety and even  anger, not just from demonstrators, but from
those that feel that for far too long they have been locked out and from those who fear for their
security as we move into the post industrial age.
Not all our critics are wrong. Some of their criticisms are founded on fact.  However, others are
founded on misperceptions.  And still others are founded on ideological differences.
It is true that, in the last few years and particularly since 1997, the economic situation for many
developing countries has not been improving in the way that many people hoped it would in the early1990s.  The Asian crisis – originating in financial shortcomings and a consequent fall in confidence –
has had its impact on the world economy.  Prices for most raw materials have fallen, harming
resource-intensive economies.  Demand in previously fast-growing economies has fallen, leading to
lower rates of imports,  perverse change in the trade balances of many developing countries, and a
lack of export as well as import capacity in many cases.  A serious human crisis, with sharply growingpoverty and social unrest has returned to many countries that were pulling themselves into higher
levels of development.PRESS/137
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MOREBut we also have to recognize that until the Asian financial crash, the process of progressive trade
liberalization was creating new jobs, structural ch anges, and remarkable growth in income in many
developing countries.  Our task now is to learn from the lessons of the 1997 crash, and try to ensure
that trade and financial sector liberalization are managed in a way which can guarantee greater
stability at the macro-economic level, better income distribution within nations, and a better deal for
the poorest both within countries and among countries.
There is another lesson we need to take away from the Asian crisis, and that is that the situation would
have been much worse if the leaders of the region had not stood firm in their commitment to open
markets.  It's very important to remember as well how critical it is that the markets of the North
remained open.  WTO rules contributed to this firm stance and to markets remaining open.
Trade Liberalization, Trade Rules and Development
I don't have to blow the trumpet for the WTO.  The th irty applicants that want to join our organization
are doing this for me.  Trade is not the answer to all of our problems, but it certainly provides part of
the solution.  The principles of our organization –binding of negotiated commitments, progressive
trade liberalization, and enforceable rules - are well recognized.  They are being applied both on the
global and the regional scale, and are a necessary safeguard against protectionist impulses.  They arethe best guarantee that consumers and producers in developing and developed countries have.
The WTO set of principles and rules also goes to the heart of another development issue – good
governance.  Today, every government wants foreig n direct investment and many important leaders
are heading missions to attract capital.  Direct investment, under conditions which take into accountlocal values, is critical to development and comp lements trade. Many countries are now recognizing
that the way to attract foreign direct investment is to demonstrate to the world that their trade regimes
are stable and credible.  This can be done, and is being done, in the WTO system by locking in
reforms through multilateral commitments.
Good governance is not just something that Finance Mi nistries talk about with the World Bank - it is,
and has always been a fundamental element of the WTO system of rights and obligations. Our
mission is to enhance the independence of the sovereign state through agreements reached by the
consensus of our Member governments, agreed by their parliamentary process.
Interdependence can become a guarantor of independence.  We can offer the gift of opportunity, but
that opportunity can be squandered.  It was once squandered in my own country, through bad
governance, bad government, and by "think big" projects which had more to do with the needs of a
political party than of the taxpayer and economic logic. We have learned this lesson in New Zealand
to our cost and I am encouraged by statements from leaders about good governance and the need for
coherence among the WTO and other international institutions.  A good step forward would be an
agreement on transparency in government purchasing.
The Uruguay Round and its outcome
The Marrakesh Agreements resulting from the Uruguay Round transformed the network of world
trade rules from a relatively simple structure – GATT plus the plurilateral agreements – into a muchmore comprehensive, but also complex, system of rules covering goods and services.  They opened
the way to greater liberalization in agriculture and textiles, reduced tariffs in many areas of
manufactures, created a framework for negotiation of  new international conditions for trade in
services (and opened up many areas, including financial services and telecoms) and gave a firm
footing to a previously ineffective and unstable system of dispute settlement.
Five years on, we should be open and transparent enough to say what we did right at Marrakesh and
what we did wrong, as well as the unfinished business. We should also admit that the "game"PRESS/137
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MOREchanges, new circumstances intervene and that often the best economic predictions are in hindsight.
But broadly, I would say that we got it right on liberalization of tariffs and quantitative restrictions;we started out in the right directions with agriculture and services;  and we got it very substantially
right on dispute settlement.  Anything can be improved and must be.
As we can see from the agenda for Seattle, there is a lot of unfinished business and much fine tuning
to be done.  Many of us are disappointed that the Uruguay Round has not delivered the sort of resultsthat we wanted.  Many of us are concerned that the package has not been adequately balanced to
reflect our needs. It is not surprising that five years after Marrakesh many of you are clamouring for
changes and corrections. I agree.  That is why we must have a round.
I would like to restate the three aims that I gave myself on my first day as Director-General:- to facilitate and to assist all participants to get the most balanced outcome from the new
negotiations, and an outcome which benefits the most vulnerable economies;
- to be an advocate for the benefits to both great and modest nations of a more open trading
system, and one that can increase living standards and build a more prosperous, safer world;
and
- to strengthen the WTO and its rules, to build on and maintain its reputation  for integrity and
fairness, and to reshape the organization to reflect the reality of its membership and their
needs.
What do these three aims mean in practice?
First, to make sure that trade liberalization continues in a way that brings real benefits to all
countries but especially to developing countries.
I would see this particularly in the areas of agriculture, processed foods, and sensitive sectors like
textiles.  There are still too many high tariffs. Tariffication of QRs in agriculture was good, because it
revealed clearly how high levels of protection on many products are.  Our task now is to begin to
reduce these high tariffs, as well as tackling the issue of agricultural subsidies and support systems.
This is delicate because it will involve new pressures on developed countries at a time when many oftheir own farmers are in difficulties.  But we must find a way to open up access for competitive
products, including from developing countries.
Second, to ensure that rules are developed in a way that developing countries can use them.Many Ministers and Ambassadors of developing countries tell me that their problems stem from the
complexity of international rules, or their inability to apply them. They are correct. This is a serious
concern that must be addressed. Wealthy countries know this, and increasingly they are aware of the
importance of full engagement by all WTO Member Governments.  John F. Kennedy said, before the
Kennedy Round was launched, that a rising tide lifts all boats.  He was right.  Today I would describe
these boats as part of a convoy, in which we are all dependent on each other and which must all
advance together.
We must therefore make sure that negotiated rules are fair, well understood, and applicable, and that
both time and help are given to developing countries to apply them.  This will require a substantial
increase in both technical and financial assistance.
Third, to make sure that rules and procedures for "contingent" protection are applied fairly, and that
such measures don't become a substitute for old-fashioned protectionist barriers.PRESS/137
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MORESince the Uruguay Round, there has not been an enor mous growth in the use of these measures, but
it's clear that developing countries have borne a more-than-proportionate burden, that certain sectorsof interest to developing countries have been targets, and that some developing countries themselves
have become experts in using these measures.  Ministers have told me that the world trade system
works until their products start to have an impact – that is, until they accept the gift of opportunity.
Fourth, to ensure that access to the dispute settle ment mechanism is available on an equitable basis.
Many of you have complained about the cost of DSU procedures and it is clear that there is an
imbalance here.  This must be addressed.  One option is the creation of a Legal Advisory Centre,
which many of our Members support. There are so me other good ideas as well. The instrument to
achieve a better outcome is debatable, the objective is not.
Fifth, to make sure that information about the WTO and its activities is readily available to all
Members, including the most vulnerable.
The rapid growth and the complexity of the WTO's activities have become a problem for many
Members who have either small delegations in Geneva or none at all.  We must improve the
effectiveness of our communications with small delegations in Geneva and with non-residents in otherEuropean stations, and at home.  We need to be sure that our information is accurate and appropriate,
that it gets to the right people, and that it is usable by the Ministers and advisers who need it.
I appreciate the generosity of the wealthy countries that have contributed funds to important
programmes for development.  I have appointed a highly experienced individual to advise me, aformer Ambassador from a small developing country, to see how we can better serve those Members
without representation in Geneva and to audit our efforts so far.  As a first step, we shall hold a week
of briefings for WTO Members and Observers without  missions in Geneva, early in November.  The
purpose of this "Geneva Week" will be to brief senior officials from capitals, and non-resident
Ambassadors in Europe, about the Seattle process, and also to expose them to other agencies inGeneva with interests in trade and development, including UNCTAD as it prepares for its Bangkok
conference.  I hope we can make a regular practice of such briefing sessions in Geneva.
But these assistance efforts must not stop at Seattle.  After Seattle we must do even more to make the
vision of Seattle a reality for families and our people.
The least-developed countries
One group of WTO Members for which I have a particular concern is the LDCs.  Together, these
account for about half a percentage point of world trade.  Most of them are highly dependent on a few
export products and their trade and economic outlook is generally bleak.  This must change.
I want to build on the initiative begun by Renato Ruggiero as an "achievable" at Seattle:  to get bound,
duty-free access for all products of export interest to  LDCs.  It would be splendid if this Conference
could send a strong message to Seattle supporting this initiative.
But what the LDCs also need - like many other developing countries, but more so – is capacity
building to enable them to trade, grow and diversify.  Ministers and Ambassadors have been very
supportive so far of the work we are doing, hand-in-hand with UNCTAD, the ITC, UNDP, the World
Bank and the IMF.  The "Integrated Framework", agreed in Geneva in 1997, must be a reality and not
just a series of documents – action, not alibis.  I w ould hope that you can also press strongly for this in
Seattle. I am strengthening our Secretariat efforts in favour of the LDCs by appointing a colleague asCoordinator for the LDCs.  His firs t task will be to support Members in their efforts to achieve, at
Seattle,  the access terms that LDCs need, and to put flesh on the bones of the Integrated Framework.
I hope you will also give this new initiative your strong support.PRESS/137
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ENDSince the WTO was formed, demand for technical assistance has rocketed. We are doing our best to
respond to these demands, on our own and in cooperation with other international organizations, aswell as with experts from individual WTO Members. We have already strengthened and diversified
our training programmes, which are recognized as a quality product, and these are now again under
review. Anything can be improved.  In this we need your advice.
There can never be enough technical assistance.  Success breeds new demands that have to be
satisfied. We need to be able to plan for a steady increase in technical assistance to meet the new
demands that will undoubtedly result from Seattle.  I hope that you, Ministers and Ambassadors, will
support my request that our growing technical assistance, which is now largely financed from trust
funds, be in future funded from our regular budget.  This should not, of course, crowd out special
contributions for individual projects. This would give us and you the certainty we all need. It is after
Seattle that we have to boost assistance, so we don't face problems with negotiations and
implementation. The problem won't go away, but neither will I and neither will you.
Special and differential treatment, and participation of developing countries
Ministers and Ambassadors from developing countries have identified the "modernization" of special
and differential treatment as a priority at Seattle.  I would also like to thank Rubens Ricupero and his
staff for the work they have done in this area.  We must work together to understand what kinds of
special conditions are likely to be most effective in ensuring that developing countries are able to
apply the negotiated agreements and benefit from them to the full – what some have described as
"making space for policies" to implement market-oriented development strategies.
Concluding remarks
The Seattle process is a challenge for us all.  As a Secretariat, we have to make sure that the
preparation is done well.  This means in an inclusive manner, which adequately reflects all interests.
For Governments, the challenge is to identify those interests and make them clear early. We will doour best to make sure you know what the parameters of negotiations are, and that you receive the best
possible advice when you request it.
But you and I know that success at Seattle will not be the result of any Secretariat's work.  We know
that Governments are better prepared for these negotiations than for any previous round.  We alsoknow that the stakes are greater than ever before. Before I go, perhaps we should remind ourselves
why we are here.  Trade is not an end in itself, it is a means to an end.  It will raise living standards
when the system gives fair opportunity.  From that comes better outcomes.  And I don't have to tell
you because you have told me that despite our best efforts, over 3 billion people exist on less than $2
per day.  Market access alone won't do the job;  it has to be backed up by capital, training,
infrastructure and sound governance.  The tyranny and debt of history weighs heavy on resources and
burdens the options of many governments.  One UNCTAD report recently spoke of a country wheredebt repayment is up to 9 times what is spent on health - and that in the midst of an aids epidemic.
Coherence is a cliché.  However, clichés are normally truths.  I want to help put that truth into action.
Ladies and Gentlemen, this meeting of the G77 is therefore an important step on the way to reaching
the well balanced outcome that I personally am looking for, and that I believe our peoples need, want
and deserve.  I am, and I will remain your servant, will do my best to shape the WTO - which is onlyone sister of the multilateral family of organizations - so it can help make the next century a century
of persuasion unlike so much of this cent ury which too often was a century of coercion.
Thank you.