WORLD TRADE
ORGANIZATIONWT/MIN(98)/ST/15/Rev.1*
20 May 1998
(98-2155)
MINISTERIAL CONFERENCE
Second Session
Geneva, 18 and 20 May 1998Original:  English
MALTA
Statement Circulated by the Honourable Leo Brincat
Minister of Finance and Commerce
Revision
The World Trade Organization (WTO) will be  celebrating the 50th Anniversary of the
multilateral trading system during the course of its second Ministerial Conference.  It is with great
satisfaction and, indeed, with a sense of pride, that the 132 Member countries participating at the
Conference will pause to register the progress and to acknowledge the achievements that have been
made possible during the last 50 years through the GATT initiative.
Without any doubt, the establishment of the multilateral trading system has made an
important contribution towards growth, employment and stability by promoting the liberalization and
expansion of trade and by providing a framework for the orderly conduct of international trade
relations.  The results attained over the past years underline its fundamental importance for the
prosperity of the world economy whilst the rapid pace of change and of global economic integration
pose formidable challenges for the future.
On this particular occasion it is perhaps appropriate to look at the path we went through over
the past 50 years.  We also need to look into the future in order to chart a winning strategy that would
reflect our common ambitions and aspirations.
The historic Agreement reached at Marrakesh in 1994, which led to the creation of the WTO,
must be hailed as a triumph to the principles of fair, freer, open and non-discriminatory trade;
principles that have been moulded into their present form over time in the chequered history of GATT
since 1947. Through the celebrations of this Golden Jubilee, the WTO will be demonstrating oncemore to the world at large its determination to conti nue with the work that is necessary to ensure that
there will be trade without discrimination and according to fair competition.  The work that still needs
to be done is voluminous and will be no mean task.  However, the 50th Anniversary celebrations will
give an opportunity to the 132 WTO Member countries to assess their situation and to reaffirm once
again their commitment to the reduction of barriers to  trade, as well as to reaffirm their commitment
to transparency in domestic laws, regulations and practices.
The success of the multilateral trading system has been underpinned by the belief that an open
international trading system, and its role in promo ting economic prosperity, is an essential element in
international peace and stability.  Following a period of economic destruction and depression, when
                                                     
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turning inwards created a descending spiral of declining output and trade, the only route to economic
reconstruction and recovery depended upon progress towards open markets and liberalized trade.
Stability and predictability in international trade relations are only secured through a mutually
agreed system of rules, binding on all Member countries and enforceable through dispute settlement.
The centrepiece and guiding idea of such a system is non-discrimination that helps to manage the
interaction among different national economies.
There is no doubt that trade liberalization within the WTO rules-based system has facilitated
trade on a global basis.  World trade statistics prove this.  The scope and pace of change in the
international economy offer opportunities for improved growth.  At the same time, developments
outside one's domestic jurisdiction may require adjustments internally, both socially and
economically, and there are times when these developments and adjustments pose serious problems
and difficulties, which need to be addressed effectively.  We would be deluding ourselves if we do not
acknowledge this, and worst still, we would be inflicting injustices to the less resilient if we do notprovide acceptable solutions or the necessary aid where necessary.
Right from the beginning the overriding mission of the trading system to improve human
welfare has been clear.  The preamble to the GATT emphasises that trade liberalization should be
conducted with a view to raising standards of living, ensuring full employment and a large and
steadily growing volume of real income.  For over 50 years the system has fulfilled that mission in away which has made an immeasurable contribution to creating a more prosperous and stable world.
Furthermore, the WTO is implementing several initiatives that provide the foundations upon which to
build for the future.
These developments provide important framew orks within which governments can endeavour
to promote prosperity.  This is also relevant for small economies like Malta.  We have an openeconomy with no natural resources.  Thus, our economic strategies are essentially dependent on
international trade;  with manufacturing, tourism, ship repair and shipbuilding, transhipment activities
and financial services being the main sources of growth.  The Maltese Government believes that the
private sector should provide the main stimulus  to economic growth and that a properly managed
multilateral system can promote and support sustainable development.
The Maltese Government also supports initiatives being taken to further a more efficient trade
in services.  We have manifested this commitment through our offers in tourism, insurance, merchant
shipping and financial services.  We are also following very closely the discussions and negotiations
that are taking place in other sectors.
Indeed, what we are witnessing in trade matters at the international level is a sustained
process by all parties concerned to agree the ground rules in all spheres where trade is to be
conducted;  the hammering into shape of sound good practice on a global scale at a pace of the trade
liberalization process that the Members of the WTO can agree to and follow.  This process has
already been set in motion, is endorsed by 132 Member countries, and is being actively followed at
the international fora with experts from around the globe debating issues and finding consensus on the
implementation process and the pace with which this  should be undertaken.  The in-built strength of
the WTO lies in the fact that it operates by consensus and that all Member countries are committed toits rules.  What can be implemented immediately and what time is necessary for some countries to
adjust themselves to the new trading scenario must always be kept in focus: otherwise the less
efficient economies will be adversely affected and may suffer from the effects of impoverishment.
The WTO, while furthering the interests of the developed and developing Member countries, must
keep in focus the effects of decisions taken on all its Members, notwithstanding that a consensus mayhave been reached for those decisions.  The wisdom  that has been shown in developing the concepts
of non-discrimination and open free trade must also be shown in keeping a constant watch forWT/MIN(98)/ST/15/Rev.1
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negative effects where these occur.  It seems reasonable that the WTO acts as a facilitator by setting
up the necessary structure to work out, through the consensus process, an appropriate programme for
those Member countries that manifest that they would be significantly adversely affected by decisions
taken by WTO.
We note with satisfaction that the multilateral system has also broadened and deepened the
agenda to take account of new realities in international economic relations.  The incorporation of tradein services brought an investment dimension into the system, and rules have been developed for the
protection of trade-related intellectual property rights.  We also see progress being made on the
relationship between trade and investment, trade and competition policy and procurement that were
launched in Singapore.
The need for the system to accommodate changing realities such as the rise of the information
economy and technological advances in transportation, creates unprecedented opportunities as well as
challenges of ensuring that the benefits from these new developments are widely spread.  Thechallenges facing governments today and in the future call for concerted action on a variety of fronts.
Moreover, new issues such as electronic commerce are increasingly demanding some pro-active
response at a multilateral level.
While several negotiations such as on agriculture, services and aspects of intellectual property
are already scheduled for the new century, trade issues will continue to move to the centre of debateas trade policy continues to move beyond simple border tariffs towards deeper issues.  Indeed, one of
the objectives of the second WTO Ministerial Conference is to agree a work programme for the next
two years.  As can be deduced from recent speeches by the Director-General of the WTO, in all
probability the way forward for the WTO will be to continue to work for consensus building for free
trade in all its aspects with no barriers of territory or space, and with equal opportunities for all.Needless to say this is an arduous task and not easily  attainable.  It also implies that where conditions
and restrictions on free trade remain, the overriding principle should be that rules and regulations
applied by WTO Members must be fair, non-discriminatory and consistently applied. In the way
forward, there will also be the need to re-enforce the decision taken in the Singapore WTO Ministerial
Conference that while the WTO should concentrate on trade liberalization and trade-related matters, itshould also render its support, and offer its expertise, to other international institutions in full
recognition of their respective role and competence.  It is an acknowledged fact that globalization
drives us to establish linkages not only related to trade but also to a wide array of other aspects. The
ultimate aim would still be that of fostering economic growth as well as international stability and a
better quality of life.
In the light of the advancement of technology, the system should keep pace with the
technological frontier.  Breakthroughs in information technologies and telecommunications are
borderless while opening unprecedented opportunities to reach new global frontiers. The impressive
development of telecommunications and informa tion technologies will reduce significantly the
physical marginalization of an increasing number of people in areas such as health care, through the
development of telemedicine, and of education thr ough long-distance learning.  In view of these
advancements, the role of the multilateral trading syst em is to ensure that policies and regulations are
in place so that the benefits reaped are shared equ itably among all the countries.  The WTO is already
working on programmes in this direction, especially in telecommunications and information
technologies.
A significant development over the years, first through GATT, and now through the WTO,
has been the creation of the rules-based discipline in all aspects of trade.  This allows economicdevelopment on a global basis while mitigating some of the negative impacts of free trade by the
introduction, as necessary, of reforms at a pace that can be sustained by the participating countries.
The vision that is being projected to date is one that would remove barriers to trade in a progressiveWT/MIN(98)/ST/15/Rev.1
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manner and at a sustainable pace;  a vision that would ensure that all trade is conducted in a fair and
equitable manner and in conformity with rules and regulations which give access to fair opportunities.
It is understood that the WTO work programme for the coming two years will be structured in this
manner.
There is no doubt that there is a vision within the precepts of the WTO, an "ideal scenario",
which is very difficult to achieve at least in the foreseeable future.  Work to make this vision a realityis being pursued in WTO with the utmost intensity and at a sustainable pace, but always with the
consensus building negotiation process strictly adhered to.  Results achieved to date are encouraging
and virtually embrace all sectors of economic activity.
One of the main priorities of the WTO is to continue the momentum towards universal
membership of the system.  This implies the completion of the accession negotiations currently under
way without compromising the system's basic rules, rights and obligations.  Within this spirit, the
successful accession of new countries is also important to further strengthen the WTO as the bodycapable of effectively managing a trading system of global proportions and scope.  Moreover, another
dimension to universality is the need to ensure that  all countries have the capacity to participate fully
in the global economy.
In this regard, regional agreements have made a positive contribution to the liberalization of
world trade.  In many cases, regional arrangements have provided stepping stones for integration intothe global trading system.  Moreover, regional integration has offered countries an opportunity to start
resolving issues that would be more difficult to resolve in the wider multilateral context.
This view is supported with the experiences in  Malta, particularly with regard to the
Association Agreement with the European Union, which accounts for some 80 per cent of Malta's
international trade transactions.  This does not imply that Malta prefers regionalism per se .  Indeed,
while regionalism can provide an important complement to the multilateral system, it is not its
substitute.
As can be expected, the liberalization process in a complex international forum is a laborious
one and this is why it must be built on consensus.  The impact of decisions taken places significant
responsibility on the WTO to ensure that the benefits  that should accrue from such an exercise would
ultimately serve humanity best.  This is a long order, which is clearly difficult to achieve.
Furthermore there is an onus trust upon each Member country to safeguard the interests of the least
able among its citizens.  Members must organize themselves better and restructure according to their
needs and capability.  They have also the moral oblig ation to protect the least able of their citizens to
be in a position to cope with the extra burdens that emanate from such a process of liberalization.
The WTO can also contribute towards a full partnership of today's least-developed countries
in the global economy. Indeed, a number of Member countries are exploring steps that can be taken to
increase market access for the least-developed countries by extending existing preference schemes,
particularly in areas such as textiles and agriculture.  Moreover, one needs to explore ways that would
enable least-developed countries to have better access to the continuous advances in information
technology.
As we approach the next millennium, developed countries will continue in their march
forward with an agenda that seeks to extend the principles of free trade from a regional to a global and
finally to a universal dimension.  They must, however, also seek to support and help both developing
and least-developed countries to overcome the real difficulties that they invariably encounter in order
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At fifty, the multilateral trading system has not reached the end of the process but rather the
beginning of a whole new phase.  The need for greater security and stability through multilateral rules
propels the WTO towards the centre of a new global economic system, deepening the need for
transnational rules, while vastly widening the scope and number of economic actors.  Today, the
WTO faces new challenges and opportunities.  It has a catalytic role to play in creating and
developing the borderless, global economy.  Malta looks forward to participate further and contributetowards this progress that should see us through the next millennium.
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