WORLD TRADE WT/MIN(96)/ST/24
9December 1996
ORGANIZATION(96-5190)
Original: Spanish MINISTERIAL CONFERENCE
Singapore, 9-13December 1996
DOMINICAN REPUBLIC
Statement byMr.LuisManuel Bonetti
Minister ofIndustry andCommerce
Theholding ofthisfirstMinisterial Meeting oftheWTO inSingapore gives theDominican
Government anopportunity tosayhow keenly itadmires Singapore 'ssuccess indevising an
outward-looking development model, andIwould liketocongratulate theGovernment andallthepeople
ofSingapore fortheexample youhavesetinorganizing thisfirstMinisterial Conference oftheWorld
Trade Organization insuchanexcellent fashion.
Theoccasion isafitting oneonwhich toreiterate ourunwavering adherence tothestandards
andprinciples oftheWorld Trade Organization (WTO) andthefirmresolve oftheGovernment of
theDominicanRepublictohonourthecommitmentsitassumedwhenitratifiedtheMarrakeshAgreement
Establishing theWorld Trade Organization.
TheDominican Republic, afounder Member oftheGATT, wasquick toaccept theprinciple
ofmultilateralism, whose disciplines arenecessary iftheimpressive expansion ofinternational trade,
driven bythephenomenon ofglobalization, isnottobedetrimental tohuman development andjustice
ineconomic relations between countries atdifferent stages ofdevelopment.
Weare,however,concernedthatmajorfarmingandmanufacturingsectors,inwhichasignificant
proportion ofourpeople stillwork, arebeing leftbehind. Wemusttherefore actdecisively tomake
thestructural changes needed toenable ustoadapt totheprocess ofglobalization, while atthesame
timeminimizing theimpact oftheinevitable social upheavals which willfollow intheirwake. Inthis
connection, ourGovernment hopes forasuccessful conclusion tothetechnical rectification process
thatwassubmitted totheWTO.
Thesocial costofthese reforms isbeing increased bythenegative effect ofthedistortions
offreetradewhich stillpersist ininternational markets. These canbetraced tothosedeveloped countries
which, despite calling foropenmarkets, areslowtoimplement theirowncommitments, anddemolish
remaining protectionist barriers.
Mycountry continues tohopethattheWTO willserve asaninstrument toassist ineliminating
these distortions, inkeeping withthespirit ofbalance between rights andduties which itwasintended
toincorporate intheMarrakesh Agreement.
Nevertheless, inaworld where farming subsidies persist, where newrestrictions arebeing
imposed onthetrade intextiles, where trade barriers arebeing maintained intheservices sectors to
which ourcountries needtogainaccess, inviewoftheiractual orpotential competitive advantages,
andwhere unilateral tradesanctions andextraterritorial measures arestillbeing imposed, itisabsolutely
essential toensure theeffective functioning oftheWTO.WT/MIN(96)/ST/24
Page2
Itwasthehopeforaneffective WTO thatprompted ourGovernment toarrange forthemost
scrupulous fulfilment ofitsobligations, inaprogramme inspired byPresident Fernández, who, ashe
announced inhisinaugural speech, seesthepreparation ofourcountry forglobalization asoneofhis
main priorities.
Furthermore, withaviewtocreating aninstitutional basetofacilitate trade, theDominican
authorities areworking onaforeign trade regime which centralizes trade policy management and,at
thesame time, eliminates thenon-tariff barriers created bypastlaws.
Intextiles, fourmeasures which were incompatible withtheUruguay Round Agreement on
Textiles andClothing havebeenrepealed.
With regard tocustoms valuation, thereforms inprogress have ledtothecomplete
computerizationofcustomsprocedures,thusdramaticallyreducingthemarginofdiscretionandincreasing
efficiency, withtheresult thattheaverage timeforcustoms clearance isnow48hours. There isalso
abillbefore theNational Congress, stemming from thedebate between thesectors concerned with
customs procedures, topromote thereform andstrengthening ofthecustoms. Given theassistance
ofUNDP andtheInter-American Development Bank (IADB) inimplementing these reforms, itwill
bepossible tofullyeliminate minimum import prices within thetransition period.
Inintellectual property, abillhasbeen drawn upbased onthemodel LawoftheWorld
Intellectual Property Organization (WIPO) which, thanks tothecollaboration ofUNCTAD, strictly
follows theprovisions oftheUruguay Round TRIPS Agreement.
However, these efforts havenotbeenmatched byachievements ofequivalent importance for
ourcountry andtherestofLatin America andtheCaribbean during thefirsttwoyears oftheWTO 's
existence.
Inagriculture, therealincrease infarmsubsidies of2.5percentnoted inthelastreport of
theOECD isamatter ofgreat concern. Thisisnottheresult expected almost half-way through the
transition period granted tothedeveloped countries. Moreover, therearestillrestrictions onDominican
farmexportstoourtraditionalmarkets.ThedelayinimplementingtheDecisiononMeasuresConcerning
thePossible Negative Effects oftheReform Programme onLeast Developed andNetFood-Importing
Developing Countries isequally surprising.
Similarly, itseems regrettable thattheUnited States isimposing newquotas ontextile imports,
invoking itsrighttointroduce transitional safeguards, evenastheAgreement onTextiles andClothing
isbeing implemented.
Asregards trade inservices, theresults oftheUruguay Round andsubsequent negotiations
havenotproduced increased participation bydeveloping countries. Evidence ofthisistheunsatisfactory
outcome ofthenegotiations onthemovement ofnatural persons andonshipping.
Furthermore, there hasbeenanalmost totalabsence ofefforts tobring about thetransfer of
technology andfacilitate access toinformation networks, reflecting afailure toimplement Article IV
oftheGeneral Agreement onTrade inServices (GATS) andaconsequent serious imbalance between
therights andduties contained inthatAgreement.
Evenhandedness should alsoprevail inconnection withtheexamination oftheproposals to
shorten thetransitional periods forimplementing theAgreement onTrade-Related Aspects ofIntellectual
Property Rights andtheCustoms Valuation Agreement. Ifanequivalent commitment canbeobtained
onagriculture andtextiles, consideration could begiven totheirmodification.WT/MIN(96)/ST/24
Page3
ThatiswhytheWTO needs toemphasize itswatchdog role. Thenotification system is
undoubtedly animportant toolinthisregard. TheTrade Policy Review Body (TPRB) could alsoperhaps
playapart,ifitsucceeds indeveloping itsowninvestigative capacity, inorder tocarry outitsmandate
toevaluate thesystemic coherence between Members 'trade andother economic policies.
Forthesakeofthetransparency required forgreater vigilance, wesupport thecommencement,
withtheminimum ofdelay, ofinformation sharing, asrequested byseveral delegations, withaview
topreparing properly foraresumption ofthenegotiations onagriculture andservices intheyear2000.
Likewise, within theWTO, weneedtobegin discussing twosubjects ofvitalconcern tothe
Dominican Republic, atatimewhen thereisapressing needtostrengthen multilateral disciplines and
eliminate thedistortions which arehampering theeffective functioning ofthemarket fordeveloping
countries.
There isthusanurgent needtosetuptwoworking groups intheWTO, oneontrade and
investment andtheother ontrade andcompetition.
FortheDominican Republic, foreign investment hashadacrucial roleinexport diversification.
Thepossibleestablishmentofamultilateralframeworkforinvestmentwouldneverthelesscallforserious
discussion ofvarious aspects inanopen-ended working group reflecting theuniversal character ofthe
WTO, andacleardefinition oftherelationship between trade andinvestment, itsimpact oneconomic
development andtheinstruments thatcould beusedtopromote andprotect foreign investment.
Furthermore, itwillbeessential tosupplement multilateral disciplines witharrangements to
guarantee anatmosphere favourable tocompetition inallmarkets, soastocounter restrictive business
practices. Aworking group oncompetition therefore needs tobecreated, alsowithopenmembership,
asanatural complement totheWTO 'sagenda.
Creating these working groups would beconsistent withthenegotiation ofanagreement for
theliberalization ofinformation technology, andwewould therefore liketoplace onrecord ourwish
toseethem dealtwithtogether.
Wewould liketorepeat what wehavealready saidonanumber ofoccasions, namely that
weconsider thatthecompetent forum fordealing withmatters concerned withworkers 'rights isthe
International Labour Organization (ILO). Without denying theimportance oftherights ofworkers
andtheirclaims tosocial benefits, weseenopoint inlinking workers 'rights withthedefence of
commercial interests.
Ihavetriedtodemonstrate totheworld theDominican Republic 'scommitment toglobal trade
freeofdistortions, within which dislocations canbeheldtoaminimum andourpeoples arenot
marginalized.
Thisisthepaththatourdelegation would wishtotake,together withyouall,forthesakeof
greater legitimacy, economic democracy andthesocial justice forwhich westand.