./.WORLD TRADE
ORGANIZATIONWT/MIN(01)/ST/8
10 November 2001
(01-5584)
MINISTERIAL CONFERENCE
Fourth SessionDoha, 9 - 13 November 2001Original:  English
PHILIPPINES
Statement by the Honourable Manuel Roxas II
Secretary of Trade and Industry
We are gathered at a moment of historic opportunity.  We are convened to consider whether
we shall launch a so-called 'Development Round' of negotiations and if so, what principles and
parameters will guide us as we negotiate the specifics of this new round.
Proponents again remind us of the benefits that will accrue developing countries if we agree
to the issues which make up this new round.  Proponents cite the benefits from increased trade;  forthem, this certainly has been their experience.  Ours is different.
While the Philippines subscribes to the theory  that liberalized trade has the potential of
benefiting those engaged in it, our experience since our implementation of the Uruguay Round
Agreements shows that there is a wide gap between the promise and reality.
We envisioned then that opening up our mark ets would spur our own industries to become
more efficient and competitive.  What ensued however, was much dislocation and businesses closed
down.
We envisioned then that market access grated by developed countries would lead to our
increased share of world export trade.  What ensued however was stagnant growth marked by accessto products of marginal export interest to us.
We envisioned then that freer trade would bring in cheaper imported products, thereby
resulting in increased consumer welfare.  What ensued however, was a populace dependent on
imported goods.  Indeed, dependence on essential imported goods – such as medicines – that are notonly unaffordable for the ordinary consumer, but oftentimes unobtainable too.
We envisioned then that developing countries are better off operating under a comprehensive,
and multilateral set of rules rather than under a system where only the powerful decide what the rules
are to be.  What ensued however was the realization that rights of relevance to developing countriescould not be operationalized.
Add to all these, we are hard-pressed by current world economic conditions, the details of
which we all already know.  Midstream in our restructuring process in the aftermath of the financial
crisis, we were caught by these intervening events, leaving us with scarce funds to ease the friction.Thus, presently, we find ourselves in a decidedly hostile environment.
Notwithstanding these trying conditions, the Ph ilippines recognizes the need for a bold and
pro-active response.  This bold response may indeed lie in the launch of a round – a 'Development
Round,' not just a round per se .
However, we should not rush into a round for the sake of merely launching one, that is, solely
for the purpose of confidence-building.  We should be mindful that we can only succeed if we are allWT/MIN(01)/ST/8
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on board.  Though we must sustain confidence in the multilateral trading system through a new trade
round that opens up opportunities for developed and developing countries alike, the agenda should be
broad enough to contain elements beneficial to all WTO Members, but not so broad as to entail
commitments which will be too burdensome for developing countries to implement, even while they
are continuing to struggle in implementing co mmitments agreed to during the Uruguay Round.
To ensure that the WTO does not lose credibility at this crucial point in time, our top priority
is to ensure that the Doha Round is truly a 'Development Round.'  This is our challenge even as we are
all pulled in all different directions.
While the preamble in the draft Declaration provides ingredients for a 'Development Round'
this must be actualized in the substance of the work programme itself.  The nice words and
aspirational notions must permeate the provisions contained therein, and not be stand-alone, isolatedportions disconnected from the specifics.
By a 'Development Round' we mean, negotiations which provide sufficient safety nets for
developing countries.  Mechanisms that will help in strengthening production capability, efficiency
and product competitiveness must be provided and operationalized.  Developed trading partners,together with the WTO and other international institu tions, must work together, so as to ensure that
this round allows businesses in developing countries to compete rather than be obsolete.  Greater
coherence and convergence of policies among international development institutions such as the
World Bank, the IMF and the WTO is necessary in order that trade is mainstreamed in the
development agenda and therefore, capacity building can be focused and targeted.
In agriculture, this means firm recognition of the objective of taking the reform process to its
logical conclusion, that is, the full integration of agriculture into the WTO framework.  All forms of
export subsidies must be expeditiously eliminated.  Not only trade-distorting, but
production-distorting domestic support must be substantially reduced, with a view to phasing theseout in the shortest possible time.  Furthermore, it should be clearly borne in mind by all Members that
special and differential treatment is a principle to be applied for the benefit of developing countries,
rather than appropriated for their own benefit by some developed countries in the guise of
colour-coded boxes.
By a 'Development Round' we mean, negotiations that open up markets in developed
countries for products of relevance to us.  Moreover, in negotiations on market access fornon-agricultural products, this means addressing tariff peaks and escalations and non-tariff barriers
which impede effective access of importance to developing countries.
By a 'Development Round' we mean, a clear recognition of the importance of public health
concerns and the need to clarify certain provisions of the TRIPS Agreement in a manner that wouldensure that Members have the utmost flexibility in adopting measures to protect public health.
Opportunities to leave truly meaningful legacies for the marginalized, such as the proposed
declaration on TRIPS and Public Health, are too few and far between.  We, in this conference, should
not lose our chance.
By a 'Development Round' we mean, full exercise  of the right to compete against developed,
importing markets' own as well as other Members' products on fair, if not equal terms.  Where the
implementation of multilateral trade rules and modalities are proved or are perceived to affect
developing countries in a manner inconsistent with their overall trade and economic development
needs, special and differential treatment must be operationalized or otherwise made available todeveloping countries.
For the Philippines these, among others, are the components necessary for the launch of a
'Development Round.'
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