WORLD TRADE WT/MIN(98)/ST/15
18May1998
ORGANIZATION(98-1999)
Original: English MINISTERIAL CONFERENCE
Second Session
Geneva, 18and20May1998
MALTA
Statement Circulated bytheGovernment ofMalta
TheWorld Trade Organization (WTO) willbecelebrating the50th Anniversary ofthe
multilateral trading system during thecourse ofitssecond Ministerial Conference. Itiswithgreat
satisfaction and,indeed, withasense ofpride, thatthe132Member countries participating atthe
Conference willpause toregister theprogress andtoacknowledge theachievements thathavebeen
made possible during thelast50years through theGATT initiative.
Without anydoubt, theestablishment ofthemultilateral trading system hasmade animportant
contribution towards growth, employment andstability bypromoting theliberalization andexpansion
oftrade andbyproviding aframework fortheorderly conduct ofinternational trade relations. The
results attained overthepastyears underline itsfundamental importance fortheprosperity ofthe
world economy whilst therapid paceofchange andofglobal economic integration poseformidable
challenges forthefuture.
Onthisparticular occasion itisperhaps appropriate tolookatthepathwewentthrough over
thepast50years. Wealsoneedtolookintothefuture inorder tochart awinning strategy that
would reflect ourcommon ambitions andaspirations.
Thehistoric Agreement reached atMarrakesh in1994, which ledtothecreation oftheWTO,
must behailed asatriumph totheprinciples offair,freer, open andnon-discriminatory trade;
principles thathavebeenmoulded intotheirpresent formovertimeinthechequered history ofGATT
since 1947. Through thecelebrations ofthisGolden Jubilee, theWTO willbedemonstrating once
more totheworld atlarge itsdetermination tocontinue withthework thatisnecessary toensure that
therewillbetradewithout discrimination andaccording tofaircompetition. Thework thatstillneeds
tobedoneisvoluminous andwillbenomean task. However, the50thAnniversary celebrations will
giveanopportunity tothe132WTO Member countries toassess theirsituation andtoreaffirm once
again theircommitment tothereduction ofbarriers totrade, aswellastoreaffirm theircommitment
totransparency indomestic laws, regulations andpractices.
Thesuccess ofthemultilateral trading system hasbeenunderpinned bythebelief thatanopen
international trading system, anditsroleinpromoting economic prosperity, isanessential element
ininternational peace andstability. Following aperiod ofeconomic destruction anddepression, when
turning inwards created adescending spiral ofdeclining output andtrade, theonlyroute toeconomic
reconstruction andrecovery depended upon progress towards openmarkets andliberalized trade.
Stability andpredictability ininternational traderelations areonlysecured through amutually
agreed system ofrules, binding onallMember countries andenforceable through dispute settlement.
Thecentrepiece andguiding ideaofsuchasystem isnon-discrimination thathelps tomanage the
interaction among different national economies.WT/MIN(98)/ST/15
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There isnodoubt thattrade liberalization within theWTO rules-based system hasfacilitated
trade onaglobal basis. World trade statistics prove this. Thescope andpaceofchange inthe
international economy offer opportunities forimproved growth. Atthesame time, developments
outside one'sdomestic jurisdiction mayrequire adjustments internally, bothsocially andeconomically,
andthere aretimes when these developments andadjustments poseserious problems anddifficulties,
which needtobeaddressed effectively. Wewould bedeluding ourselves ifwedonotacknowledge
this,andworst still, wewould beinflicting injustices tothelessresilient ifwedonotprovide
acceptable solutions orthenecessary aidwhere necessary.
Right from thebeginning theoverriding mission ofthetrading system toimprove human
welfare hasbeenclear. Thepreamble totheGATT emphasises thattrade liberalization should be
conducted withaview toraising standards ofliving, ensuring fullemployment andalarge and
steadily growing volume ofrealincome. Forover50years thesystem hasfulfilled thatmission in
awaywhich hasmade animmeasurable contribution tocreating amore prosperous andstable world.
Furthermore, theWTO isimplementing several initiatives thatprovide thefoundations upon which
tobuild forthefuture.
These developments provide important frameworks within which governments canendeavour
topromote prosperity. Thisisalsorelevant forsmall economies likeMalta. Wehave anopen
economy withnonatural resources. Thus, oureconomic strategies areessentially dependent on
international trade; withmanufacturing, tourism, shiprepair andshipbuilding, transhipment activities
andfinancial services being themain sources ofgrowth. TheMaltese Government believes thatthe
private sector should provide themain stimulus toeconomic growth andthataproperly managed
multilateral system canpromote andsupport sustainable development.
TheMaltese Government alsosupports initiatives being taken tofurther amore efficient trade
inservices. Wehavemanifested thiscommitment through ouroffers intourism, insurance, merchant
shipping andfinancial services. Wearealsofollowing veryclosely thediscussions andnegotiations
thataretaking place inother sectors.
Indeed, whatwearewitnessing intradematters attheinternational levelisasustained process
byallparties concerned toagree theground rules inallspheres where trade istobeconducted; the
hammering intoshape ofsound good practice onaglobal scale atapaceofthetrade liberalization
process thattheMembers oftheWTO canagree toandfollow. Thisprocess hasalready beenset
inmotion, isendorsed by132Member countries, andisbeing actively followed attheinternational
forawithexperts fromaround theglobe debating issues andfinding consensus ontheimplementation
process andthepacewithwhich thisshould beundertaken. Thein-built strength oftheWTO lies
inthefactthatitoperates byconsensus andthatallMember countries arecommitted toitsrules.
What canbeimplemented immediately andwhat timeisnecessary forsome countries toadjust
themselves tothenewtrading scenario must always bekeptinfocus: otherwise thelessefficient
economies willbeadversely affected andmaysuffer fromtheeffects ofimpoverishment. TheWTO,
while furthering theinterests ofthedeveloped anddeveloping Member countries, mustkeepinfocus
theeffects ofdecisions taken onallitsMembers, notwithstanding thataconsensus mayhavebeen
reached forthose decisions. Thewisdom thathasbeen shown indeveloping theconcepts of
non-discrimination andopenfreetrade mustalsobeshown inkeeping aconstant watch fornegative
effects where these occur. Itseems reasonable thattheWTO actsasafacilitator bysetting upthe
necessary structure towork out,through theconsensus process, anappropriate programme forthose
Member countries thatmanifest thattheywould besignificantly adversely affected bydecisions taken
byWTO.
Wenotewithsatisfaction thatthemultilateral system hasalsobroadened anddeepened the
agenda totakeaccount ofnewrealities ininternational economic relations. Theincorporation oftrade
inservices brought aninvestment dimension intothesystem, andrules havebeendeveloped fortheWT/MIN(98)/ST/15
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protection oftrade-related intellectual property rights. Wealsoseeprogress being made onthe
relationship between trade andinvestment, trade andcompetition policy andprocurement thatwere
launched inSingapore.
Theneedforthesystem toaccommodate changing realities suchastheriseoftheinformation
economy andtechnological advances intransportation, creates unprecedented opportunities aswell
aschallenges ofensuring thatthebenefits from these newdevelopments arewidely spread. The
challenges facing governments today andinthefuture callforconcerted action onavariety offronts.
Moreover, newissues suchaselectronic commerce areincreasingly demanding some pro-active
response atamultilateral level.
While several negotiations suchasonagriculture, services andaspects ofintellectual property
arealready scheduled forthenewcentury, trade issues willcontinue tomove tothecentre ofdebate
astrade policy continues tomove beyond simple border tariffs towards deeper issues. Indeed, one
oftheobjectives ofthesecond WTO Ministerial Conference istoagree awork programme forthe
nexttwoyears. Ascanbededuced from recent speeches bytheDirector-General oftheWTO, in
allprobability thewayforward fortheWTO willbetocontinue towork forconsensus building for
freetrade inallitsaspects withnobarriers ofterritory orspace, andwithequal opportunities forall.
Needless tosaythisisanarduous taskandnoteasily attainable. Italsoimplies thatwhere conditions
andrestrictions onfreetrade remain, theoverriding principle should bethatrules andregulations
applied byWTO Members must befair,non-discriminatory andconsistently applied. Intheway
forward, there willalsobetheneed tore-enforce thedecision taken intheSingapore WTO
Ministerial Conference thatwhile theWTO should concentrate ontradeliberalization andtrade-related
matters, itshould alsorender itssupport, andofferitsexpertise, toother international institutions in
fullrecognition oftheirrespective roleandcompetence. Itisanacknowledged factthatglobalization
drives ustoestablish linkages notonlyrelated totrade butalsotoawidearray ofother aspects. The
ultimate aimwould stillbethatoffostering economic growth aswellasinternational stability anda
better quality oflife.
Inthelight oftheadvancement oftechnology, thesystem should keep pace with the
technological frontier. Breakthroughs ininformation technologies andtelecommunications are
borderless while opening unprecedented opportunities toreach newglobal frontiers. Theimpressive
development oftelecommunications andinformation technologies willreduce significantly thephysical
marginalization ofanincreasing number ofpeople inareas such ashealth care, through the
development oftelemedicine, andofeducation through long-distance learning. Inview ofthese
advancements, theroleofthemultilateral trading system istoensure thatpolicies andregulations are
inplace sothatthebenefits reaped areshared equitably among allthecountries. TheWTO isalready
working onprogrammes inthisdirection, especially intelecommunications andinformation
technologies.
Asignificant development overtheyears, firstthrough GATT, andnowthrough theWTO,
hasbeen thecreation oftherules-based discipline inallaspects oftrade. Thisallows economic
development onaglobal basis while mitigating some ofthenegative impacts offreetrade bythe
introduction, asnecessary, ofreforms atapacethatcanbesustained bytheparticipating countries.
Thevision thatisbeing projected todateisonethatwould remove barriers totrade inaprogressive
manner andatasustainable pace; avision thatwould ensure thatalltrade isconducted inafairand
equitable manner andinconformity withrulesandregulations which giveaccess tofairopportunities.
Itisunderstood thattheWTO work programme forthecoming twoyears willbestructured inthis
manner.
There isnodoubt thatthere isavision within theprecepts oftheWTO, an"ideal scenario",
which isverydifficult toachieve atleastintheforeseeable future. Work tomake thisvision areality
isbeing pursued inWTO withtheutmost intensity andatasustainable pace, butalways withtheWT/MIN(98)/ST/15
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consensus building negotiation process strictly adhered to.Results achieved todateareencouraging
andvirtually embrace allsectors ofeconomic activity.
Oneofthemain priorities oftheWTO istocontinue themomentum towards universal
membership ofthesystem. Thisimplies thecompletion oftheaccession negotiations currently under
waywithout compromising thesystem 'sbasic rules, rights andobligations. Within thisspirit, the
successful accession ofnewcountries isalsoimportant tofurther strengthen theWTO asthebody
capable ofeffectively managing atrading system ofglobal proportions andscope. Moreover, another
dimension touniversality istheneedtoensure thatallcountries havethecapacity toparticipate fully
intheglobal economy.
Inthisregard, regional agreements havemade apositive contribution totheliberalization of
world trade. Inmany cases, regional arrangements haveprovided stepping stones forintegration into
theglobal trading system. Moreover, regional integration hasoffered countries anopportunity tostart
resolving issues thatwould bemore difficult toresolve inthewider multilateral context.
This view issupported with theexperiences inMalta, particularly with regard tothe
Association Agreement withtheEuropean Union, which accounts forsome 80percentofMalta 's
international trade transactions. Thisdoesnotimply thatMalta prefers regionalism perse.Indeed,
while regionalism canprovide animportant complement tothemultilateral system, itisnotits
substitute.
Ascanbeexpected, theliberalization process inacomplex international forum isalaborious
oneandthisiswhyitmust bebuiltonconsensus. Theimpact ofdecisions taken places significant
responsibility ontheWTO toensure thatthebenefits thatshould accrue fromsuchanexercise would
ultimately serve humanity best. This isalong order, which isclearly difficult toachieve.
Furthermore there isanonustrustupon eachMember country tosafeguard theinterests oftheleast
ableamong itscitizens. Members mustorganize themselves better andrestructure according totheir
needs andcapability. They havealsothemoral obligation toprotect theleastableoftheircitizens
tobeinaposition tocopewiththeextra burdens thatemanate fromsuchaprocess ofliberalization.
TheWTO canalsocontribute towards afullpartnership oftoday'sleast-developed countries
intheglobal economy. Indeed, anumber ofMember countries areexploring steps thatcanbetaken
toincrease market access fortheleast-developed countries byextending existing preference schemes,
particularly inareas suchastextiles andagriculture. Moreover, oneneeds toexplore ways thatwould
enable least-developed countries tohave better access tothecontinuous advances ininformation
technology.
Asweapproach thenextmillennium, developed countries willcontinue intheir march
forward withanagenda thatseeks toextend theprinciples offreetrade from aregional toaglobal
andfinally toauniversal dimension. They must, however, alsoseektosupport andhelpboth
developing andleast-developed countries toovercome therealdifficulties thattheyinvariably
encounter inorder toadjust toopencompetition within appropriate time-frames.
Atfifty, themultilateral trading system hasnotreached theendoftheprocess butrather the
beginning ofawhole newphase. Theneedforgreater security andstability through multilateral rules
propels theWTO towards thecentre ofanewglobal economic system, deepening theneed for
transnational rules, while vastly widening thescope andnumber ofeconomic actors. Today, the
WTO faces newchallenges andopportunities. Ithasacatalytic roletoplayincreating and
developing theborderless, global economy. Malta looks forward toparticipate further andcontribute
towards thisprogress thatshould seeusthrough thenextmillennium.
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