WORLD TRADE WT/MIN(98)/ST/57
18May1998
ORGANIZATION(98-2053)
Original: English MINISTERIAL CONFERENCE
Second Session
Geneva, 18and20May1998
UNITED STATES
Statement Circulated byAmbassador Charlene Barshefsky,
Trade Representative
Onbehalf oftheU.S. delegation totheSecond Ministerial Conference oftheWorld Trade
Organization, letmeexpress mygratitude totheorganizers ofthisMinisterial Conference, tothe
government ofSwitzerland andthecityofGeneva, andtoalltheMembers oftheWTO.
THE FIFTIETH ANNIVERSARY
This Second Ministerial Conference marks anhistoric anniversary. Fifty years ago,
representatives oftwenty-three nations mettoestablish theGeneral Agreement onTariffs andTrade.
Andbefore focusing onanagenda fortheWTO, letmeoffersome thoughts ontheiraccomplishment
anditsresults.
Inthespring of1948, theworld wasofcourse recovering from thephysical wounds ofthe
Second World War. ButtheGATT wasestablished notonlytorevive economic lifeafter that
catastrophe, buttohealtheolder wound created intheworld economy aftertheFirstWorld War.
Toquote fromJohnMaynard Keynes inTheEconomic Consequences ofthePeace, written in1919:
“What anextraordinary episode intheprogress ofmanwasthatwhich came toanendin
August 1914. Theinhabitant ofLondon could order bytelephone thevarious products of
thewhole earth, andreasonably expect theirearly delivery upon hisdoorstep; hecould at
thesame moment adventure hiswealth inthenatural resources andnewenterprises ofany
quarter oftheworld ...andmostimportant ofall,heregarded thisstateofaffairs asnormal,
certain andpermanent, except inthedirection ofimprovement, andanydeviation from itas
scandalous, aberrant andavoidable. ”
Thefounders oftheGATT hadlearned from bitter experience thatsuchadeviation, while
avoidable, wasentirely possible. Theentire world hadfelttheconsequences ofdismantling theopen
economy. Andtheirtask,inessence, wastoreestablish it.
Theycreated acontractual system, based onabroad vision ofopenness, theruleoflaw,mutual
benefit andenlightened self-interest. Fiftyyears later, weseethattheirwork wasaresounding success.
Themembership ofthesystem hasgrown from23to132,and31more economies haveapplied
tojoin. Itscoverage began withborder measures suchastariffs andquotas. Itmoved ontonon-tariff
barriers intheTokyo Round. IntheUruguay Round itbegan toaddress services, investment, intellectual
property andagricultural trade. Most recently, itbegan tolaythefoundation foranopen21stcentury
economy through lastyear’sagreements onInformation Technology, Basic Telecommunications and
Financial Services.WT/MIN(98)/ST/57
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Asaresult, international exports ingoods havegrown, inrealterms, from $346 billion in
1950to$5.3trillion in1997. Since 1960, growth intrade hashelped tonearly triple world economic
output anddouble world percapita income. Andlastyear, measuring theratiooftrade toworld
economic production, theworld recovered thedegree ofopenness itlastenjoyed inAugust 1914.
Thismeans workers takeadvantage ofhigher skills andlarger markets toraisetheirincome;
andasconsumers, these workers ’incomes havegreater purchasing power astheycanspend itona
wider range ofcommodities andservices thaneverbefore. Inventors, scientists andcreative artists
bring theirwork from thelaboratory andstudio tothecommercial market more quickly andmore
easily --thushelping toeradicate diseases, make factories saferplaces towork, andimprove thequality
oflife. Farmers andranchers earnabetter return fortheirwork, andnations enjoy amore reliable
supply offoodfortheirpeople. Insum, asthetrading system makes theworld more prosperous, it
encourages peaceful resolution ofdisputes, advances theruleoflaw,andhelps Americans andthe
citizens ofallitsmembers livebetter lives.
LOOKING AHEAD
Thisrecord commands respect andadmiration. TheUnited States takes great pride inits
contribution tothesystem forthelasthalf-century. Butthisrecord cannot betheending point. We
mustnowlookahead, tomake sureweserve thenextfiftyyears aswellasthefounders oftheGATT
didthelast. Andwebelieve thesystem nowfaces fourgreat challenges.
First, wemustcomplete theunfinished business ofthefirstfiftyyears inopening markets for
manufactured goods, agricultural products andservices, aswellasimproving thecoverage anddepth
ofthesystem.
Second, wemust integrate newmembers oncommercially meaningful terms, tomake the
rules-based system trulyworldwide.
Third, wemustrespond tothescientific revolution byensuring thatthetrading system helps
promote thedevelopment ofnewandbeneficial technologies andeasestheirpassage fromthelaboratory
tothemarket.
Andfourth, wemustaddress theconcerns ofcitizens about openness, transparency, andthe
effect oftrade onthequality oflife.
Ouropportunity atthisMinisterial istolaythegroundwork forasuccessful approach toeach
ofthese challenges. Letmetakethem upinorder.
THE UNFINISHED WORK
First, completing thework begun sowellfiftyyears ago,andmoving ontobroaden anddeepen
thesystem.
Thateffort begins withthe“built-in agenda ”agreed toattheclose oftheUruguay Round
negotiations. We,likeothers, recognize thatthebuilt-in agenda maynotencompass alltheissues that
theWTO mustaddress --forexample, specific directions toexpand industrial market access orimprove
existing rules. TheUnited States isflexible andopentosuggestions forfurther work, butitisessential
thatweremain faithful tothecommitments oftheUruguay Round onthebuilt-in agenda. This
Conference mustclose withaplanofaction thatprepares usforthelaunch ofthese negotiations when
wenextmeet. TheUnited States would welcome theopportunity tohosttheMinisterial Conference
in1999 thatwillformally launch thenegotiating process.WT/MIN(98)/ST/57
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A. AGRICULTURE --Most immediately, welookahead totheopening ofcomprehensive
negotiations onagricultural trade. These negotiations willcontinue thelandmark reforms ofworld
agricultural trade begun intheUruguay Round. Andwemustdothepreparatory work toallow them
tobegin ontime.
Ifthesenegotiations reach theirpotential, theycancreate aworld which fairly rewards farmers
andranchers fortheir work, offers consumers thebroadest range ofchoices atprices thatreflect
production costs rather thantrade barriers, makes foodsupplies more reliable, andreduces hunger
worldwide. Thetalkswillrequire consultations witharange ofinterests. Butinaddition tosuchissues
asadministration oftariff ratequotas andimplementation ofexisting commitments, letmecitefour
areas webelieve must bepriorities:
Market access: Tariffs onagricultural products remain quitehigh. Weenvision negotiations
forbroadreductionsintariffs,combinedwithimprovedrulesfortariffratequotasandassurances
against useofrestrictive administrative procedures assubstitutes forsuchbarriers.
Export subsidies: Withthebeginning made intheUruguay Round, wemustcontinue working
toreduce andeventually eliminate export subsidies.
Transparency andimproved disciplines onState Trading Enterprises: STEs candistort trade
andfrequently operate insecret. Thiscanbothrestrict imports anddistort trademoregenerally.
Wemustbuilduponourongoing efforts intheWTO ’sWorking Group onSTEs asnegotiations
begin.
Biotechnology :Biotechnology holds tremendous promise forimproving theproductivity of
agricultural producers, enabling them toconserve habitat, andhelping toguarantee thefood
supply. Theprincipal threats tothisarepolicies notbased onscience regarding importation,
planting andlabelling ofbiotechnology products. Theworld ’sproducers mustbeabletouse
safe,beneficial scientific techniques thatmake farms andranches more productive andfriendly
totheenvironment.
B. SERVICES --TheWTO recognizes thatanydiscussion oftheglobalization ofcommerce must
inevitably turntotheroleoftrade inservices. Services --likedistribution, transportation,
telecommunications, design, marketing, theprofessions andmanagement --areessential tothestrategy
ofanybusiness, agricultural orindustrial company, andinabroader sense tothefunctioning ofany
modern, prosperous economy. Anopen, well-regulated services market provides thenecessary
foundation foracountry ’sability tocompete.
IntheUruguay Round, ourmajor accomplishment wastocreate tradedisciplines forthissector
intheGeneral Agreement onTrade inServices. Since then, inthefinancial services andbasic
telecommunications negotiations, wehavedemonstrated ourdetermination toapply those rules ina
waythatprovides newcommercial opportunities forourprivate sectors, promotes equitable economic
growth, andbuilds theinfrastructure foramore interconnected global economy ofthe21stcentury.
Equallyimportant,WTOrulesonservicesapplytoallservicesectors,exceptingonlyairlanding
rights, andincluding services inthecultural industries. Infact,traderuleshaveapplied totheaudiovisual
sector sincethefounding oftheGATT in1947, andhavealways beensufficiently flexible totakeaccount
ofeachcountry ’sunique tradition. Sowhile some countries mayexempt themselves fromWTO rules,
forexample, toprovide support onlytonational artists, others haveusedWTO rules toseekredress
fordistribution orother clearly commercial aspects ofthese industries. More andmore, astheyjoin
theWTO, countries aretaking oncommitments inthebroadest possible range ofsectors, recognizing
thevaluetotheirconsumersandtheirproducersofcomprehensive,predictablerulesontradeinservices.WT/MIN(98)/ST/57
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Wehavenowbegun toprepare forthenegotiations envisioned intheUruguay Round. This
month, theCouncil forTrade inServices agreed onawork program forthefirststage inthose
preparations. Thisisaninformation exchange thatwillform thebasis foranassessment oftrade in
services, including steps Members havetaken toliberalize autonomously. Wealsomaybeableto
identify trends astohowgovernments arechanging thewaytheyregulate particular services industries,
anddoing soinways thatfacilitate competition, transparency, andconsumer interests.
Wemust alsoestablish negotiation procedures. Anumber ofWTO Members already have
devoted attention tothisquestion, andwelookforward toadiscussion thatbuilds onoursuccess in
financial services andbasic telecommunications tosetapathforsuccess onamuch larger scale in
thebroader GATS negotiations. Inahighly regulated sector likebasic telecom, forexample, many
participants recognized thatproviding GATS market access andnational treatment commitments were
insufficient. Governments alsoneeded toprovide guarantees toprevent anti-competitive behaviour
bydominant suppliers, maintain openandtransparent licensing procedures, andensure theimpartiality
ofthegovernment regulatory body. Welookforward toworking withother WTO Members toexplore
whether thisorasimilar approach maybeappropriate elsewhere.
C. INTELLECTUAL PROPERTY RIGHTS PROTECTION --Wemustalsoimprove ourwork
onintellectual property rights --thebasis ofscientific advance andartistic creation.
TheTRIPS agreement intheUruguay Round ensured aminimum world standard forthe
protection ofcopyright, patents, trademarks andother types ofintellectual property. Wemustnow
ensure timely implementation ofallcommitments under TRIPS, andlookahead tothefuture. The
following priorities emerge:
TRIPS Implementation --Thefirstpriority isfullandtimely implementation oftheobligations
oftheTRIPS Agreement. TheUnited States looks forward toimplementation ofTRIPS by
January 1,2000, andwillwork withMembers asnecessary toassist them inmeeting this
deadline.
Biotechnology --Wealsohavesignificant opportunities toimprove theminimum standards
forintellectual property protection through theWTO ’s“built-in agenda. ”Most significant
isthereview under Article 27.3oftheexclusion frompatentability ofplants andanimals, which
isrequired bytheAgreement tobegin in1999. Biotechnology inventions holdgreat promise
forcuring disease, improving ourfoodsupply, andprotecting ourenvironment. Many WTO
members recognize these valuable contributions andprovide protection forbiotech products.
Theimpending review oftheprotection provided inthisareaunder theTRIPS Agreement is
oneofourmost important tasks intheyearahead.
NewTechnologies --Finally, wemust recognize andprovide protection fortheadvances in
technology thathaveoccurred since thenegotiation oftheTRIPS Agreement, andwilloccur
inthefuture. Since theTRIPS Agreement, wehave witnessed significant technological
developments related tothedigital environment, suchastheInternet. TRIPS anticipated that
there would beaneedtoimprove thelevels ofprotection forintellectual property andallows
suchanaccommodation byproviding forincorporation ofhigher levels ofprotection. We
haveanopportunity toadjust theTRIPS standards upwards byincorporating intotheWTO
thesubstantive obligations ofthe1996 WIPO copyright treaties, inorder toprovide better
protection forcomputer software andsimilar products inthe21stcentury. Wecanfurther
enhance theTRIPS Agreement byincorporating intoitthelevel ofprotection provided for
plant varieties thatisestablished under theUPOV Convention. Finally, withregard to
Trademarks, wewould anticipate incorporation oftheWIPO Trademark LawTreaty intothe
WTO TRIPS Agreement.WT/MIN(98)/ST/57
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D. GOVERNMENT PROCUREMENT --Wemustalsoexamine ways inwhich themultilateral
system canencourage bothliberalized trade andgood governance. Oneparticularly appropriate
opportunity isgovernment procurement.
Conclusion ofanagreement ontransparency ingovernment procurement would contribute to
theestablishment ofpredictable andcompetitive bidding environments forgovernment procurement
throughout theworld, enabling governments andthecitizens theyserve toreceive thegreatest benefit
forgovernmentexpenditures.Governmentprocurementsareestimatedtobeworthwellover$3.1trillion
annually,butonly26WTOMemberspresentlybelongtotheplurilateralWTOGovernmentProcurement
Agreement.
Anagreement ongovernment procurement transparency would encourage fiscal responsibility
andgreater government accountability, andcomplement theinternational efforts tocombat corruption
relating togovernment procurement worldwide. Tomaximize thisopportunity, weshould seekto
conclude anagreement ontransparency ingovernment procurement bythenextMinisterial Conference.
E. GOVERNANCE --Arelated point isthatofgovernance generally. Forexample, despite
successive negotiating Rounds andlongmembership inthesystem, some economies remain more
characterized byclosed markets, lackoftransparency andinformal cliques thanbylaws, rules and
contracts. Theseeds offinancial crises lieinthisphenomenon: excessively close tiesbetween
government, business, andbanks, lackoftransparency andsuppression ofcompetition andmarket
mechanisms.
Aswelookahead, wemustexamine whether GATT ortheWTO should havebeenmore alert
tothese structural andsystemic barriers totrade; whether theWTO canwork more effectively with
theInternational Monetary Fund orother organizations tocorrect them; andhowtheWTO canhelp
toimprove governance andprevent similar problems inthefuture. Forexample, theWTO canhelp
toensurethatnationalregulatorypracticesarefullytransparentandnotpoliticallydirected.Thisincludes
theprinciples ofgenuine national treatment anddueprocess, commitments topublish andmake widely
available allregulations, andtoensure thatitisthose public regulations andnotothers thatareactually
applied.
F. BRIBERY AND CORRUPTION --TheWTO must alsobegin amore direct consideration
ofbribery andcorruption. These subvert andcandestroy political processes; stifleefficient markets;
andactasaninvisible tariff onmost imports andcontracts.
Tothispoint theOECD hastaken theleadonthese questions. In1994, itadopted a
recommendation onfighting bribery andin1996 adopted arecommendation toprohibit thetax
deductibility ofbribes ininternational business transactions. In1997, theOECD andfivenon-member
countries agreed onaConvention requiring governments tomake thisconduct acriminal offense.
TheWTO itself hasestablished andbegun enforcing basic rules thatdiminish opportunities
forbribery andcorruption in,forexample, transparency ingovernment procurement andcustoms
valuation. These areimportant firststeps. Wemustnowexplore means bywhich theWTO could
more fullyaddress these issues.
NEW MEMBERS
Thesecond challenge isthatpresented bygrowing membership.
Thirty-one economies, making upnearly aquarter oftheworld ’spopulation, arenowapplying
formembership, including anumber ofeconomies intransition. Aslongastheyremain outside theWT/MIN(98)/ST/57
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rules-based system thatnowincludes mostofworld trade, thesystem willbeincomplete andsubject
todistortion fromoutside. Fortheirpart,theapplicants willbenefit fromtheWTO ’sbasic principles
ofmarket economics under theruleoflaw.Andthebroader vision ofthetrading system asacontributor
notonlytomutually beneficial trade buttoworld peace itself willremain onlypartially fulfilled.
Thus theUnited States views these accessions asanimportant opportunity, comparable tothe
integration ofJapan andGermany intoworld trade soonafterWorld WarII.Their entry willhelp
complete thesystem, assist theefforts ofapplicants toreform theirowneconomic systems, andbuild
atrulyfairandopenworld economy.
Thus theWTO ’sresponsibility istointegrate these economies intotheworld trading system.
Buttostrengthen rather thanweaken thesystem, theymustbeadmitted onacommercially meaningful
basis. Thatis,theymustaccept therulesandobligations created bytheGATT andWTO inthepast
fiftyears.Theresultmustbeenforceablecommitmentstoopenmarkets;transparent,non-discriminatory
regulatory systems; andeffective national treatment bothattheborder andwithin thedomestic economy.
Welookforward tocontinuing discussions withtheapplicants andanultimate successful result.
THE 21ST CENTURY ECONOMY
Ourthirdgreat challenge istorespond tothescientific andtechnological revolution thatwill
shape thetrading system fortheeconomy ofthe21stcentury.
Ineveryfieldofhumanactivity--medicine,environmentalprotection,agriculture,entertainment,
transportation, materials science, information andmore --science ismoving ahead withastonishing
speed. Andthetransmission fromthelaboratory tothemarketplace ofnewtechnologies isaccelerating
justasquickly.
Thus, newproducts, services andmethods ofconducting tradearisealmost every day.Services
aswellasgoods cross borders. Business isdonebye-mail andcomputer aswellasinperson. This
offers theworld tremendous potential toincrease wealth, raiseproductivity, improve health care,reduce
hunger, ensure clean airandwater, andpromote education.
Ourability toreach thispotential willdepend inpartonanappropriate response bythe
international trading system. Asuccessful policy willensure thatthesystem ’srulesease, rather than
impede,thedevelopmentandcommercializationofnewtechnologies.Oureffortsonagriculture,services
andintellectual property andother issues inthebuilt-in agenda areimportant partsofthispolicy. As
welookahead, however, weneedtoconsider howtoaddress more fullyemerging issues andkeep
theWTO atthecutting edgeofcommercial activity.
A. MORE RAPID ACTION --First, thesystem mustactmore quickly thanithasinthepast.
Companies nowproduce newproducts inamatter ofmonths, andbothinformation andmoney move
worldwide instantaneously. Sowecannolonger afford totakeseven years tofinish anegotiating
Round, orletdecades passbetween identifying andacting ontariff ornon-tariff barriers.
Webelieve theWTO hasbegun torespond morequickly tothesetechnological andcommercial
imperatives. Thethreeagreements completed lastyear--information technology, telecommunications,
andfinancial services --areexcellent examples. TheWTO deserves great credit forthem. Wesee
thepossibility emerging forother suchagreements, forexample theITAIInowunder discussion, the
elimination oftariffs onnewpharmaceuticals, andAPEC ’sidentification ofsectors fortrade
liberalization.WT/MIN(98)/ST/57
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B. GROUND RULES TOFACILITATE SCIENTIFIC ADVANCE --Second, theWTO must,
inallfields, ensure thattheground rules itsetsfacilitate theadvance ofscience andthemovement
ofbeneficial innovations tothemarketplace.
Ihavealready citedtheneedforouragricultural negotiations toensure thatfarmers andranchers
canimprove productivity andprotect theenvironment through useofthemostadvanced science. Let
meciteonespecific case: Global Electronic Commerce.
Global electronic commerce hasthepotential tobring consumers avastrange ofbenefits in
everything from artsandentertainment toimproved health carethrough telemedicine toeasier and
safertravel. Itcanalsofacilitate trade byallowing individuals tobecome entrepreneurs more easily,
andbyitspotential applications totechnical trade issues suchascustoms procedures.
Today, theworld ofelectronic transmissions is,intrade terms, pristine. TheGATT system,
tooversimplify onlyslightly, represents fiftyyears ofundoing thetariff andnon-tariff barriers
governments created after1914. Therightvision today willspare thenextgeneration thatwork in
electronic commerce. Nomember oftheWTO nowconsiders electronic transmissions imports subject
toduties forcustoms purposes. There arenocustoms duties oncross-border telephone calls, fax
messages orcomputer datalinks, andthispractice must remain.
Thus, webelieve thattheMinisterial should agree toastandstill oncustoms duties onelectronic
transmissions, asafirststeptomake sureelectronic commerce remains acatalyst forgrowth and
expansion oftrade, andconsequently prosperity, choice andahigher quality oflife. Itshould also
adopt awork program onthetrade-related aspects ofelectronic commerce.
THE CONCERNS OFCITIZENS
Fourth, thetrade system must domore tobuild confidence withthepublic atlarge.
International tradeisexpanding andtouching thelivesofmorepeople everywhere. Theclothes
wewear, thefoodweeatforbreakfast, thecarswedrive towork, thecomputers weturnonatthe
office, themicrochips thatmake them run,andthebanks inwhich wedeposit ourpaychecks areall
partofthetrading system. Andastrade’seffect onpeople grows, sodothepublic ’sexpectations of
andconcerns about thesystem.
Thus itcomes asnosurprise thatthepublic takes agrowing interest inthework oftheWTO.
Andthesystem mustrespond bybeing more openandaccessible. Andthepublic expects assurances
thatgrowing trade willnotcompromise values attheheart ofthequality oflife--inparticular,
environmental protection, public health, andpolicies regarding suchissues asexploitive childlabour.
A. OPENNESS AND TRANSPARENCY --TheWTO ’soperations mustbemore transparent.
Asacrucially important international institution, theWTO depends onpublic understanding ofitsrole
andconfidenceinitsprocesses.Opennessandtransparencywillcreatethisunderstandingandconfidence,
andfoster amore informed debate onissues ofrelevance totheworld trading system.
Wehavealready achieved some progress inourefforts tomake theWTO amore openand
understandable body. Creation oftheInternet website,publication ofdocuments andsymposia with
non-governmental organizations (NGOs) havebeenbeneficial. However, there issubstantial scope
forfurther progress, while maintaining thegovernment-to-government character oftheWTO.
Access toWTO documents remains difficult, since many continue tobe“restricted ”andnot
available. Inthecaseofdispute settlement, theconfidentiality ofcountries ’submissions andproceduralWT/MIN(98)/ST/57
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restrictions onprompt public access topanel reports areperceived asdeliberate means tokeepthe
process secret andinaccessible. Thisdoesnothing other thanbreed distrust. While provision hasbeen
made forministerial meetings toinclude observers insome oftheministerial conference business
sessions, theCouncils andother subsidiary bodies havenotyetprovided suchopportunities.
Wethushope toseeearly action toimprove the1996 WTO decision onderestriction of
documents tomake theWTO more transparent, including circulation ofpanel reports toallMembers
andderestriction assoonasthereport isfinalized intheoriginal language ofthepanel. Wewerepleased
tobejoined inthese sentiments bytheTrade Ministers ofCanada, theEuropean Union andJapan last
month. Wealsobelieve there isnoreason theinterested public should beexcluded from observing
dispute settlement proceedings orfiling amicus briefs.
WealsourgetheWTOtoadoptaformalconsultativemechanismtoallowregularandcontinuous
contact withtheprivate sector andNGOs. Others haveadopted suchmechanisms --theWestern
Hemisphere nations, forexample, agreed onaCivil Society Committee aspartoftheFreeTrade Area
oftheAmericas negotiations, andtheOECD hasforsome timemaintained standing advisory contacts
withbothbusiness andlabour representatives. TheWTO would benefit fromthesametypeofexchange.
B. TRADEANDTHEENVIRONMENT--Beyondsuchinstitutionalissues,wemustalsoexamine
theinteraction between expanded tradeandother shared policy goals ofcentral importance tosocieties.
Forexample,thecreationofprosperitythroughopentrade,andtheprotectionoftheenvironment
andthepublic health, aretwobasic goals ofallWTO members. These goals neednotconflict, and
should bemutually supportive. Where therearepotential conflicts, weshould strengthen thecapability
oftheWTO ’sexisting mechanisms toresolve suchquestions inamanner thatprotects theenvironment,
health andsafety anddoesnotundermine theworld trading system. Thisincludes working toensure
thattheproper expertise isbrought tobearoncomplex technical andscientific issues, particularly those
withenvironmental, health andsafety dimensions.
Inmany cases elimination oftrade barriers willalsocontribute toacleaner environment and
theconservation ofnatural resources. Forexample, thiscanhelpcountries gainaccess tocost-effective
equipment andtechnology. Many ofusareengaged insuchdiscussions regionally. Thenegotiations
inAPEC toeliminate tariffs onenvironmental goods andservices, forexample, canhelpcountries
monitor, clean upandprevent pollution, andensure clean airandwater. Likewise, APEC ’stalkson
eliminating tariffs onenergy equipment andservices canpromote rapiddissemination ofefficient power
technologies, thusallowing production ofpower withreduced carbon emissions andcontributing to
international efforts toprevent climate change.
Atthesame time, asthetrading system ensures thatmembers avoid using environmental
standards asdisguised trade barriers, ineliminating barriers totrade wemustnotcompromise onthe
maintenance ofhighlevels ofenvironmental, health andsafety protection, orinthedevelopment of
strong andeffective measures torealize those standards. Andthesystem must work together with
multilateral environmental institutions.
TheUruguay Round ’screation ofaCommittee onTrade andtheEnvironment wasavery
important initial step. However, progress within theCommittee hasbeenslow. Wethuscallfora
high-level meeting ontradeandenvironment inorder toprovide direction andnewenergy totheWTO ’s
discussion oftrade andenvironmental policy, wellinadvance ofthe1999 Ministerial. Then wecan
expect greater success inidentifying anddealing withpotential tradeandenvironment conflicts inways
thatprotect theenvironment, health andsafety anddonotundermine theworld trading system.WT/MIN(98)/ST/57
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C. TRADE AND LABOUR STANDARDS --Abasicobjective oftheWTO, andtheGATT before
it,istoraisestandards ofliving. There isnodoubt thatworkers around theworld haveshared in
thebenefits oftheinternational trading system. Today ourchallenge istoassure theworkers inour
countries thattheywillcontinue tobenefit from thissystem. Wemust domore toreassure and
demonstrate toourworkers thattrade contributes totheirwell-being, rather thanundermines it.
Aspartofthiseffort, theobservance ofcorelabour standards --banning forced labour and
exploitive child labour, guaranteeing thefreedom toassociate andbargain collectively, eliminating
discrimination intheworkplace --mustbeactively pursued. These arefundamental human rights and
common concerns.
AtSingapore wereaffirmed ourcommitment totheobservance ofinternationally recognized
corelabour standards andrecognized theroletheInternational Labour Organization hastoplayinsetting
thesestandards. Since thattime, theILOhasbeennegotiating aDeclaration andfollow-up mechanism
oncorelabour standards.
Thiswork isnowatacritical juncture andtheILOmustbeabletodemonstrate thatitiscapable
ofleading theeffort tostrengthen respect forthefundamental rights ofworkers. Weareearnest in
hoping thattheJuneILOConference isabletosuccessfully conclude thisDeclaration andameaningful
follow-up mechanism dealing withthese standards.
Wealsolookforward tomore collaboration between theILOandWTO Secretariats. Just
asmore contact between theWTO andtheInternational Financial Institutions isimportant, active
collaboration could beuseful tothework ofbothorganizations.
CONCLUSION
Werecognize thatthisdiscussion onlytouches onafewofthecritical issues before theWTO.
Over thenext18months, ourofficials willhavetodelve intothedetails ofthese andother questions.
Theagenda forthetrading system isambitious, bothinterms ofnegotiations afterthisMinisterial
Conference andasthebasis forlong-term strategic work.
Butwebelieve itisarealistic agenda. Andwebelieve itscompletion isessential forthetrading
world wehopetosee.Thattrading world willbeopentoallnations; promote economic growth and
sustainable development; helpadvance science, technology andinnovation; ensure public confidence
inthebasic institutions ofinternational trade; andimprove thequality oflife.
Weshould havenodoubt thatwewillsucceed. Andifwelookbacktothevision ofthefounders
oftheGATT in1948, andtothepainstaking anddetailed work eversince torealize thatvision, we
haveproof enough.
Since 1948, intheworld ofeconomics, wehaveseenproduction growandhundreds ofmillions
ofpeople escape from poverty. Ininternational affairs, theadvance ofmarkets, peaceful settlement
ofdispute, andrespect fortheruleoflaw. Andinthelivesofindividuals, greater freedom, ahigher
standard ofliving, andthejustified aspiration foranevenbetter future.
Thatisthelegacy ourpredecessors lefttous.Ifweremain truetotheirvision aswelook
tothenextfiftyyears, itcanalsobeourlegacy tofuture generations.
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