WORLD TRADE WT/MIN(96)/ST/89
11December 1996
ORGANIZATION(96-5284)
Original: English MINISTERIAL CONFERENCE
Singapore, 9-13December 1996
CROATIA
Statement byH.E. Mr.Davor Štern
Minister ofEconomy
(Speaking asanObserver)
Allow me,attheverybeginning, onbehalf oftheGovernment oftheRepublic ofCroatia,
toexpress ourgratitude forthewarm hospitality andexcellent organization ofthisConference tothe
Government andpeople oftheRepublic ofSingapore.
Iwould alsoliketoextend ourappreciation totheDirector-General andtotheSecretariat of
theWTO fortheirefforts inpreparing thisConference.
TheconclusionoftheUruguayRoundhasstrengthenedthemultilateralrule-basedtradingsystem,
institutionalized intheWorld Trade Organization, which isopening anewperspective fortrade to
become themain instrument forgrowth anddevelopment ontheglobal scale.
Webelieve thatinternational liberalization willnodoubt contribute towidescale economic
integration andincrease global welfare. Such anewenvironment assumes evenmore responsibility
foreachgovernment tocreate necessary political andeconomic conditions forgrowth andprogress.
However, atthesame time, oneshould beaware thateachcountry needs specific economic
andsocial adjustment, when integrating intotheinternational trading system. Within theWTO, the
taskofcreating newconditions forsustainable development isnotaneasyonetaking intoaccount the
difficulties faced bymany countries intransition, developing countries andbytheleastdeveloped
countries.
TheRepublicofCroatiaunderstandstheconcernsofmanycountrieswhenfacingnewchallenges.
Oneofthemain challenges andpriorities oftheGovernment ofCroatia istheprocess ofacceding to
World Trade Organization. Westarted thisprocess inOctober 1993, byapplying tojointheGATT
system andconsequently formembership intheWTO.
Thus far,Croatia hassubmitted theMemorandum ontheForeign Trade Regime, Trade in
Services andIntellectual Property Regime. Inaddition, wehaveanswered over350questions from
Member countries oftheWTO. Asaresult, theRepublic ofCroatia iswaiting forthesecond Meeting
oftheWorking Party forouraccession totakeplace inthefirstquarter of1997.
Inconjunction withitsaccession, Croatia intensified theprocess oflegislative adjustment and
tradepolicy according totherulesandagreements oftheUruguay Round. Along these lines, wehave
liberalized thetrade regime, which includes theabolishment ofquantitative restrictions andother
non-tariff measures. Anewtarifflawhasbeenrecently implemented withanaverage rateforindustrial
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products of11percent. With regard toservices, legislation hasbeenimplemented inthebanking
sector, tourism andthecapital market inorder tofacilitate market access.
Despite thewar,Croatia hasmaintained amacroeconomic environment withastable and
convertible national currency, annual inflation rateofapproximately 3percent, constant growth of
foreign exchange reserves, andwithaprivate sector accounting forupto60percentofGDP.
Withsuchaneconomic environment, accession totheWTO andparticipation intheinternational
trading system isthenextlogical stepinfurthering ourgrowth anddevelopment.
Taking intoconsideration that28countries arecurrently negotiating accession, wesincerely
hopethattheaccession process willbeaccelerated sothatthese countries willbecome Members prior
tothebeginning ofanewround ofmultilateral negotiations.
Weareconfident thattheacceleration andsimplification oftheaccession procedure would
generate greater coherency within theWTO andmark anewcornerstone forfuture liberalization of
world trade.
TheGovernment ofCroatia believes thattheprocess ofaccession isatwo-way street. We
havenodoubts thatthenewapplicants should adhere toallrules andobligations oftheWTO legal
system. However, eachacceding country should beevaluated onanindividual basis specific tothe
levelofitseconomic andsocial development.
Although Croatia isnotyetMember oftheWTO, allow metosayafewwords onwhatwe
believe thatshould bethemain goalofthishighly important gathering. Itisouropinion thatthis
ConferenceshouldbefocusedonthefurtherimplementationoftheexistingAgreementsfromtheUruguay
Round, aswellasMinisterial decisions from theMarrakesh Conference andeventual modifications
formore efficient andmeaningful implementation.
Webelieve thatduring ourConference newissues thatareofcommon agreement among all
Members should beaddressed firstinorder togaintangible results, which willstrengthen the
implementation ofexisting Agreements andpromote astable foundation forfuture policies within the
World Trade Organization.
Inconclusion,itisourstrongbeliefthatthisConferenceisanimportantstepforwardinachieving
ourcommon goalofliberalizing andintegrating worlds 'economies intoaglobal trading system. The
results ofthisConference willbetangible andsuccessful infostering global growth anddevelopment,
onthecondition thatourgoals setherearerealistic.
Weareconfident thattheresults ofthisConference willbeofutmost prosperity andbenefit
toallcountries.