WORLD TRADE WT/MIN(98)/ST/92
20May1998
ORGANIZATION(98-2112)
Original: English MINISTERIAL CONFERENCE
Second Session
Geneva, 18and20May1998
MALAYSIA
Statement Circulated byTheHonourable Dato'SeriRafidah Aziz,
Minister ofInternational Trade andIndustry
1. TheSecond Ministerial Conference provides animportant opportunity toreview the
achievements andshortcomings aswellaschallenges facing WTO Members especially thedeveloping
country Members inimplementing theirexisting Uruguay Round commitments.
2. While WTO Members aremaking serious efforts tofulfil their obligations, thefulland
meaningful implementation oftheURcommitments haveyettobefullyrealized. Forexample, an
assessment ofthefirsttwostages ofintegration oftextiles andclothing hasrevealed lackofreal
meaningful liberalization. Many oftheitems phased-in were nottrade significant todeveloping
country Members. Weurgeourtrading partners especially themajor textile importing Members to
provide better market access opportunities totextile andclothing exports.
3. Market access benefits fromtheimplementation ofUruguay Round commitments should not
beundermined byunilateral andextraterritorial measures, aswellaslinkage between trade and
extraneous issues. Weareconcerned anti-dumping andcountervailing measures havebeenusedas
instruments fortrade harassment.
4. Exports oftimber products havebeenadversely affected asaresult ofanti-tropical timber
campaign. Indiscriminate labelling requirements onlatex-dipped products have alsoaffected
Malaysia 'sexports. Anti-dumping margins havebeenarbitrarily established using constructed value.
Malaysia 'sexports ofshrimps totheUShave alsobeen adversely affected byanextraterritorial
application ofenvironmental standards.
5. Theeffective implementation oftheWTO Agreements should beaccorded highpriority to
ensure thecredibility andeffectiveness ofthemultilateral trading system.
6. Many developing country Members arestillfacing difficulties inimplementing theUR
commitments. Technical assistance should becontinued andfurther intensified toassist themtomeet
thechallenges andopportunities arising from implementing theUruguay Round commitments. It
must alsofacilitate theireffective integration intothemultilateral trading system.
7. Theimplementation process should ensure thatspecial anddifferential treatment accorded to
developing countries arerecognized andrespected. Thetransitional periods enjoyed bydeveloping
countries should notbequestioned.
8. Ontrade andenvironment, Malaysia supports thecontinuation oftheongoing discussions in
theanalytical process covering various aspects oftheCommittee onTrade andEnvironment taking
intoaccount thespecial situation andneeds ofdeveloping countries. Divisive issues such asWT/MIN(98)/ST/92
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mandatory compliance oneco-labelling andenvironmental standards where theyclearly donotenjoy
consensus intheWTO should beavoided. Environmental issues should bemore appropriately
addressed multilaterally inthecontext ofmultilateral environmental agreements.
9. Malaysia isencouraged tonotethatcurrently there are31applicants involved inaccession
negotiations. Malaysia welcomes andsupports theirtimely accession astheywould contribute toand
benefit from themultilateral trading system. Countries which haveapplied tojointheWTO should
undertake tooffer meaningful market access commitments tofacilitate theiraccession. Appropriate
technical assistance should alsobeprovided todeveloping countries tofacilitate theiraccession.
10. Discussions inthevarious Working Groups namely ontrade andinvestments, trade and
competition andtransparency ingovernment procurement areprogressing steadily. However, there
arestillmany areas which require further study. These Working Groups should continue discussions
inaneducative mode withtheviewtopromoting abetter understanding oftheissues. They should
notberushed intomaking hasty recommendations which prejudge theneedfornegotiations.
11. Wenotethatthereport oftheDirector-General hasidentified several initiatives toassist the
least-developed countries tointegrate effectively intothemultilateral trading system. Malaysia isfully
supportive ofthese initiatives andwillpositively contribute towards WTO 'sefforts inthisdirection.
12. Onfuture activities, itisMalaysia 'sviewthattheWTO should focus onthework relating to
thebuilt-in agenda oftheWTO Agreements andother work where there isconsensus.
13. Thebuilt-in agenda constitutes asizeable forward looking WTO programme toprovide the
basis forfurther liberalization. TheWTO ismandated toreview andnegotiate awiderange ofareas
including agriculture, services, rules oforigin, intellectual property, trade-related investment
measures, subsidies anddispute settlement procedures.
14. InMalaysia 'sview, thenegotiations andreviews tobecarried outinthecontext oftheBIA
should notleadtomore onerous obligations particularly todeveloping country Members andshould
fullytakeintoaccount theprinciple ofprogressive liberalization. More importantly, thespecial and
differential treatment provisions accorded tothemmustberecognized andacknowledged inspirit and
inpractice inthework programme oftheWTO.
15. There must beadequate preparatory work initiated tofacilitate thecommencement of
negotiations aswellasreviews envisaged intheBIA. Theexperiences anddifficulties faced by
Members particularly thedeveloping countries inimplementing existing agreements should betaken
intoaccount inpreparing forthese reviews andnegotiations.
16. Specifically, Malaysia would liketoreiterate thatthework onemergency safeguards inthe
GATS needtobecompleted within theagreed time-frame. Thismechanism isimportant toencourage
developing countries topositively continue towards liberalization. Ondispute settlement procedures,
changes sought should notundermine thecurrent practice ofhaving disputes resolved under theWTO
multilaterally. Bilateral resolution oftradedisputes which aremultilateral innature should beavoided
asthiscould disadvantage thirdparties affected bythemeasures.
17. ThisConference willestablish apreparatory process andMalaysia would liketoemphasize
thataclear distinction ismade between contractual obligations thatprovides forcontinuing
negotiations andissues stillunder study. Itisimportant toavoid anyprejudgment ofagenda for
future activities oftheWTO. Themandated negotiations aswellasthereviews under thebuilt-in
agenda should proceed onschedule andalready constitute asizeable future WTO work programme
toprovide theimpetus tobring about further trade liberalization.WT/MIN(98)/ST/92
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18. Malaysia, aswellasseveral other countries inSouth-East Asiaarepreoccupied withthe
problem ofeconomic recovery andalleviating thenegative impact ofthefinancial turmoil.
19. Itisclearthatglobalization andliberalization notonlyfoster integration ofmarkets butalso
competition among countries. While themove towards aglobal market place maybeirreversible,
theprocess should notbeleftentirely tomarket forces.
20. Industries indeveloping countries maynothavereached astage where theyareabletotake
fulladvantage ofthetrade andinvestment opportunities inother countries. Inmany instances, the
pursuit ofattaining national development objectives hastobereconciled withglobalization and
liberalization. Hence, apragmatic approach intrade andinvestment liberalization isnecessary.
21. Liberalization policies should beproperly sequenced andphased gradually asindustries inthe
sectors inquestion acquire thenecessary competitive strength ininternational markets.
22. Thiswillhelpensure market forces arenotmanipulated bythebigplayers tothedisadvantage
ofdeveloping countries particularly those withsmall domestic markets.
23. Thefinancial turmoil inAsia affecting several WTO Members isnotanisolated or
unprecedented phenomenon withincreasing globalization andliberalization. Inthepresent decade, we
have witnessed suchcurrency volatility inbothdeveloped anddeveloping countries withserious
impact ongrowth, employment anddevelopment which willresult inglobal implications, including
trade, ifleftprolonged.
24. Thepaceofrecovery oftheaffected Asian economies willnotonlydepend onhoweffectively
theproblems aremanaged inthecountries concerned butalsoonthepolicy responses ofinternational
financial institutions andthepreservation ofadequate growth inworld markets. Policy prescriptions
mustberealistic taking intoaccount thespecial situation andneeds ofthedeveloping countries. The
WTO, astheleading trade forum needs tobesensitive andpragmatic insuchcircumstances.
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