WORLD TRADE WT/MIN(96)/ST/115
12December 1996
ORGANIZATION(96-5288)
Original: English MINISTERIAL CONFERENCE
Singapore, 9-13December 1996
MOZAMBIQUE
Statement byH.E. Mr.Oldermiro J.M. Baloi
Minister ofIndustry, Trade andTourism
First, allow metocongratulate H.E. YeoCheow Tong, Minister forTrade andIndustry of
Singapore, forhisappointment asChairman ofthisfirstMinisterial Conference oftheWorld Trade
Organization. Onbehalf oftheGovernment ofMozambique andindeed onmyownbehalf, Iwould
liketoexpress oursincere appreciation fortheconvening ofthisConference. Mygratitude isalso
andspecially extended totheGovernment andthepeople ofSingapore forthewarm andfriendly
reception accorded toussince ourarrival andfortheexcellent conditions provided forourwork.
In1987 Mozambique initiated aStructural Adjustment Programme withtheobjective of
revitalizing itseconomy andimproving theliving standards ofitspeople. Asignificant partofthis
initiative hasbeentocreate afavourable environment forinvestment anddevelopment oftheprivate
sector. These reforms include among others, monetary andfiscal policies, exchange ratepolicy,
privatization, financial sector andtrade liberalization measures. Indeed, anattractive environment
forprivate investment, bothdomestic andforeign, hasbeencreated which willleadthecountry to
asustainable economic andsocial development. Some positive andtangible results canbeseenand,
thedownwards revision ofthetariff system isoneoftheexamples. Weareconfident thatwiththese
measures direct investment willboost ourweak economy andfoster development.
Asyouareaware, Mozambique isamember oftheSouthern African Development Community
(SADC), aregional organization aimed atenhancing regional integration andmutually develop the
potential oftheSouthern African member countries. Thistypeofenhanced cooperation between
developing countries asatransitional phase tomultilateral contracts hasbeenagreed upon inthetext
oftheAgreement thatestablished theWTO. Indeed, Mozambique strongly feelsthatregional integration
isanimportant precursor toafunctional multilateral system.
Inthisregard, Mozambique isconfident thatthesignature oftheSADC Protocol onTrade,
byitsmember States, willtranslate aspirations intodeeds andtransform commitments andresolutions
towards regional economic integration.
Theglobalization andliberalization oftheworld economy isimportant andhasstimulated
significant changes inourdomestic economies andhowtorelate tooneanother. Theprocess of
interdependence andintegration ofnational economies hasunderscored theneedforacomprehensive
regulatory environment which willensure anequitable andsustainable pathforgrowth anddevelopment
forallnations.
Equitable growth forallthrough, among others, theestablishment oflevelplaying fields will
beessential forthesuccess oftheWTO. LDCs continue tobeeconomically weak andarefaced with
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thedanger offurther marginalization. Positive steps needtobeactioned toalleviate thechallenges
faced bytheLDCs. More importantly, onlywithsupport theywillbeabletoadopt thepacerequired
toimplement theMarrakesh andtheWTO resolutions forthecreation ofacomprehensive andequitable
world trade system. Inthisregard, Iwould liketoacknowledge andcongratulate thejointinitiative
oftheITC/UNCTAD/WTO, aswellasother international organizations andagencies thatareassisting
usinpreparing forthefuture.
Thisismore so,when werealize thattheissues included inthebuilt-in agenda areachallenge
forourcountries, since wearefacing problems withregard tolimitations offreedom ofchoice inthe
multilateral trade system, duetoournarrow export baseandlowexport capacity, theoverwhelming
debtburden andthemarket access forcompetitive products.
Obviously weendorse theSADC 'sstatement butwewould liketoaddafewcomments about
thenewissues.
Itisourunderstanding thattrade liberalization aimsatbringing equitable growth andthatone
ofthebasicconditions istheexistence ofalevelplaying field. This, asamatter ofprinciple iscorrect,
but,itsimplementation mustbepragmatic inthesense thatitmusttakeintoconsideration thedifferences
between thedeveloped countries, ontheonehand, andthedeveloping andleastdeveloped countries,
ontheother, otherwise, thegapbetween theformer andthelatter willcontinue togrow orevento
accelerate.
Inother words, forthesakeofarealpartnership, paving thewaytowards equitable growth
requires gradualism. TheLDCs arealready overwhelmed bytheimplementation ofwhathasbeen
agreed inMarrakesh andthedeveloped countries arerushing intointroducing newissues. Inourview,
thisisnotfairandwehopethatthere isnotgoing tobeanymisinterpretation onthese words. What
wereally mean isthattheappropriate paceistheonethattakes intoaccount theweaknesses andthe
strongholds ofallactors. Therefore, wecannot agree atallwiththeinclusion ofthenewissues.
Wearegladthatduring these twoyears, theWTO 'sperformance hasjustified itscreation but
wefullyoppose anyattempt ofexpanding itsscope atother existing organizations expenses.
Infact,wewonder what is,ifany,thefar-reaching objective ofputting theWTO, even
disguisedly, addressing investment andlabour standards, tomention onlysome oftheissues, thatare
dealt withbyUNCTAD andILO, respectively. Although itistruethatthese andother issues are
interrelated withtrade, whydonotweleave themtoallconcerned organizations which would address
them inaconsistent manner through coordination.
Hoping thatbytheendofthisMinisterial Conference wewillreach apositive outcome.