WORLD TRADE WT/MIN(96)/ST/56
10December 1996
ORGANIZATION(96-5224)
Original: English MINISTERIAL CONFERENCE
Singapore, 9-13December 1996
GUYANA
Statement bytheHonourable Michael Shree Chan
Senior Minister ofTrade, Tourism andIndustry
Permit metoexpress myprofound gratitude andappreciation totheGovernment andpeople
ofSingapore forthekindcourtesies andgenerous hospitality accorded totheGuyana delegation. I
alsowishtoacknowledge theexcellent arrangements andfacilities thatareinplacetoensure asuccessful
meeting.
Werecognize anddeeply appreciate theextensive work thathasbeendonesofarbythevarious
Councils, Committees andWorking Parties etc.Infact,theintense andinvolved nature oftheprocess
since thesigning oftheUruguay Round Agreements inMarrakesh hasallowed formore pragmatic
reflection andassessment oftheenormity ofthetaskahead. Ataskthough fraught withtremendous
difficulties, particularly forthesmaller economies, isnotnecessarily animpossible one-bearing in
mind ourcommitment tobuild anddevelop durable partnerships notonlyamong governments, but
more sowiththeprivate sector.
Thedelegation ofGuyana comes tothisMinisterial Meeting withafirmsense ofcommitment
to:
1. Promoting anopen, non-discriminatory, fairandequitable multilateral trading system
thatwillenable countries -particularly developing countries -toimprove theireconomic
structures andenhance theliving standards oftheirpeoples through sustained economic
development.
2. Improving access tomarkets fortrade ingoods andservices.
3. Promotingandsupportingpolicies,bothdomesticandinternational,thatmakeeconomic
growth andenvironmental protection mutually supportive.
4. Fostering global economic policymaking thatsafeguards thevitalinterests ofthesmall
andvulnerable economies inthedeveloping countries.
Surely, allthese things express theessence oftheUruguay Round Agreements aswellasthe
objective oftheWorld Trade Organization (WTO). Forthemany countries gathered here, these
Agreements domean opportunities andchallenges -realchallenges forsmall developing economies.
Ourchallenge andfocus atthistime, therefore, ought tofacilitate mechanisms thatwillpromote
theeffective andbeneficial participation ofthesmaller economies.
Irecall thecommitment given bythedeveloped countries some 20years agothattheywill
contribute anaverage of0.7percentofeachdeveloped country 'srespective GDP asdevelopmentWT/MIN(96)/ST/56
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assistance tothedeveloping countries, andwishtonotethatthiscommitment hasnotmaterialized with
theexception ofoneScandinavian country.
Iwish tourgethedeveloped nations tohonour suchcommitment andtoseetheneedfor
development intheSouth asanecessity inorder togivethecapacity toincrease ourtrading relationship
withtheNorth andinsodoing maximise thebenefits thatmayaccrue from freetrade.
Many small developing countries, likeGuyana, haveundertaken comprehensive structural
adjustment programmes incollaboration withtheWorld BankandInternational Monetary Fund (IMF),
tomake theireconomies morecompatible withafreerandfairer multilateral economic system. Needless
tosay,thatinmostcases thecommencement ofthesestructural adjustments preceded theWorld Trade
Organization (WTO) aswellastheconclusion oftheUruguay Round.
ForGuyana, ithasnotbeenaneasyprocess tomobilize thenational political support forthe
programme. Besides, theadjustment process brought with it,immediately, certain debilitating
consequences fortheweaker sections ofthepopulation. Aswell, theproductive sector hastoface
thefullforceofimported commodities whether suchcommodities arebeing produced andtraded under
faircompetitive situations ornot.
What becomes critical intheprocess isnotjustthemarket opportunities thatarecreated but
theability orcapacity ofthevarious countries andbusiness communities toexploit those opportunities
andcompete satisfactorily. Thisiskeytotheadjustment process andismost important tothe
development oftheprivate sector, theengine ofgrowth. Itisthisengine ofgrowth thatwould have
tosustain thekindofdevelopment weseektoforge here.
Itcannot beexpected thatsmaller economies willbeabletoadjust toglobal freetrade asthe
developed economies would andassuch, theproposal foralonger transition period hasmydelegation 's
totalsupport. Additionally, theproposal byDirector-General Ruggiero toallow imports fromsmaller
economies intothedeveloped economies tariff freemust havethesupport from boththeNorth and
South.
Ourability toembark onsocial programmes andinfrastructure/projects isseverely jeopardized
bythedisproportionate share ofresources directed todebtservicing. Guyana isaclassical caseof
acountry thathashadtoapply 105percentofitstotalrevenue toservice itsdebtobligation andpurchase
fuelin1992; andbetween 1993 and1995 wehavehadtopayanaverage of90percent. Ourdebt
burden asapercentage offoreign exchange earnings hasbeenbetween 30-35 percentforthelast
fouryears. OurnetflowfromMultilateral Financial Institutions fortheyears 1993-1995 were: 1993 -
US$13.6 million; 1994 -US$38.3 million and1995 -US$40.9 million.
Aswell, thecallfrom some quarters forustohasten thepaceofadjustment andeconomic
liberalization inoursmall andfragile economies doesnotseemtotakeintoaccount thedelicate balance
wearetrying tomaintain inanattempt toensure human development anddemocracy onasustainable
basis.
Theliberalization andglobalization process must ensure sustainability andstability inthe
development ofthesmaller economies. Dislocations must beminimized totheveryleast. Thisis
absolutely critical ifwearetoenhance democracy andgood governance andadvance ouractions in
theareas ofpoverty alleviation andhuman development.
Guyana, liketherestoftheCaribbean Community (CARICOM), isacountry which has
traditionally emphasized thepivotal roleoflabour andtheprotection oftheenvironment inits
development process. Wehavemore thanafairtrack record inthese matters.WT/MIN(96)/ST/56
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Webelieve intherightofworkers tobelong totradeunions andtobeengaged inthecollective
bargaining process. Thistomymind isareasonable undertaking inacivilized society anditexplains
whywehave nothesitated toratify andhonour various conventions oftheInternational Labour
Organization (ILO).
However, itwould beabackward stepforallofus-fortheprocess weareseeking toconsolidate
here-ifconcerns fortheenvironment andforlabour standards weretoserve asapretext forcountries
toinstitute newbarriers totrade. Thiswemust avoid atallcosts.
Weagree thattheprocess must befullandcomprehensive butitmust alsobebalanced and
sustainable. Thismustbethebottom lineofthepartnership weseektoconsolidate. Fortheeffective
participation andsustainable partnership ofthesmaller economies, concrete measures need tobe
developed andexpedited asamatter ofpriority.
Specifically, Guyana would liketosee:
1. Aspecial programme intheWTO thatfocuses onthe(trade) development needs of
developing countries.
2. Aproactive work programme ofcollaboration andassistance among theWTO,
World Bank andtheIMFthatpaysparticular attention totheconstraining burden of
debtintheliberalization process insmall economies. Ihopethatthiscollaboration
would takeintoconsideration whatProfessor Michael Chossudovsky, oftheUniversity
ofOttowa, Canada, submitted totheUnited Kingdom Parliament 'sTreasury Select
Committee Hearings ontheIMFwhich states interalia:
"With theformation oftheIMF, theWorld Bank andtheWorld Trade Organization,
in1995 anewtriangular division ofauthority ’between theWorld Bank, IMFand
theWTO hasunfolded. TheIMFhascalled foreffective surveillance ofdeveloping
countries 'economic policies andincreased coordination between thethreeinternational
bodies.
Henceforth, many oftheclauses ofthestructural adjustment programmes (e.g.trade
liberalization andtheforeign investment regime) arepermanently entrenched inthe
articles ofagreement oftheWTO. These articles setthefoundations forpolicing ’
countries (andenforcing conditionalities ’)according tointernational law."