WORLD TRADE WT/MIN(98)/ST/50
18May1998
ORGANIZATION(98-1990)
MINISTERIAL CONFERENCE Original: English
Second Session
Geneva, 18and20May1998
INDONESIA
Statement Circulated byMr.Mohammad Hasan ,
Minister forIndustry andTrade
Letmebegin byextending ourheartfelt gratitude totheGovernment andpeople ofSwitzerland
fortheirwarm hospitality, aswellasexpressing oursincere appreciation totheDirector-General,
Mr.Renato Ruggiero, andhisableassociates intheWTO Secretariat fortheirvaluable assistance in
thepreparation ofthisConference. MayIalsocommend theGeneral Council under thechairmanship
ofAmbassador JohnWeekes fortheirdiligent efforts inpreparing theground forourwork.
Wegather here,firstandforemost, tocelebrate the50thAnniversary ofthemultilateral trading
system, which inthelasthalfofthiscentury hasplayed anessential roleinexpanding global trade
andbrought somuch benefit totheworld economy. Indeed, since itsinception inHavana in1948,
themultilateral trading system hascome alongway. And, through eight rounds ofcomprehensive
negotiations andcountless specific improvements, hasmanaged toadjust itselfandtodevelop thesystem
inkeeping withthechanging world economic situation. Today, while continuing topursue itsoriginal
mandate toraisestandard ofliving, toensure full-employment, toexpand production andexchange
ofgoods, thesystem isalsoexpected tocontribute inter aliatosustained economic growth and
sustainable development, particularly ofthedeveloping countries.
Foritspart,Indonesia hasalways firmly committed tothemultilateral trading system. Inthe
lastthirty years ofseriously engaging ineconomic development, wehave made every effort to
consistently alignourselves with, andtointegrate oureconomy into,theevolving multilateral trading
system while contributing toitsdevelopment. Ontheauspicious occasion ofthis50thAnniversary
ofthemultilateral trading system itwould beappropriate forustorededicate ourselves tothe
strengthening ofthesystem andmaking itevenmoreopenandeffective, butalsomorejustandequitable.
Ashasbeenagreed upon, weshallalsoputsubstance intothiscelebration byreviewing the
current stateofthemultilateral trading system. Itcontinues tobeamatter ofconcern tousthatfour
years after Marrakesh and18months since Singapore, theimplementation oftheUruguay Round
Agreements isyettofullymeetourexpectations, andthatmuch oftheirpromises remain unfulfilled.
Itisthusclearthatthequestion ofimplementation isbynomeans asimple andclear-cut issue. One
persisting problem ofimplementation isalackoftechnical ability experienced bydeveloping countries,
particularly theleast-developed countries, infulfilling some oftheirobligations. Inthisregard, while
appreciating theefforts undertaken sofar,weurgetheWTO toprovide thenecessary technical assistance
tothose countries inneed. Wearealsodissatisfied withtheprogress oftheapplication oftheprovisions
onspecial anddifferential treatment forthedeveloping countries. Therefore, weurgethatstrengthened
commitment should bemade andconcrete action betaken regarding theimplementation oftheseessential
provisions.
Nolessimportant problem intheimplementation ismeasures taken bysome Members which
maynotviolate theletters oftheAgreements butclearly incontravention withtheirspirit. Asan
example, thecases oftransitional safeguards measures, unilateral rulesoforigin andback-loading inWT/MIN(98)/ST/50
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theimplementation oftheAgreement onTextiles andClothing which hasdelayed thebenefits for
exporters. Therefore, developed importing countries should faithfully adhere withthespirit offully
integrating thetextile andclothing sector intothesystem. Theabuse ofanti-dumping provisions is
another clearexample oftheproblem ofimplementation which should bespeedily resolved. Hence,
WTO Members should demonstrate theirpolitical willingness toabide notonlywiththeletters but
alsowiththespirit oftheUruguay Round Agreements. Amore notable example oftheviolation of
theAgreements istheuseofdiscriminatory tradeaction andtheextra-territorial application ofnational
legislation onother countries. Thismust beoutrightly rejected.
Wearefullyaware that,asinthepast, themultilateral trading system needs tofollow the
evolution oftheworld economy. However, considering thatthere areimportant pending issues left
overbytheUruguay Round negotiations, weshould, inthenextfewyears, concentrate ourefforts
toundertake activities mandated intheBuild inAgenda, andresist thetemptation ofventuring into
comprehensive negotiations onnewareas. Thisdoesnotmean thatIndonesia doesnotwishtheWTO
tomove forward. Infactwecontinue tosupport theMinisterial Decisions taken inSingapore which
areintended todeepen understanding andtobuild mutual confidence onsome newissues. Weare
evenencouraged withtheirprogress sofar.Butwecontinue tobelieve thattheoutcome oftheseactivities
should notprejudge thefuture works onthose issues.
Oneamong ourunfulfilled objectives istomake themultilateral trading system trulyuniversal.
Therefore, asamatter ofprinciple, Indonesia hasalways supported countries wishing toaccede to
theWTO Agreements. Wearealsooftheviewthattheacceding countries should notbeasked for
higher levels ofcommitments beyond those made bycountries whohadjoined theOrganization earlier.
Wehopethatallpending processes foraccession could becompleted assoonaspossible.
While firmly committed tothemultilateral trading system andfullysupportive oftheaimto
make thesystem universal, Indonesia alsorecognizes thecrucial roleplayed bytheregional trading
arrangements. Itisourconsidered opinion thatthetwoarenotmutually exclusive andshould be
complementary toeachother. Infacttheregional trading arrangements could represent constructive
buildingblocsforasolidmultilateraltradingsystem.Thiscomplementaritypresupposesthattheregional
trading arrangements should befullyconsistent withtheprinciples andrulesgoverning themultilateral
trading system andthattheymaintain thebasictenetofopenregionalism, sothatothers mayalsobenefit
from thearrangements. Ontheother hand, themultilateral trading system could alsolearn from the
positive experiences gained byregional trading arrangements.
Wearemeeting against thebackdrop ofthefinancial crisis inAsiawithitsprofound impact
onothersectors andwidespread ramification tootherregions. Itistobeironically noted thattheaffected
countries haveallbeendynamic performers thathavepursued policies ofopening uptheireconomies
andliberalizing trade andinvestment. Inthiscontext, while notbeing thecause ofthecrisis, trade
should represent anessential element foritssolution through consistent tradeliberalization byall.For
theirpart,inconducting drastic structural adjustment often withenormous social cost, theaffected
countries, likeIndonesia, areconsistently pursuing theirtradeliberalization process. Inorder tomake
trade areally effective element ofthesolution tothecrisis, itishoped thatalltrading partners also
allow greater market access forproducts ofexport interest totheaffected countries. Furthermore,
itnowbecomes urgent forallofustohaveadeeper understanding ontherelationship between trade
andinternational financial andmonetary stability.
Nowthatthephenomenon ofglobalization hasbeenwithusforquite some time, onelesson
tobedrawn isthat,while itbrings about bothopportunities andchallenges, bothbenefits andrisks,
itisessentially ablind force which hasnoregard between thestrong andtheweak. Therefore trade,
which could serve asaneffective instrument inthemanagement ofglobalization, mustcontribute to
minimize allitsnegative impacts andtocapitalize itsbenefits tobeshared equitably byall.Thisis
themost important challenge oftheWTO inthefuture.
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