WT/GC/W/803  
 
21 July 2020  
(20-5003) Page: 1/2 
General Council  Original: English  
 
IMPORTANCE OF MARKET -ORIENTED CONDITIONS   
TO THE WORLD TRADING  SYSTEM  
STATEMENT FROM BRAZI L AND THE UNITED STA TES 
The following statement, dated 20 July 2020, is being circulated at the request of the delegations of 
Brazil and the United States.  
 
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We, Brazil and the United States, jointly recognize  the importance of market -oriented conditions to 
the world trading system.  
 
We recall  that the World Trade Organization (WTO) was established to promote Member economies ' 
participation in a world trading system "based on open, market -oriented policies and the 
commitments set out in the Uruguay Round Agreements and Decisions. "1  
 
We also reca ll that the establishment of the WTO reflected Members ' "desire to operate in a fairer 
and more open multilateral trading system for the benefit and welfare of their peoples " and, during 
the period of time during which the Uruguay Round was being negotiate d, "significant measures of 
economic reform and autonomous trade liberalization were implemented in many developing 
countries and formerly centrally planned economies. "2  
 
We express  our serious concerns with non -market -oriented policies and practices that  have resulted 
in damage to the world trading system and lead to severe overcapacity, create unfair competitive 
conditions, hinder the development and use of innovative technologies, and undermine the proper 
functioning of international trade.  
 
We affirm  that market -oriented conditions are fundamental to a free, fair, and mutually 
advantageous world trading system, to ensure a level playing field for Members ' enterprises for the 
benefit of their citizens.  
 
We recognize  the importance of a Member 's right and ability to regulate in the public 's interest, 
promoting the public 's welfare and helping to establish a level playing field for all market participants.  
 
We affirm  Members ' enterprises should operate under market -oriented conditions and note the 
following elements indicate and are important so that market -oriented conditions exist for market 
participants:3 
 
1. decisions of enterprises on prices, costs, inputs, purchases, and sales are freely 
determined and made in respon se to market signals;  
2. decisions of enterprises on investments are freely determined and made in response to 
market signals;  
 
1 Marrakesh Declaration of 15 April 1994, fifth preambular paragraph.  
2 Marrakesh Declaration, paras. 2 and 4.  
3 This statement is without prejudice to the rights or obligations of any Member under the Marrakesh 
Agreement Establishing the World Trade Organization.  WT/GC/W/803  
 
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  3. prices of capital, labor, technology, and other factors are market -determined;  
4. capital allocation decisions of or affecting enterpri ses are freely determined and made in 
response to market signals;  
5. enterprises are subject to internationally recognized accounting standards, including 
independent accounting;  
6. enterprises are subject to market -oriented and effective corporation law, bankru ptcy law, 
competition law, and private property law, and may enforce their rights through impartial 
legal processes, such as an independent judicial system;  
7. enterprises are able to freely access relevant information on which to base their business 
decisio ns; and  
8. there is no significant government interference in enterprise business decisions described 
above.  
We are willing to work with WTO Members in order to strengthen our collective commitment to open, 
market -oriented policies in order to achieve market -oriented conditions that are critical to ensure a 
level playing field and a fairer and more open world trading system that benefits our peoples.  
 
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