WORLD TRADE WT/MIN(98)/ST/86
20May1998
ORGANIZATION(98-2091)
Original: English MINISTERIAL CONFERENCE
Second Session
Geneva, 18and20May1998
CZECH REPUBLIC
Statement Circulated byH.E. Dr.Karel Kühnl,
Minister ofIndustry andTrade
TheCzech Republic would liketothank theauthorities oftheSwiss Confederation andofthe
Republic andCanton ofGeneva forhosting theSecond Ministerial Conference oftheWorld Trade
Organization. Itisimportant thattheMinisterial isbeing heldinacityofGeneva, aheadquarters
ofthemultilateral trading system intheyearinwhich the50thAnniversary ofthefounding ofGATT
isbeing commemorated.
Since theverybeginning, themultilateral trading system, asembodied originally intheGATT
andnowintheWTO, hasproved itsworth inpromoting economic prosperity andgrowth ona
world-wide scale. Ithasprovided anessential legalframework fortrade ingoods andrecently also
inservices trade andinprotection ofintellectual property rights. Thecommemoration ofthe
50thAnniversary ofthemultilateral system isaveryopportune moment fortheWTO Members to
renew theirfaithinglobal trade liberalization andtosendastrong political message reaffirming their
commitment totherule-based trading system.
TheCzech Republic hasalways beenandremains anactive supporter ofanopenmultilateral
trading system. Forus,themembership intheWTO hasgotwider implications. TheWTO participation
hasbecome increasingly interlinked withasubstantial transformation ofcentrally-planned system to
amarket economy. Throughout thetransition process, trade liberalization hasplayed acrucial role
incontributing tomacroeconomic stabilization, fostering necessary structural adjustments, promoting
more efficient allocation ofresources andinincreasing afreedom ofchoice bothforbusinesses and
consumers.
Simultaneously withtheparticipation oftheCzech Republic intheWTO activities, weare
attaching utmost importance totheprocess ofthecountry 'saccession totheEuropean Union which
constitutes akeypolicy objective fortheyears tocome.
WTO Ministers came toGeneva totakestock oftheimplementation ofthework programme
andtoconsider future activities oftheWTO. Onthisbasis, theMinisters should endorse appropriate
preparatory process thatwould allow them, when theymeetagain attheThird Ministerial in1999,
totakeimportant decisions concerning future negotiations intheWTO.
IntheviewoftheCzechRepublic,theWTOMembershavesucceededinimplementingUruguay
Round Agreements andDecisions andtheresults oftheFirstMinisterial Conference inSingapore,
although there isstillsome room forfurther improvements. Full,faithful andtimely implementation
ofthecommitments undertaken byallWTO Member underpins andstrengthens thecredibility ofthe
multilateral trading system. Smooth implementation undoubtedly increases thewillingness oftheWT/MIN(98)/ST/86
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governments toenterintonewcontractual obligations. Fullimplementation ofWTO Agreements has
alsobeensecured through theuseofthedispute settlement system which proved tobehighly viable.
Since theSingapore Ministerial, theWTO hasbeensuccessful inpursuing itstradeliberalization
mission through timely conclusion ofnegotiations oninformation technology products, basic
telecommunications services andfinancial services. Comprehensive andmeaningful Agreements in
these important areas, towhich theCzech Republic isasignatory, haveenabled theWTO tolookwith
confidence intothe21stcentury. Atthesame time, theyhaveconfirmed theWTO 'sefficient role
asaforum fornegotiations. WehopethatinFinancial Services Agreement afinalandtimely step
shallbetaken bytheparticipants tocomplete respective domestic approval procedures andtoensure
itsentering intoforce within thesettimetable.
Rather modest progress hasbeenmade inintegrating newcountries andterritories intothe
WTO system oftraderulesanddisciplines. Themultilateral trading system willnever betrulyglobal
unless theaccession process ofthecountries aspiring tobecome WTO Members iscompleted. Anearly
finalization depends verymuch ontheability ofthecountries concerned toaccommodate theirtrade
andeconomic regimes totheWTO norms andtoestablish commercially viable relations withexisting
Members.
TheWTO hascontinued itsefforts aiming atbroader integration oftheleast-developed countries
intothemultilateral trading system. Thekeyobjective istoenable these countries tobenefit from
thevastopportunities oftrade liberalization andfrom theopening ofworld markets.
With respect tofuture work, theWTO Members should continue topursue built-in agenda
which provide forconstant review, negotiations andfurther liberalization oftheUruguay Round
Agreements. Itisourfirmbelief thatthetime-frames derived from respective Agreements andthe
commitments toundertake negotiations already scheduled havetobefullyrespected.
Thework onso-called newissues arising fromtheSingapore Ministerial hastobecontinued
inanexpedite manner toreach aphase inwhich decisions concerning thenextsteps could betaken.
Theworld oftradeandinvestment underwent dynamic changes which require morecoherent multilateral
policy responses. Aneedtosecure mutually supportive approach increased alsointheareaoftrade
andcompetition policies which overlap inmany aspects. Business community expects thattrade and
trade-related procedures willbesimplified andthattheWTO willcontribute tothisprocess significantly.
Discussion should develop howtocomplement already existing mandates while preserving
thebalance ofrights andobligations which emerged from theUruguay Round andtheSingapore
Conference. TheCzech Republic isoftheviewthattheWTO agenda should becomprehensive enough
tofacilitate progress across theboard andtoallow theparticipants tokeeparequired balance ofinterests
indifferent areas.
TheWTOshouldalsolaunchtheworkonthetrade-relatedaspectsofglobalelectroniccommerce
withaview tomaximize enormous opportunities resulting from newways toconduct commercial
transactions.
TheWTO future programme must besufficiently ambitious tomaintain theliberalization
momentum. Theprocess oftrade liberalization hastobeastransparent andaccessible tothepublic
aspossible soastogenerate increased public support. Thegovernments should beinstrumental in
explaining totheircitizens thatopentrade isessential forgrowth andthejobcreation. Wehaveto
bedetermined inresisting toanyattempts towards unfounded protectionist measures. Protectionism
isnottherightanswer toconcerns about possible negative implications ofincreasing trade flows on
labour markets.WT/MIN(98)/ST/86
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Theprogramme hastoberealistic aswellandnottobeoverwhelmed bytoomany policy issues
going beyond theobjectives forwhich theWTO hasbeenestablished. Itshould dealinparticular with
tradeandtrade-related issues. Other areas should bediscussed intheWTO onlyifthereisaconsensus
among theWTO Members.
Inconclusion, theCzech Republic stands ready toparticipate actively andconstructively in
abroad-based preparatory process fortheThird Ministerial Conference tobeestablished atthisSession.
Thisprocess istobelaunched inthesecond halfof1998 toallow sufficient timeforbalanced and
detailed consideration ofallaspects relevant bothtotheimplementation andfuture programme inthe
WTO. TheCzech Republic believes thattheprocess setuphereinGeneva willleadtheWTO Members
tocomprehensive multilateral negotiations.
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