RESTRICTEDWORLD TRADE
ORGANIZATIONWT/MIN(98)/WS/M/2
19 June 1998
(98-2497)
MINISTERIAL CONFERENCE
Geneva, 18 and 20 May 1998
MINUTES OF WORKING SESSION ON FUTURE ACTIVITIES
Held at the Centre William Rappard
on 20 May 1998
Chairman:  Mr. Pascal Couchepin (Switzerland)
1. The Chairman, opening the second Working Session, recalled that its purpose was to enable a
discussion among Ministers on the second part of Item 1 of the Agenda, namely Future Activities of
the WTO.
2. The representative of the European Communities said that Members had rightly celebrated
GATT's tremendous contribution to growth, employ ment and economic stability over the past 50
years.  They had also recognized that, in today's global economy, further trade liberalization within
the WTO rule-based system was the surest way to maintain and spread prosperity.  He welcomed the
fact that the draft Ministerial Declaration that would be adopted later that day encouraged and enabled
all to work to achieve that objective.  The process that would be set up did not pre-empt the followingyear's decisions, but would make it possible to take ambitious decisions at that time, if as he hoped,
Members decided to do so.  The process would respect existing timetables and would also allow work
to be intensified where necessary so that all elements would be in place for decision-making in 1999.
Whatever decisions that would be taken in 1999, the European Communities was committed to
observe in any event, and in the time-scale agreed, the obligations it had undertaken at the conclusion
of the Uruguay Round with regard to the resumption of negotiations on agriculture and services.
3. Members had to explain clearly to their respective electorates the importance of trade
liberalization for promoting growth and creating jobs.  They had to be prepared to demonstrate to all
interested groups the economic and social benefits that resulted from an expansion of trade.  He
agreed with the US President and the Prime Minister of the United Kingdom that it was not obvious to
everybody that Members had a major effort of persuasion on their hands and that they should embark
on it enthusiastically and vigorously.  They should demonstrate that trade and other legitimate publicpolicy concerns, in particular those relating to th e environment, were not mutually incompatible but
could instead work to mutual advantage.  They should tackle head on the criticism that trade was
necessarily disruptive of the environment.  A determ ined effort to resolve some of the difficult trade
and environment issues would go a long way towards reassuring public opinion.  He welcomed the
support, notably from the US President, for the idea of a high-level meeting as the way to take this
forward.  This idea should now be brought forwar d to the General Council to determine the modalities
for its implementation.
4. Political leaders should also continue to look forward and show political and economic vision.
As the President of the Commission of the European Communities had stated on 19 May, the
European Communities believed that the next stage, beyond 1999, should be the launch of acomprehensive new round of negotiations, the "Millennium Round".  He welcomed the fact that the
US President had talked positively about the idea of a round, and had focused discussion on the type
of round that Members should be having.  This was a substantial step forward.  He knew that some
countries were still not yet convinced of the case for any type of comprehensive round.  However,WT/MIN(98)/WS/M/2
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such a round was the right way forward for the global trading system and the growth and jobs it could
create.  First, it was only through a comprehensive approach that all sectors and interests could be
confident that their particular areas of concern would inevitably be included in the negotiations.  In
the absence of a comprehensive round, certain sectors and legitimate areas for future work would
inevitably be left to one side.  With a round, the agenda-setting process was far more wide-ranging,and offered far more options for ultimate decisions than a sectoral or clustered approach.  Second, a
comprehensive approach to agenda-setting meant that the built-in agenda, the Singapore work
programme, as well as new items could all be discussed.  A round also involved the so-called "single
undertaking" approach whereby all participants would have to accept the whole outcome of the
negotiations rather than pick and choose.  Issues that were difficult for some but important for others
would not be blocked in isolation but would have to  be weighed up as part of the overall assessment
of the negotiations.  Political calculations on the overall balance of advantages would enable trade-offs to occur between different issues.  An early harvest was not excluded provided it was a balanced
one.  Finally, a comprehensive round implied a single end date, which would inevitably attract strong
political attention at the highest level within Member governments, and would thus put pressure on
negotiators operating at a more technical level to close individual negotiations in time for the overall
conclusion of the round.  This would not mean that all would be travelling at the speed of the slowestone in a convoy.  Instead, once a critical mass of good-quality commitments was in sight, overall
political pressure would increase to reach solutions on all issues in time to meet the agreed deadline.
There was a growing consensus among Members that a round was the right way forward. This
consensus had even acquired new adherence during the course of the Ministerial Conference.
However, this idea had not yet commanded universal support.  The European Communities hoped thatthe consensus-building process would continue in su ch a way as to allow positive conclusions in this
sense at the next Ministerial Conference, and it would be working in the coming year to that end.
5. The representative of the United Kingdom said th at the recognition of the vital role of trade in
creating new jobs, prosperity and growth had led the United Kingdom to adopt an open trade policy
and to support the creation of the GATT.  Its commitment to and support for the rule-basedmultilateral trading system remained as strong as ever.  The global trade landscape had changed
dramatically since the 1940s.  Successive trade rounds had progressively brought down barriers to
trade in goods.  Tariffs on industrial goods had fallen from an average of 40 per cent to 4 per cent.
The volume of industrial trade had gone up 16-fold.  Hand in hand with the growth in trade over the
past 50 years, Members had witnessed an enormous growth in living standards and in working
conditions.  However, Members could not rest content since there were still vast disparities of wealth
and of essential living conditions in the world.  Trade liberalization should not be permitted to be adevice for driving labour standards downwards into a competitive spiral;  the contrary should be the
case, with the opening up of new opportunities for growth and continuing improvement in the
environment and the quality of life for all.
6. Spreading the benefits of globalization and providing technical help to achieve this goal had
to be inclusive.  To maintain continued prosperity, Members had to reduce further global barriers totrade until businesses could trade throughout the world's markets as easily as at home.  Tariffs
remained a priority, and although they had fallen in some areas they remained high in others.  As
traditional tariff barriers were eroded, one could not ignore the non-tariff barriers which still
obstructed exporters.  Simplification of import and export procedures had become an increasingly
significant priority for businesses, in particular sm aller enterprises.  Members also had to (i) focus
more attention on product standards and technical regulations of particular importance on trade, and
on mutual recognition of testing, certification and standards;  (ii) ensure the strengthening and
protection of intellectual property rights;  (iii) push for multilateral rules for public procurement to
open markets and improve efficiency around the world;  (iv)  simplify complex rules of origin;  (v)
look at the scope for new multilateral rules on investment and on competition;  and (vi) ensure thatworld trade rules did not jeopardize environmental regulation, and that dubious environmental
regulation was not used to camouflage what were essentially obstacles to trade.WT/MIN(98)/WS/M/2
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7. Members were already committed to negotiations on agriculture and services beginning from
2000.  The potential gains from liberalization in these areas were huge.  Current levels of agricultural
support and protection were inefficient and expensive, costing every person in the Community up to
US$330 a year.  On services, while a great deal had been accomplished in the Uruguay Round, and in
the subsequent liberalization negotiations in telecommunications, a 25 per cent cut in the barriersprotecting services, according to one study, could have tripled the gains from the Uruguay Round
tariff cuts.  The United Kingdom and the Community believed that the best prospects for success
would be within broad-based negotiations or a new round.  This would allow Members to balance
trade gains and concessions across a wide front.  At the present Conference, Members wished to set in
train wide-ranging groundwork, covering all potential areas for future negotiation, so that they would
be ready to take the decisions necessary to move ahead swiftly at the Ministerial Conference in 1999.
They should do all they could to make progress quickly in three or five years, rather than the doubtfulprecedents of the seven to ten years of earlier rounds.  But decisions on the scope and modalities of
further liberalization were issues for 1999.  Members should realize that while they had achieved
much in the past, and more recently with telecoms, financial services and information technology
liberalization, much more remained to be done.  They should therefore commit themselves to keep
markets open, and continue together the process of multilateral trade liberalization.
8. The representative of Sweden said that the WTO's major goal was to promote prosperity, and
the means for achieving it were open markets and the rule of law.  However, Members seemed to
have a hard time explaining it to people.  Therefore, a discussion on how to increase transparency in
the WTO was very welcome.  Members could not expect the public to understand trade negotiations if
they did not make any effort to show people why open markets mattered.  The WTO should, forexample, develop a policy of openness as regards documentation, and contacts with non-
governmental organizations should be improved.  But it was clear that transparency began at home,
and Members should ensure support for their policies among their voters.  The democratic process of
elected government could not be substituted on the inter-governmental international level.  Members'
aim for the future should be comprehensive negotiations in the WTO and, in pursuing that, the issueof transparency should be kept in mind.
9. Sweden wanted increased market access, for developing and developed countries alike in
industrial goods, agriculture, textiles and services.  If Members were serious about the WTO's goal of
promoting prosperity, increased market access was key, i.e. market access for all.  Industrial tariffs
had reached such low levels in many countries that Members could just as well get rid of them
altogether.  Tariffs were an instrument of the century that Members were leaving behind, and their
economic importance had often been reduced to red tape for businesses, not least small and mediumsize enterprises.  Increased market access also meant opening up markets of interest to developing
countries.  Putting an end to the marginalization in the world economy of developing countries meant
eliminating trade barriers in agriculture and textiles.  Developed country Members should prove
themselves serious partners if they were to count on the help of developing countries in tackling new
trade issues such as electronic commerce and transparency in public procurement, as well as toenvironmental, health and safety concerns and promotion of workers' rights.  Progress in these areas
was in the interest of all, developed and developing countries alike.  Easy access to markets, and lack
of trade distortion, would promote prosperity for all.  He supported the US President's call on all
countries to sign the OECD anti-bribery declaration.
10. As to labour standards, multilaterally agreed labour standards would not only work to support
sustainable development in the longer run, but would also discourage countries from unilateral
sanctions and protectionist measures.  Labour standards should be discussed in the WTO context.
Members should live up to their commitment in th e Singapore Ministerial Declaration.  Sweden
reaffirmed its strong support for the conclusion in the ILO of a declaration and an effective follow-up
mechanism on core labour standards in June, and called on all WTO Members to ratify the relevantILO conventions.  More attention should be paid to the cooperation between the WTO and ILO
Secretariats.  He would welcome a seminar on possible practical forms for this cooperation.WT/MIN(98)/WS/M/2
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11. The representative of the United States said that on 18 May, her country's President had
clearly outlined the United States' priorities for the WTO over the next eighteen months.  With respect
to the scope, structure and timeframes for negotiations, all needed to be practical and responsive to the
needs of the economy of the 21st century.  The United States had an open mind on the best way to
proceed in developing the agenda and the various ways to move forward.  The President had neitherendorsed a trade round nor a cluster or sectoral approach, preferring first to determine what the
substance of talks would encompass, recognizing th at the negotiations in the built-in agenda were
already agreed, and then to determine how that agenda was to be achieved.  When Members had
agreed to establish the WTO, they had agreed that it should be a forum for continuous liberalization.
That was a theme to be kept uppermost in mind as Members charted the course for negotiations
already mandated, and subjects for further work or possible negotiation.  This was an exciting
challenge that Members should take advantage of as they prepared for 1999.
12. On transparency and dialogue with civil society, the President had devoted a considerable
portion of his remarks to the urgent need for the WTO to listen to the ordinary citizens of the world
and of the need for transparency and for dialogue with representatives of civil society.  The WTO
lagged behind other intergovernmental organizations in this regard.  Insufficient attention to this issue
had led to the kind of anti-WTO demonstrations Geneva had witnessed over the course of theMinisterial Conference, and political discord on trade issues in many Member countries.  Immediate
and decisive action to change the WTO's practices should be taken, from consultations to dispute
settlement.  No effort should be spared to address the range of issues related to public appreciation
and trust in the multilateral trading system.  She had been struck that countries at all levels of
development had made reference to the importance of increasing public understanding and promotingtransparency as the best means to proceed.
13. Regarding the preparation for the negotiations in the built-in agenda, in the proposed
Ministerial Declaration Members would set in motion a series of special meetings of the General
Council designed to ensure that the negotiations mandated by the built-in agenda and other
negotiations which might attract a consensus were fully prepared so that the negotiating timetablesagreed at Marrakesh were respected.  Agriculture would be a particular focus of US efforts.  Between
now and the first special meeting of the General C ouncil in September, the United States intended to
submit a work plan and proposals with respect to the negotiations on agriculture.  With the start of the
negotiations only slightly more than one year away, the September meeting of the General Council
and its subsequent sessions would need to show real progress toward developing the
recommendations mandated in the draft Declaration.  The United States had a similar view with
respect to the upcoming services negotiations.  Th ere were several built-in agenda items relating to
the implementation of the TRIPS Agreement, in particular the review under Article 27.3 of the
exclusion from patentability of plants and animals.
14.  With respect to global electronic commerce, she had been particularly gratified by the
success in reaching a political commitment to mainta in the current trade environment for transborder
electronic transmissions that were at the heart of internet commerce.  In addition, the workprogramme that would be launched would address a range of complex trade-related issues which
arose from electronic commerce.  The United States looked forward to working constructively with
other Members in this exercise.
15. As regards market access, the preparation for 1999 would be critical for the negotiations
already mandated in agriculture and services.  But it would be important to ensure that the right workwas undertaken to determine whether negotiations on industrial market access should also be part of
the future work programme.  Members had two important deadlines looming, one on ITA II which
was to be completed by 30 June, and another on pharmaceuticals to be completed later in the year.  A
number of Members participating in APEC had agreed to liberalize sectors ranging from chemicals to
the environment.  Members should agree that the Committee on Market Access invite APEC toexplain and explore how other WTO Members could participate in these initiatives.  ImplementationWT/MIN(98)/WS/M/2
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was also an important issue for the future work of the WTO.  Technical cooperation in this regard
should not only be intensified, but ways had to be found to ensure that the assistance provided led to
effective implementation.
16.  In the area of trade and environment, Members had a new opportunity to inject some fresh
thinking into this work, including for the Committee on Trade and Environment.  They should findnew ways to move the debate forward and that was why the United States had supported the holding
of a high level trade and environment meeting with an agenda sufficiently broad to respond to the
needs and interests of all, which would help forge a consensus on how the WTO could make a
contribution to sustainable development.  On the issue of trade and labour, when Members had met at
Singapore, the United States had reaffirmed its support for the implementation of core labour
standards, and had noted the importance of cooperation between the ILO and WTO Secretariats.  It
fully respected the Singapore Ministerial Declaration.  However, there were numerous ways in whichit envisioned greater cooperation between the ILO and the WTO, particularly in the area of analysis
and research.  There would be a critical meeting in the ILO in June, on a declaration on core labour
standards.  Given the discussions at this meeting and in Singapore, the United States believed that all
Members would work to support a successful outcome.  The agenda as Members looked ahead was a
broad one,  and they had to ensure that it was balanced, and one that went back to the basics, raisingall standards of living and enriching the lives of all people.  The United States looked forward to
working constructively to ensure the success of the 1999 Ministerial Conference.
17. The representative of Uruguay said that Uruguay had come to this Ministerial Conference and
to the commemoration of the 50th Anniversary with a view to continuing to contribute through its
presence and its actions to strengthening the multila teral trading system, to which it attached great
importance.  Uruguay, as a member of MERCOSUR,  together with Argentina, Brazil and Paraguay
and their associate members Bolivia and Chile, was convinced that the WTO Agreements had already
identified, with clarity and precision, the most important themes that should be considered.  The
Marrakesh Agreements had achieved a successful balance inasmuch as they had included among their
main features the continuation of negotiations in fundamental areas such as agriculture and services.In general terms, this Ministerial Conference had met and even gone beyond Uruguay's aspirations.
The draft Ministerial Declaration had given additional impetus by reaffirming the commitment to
initiate agricultural negotiations in 1999, assigning to the General Council  the task of supervising the
process and deciding that the preparatory work should begin in September this year.  The results of
this preparatory process should include the necessary recommendations on the scope, coverage,
arrangements, time-frames etc., so that the Third Ministerial Conference to be held in 1999 would be
able to launch the negotiations effectively.
18. Since agriculture was the main source of its economic activity and its export trade was mainly
agricultural, Uruguay would work unceasingly to  incorporate the following elements into the
negotiations: with regard to market access, there should be a significant reduction in tariffs, in
particular the tariff peaks.  These should be comparable to the levels for other goods.  Agricultural
tariffs for example were now as high as 600 per cent.  The bound maximum should be comparable tothat in other sectors.  The remaining non-tariff or para-tariff measures should be eliminated.
Minimum and current access commitments should be expanded.  Reinsurance mechanisms such as the
special safeguard and other such arrangements should not be renewed.  As to internal assistance, all
support measures having a distorting effect on production and trade should be eliminated.
Accordingly, definitions of so-called "green box" measures should be adjusted and all other suchmeasures prohibited.  Concerning export subsidies, they should be totally prohibited in the same way
as those for manufactured goods.  Export credits should remain subject to strict and effective
disciplines.  Clear and precise rules should be established so as to prevent circumvention of the
commitments entered into.  As to agricultural  subsidies granted by the OECD countries, they
currently totalled US$280 billion, a figure that ex ceeded the total amount of the exports of the whole
of Latin America.  Trade liberalization would enable a large part of these resources to be allocated to
other areas.  The distortions that such a situation was producing in the market contradicted theWT/MIN(98)/WS/M/2
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constant statements by various countries in favour of free, fair and balanced trade based on the rules
of the market and competitive advantages.  Trade liberalization of agricultural goods would bring
considerable benefits for all, both in terms of economic growth and prosperity and also in food
security and sustainable development.  It would prom ote an increase in trade that would in turn bring
greater economic growth and would benefit producer s and consumers.  The supply of food to world
markets and, in particular, to those countries that were net food importers should be guaranteed.
19. Members had agreed that the existence of a global system involved the existence of many
different interests, as had been recognized in the draft Ministerial Declaration, and Uruguay was
therefore ready to consider, and contribute to the discussion of, subjects of trade interest to all
Members.  However, the examination of these subjects and possible negotiations thereon should in no
way delay the initiation of the negotiations that had already been scheduled and agreed.  As the
President of Uruguay had already remarked, Uruguay and its producers were ready to compete in afree and undistorted world market, but would never be able to compete against the government
subsidies of the industrialized countries.  The new round of agricultural negotiations that would be
launched at the end of 1999 should confront, with vi sion and firmness of purpose, all these distortions
and, above all, ensure that agriculture would finally be treated within the WTO on an equal footing
with other sectors of international trade.
20. The representative of Hong Kong, China said that Members needed to sustain the momentum
of trade liberalization started by the Uruguay Round and to ensure that WTO's future work would
meet the needs and challenges of an increasingly globalized and technology-driven world economy.
While the current work programme was a sizeable one, it did not provide an optimum basis for future
work because it was slightly dated and in particular lacked linkages that provided the opportunities fortrade-offs.  In view of these limitations, the WTO should complement the built-in-agenda through
developing a balanced, broad-based and comprehensive package of multilateral trade negotiations.  In
this connection Hong Kong, China supported the European Community's call for a new round.  Hong
Kong, China believed that the genuine concerns of developing countries in the area of implementation
had to be given sufficient priority, so that a balanced agenda for the future could be developed.Without such a balance, Members would not be able to make good progress overall.  In terms of the
mandated negotiations, Hong Kong, China would naturally accord the highest priority over the next
one and a half years to preparing for the next round of services negotiations.  Members should prepare
themselves for negotiations on rules, market access and national treatment, which were inter-
connected issues.  Competition principles were closely tied up with the general question of market
access.  Hong Kong, China looked forward to the General Council, at the end of this year, setting in
train further work which would lead to some substantive recommendations to the Third MinisterialConference.  It was essential that these recommendations focused on governmental trade measures
and the need to make them consistent with competition principles.  Members also needed to move
ahead to develop more comprehensive rules on investment and to develop the work started on trade
facilitation and transparency in government procurement.
21. Modern telecommunications and computing technology were revolutionizing the way
business all over the world was done.  Electronic commerce was going to have a huge impact on all
Members. Hong Kong, China therefore strongly supported the US proposal on this issue.  On tariff
barriers, Hong Kong, China believed that the barriers that remained were still significant, particularly
for developing Members.  At a time when regional trade agreements were proliferating, the WTO
simply could not afford to ignore reduction of MFN tariffs.  To do so would be to entrenchdiscrimination and would lead, not to convergence, but to divergence between regionalism and
multilateralism.  The WTO had to remain true to the fundamental principles of most favoured nation
and national treatment. But some of the rules which related to exceptions to these principles were
looking outmoded or inadequate and should be updated to make them more relevant to the modern
world.WT/MIN(98)/WS/M/2
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22. One priority area which required attention was the multilateral framework governing regional
trade arrangements.  There was no question about the primacy of the multilateral trading system, a
message which had already been reaffirmed by Ministers.  In order to give real effect to Members'
words, and to uphold the credibility of the multilateral trading system, they should now inject a new
impetus into the work of the Committee on Regional Trade Agreements and develop more vigorousdisciplines.  The ever-increasing proliferation of regional trade agreements was a matter of genuine
and serious concern.  It threatened to undermine the primacy of the multilateral trading system and to
retard the pace of further multilateral trade liberalization, and was therefore a matter which should be
seriously and vigorously addressed, as and when preparations commenced for the Third Ministerial
Conference.  Finally, the WTO future work programme could not neglect the institution itself.  Top of
the list was the establishment of the Secretariat with its own terms and conditions by 1 January 1999
at the latest.  Another high priority was the completion of the current review of the dispute settlementmechanism.  Hong Kong, China was a staunch supporter of the multilateral trading system.  The
WTO's future activities should focus on further trade liberalization and strengthening of rules to
ensure that the rule-based multilateral trading syst em was relevant and responsive to the needs of the
modern business world.  Hong Kong, China would therefore pursue the idea of launching broad-
based, balanced and comprehensive multilateral trade negotiations before the start of the new century.In doing so, it wished to underscore the long-esta blished and well-proven practice of decision-making
by consensus in the WTO.
23. The representative of Brazil said that on 19 May his President had the opportunity of stressing
Brazil's commitment to the multilateral trading system and in particular to the WTO, and had
expressed optimism about its future.  Ministers' responsibility concerning the built-in agenda andagriculture at this point in time was to prepare for the challenges that the WTO would face in the near
future, and this required courage and political will.  There would always be differences of view
regarding issues to be put forward and therefore the staring point of discussion should be a clear
distinction between issues of the built-in agenda, which had already been agreed, and other issues
which had not yet been the subject of consensus among Members.  This did not mean that Brazildisagreed up-front with the discussion of new issues or that it opposed the enlargement of the future
agenda.  It only meant that the agenda already agreed should take priority and could not be held
hostage to other issues not yet discussed.  The President had also referred to the need to engage in
early negotiations on agriculture, particularly in view of the progress achieved in terms of trade
liberalization in developing countries, and which were now more than ever open to imports of
industrial goods.  Preparatory work for the negotiations on agriculture should start soon and Members
should show their resolve to achieve rapid progress in such negotiations.  The negotiations shouldcommence in earnest in 1999 with or without a decision on a new round because this had been the
undertaking in Marrakesh in compensation for a result which had fallen far short of what had been
expected in the agreement on agriculture.
24. On the issue of transparency, he said that the number of people that had a distorted and false
view of the WTO was much larger than of those that had actually read the text of any WTOAgreement.  This was a particularly sensitive issue.  Increasing transparency should actually start
within each country.  Whether the Organization itself should work towards greater direct contact with
the public was something which had to be examined with care.  In order to take any decision on this
issue, an organized debate would be useful, with the participation of different actors involved in trade,
so as to have a clear picture of what was needed and what would be feasible in terms of increasingtransparency in the WTO.
25. With respect to a new round of trade negotiations, Brazil would be ready to consider the
enlargement of the trade agenda, so as to build a balanced set of items for the future agenda.
Nonetheless, there were a few preconditions:  (i) the enlargement of the future agenda could not
interfere with the negotiating process already agreed for agriculture and the built-in agenda in general;
(ii) negotiations on new issues could not take place before the conclusion of all stages of
implementation of Uruguay Round commitments, in particular with regard to market access;  and (iii)WT/MIN(98)/WS/M/2
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the enlargement of the negotiating agenda could not be centred on sectoral negotiations.  Brazil held a
strong position on sectoral agreements.  The sectoral approach to negotiations, even if the results were
on an m.f.n. basis, was fundamentally disruptive to the system.  It withdrew bargaining power from
developing countries and was not conducive to liberalization on a horizontal basis.  The exaggerated
focus on hi-technology sector diverted attention from other sectors that were economically moreimportant to developing countries, such as agriculture and textiles.  With regard to electronic
commerce, Brazil had contributed to the process that had led to the drafting of the proposed
declaration on global electronic commerce.  The establishment of a work programme to examine this
issue would help Members in taking any other decisions in the future.  Brazil would examine and
follow the issue closely.
26. The representative of Egypt said that the WTO Agreements comprised agreed obligations and
future plans. Full and faithful implementation of these Agreements was necessary and the basis on which
future work could be built, taking into account the past achievements and experience gained in the
implementation process. The agenda of the third Ministerial Conference should include mechanisms to
ensure the effective implementation of existing agreements and support for developing countries to meet
their obligations.  Future work under the WTO Agreements included in the built-in agenda called for
negotiations, reviews and other work in accordance with established time-frames.  Egypt was committedto this work as part of its contractual obligations.  Future activities or negotiations could also arise from
another area, namely, the work programme agreed in Singapore with regard to  trade and investment,
trade and competition, transparency in government procurement and trade facilitation.  The educational
process which was on-going should, as its main objective, address the development dimension of these
issues effectively and comprehensively.
27. The Singapore Declaration had emphasized that core labour standards should not be used to
discriminate against the trade of developing countries.  However, the International Labour Organization
had to consider policies and recommendations which could improve working conditions in developing
and developed countries.  Egypt believed that any decision concerning other future work should be taken
only by consensus based on a balance of interests of all Members, and should take into account thelimitations on developing countries' human and financial resources, the development dimension, the need
for technical assistance, and special and differential provisions in favour of developing countries.  Trade
liberalization should be carried forward without creating social and political instability which would
hamper progress of the multilateral trading system.
28. Egypt believed that the important issue of trade and environment required further and in-depth
examination and analysis, with a view to achieving the objective of sustainable development called for in
Agenda 21 of the Rio Declaration.  He noted the work done in the Committee on Trade and Environmentand the need for balance in addressing all issues under its work programme, in particular the issue of
market access which should be the core and focal point of its deliberations.  Egypt attached great
importance to the environmental dimension as a pre-condition for sustainable development.  In April
1998, it had begun the enforcement of its Environment Law No. 4 for 1996.  Implementation of this law
required international cooperation, which was the best way to deal with environmental problems. Tradesanctions would not help to solve environmental problems, but would create tensions and conflicts.
Crucial positive measures such as technical and financial assistance and transfer of sound environment-
friendly technology could help Egypt meet environmental requirements and achieve the objectives of
sound environmental policy.
29. His country was ready to address new issues formulated in a balanced manner which took into
account the interests of all Members.  It recognized the potential of electronic commerce and for this
reason had presented a paper on its development dimension.  In order to maximize the benefits of
electronic commerce in the multilateral trading system, developed countries should provide technical and
financial assistance to developing countries.  With regard to future transparency of WTO activities, Egypt
supported the need to enhance the awareness of the private sector and the public of on-going WTOactivities and future negotiations.  With regard to future negotiations, he noted that some speakers at theWT/MIN(98)/WS/M/2
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present meeting had favoured a sectoral approach while others had emphasized the need for a round of
negotiations.  His country was in favour of sectoral negotiations due to its human and financial
limitations.  Egypt appreciated the United States' offer to host the third Ministerial Conference but
preferred that the Conference be held in the year 2000 in order to allow sufficient time for preparation.
30. The representative of Israel said that over the past 50 years, the GATT and later the WTO had
played a crucial role in directing and regulating international trade and trade practices. He believed that
this constituted an extraordinary record of success in determining the direction of international trade.  The
multilateral trading system, by emphasizing the common interest, had levelled out differences while
preserving the essential individualities of Members.  Israel was a relatively young state and had been a
member of GATT only since 1962.  However, it was committed to an open economic system and
attached great importance to the role of the WTO.  The success of the WTO derived from the fact that it
had transcended geographic and political borders and had focused on the shared goal of the expansion ofinternational trade in order to enhance economic development to the benefit of all Members.  In Israel's
view, free-trade agreements were a means to greater integration into the global economy and were
consistent with and complementary to the multilateral trading system and its rules.  Israel's experience
had demonstrated that these agreements could contribute to global trade liberalization.  At present, Israel
was laying the foundations for regional economic relations with its neighbours in the Middle East.
31. With regard to the future work programme, Israel supported a comprehensive round of
negotiations covering all sectors, in particular industrial goods.  It welcomed the progress made by the
Council for Trade in Services in developing a programme for the exchange of information in the
preparation of negotiations scheduled to start by the year 2000.  This programme was an important step
toward the opening of the negotiations and would contribute to further transparency and help Membersmove towards further liberalization.  Israel's specific commitments reflected an open, liberal regime in
trade in services.  In particular, its recent commitments in financial services and telecommunications
reflected its policy of economic liberalization.  Israel welcomed the successful conclusion of the
Agreements on Basic Telecommunications and Financial Services and considered these to be
instrumental to the enhancement of overall trade in services.
32. As a major player in development of electronic commerce, Israel attached great importance to a
global agreement within the framework of the WTO.  After an initial examination of the issue, Israel
supported the proposal for a standstill on the existing situation of not imposing customs duties on
electronic commerce pending a work programme to be carried out in the WTO to examine the subject
and its implications.  Israel affirmed its support for all efforts to simplify customs procedures to facilitate
the expansion of global trade. It also supported the designation of a working group to study this issue
since bureaucratic customs procedures could seriously hinder trade.  In this regard, Israel had developedan integrated electronic foreign trade system to facilitate and simplify all stages of customs clearance
procedures from shipment to payment.
33. Israel recognized the growing importance of the link between investment and trade in the
international economy.  Israel's inward and outward investment regime was open, stable and liberal and,
in recent years, had served as an engine for economic growth.  Israel supported the work of the WTO inthis area.  In public procurement, Israel supported increased transparency in all procedures.  All Members
would gain from greater access to public tenders.  He underlined that Israel was a party to the plurilateral
Government Procurement Agreement, and had already undertaken substantial obligations to open its
public tenders.  His delegation urged other Members to consider joining this Agreement.  Israel also
wished to commend the ongoing work of the Working Group on transparency in governmentprocurement practices.  It also supported the inclusion of the issue of trade and competition in the future
agenda of the WTO and believed that it was important for all Members to implement domestic
competition rules and regulations in parallel with trade liberalization.  Israel commended the work being
undertaken in the Working Group on Trade and Competition and looked forward to receiving its report.WT/MIN(98)/WS/M/2
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34. Israel welcomed the accession of new countries to the WTO and recalled that acceding countries
should accept the fundamental WTO rules of non-discrimination and market access upon their accession.
On the threshold of the twenty-first century, mankind faced many challenges as a result of unprecedented
technological progress, as well as major ethical dilemmas since the old challenges of local enmity,
religious and racial discrimination had not been overcome.  While the latter were not part of its mission,the WTO did not operate in a vacuum.  Israel reiterated the hope that in the interests of efficiency and
credibility, the WTO would continue to focus on the operation of a rule-based world trading system
without politicization in its mandate. Over the past fifty years, the WTO had functioned successfully as a
rule-based multilateral trading system through consensus. It had already been faced with new challenges
such as trade in cyberspace.  The WTO was now ready to take on the challenges of the next fifty years
and succeed.
35. The representative of France said that his country considered that the developments in the WTO
had been positive.  For the WTO to function properly, there had to be a balance among its different
Members: American, European and developing country groups.  It was important that these groups were
placed on an equal footing. There was a need to set three priorities for the WTO. First, to preserve an
open multilateral trading system, this Conference should send a clear message on the primacy of
multilateralism over bilateralism for the resumption of the negotiations in the year 2000. Second, toensure progress of the WTO's work programme to favour continued liberalization of trade and
investment, there was a need to look forward to the future.  International trade was no longer limited to
customs duties.  Regulatory, sanitary and phytosanitary issues, anti-competitive practices, public health
and consumer protection issues, and social and environmental concerns required due consideration.
Further progress was needed with respect to transparency in government procurement.  Following theOECD, the WTO had a role to play in combatting corruption in international trade.  Investment had
increasingly become central to the dynamics of global trade, as employment and growth depended on it.
It was necessary for the WTO to better integrate these important issues.  It was also necessary to define a
common legal framework to ensure transparency, stability and security for investors.  Otherwise, a
multilateral trading system operating at different levels would be established in which some Membersmight gradually be marginalized.  France welcomed the decision on electronic commerce and supported
the work in this area in which it would participate actively with the European Communities.  It also hoped
that the work aimed at expanding the Agreement on Information Technology would be carried out.
36. Third, it was imperative that the WTO and its Members took into account the expectations and
concerns of the public.  The reasons for concern with regard to globalization were well-known.  It should
be constantly borne in mind that the development of trade and investment was vital to stimulate growth,
employment and technological progress in all countries. Trade liberalization should not be considered asan end in itself but should serve the objectives outlined above and integrate those aspects to which public
opinion had become sensitive.  Under such conditions, the opening of markets, liberalization and other
required reforms would be supported by all countries.  The ILO's role in the question of basic labour
standards had been recognized.  He hoped that the next Ministerial Conference would be able to note
significant progress in this regard. However, the WTO should not ignore the debate on forced or childlabour. All these issues should be considered within a multilateral framework which would provide the
opportunity for different views to be expressed. Otherwise, there was a risk that the public would pressure
governments to take unilateral or extraterritorial actions.  Therefore, France supported the initiatives taken
in both the ILO and the WTO to promote further reflection and work in this area.  It also supported the
proposal to hold a joint meeting of the WTO and the ILO.
37. Work in the area of trade and environment was important and should be intensified in order to go
beyond the stage of analysis.  France hoped that the WTO, within its mandate, would make a significant
contribution in this area.  His country remained responsive with regard to the position of developing
countries in the global trading system. Just as the question of pace and type of liberalization could not be
avoided, the question of how to share the benefits and costs of globalization should not be avoided.  Forthat reason, the European Communities had firmly supported the Plan of Action in favour of least-
developed countries.  He noted that the present Ministerial Conference would open the way for theWT/MIN(98)/WS/M/2
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launching of work in the WTO with a view to resumption of negotiations in the year 2000.  The guiding
principles should be ambition, realism and observance of the commitments made and the WTO
objectives. Transparency should be ensured. It was essential for preparations for future meetings that a
public dialogue be held on the terms under which openness and the WTO rules should be negotiated.
38. The representative of Senegal said that in the next few years the WTO would be confronted with
issues already included on its agenda as well as new issues.  With regard to the built-in agenda,
notwithstanding the important initiatives by the Secretariat in the area of technical assistance in favour of
developing countries, the need to respect the established time-frames required constant efforts by
developing countries to work towards better approval of the international trading system by their
administrations, entrepreneurs and consumers. In this regard, additional assistance would be welcomed.
He recalled that Senegal was one of the countries which had indicated its support for discussion of the
questions of trade and investment and trade facilitation. Senegal considered that it was in its interest toexamine the question of electronic commerce and its implications, in particular for the most fragile
economies.  The mastery of information and technology was at the centre of economic performance.
Therefore, the technologies of the Internet in enterprises, in particular small and medium size industries,
would be an important tool of competitiveness and trade facilitation.
39. Senegal was one of the signatories of the Agreement on Basic Telecommunications and had
studied with great interest the opportunities for strengthening the process of technological acquisition and
diffusion of knowledge which the Agreement on Information Technology provided to developing
countries.  There should be no further marginalization which divided the world into net producers and net
consumers of goods and services transmitted electronically.  Therefore, the availability of an efficient
infrastructure to support the development of future commerce was necessary to satisfy the aspirations ofdeveloping countries for more equity and solidarity in international trade relations.  Competition in the
global market would take place in the context of the new paradigm resulting from the new
communication technology. This competition could become an unequal combat between unequal
partners. In this regard, the OECD countries had the duty, capacity and means to foster a new flow of
investment to developing countries.  Senegal had undertaken considerable measures of liberalization andprivatization as well as structural reforms, which had recently been noted by the international community
in Paris.  It was urgent that a final solution be found with regard to the debt burden of developing
countries
40. The representative of Japan said that there was a need to continue efforts to strengthen the
multilateral trading system in response to new requirements.  To this end, comprehensive liberalization
negotiations and the new agenda should be addressed.  Japan supported comprehensive negotiations for
trade liberalization in the new millennium which should cover industrial tariffs in addition to the built-inagenda, given the importance of industrial products in world trade.  Comprehensive negotiations would
facilitate the balancing of the different interests of Members and be most effective in strengthening the
multilateral trading system.  In view of the increasing role of investment in the world economy, in
particular in developing countries, there was a need to establish investment rules.  If barriers to
investment were reduced and stability of legal institutions improved by the establishment of investmentrules, the industrial environment would improve and investment be promoted. Significant benefits in the
areas of employment and technology transfer would accrue to various countries from direct foreign
investment.  Investment rules would also be beneficial to developing countries that wished to receive
increased investment.
41. Japan believed that regional integration should be compatible with the WTO Agreement and
should not, in any way, weaken the multilateral trading system. It was therefore important to intensify the
work of the Committee on Regional Trade Agreements. Japan attached importance to the strengthening
of rules with regard to regional trade agreements.  Strengthening of the multilateral trading system
through comprehensive liberalization negotiations and the establishment of investment rules would also
enable the Asian economies to make their recovery.  Japan would do its utmost to support these countriesin overcoming their difficulties.  His delegation welcomed the statement by Thailand that its commitmentWT/MIN(98)/WS/M/2
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to an open multilateral trading system would remain unchanged in spite of the current economic
difficulties.  It was important that the third Ministerial Conference in 1999 take an appropriate decision to
launch negotiations.  Japan hoped that in the preparations for the Conference, Members would coordinate
on a specific mode for negotiations, and Japan would participate actively in this process.  With regard to
agriculture, Japan was complying with its obligations under the Agreement on Agriculture in spite of itsdifficult domestic situation.  His country would participate in the continued negotiations pursuant to the
Agreement on Agriculture.  It believed that these negotiations should be carried out within the agreed
time-frames set out in the Agreement.  Account should be taken of the balance between exporters and
importers, non-trade related concerns, and the treatment of developing countries.  In order to make the
multilateral trading system more universal, Japan supported the early accession of China, Russia and
other applicants, through the establishment of institutions compatible with the WTO rules and the
promotion of market access improvements. While encouraging their liberalization efforts, Membersshould adopt a realistic approach.
42. The representative of New Zealand said that his country supported the primacy of the multilateral
trading system.  In its future work, this system should make real and fast progress.  Mandated
negotiations on agriculture should begin in time in accordance with Article 20 of the Agreement on
Agriculture by the end of 1999, and not 2000 as indicated by some Members. The credibility of the WTOdepended on this.  There was a need to explain to all the world's peoples how much protectionism
negatively affected those countries implementing protectionist policies.  New Zealand had protected its
industries and had subsidized its agriculture like many other countries.  Its standard of living, which used
to be one of the highest among the OECD countries, had increasingly declined.  It had subsequently
unilaterally eliminated its export subsidies and had dismantled protectionism, resulting in the rise of itsstandard of living.  In accordance with an OECD analysis, agriculture had suffered the most from
protectionism around the world, with the highest levels noted in Japan and Europe. During a recent visit
to Europe, he had discussed the issue of agricultural reforms and had talked to a number of European
Ministers on the issue of the Asian financial crisis.  It had been estimated that due to this crisis the GDP
could be reduced by half a percent in the EU in 1998, which was significant.  By comparison, theCommon Agricultural Policy (CAP) could be reducing economic growth in Europe by twice as much as
the effect of the Asian financial crisis.  In fact, the full economic cost of the CAP for Europe was
probably a loss in potential economic growth of one percent of the GDP per year, which was twice the
impact that the Asian financial crisis was expected to produce.  Research had also demonstrated that
agricultural protectionism cost two to four million jobs across Europe.  This policy also affected
economic growth globally.  If countries did not care about the impact of protectionism for themselves,
they should be concerned about its impact for developing and least-developed countries.  These countriesneeded to trade in areas of their comparative advantage such as agriculture.  This was often not possible
because of export subsidies and protectionism in developed countries.  Therefore, their share of
agricultural trade was declining in spite of their comparative advantage.  He proposed a genuine
liberalization of trade in agriculture as a means to help African countries.
43. The representative of South Africa said that real progress had been made in the past three days in
defining more carefully how to move forward.  Important points had been made with regard to the fact
that the WTO had not created globalization, and that globalization was a product of economic forces at
work.  The WTO was required to develop a rule-based system in order to mange the processes involved
in these economic forces and the interaction of countries with these processes.  He stressed that the
system should work for all.  Not only should public opinion be better informed about WTO activities, butall the world's peoples, including developing countries, should benefit from the work of the WTO and
other multilateral institutions.  A better understanding of the tension between the issues at hand had
developed.  On the one hand, globalization continued and new matters appeared on the agenda such as
those discussed in Singapore, or currently a new issue such as electronic commerce.  This required
keeping abreast of the processes in order to be able to manage them.  However, it should be borne inmind that work on the existing agreements had to be completed.  Without this there would be no
confidence in the system.  This issue involved more than just a balance of the interests of Members, and
his country believed that progress had been made in understanding that this was also a balance ofWT/MIN(98)/WS/M/2
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processes.  If the problems and needs of developing countries could not be addressed rapidly and
effectively, these countries would be left behind and the system would fall apart.  Therefore, no matter
what might be proposed for the new agenda, a balance could only be achieved if at the same time other
fundamental issues were addressed, in particular those of interest to developing countries.  This required
developing countries to take the lead in the process concerning their interests and to develop greaterprecision on matters which affected them.  South Africa strongly supported the view that the agricultural
negotiations did not concern merely trading the interests of the European Communities against other
countries.  The agricultural negotiations should begin in 1999 as part of dealing with the needs of
developing countries.  The real competitive advantage of developing countries should be taken into
consideration by the WTO and not overridden.  There would be no development if the WTO, in its
management of the multilateral trading system, were to prevent the process of industrialization and the
development of agroindustry in developing countries.  South Africa believed that great progress had beenmade during this Ministerial Conference in achieving a greater understanding of the balancing of
processes and interests.  South Africa was committed to working with other developing and developed
countries in formulating a realistic approach that would improve the management of the multilateral
trading system and that adhered to the time-frames of the built-in agenda and acknowledged the reality of
new issues.
44. The representative of India stressed that the Uruguay Round commitments, in particular those
undertaken by developing countries, had been unprecedented in trade history. The GATT had basically
dealt with tariffs and certain non-tariff barriers.  As a result of the Uruguay Round and the establishment
of the WTO, multilateral disciplines in entirely new areas such as services and intellectual property rights
had been put in place. Many developing countries, including India, still grappled with their commitments.In his statement at the first Working Session on 18 May, he had mentioned several concerns of
developing countries such as the absence of effective implementation of special and differential
provisions for developing countries, unilateral actions or threat of unilateral actions in contravention with
the spirit of multilateralism, attempts to use the provisions of various WTO agreements to erect new non-
tariff barriers, the imbalances and asymmetries inherent in the TRIPS Agreement, the Agreement onAgriculture and on Textiles and Clothing, the proliferation of regional trade blocs that were not consistent
with or complementary to the multilateral trading system, and the denial of adequate market access for
products of developing countries.  In  order to enhance the credibility of the multilateral trading system, it
was necessary to focus attention on problems and concerns relating to implementation and to find
appropriate solutions.  In India's view, this should be the core of future activities.  The built-in agenda
provided for further negotiations in agriculture and services in the year 2000.  A number of Uruguay
Round agreements contained built-in provisions for review.  The provisions relating to the built-in agendawere part of the single undertaking and therefore, at the appropriate time, would have to be implemented.
It was necessary that this be pursued in the work programme of the WTO.
45. At Singapore, Members had initiated an educational process in respect of trade and investment,
trade and competition, transparency in government procurement and trade facilitation.  India was actively
participating in the work of various WTO bodies on these matters. At the appropriate time, India woulddecide, in the light of its development needs and the impact of the Uruguay Round commitments,
whether there was a real need for multilateral disciplines in these areas.  If there were, India would decide
on the timing and modalities of the switch from the educational to the negotiating mode.
46. The Ministerial Declaration to be adopted at the present Session proposed to set up a process for
the preparation of the next Ministerial Conference.  Rightly, this Declaration clearly separated theSingapore subjects, on which there was no commitment to negotiate multilateral disciplines, from the
built-in agenda.  The Declaration referred only to "other possible work on the basis of the work
programme initiated at Singapore", and could not lead to negotiations without consensus.  He noted with
satisfaction that the future activities of the WTO would also take into account the recommendations on
the follow-up to the High-level meeting on Least-Developed Countries.  In the Declaration, it had alsobeen proposed that the General Council might, following a process of studies, make "recommendations
arising from consideration of other matters proposed and agreed to by Members concerning theirWT/MIN(98)/WS/M/2
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multilateral trade relations".  There should be no attempt to bring non-trade related issues into the WTO,
since any such attempts would fail due to the lack of consensus.  The issue of electronic commerce had
been the subject of intensive discussions in the past few days.  This was an important issue.  The General
Council's work programme should clearly define its scope, analyze its implications and assess its impact.
The General Council should pay close attention to the issue of transfer of technology relevant toelectronic commerce to ensure that the benefits of growth in this new area were equally distributed and
strengthened trade flows of all Members.  A standstill on import duties should be the precursor to a more
dynamic regime of technology flows and free movement of professionals and technicians in this area. In
India's view, WTO disciplines impinged on many areas of domestic policy-making; therefore, all WTO
related issues had become highly sensitive. It was in the long-term interest of the WTO not to be
overburdened with such issues, and this view was shared by many Members.  The Preamble to the
Marrakesh Agreement recognized the need for positive efforts to ensure that developing countriessecured a share in the growth of international trade in line with the needs of their economic development.
The future activities of the WTO should focus and concentrate on such positive efforts.
47. The representative of Finland said that trade and economic policies could not be conducted in
isolation.  Linkages between trade and social, environmental and human rights issues, including
labour standards, were more and more evident.  The WTO could not overlook that development.  TheWTO needed to continue providing answers to th e challenges it faced. The multilateral rule-based
framework would need to be further strengthened .  That would especially help the developing
countries and countries in transition to increase tr ade and investment flows and to acquire know-how.
The multilateral trading system could not be seen as an end in itself.  It was a means to create peace,
stability and prosperity in an increasingly inter-dependent world.  Globalization was causingincreasing concern among citizens.  It was the responsibility of the politicians to ensure the
involvement of citizens in the process.  National responsibilities could not be delegated to
international organizations.  The primary objective of this Ministerial Conference was to mandate the
different WTO bodies to launch the ground work needed so as to prepare for the coming decisions on
the scope and modalities of future negotiations.  The preparation needed to cover all relevant issues toensure broad-based multilateral negotiations conducted in a manner respecting the principle of
balance between rights and obligations.
48. International co-operation was required to ensure that the information society became truly
global.  A sound infrastructure was necessary for the development of the information society.
Information technology and well-functioning telecommunication systems were essential.  Important
results had been achieved to that end.  The information technology agreement had been concluded and
a large number of WTO Members had undertaken telecommunications liberalization.  There was stillplenty of room for future work including that in the field of computer-related services.  Electronic
commerce was growing in importance both between companies and between companies and
consumers.  New opportunities were arising but so were new challenges which would need to be
addressed in the multilateral fora.  The rapid development of electronic commerce affected many
different fields of activity.  It was important that the WTO took an active role in looking at the trade-
related aspect of this wide issue, particularly owin g to its global nature.  Developing the information
society needed to be seen as an asset that united different parts of the world instead of separating
them. It could offer unprecedented opportunities to improve growth, job creation and development.
49. The representative of Costa Rica expressed confidence that the WTO would successfully
conclude the work that was still pending as contained in the built-in agenda.  Within that agenda it
was extremely important to carry out the work that had been foreseen in the sector of agriculture as
well as that which related to the launching of the preparatory work for negotiations in the area of
services.  Improving the disciplines relating to trade in services had a long way to go and it was
desirable that the preparatory work begin without any further delay.  The commitment in the area of
dispute settlement, whereby the Understanding needed to be subject to review and improvement, wasan aspect which required the full attention and focus of Members.  Over the past fifty years, the
multilateral trading system had brought about major progress in the integration of the world economy.WT/MIN(98)/WS/M/2
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The successes achieved, however, could lead one to the erroneous conclusion that there was very little
left to be done.  Just as, some years ago, the issues of subsidies and anti-dumping and, a bit later, the
questions relating to textiles, trade in services, in tellectual property, had come to the threshold in the
multilateral trading system, there were issues, directly related to trade, which needed to be brought
within the purview of the WTO.  The absence in th e WTO of these issues meant that the scope of the
negotiations was currently incomplete.  Although the progress already undertaken as a result of the
Uruguay Round was valuable, the process of trade liberalization was an unfinished task, which
therefore needed to be continued without any hesitation.  It was for this reason that Costa Rica had
supported the commitments made at the Ministerial meeting in Singapore relating to work on
competition, investment and transparency in govern ment procurement, and was participating in the
work of the Working Groups created.  The important work carried out by the Working Group on the
Relationship between Trade and Investment needed to be highlighted. Costa Rica was confident thatthe conclusions of that work would lead to the development of multilateral disciplines for foreign
direct investment and that these disciplines would be evolved in the WTO.
50. One of the issues that had become particularly important over the past years was electronic
commerce.  The increasing importance of this activity  and the absence of border restrictions in this
area of trade should prompt an examination of the possibility of preserving the situation. The effortsundertaken in order to do away with existing rest rictive measures in certain sectors needed to go
hand-in-hand with the adoption of commitments whic h would prevent the setting up of new barriers in
areas where they did not currently exist.  It was for this reason that Costa Rica had supported the
proposed Ministerial Declaration on electronic commerce.  Costa Rica would participate with great
interest in the work carried out.  The Costa Rican government was confident that renewed effortswould be made in the WTO which would lead to greater trade liberalization.  As a result of the work
which had been provided for in paragraphs 9 and 10 of the proposed Ministerial Declaration, it would
be possible to launch a vast process of negotiation which would encompass the major part of traded
sectors. A broad-based negotiation which granted reciprocal benefits would facilitate compliance with
the commitments undertaken, and would bring about a larger degree of trade-openness.  Costa Ricareiterated its deep-rooted conviction regarding the primacy of the multilateral trading system, which it
believed was of fundamental importance in order to achieve higher levels of economic growth at a
global level.  Regional economic trade liberalization agreements could also contribute to achieving
that goal while respecting the rules and disciplines of the multilateral trading system.  Costa Rica, a
small nation with a limited number of primary commodities, envisaged trade with all other countries
that was free of restrictions, believing it to be the best way to achieve its economic development and
progress for its people. Costa Rica, therefore, understood the importance of trade being developed inan orderly fashion, in conformity with the rules and disciplines established by common agreement
with its trading partners.
51. The representative of Tunisia said that in tackling the issue of future work, while re-stating
the importance and interest that the Tunisian  government attached to the whole issue of
implementation and the work which would be undertaken by the General Council on that aspect, therewas a need to be forward looking toward the prospects which were opened on the eve of the 21st
century.  It was necessary also to look at the stakes and the challenges that had come about as a result
of the current economic changes.  In establishing the future programme of work for the WTO, it was
imperative to take into consideration not only the diverse approaches but also the multiplicity of
priorities.  Underlying the whole concept of future activities, there were many considerations, oftencontradictory in nature.  The Ministerial Conference would therefore need to set the tone and also
establish goals.  Tunisia was deeply convinced that the WTO held a major advantage, in that it had a
margin for progress and manoeuvre along with an ab ility to be forward looking.  It hoped, therefore,
that the Conference would lead to a vision which looked at the future taking into account the balance
of interests and specificity of priorities and establish a set of guidelines where each country could findits interest.  The draft Ministerial Declaration, which had been discussed in the General Council,
reflected the balance that had been sought.  Over  and beyond those stakes and strategies, Members
had in common the future before them and, therefore, a collective and orderly mobilization wasWT/MIN(98)/WS/M/2
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inevitable.  A common view was essential in order to enable the WTO to make progress and to
organize its future activities on a clear-cut basis acceptable to all.  The WTO would need to carry out
the work established in the time frame of the built-in agenda.  The addition of other issues could
indeed be envisaged, in principle, but nonetheless required the agreement of all before hand.  A sense
of compromise always needed to prevail.
52. In this regard, two elements needed emphasis:  the balance of interests and the rule of
consensus which constituted the fundamental elements that enabled the future to be tackled with the
best chance of success.  Those two elements were fully interlinked.  Without those, the forthcoming
negotiations, regardless of the framework in which they were carried out, or of the goals and
timeframe chosen, would never be conclusive.  And that would, without fail, undermine the
multilateral trading system.  Tunisia believed that consensus needed to take precedence throughout
the work within the WTO, and supported full resp ect for the multilateral approach.  A multiplicity of
plurilateral agreements could not speak of the WTO's cause nor enhance its image.  Tunisia was
determined to work together with other Members to ensure that the organization reflected the interests
of all countries, developed and developing.  Although it was in favour of a global approach to
negotiations, Tunisia believed that given the diverging concerns and the multiple network of the
discussion, the true objectives needed to be followed and the negotiations organized correctly.  Adistinction needed to be made between the essential and the accessory.  Since the WTO needed to be
forward looking,  its successful passage into the 21st century would need to be collectively ensured.
That was not only a choice for Members but also their responsibility.
53. The representative of Bangladesh said that a major objective of WTO should be to distribute
evenly the benefits of the multilateral trading system.  That meant that the countries which were
marginalized, particularly the least-developed count ries (LDCs), needed to be integrated into the
global system.  The least-developed countries which had applied for accession also needed to be
supported in every possible way.  The condition of the least-developed countries was seriously
deteriorating and had been made worse by declining overseas developmental assistance and reduced
investment flows.  Bangladesh wished to urge a speedy and full implementation of the conclusion ofthe High-Level Meeting on the least-developed countries held in October 1997.  It wished the WTO to
take an initiative to quickly ensure the binding of zero tariff rates for all goods of interest to least-
developed countries, including textiles.  Bangladesh also proposed the elimination of the safeguard
measures against so-called sensitive products, and called for changes in the rules of origin,
simplifying and making allowances for regional LDC cumulation.  The crushing debt burden of some
least-developed countries remained a social impediment and an issue of great concern.  The recent
decision of the G-8 countries in Birmingham with regard to efforts to mitigate that problem werewelcome but insufficient.  The supply constraints of least-developed countries required to be
adequately addressed.  The integrated framework undertaken by the six agencies required LDC
ownership and the least-developed countries themselves needed to be in the driving seat.  There was a
need for a mechanism for appropriate monitoring a nd evaluation of programmes.  Additionally, it was
essential to implement the integrated framework for the least-developed countries.  A common planfor that purpose would, therefore, need serious and urgent consideration.  It was important to focus on
capacity-building of least-developed countries.  Provisions of the TRIPs Agreement also needed to be
adapted for least-developed countries so that they could derive equitable benefits in future round of
negotiations.
54. The importance of market access was absolutely crucial if least-developed countries were to
be integrated into world trade.  It was a necessary condition in order to increase supply and to ensure
that increased supply could be supported.  Bangladesh was pleased that the Committee on Trade and
Development was looking at special and differential treatment for developing countries, particularly
for least-developed countries.  That required the system-wide involvement of the WTO.  In
concluding, he drew attention to the statements that had been circulated by the trade Ministers ofleast-developed countries, of SAARC countries and of members of the International Textiles andWT/MIN(98)/WS/M/2
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Clothing Bureau, and said it was imperative that all the commitments made by WTO Members were
kept.
55. The representative of Canada said that the WTO agreements had been a great success for
Canada and for the world economy but there was still a lot left to be done. When Members next met
they should be in a position to take a political decision to endorse a work programme for broad-basedliberalization that responded to the interests and conc erns of all.  In the meantime, without prejudging
their future decisions, they should adopt an open-ended approach. No areas or sectors should be
excluded.  Steps also needed to be taken to let the sun shine on the work of the WTO.  Improvements
such as opening up meetings and derestricting documents and panel reports more quickly would build
support by replacing fear of the secret or the unknown with the comfort and knowledge of
information.  A further element of future political decisions would  relate to the methods or modalities
of future negotiations.  Criticisms of previous rounds had focused on the complexity of negotiationsand the length of time dictated by the pace of the most difficult issues, and there might be ways to
group or cluster issues. One possibility was to deal with rules-based negotiations separately from
market access ones.  Ways to schedule results could be thought about so there was a sense of
momentum and movement in the system.  All the issues  that were of interest to Members needed to be
openly addressed. It might then become possible to agree on clusters of self-balanced results duringthe course of future negotiations, rather than having to wait for resolution at a final end-date for
everything at once.  An open-ended approach needed to be adopted in examining options for future
work programmes. In Canada's view, that included determining the modalities for taking account of
the results of the proposed high-level meeting on the environment as well as the seminar that Norway
would host on the social dimensions associated wi th the work of the ILO and similar events on views
of civil society more generally.  Canada welcomed the proposed work programme on electronic
commerce and was pleased with the emerging consensus for a standstill on tariffs as proposed by
Canada.
56. The representative of Australia expressed the need to maintain the robust momentum of the
Conference.  Australia acknowledged the important statement of the United States that it was going to
bring forward its agriculture offer to the September General Council special session as being very
important.  It acknowledged the Japanese delegation's commitment with regard to trade liberalization
with a direct reference to agriculture as being careful but forward-looking.  Australia had also noted
New Zealand's comments, particularly with reference to the Common Agricultural Policy and related
aspects, and noted that the OECD had found that the policy was costing each family in Europe about
US$ 1500 extra for their food bills.  Australia supported the idea of the September General Council
spring-boarding forward the process towards a Mi nisterial Conference in 1999.  While Australia
would have wished the agricultural negotiations to begin in January 1999, it was prepared that this
would not happen in the first, second or third quarter of 1999, although it did want this to happen in
the fourth quarter of 1999.  Australia supported the selling of the benefits of the WTO system.  Win-
win outcomes in this whole process could emerge, which was why the WTO Members were all there.
That was why they were all committed to an onward, robust momentum.  However, they required asystem that was actually moving forward.  The agricultural grouping of nations, including the Cairns
Group, remained very much committed to doing the hard work, remaining responsible and
constructive, so that they could pave the way for the mandated negotiations on agriculture, services
and further issues which would open up under the Millennium round.  Australia supported the
Millennium round but hoped that it would not take a millennium for these meetings to bring about afair outcome.
57. The representative of Hungary said that in the past few years, due to the liberalization of its
trade regime, exports and imports had trebled.  The Hungarian economy had opened up to foreign
investment which had contributed significantly to economic growth in the last few years.  Therefore,
Hungary had a clear interest in a strong, dynamic, credible WTO system.  There seemed to be agrowing feeling among participants that a new round would be necessary and the only question
concerned what type of round that should be.  Th ere were various views which needed to be takenWT/MIN(98)/WS/M/2
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into account.  The outstanding success of the Uruguay Round had much to do with the comprehensive
nature of that exercise:  broad-based negotiations had covered the interest of a wide range of
participants.  A second consideration was the demands of the present period, especially those arising
from the increase in globalization.  The work of the WTO had to reflect the emergence of new issues,
particularly, investment, competition policy and electronic commerce which had come up recently.Third, based on the considerations mentioned above, it was necessary to ensure that the interests of all
participants were taken into account in the next round of negotiations.  It had to be ensured that the
certain sectors were not omitted and the new issues were all covered.  Therefore, Hungary was siding
with those and especially with the European Communities, which spoke up for a broad-based new
round looking for comprehensive results covering various aspects of the global economy.  There was
a need to cover the issues of the built-in agenda including agriculture and services.  It was also
necessary to see further reductions in industrial tariff s, but not just limited to a few selected sectors.  It
was particularly important to start negotiations on investment and competition.  Hungary hoped that
the present Ministerial meeting would give such a mandate to Members so that work could be started
to prepare for the Third Ministerial meeting which would hopefully launch the next round in the year
2000.
58. The representative of Argentina said that the negotiations which would be launched in 1999
to fulfil the mandate which emerged from the Uruguay Round agreements in the areas of agriculture
and services, should not become the prisoners of other similar processes that were under way, which
had a different degree of obligation and where no timeframe had been established.  In spite of this
concern, Argentina supported the holding of comprehensive negotiations which would make it
possible to have a balanced approach to the commercial interests of all Members.  However, it wasimportant to point out that although Argentina had always shown great sympathy for initiatives trade
liberalization, it was still concerned at the proliferation of sectoral negotiation proposals which
detracted from the agenda for a more comprehensive process.  In general, sectoral initiatives were
usually compatible with the trade priorities of a limited number of Members.
59. Argentina wished to refer briefly to three subject s.  With regard to agriculture, it wished to
support firmly the views expressed by New Zealand. The future negotiations provided for in the
Agreement on Agriculture, and the programme for agriculture review, would need to start at the time
planned under the Agreement.  Negotiations would ha ve to be constructive and intended to continue
the process of reforms started in Marrakesh without including proposals which meant holding up or
reversing the process of liberalization of the sector.  The process of information exchange which was
carried out in the Committee was useful for those who proposed it and those who accepted it with
reservations.  It would help them shorten the preparatory proposals.  Argentina maintained that theobjectives of the future negotiations should include the agricultural element.  That objective required
reducing export subsidies to a minimum, eliminating price support and decreasing border duties to
acceptable levels.  It was also important to monitor and have new disciplines regarding state trade
which was an obsolete institution in the present climate of economic liberalization.
60. In the area of non-tariff barriers, particularly those related to consumer or animal welfare,
Argentina expressed the desire to be guided by th e opinion of the scientific community within the
framework of multilateral organizations.  Disciplines in this area could not be based on the
approaches supported by groups of lobbyists who could not be represented through democratic
institutions that existed in their respective countries.  The WTO needed to deal with those conflicts
which could not be solved within the framework of national or regional institutions.  Argentinaexpressed reservations about the so-called systemic debate on the disciplines applicable to regional
agreements.  The subject had been treated and always been cut short in earlier negotiating rounds
because those who asked for new rules relied more on their presumptions and sentiment regarding
what should not be done or what was lacking.  Argentina maintained that it did not need to be
convinced regarding the virtues of consolidation of  the WTO.  As the Marrakesh Agreement stated,
the WTO was the only institutionalized, global forum for conducting trade negotiations.  What was
lacking was a conviction regarding the need to create more disciplines which meant an additional andWT/MIN(98)/WS/M/2
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unnecessary burden for their administrations.  No one had proved until then that there was any threat
or danger emerging from regional agreements am ong developing countries.  Rather, it had been
proved, and Argentina re-affirmed this, that those regional agreements contributed to the development
of the participating countries and to an improvement in the trade system.
61. The representative of Ecuador considered the globalization of the economy a challenge for
developing countries, not only in economic and political terms, but mainly in the social area.
However, it was a phenomenon which did not represent equal opportunities for countries and could
create differences and disparities unless there were concerted efforts.  Ecuador had shown that its
external trade regime for both goods and services was compatible with the agreements of the WTO.
Its policy of openness in the past few years had moved towards furthering greater linkages with
external markets in the future, in spite of adverse forces which had tried to bolster protectionist
measures.  The special and differential treatment for developing countries in the WTO needed to beevaluated before the Third Ministerial Conference.  The review needed to provide results and
conclusions which would establish, on the one hand, what the countries concerned needed to achieve
through this mechanism and also to identify the risks of further negotiations.  In Ecuador's view,
WTO Members, and the organization itself, had been called on to cover the needs of developing
countries so that the latter could effectively partic ipate in the multilateral tr ading system with greater
institutional support.  The future round of libera lization of trade of agricultural products would
necessarily need to include the subject of a drastic, accelerated reduction in levels of subsidies for
agricultural credits for exports, given to farmers in industrialized countries. Ecuador, together with
other Members, had participated in the monitoring of the implementation of the main Agreements.
Work had been done in the WTO concerning the implementation of Agreements, through a periodicalreview of many of the specific and general commitments contracted by the Members under the
different Agreements.  In the case of Ecuador, there had been a review of its compliance with
commitments under WTO.  Ecuador had tried to live up to those commitments and had framed a
future work programme to continue carrying out required specific actions.  Ecuador, on behalf of the
Presidency of the Andean Community, wished to highlight the success of the process of Andeanintegration which had started almost 30 years ago. That process had led to the creation of a true
community of nations which included Ecuador, Bolivia, Colombia, Peru and Venezuela.  The Andean
system fit into the multilateral system. Recent developments had shown that it would continue to
further the economic development and internationalization of its members.  Trade liberalization
within the Andean Community had been accompanied by an institutionalization that strengthened and
created transparency of exchange through a stable, legal framework. That framework had been
facilitated through the consolidation of the dispute settlement system.  In future, the AndeanCommunity would continue its actions to deepen th e extended market through liberalization of trade
in services and the adoption of common norms fo r state procurement.  Additionally, the Community
was interested in achieving greater interlinking of inward trade.  There, it would work together with
other blocs of countries in the region, within the framework of Mercosur, to have a free trade area and
participate actively in the process which would create a free-trade zone for the Americas.  It wouldbecome increasingly interlinked with Europe, thr ough, for instance, the entrepreneurs forum which
was going to be held in London the following week.  The Andean community reiterated its
commitment to the multilateral trading system and its firm wish to continue to participate actively in
the forum of international negotiations.  It was certain that over the next few years, there would be a
reduction in the gap between the developed and other countries Members of the WTO.
62. The representative of the Korea supported the launching of multilateral trade negotiations
with a much broader scope than the built-in agenda .  Such an overt forum would provide participants
with the opportunity to benefit from issue linkages and from exchanges of their interests in different
areas.  The past half-century had more than once demonstrated how such dynamics had significantly
contributed to reaching final agreements.  Taking advantage of the political momentum that suchexchanges and linkages generated, broad-based multilateral trade negotiations would create the
optimal atmosphere that would ensure the success of the overall negotiation.  New negotiations would
provide the opportunity to multilateralize liberalization measures which were implemented on aWT/MIN(98)/WS/M/2
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regional basis.  That effort could therefore contribute to enhancing the complementarity between
regionalism and multilateralism. Korea hoped that it would be possible to build a consensus from the
scope and modalities of new negotiations during the preparation of the Third Ministerial Conference.
To make these negotiations successful, it was essential to secure domestic support in each Member.
This required that a balance of interests between Members be reflected in the discussions leading tothe initiation of new multilateral trade negotiations.  Korea also considered it essential to ensure that
developing countries, particularly least-developed countries, were not marginalized.  With respect to
the issue of reinforcement of the existing multila teral trading system, the rising formation and
fortification of regional trade arrangements had been especially noted by Korea.  Although there was
a general consensus on the basic proposition that regionalism should complement and help to develop
the multilateral system, it was difficult actually to confirm whether regionalism was proceeding to the
achievement of this end.  The issue of regionalism would need to be included on the future agenda of
WTO negotiations.
63. The representative of Portugal said that the Ministerial Conference was taking place at a
significant moment for the multilateral trading system since its fiftieth anniversary was being
commemorated.  The world was being increasingly dominated by strong inter-dependencies and trade
was obviously affected by this reality.  Recent developments in certain regions had highlighted theseinteractions as well as the growing interdependence of countries in the world economy.  The WTO's
credibility depended on the active participation of all its Members and their capacity to work together
on common goals involving all interested agents and sectors.  Two main tasks needed special
attention: integration of the new applicants to the WTO while preserving the integrity of the
Organization's rules and disciplines, and the pursuit of liberalization taking into account the need tointegrate economic, social and environmental objec tives in promoting sustainable development.  The
success of future work would depend on the capacity to ensure the regular and timely implementation
of the Uruguay Round agreements as well as the built-in agenda agreed in Marrakesh.  It was not
possible to identify future interests and launch new initiatives without having a clear assessment of the
level of fulfilment of past commitments.  In this co ntext, the decision to integrate the textiles sector
into the normal WTO rules had been the subject of commitments made by all  Members to open their
markets.  Portugal continued to strictly respect both the letter and the spirit of what was agreed in
Marrakesh, expecting that the same would be done by all its WTO partners.  That was a basic
condition of the WTO to fulfil its fundamental task  of contributing to a smooth functioning of the
global economy.
64. If, at the 1999 Ministerial Conference, it were agreed to launch a new round of negotiations,
the main objectives needed to be the following.  First, to consolidate the role of the WTO and to
promote broader trade liberalization, particularly of non-tariff barriers which were proving to have a
major impact on economic development. Second, to promote a deeper integration of developing
countries, and especially the least-developed countries.  Third, to assure horizontal negotiations on
services according to the agreed calendars.  At present, trade in goods was irreversibly associated with
trade in services.  It was largely recognized that services liberalization was important for all WTOMembers regardless of their level of development.  Indeed, from the wide range of activities covered
by that sector there would be new market access opportunities both for industrialized and developing
countries based on their respective competitive advantages.  The need for the WTO not to limit itself
to traditional and static notions of commerce needed emphasis, as had been proved by the importance
attached to electronic commerce.  Furthermore, th e inter-linkages between trade and investment, trade
and environment, and trade and labour standards needed to be part of WTO's debate regarding its
future activities.  The WTO would not meet its fu ture challenges if it failed to address the main
concerns of citizens.  Portugal believed that rules and disciplines created in the framework of the
WTO would need to match in a balanced way the developments in other organizations regarding core-
labour standards and environmental concerns.  Regarding the environment, some progress had beenachieved.  However, it had be recognized that social issues had not yet been properly addressed.  It
was Portugal's firm conviction that the deficit in social approach would damage the WTO's credibility
and the specific interests of all its Members.  In the light of the Singapore conclusions, the WTOWT/MIN(98)/WS/M/2
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needed to strengthen the process of cooperation with the International Labour Organization.  In 1947,
the GATT Preamble had clearly set the aim of trade liberalization, which included raising standards of
living, ensuring full employment and a large and stea dily growing volume of real income.  Those still
needed to be regarded as the chief goals as they remained the major concerns of citizens.
65. The representative of Pakistan said that the distinction made in the agenda between
implementation and future activities was rather artificial.  It was obvious that, in large part, the future
activities of the WTO would flow from efforts to ensure the full and faithful implementation of the
existing Uruguay Round agreements and to address the problems encountered in the course of
promoting such implementation.  The proposed work programme clearly identified the four  broad
areas of the WTO's future activity:  first, implementation issues;  second, the so-called built-in
agenda;  third, the studies and work agreed at Singapore;  and fourth, any other new issue proposed
for the WTO's consideration.  The implementation issu es would cover the main area of interest for the
majority of Members.  Unless the achievements of the multilateral trading system could be
consolidated through full and fair implementation with equitable benefit for all, it would prove
difficult to achieve consensus on new sectors of further liberalization.  The so-called built-in agenda
encompassed a wide spectrum of activities.  The most important were the agreements already reached
at Marrakesh to open further negotiations on agriculture and services.  Pakistan felt that furtherliberalization in agriculture needed to be directed at re-addressing the imbalance so vividly evident in
the present structure and impact of the Agreement on Agriculture.  Further negotiations in services
also needed to respond more fully to the policy objectives and development levels of developing
countries.  For Pakistan, meaningful liberalization in the area of movement of natural persons would
be a high priority in the services negotiations.  The mandatory reviews of the various agreements,such as TRIPS, TRIMs and especially the Dispute Settlement Understanding, were also of
considerable importance.  The DSU needed to contain certain new processes, for example, the
provision for "compensation" besides "retaliation", greater technical and legal support for developing
countries, and so on, which could make the WTO's judicial enforcement mechanism more equitable
and accessible for the developing countries.  Implementation and the built-in agenda constituted thealready agreed and mandated future actions.  The reports of the three working groups established at
Singapore, on trade and investment, trade and competition policy and transparency in government
procurement, would also be received.  It needed to be reiterated that negotiations on these issues were
presently not mandated.  Finally, new proposals would undoubtedly continue to be received for
inclusion in the WTO work programme.  In deciding on their inclusion, it would be necessary to
ensure that they met certain essential criteria.  Firs t, that they were trade-related issues;  second, that
they did not strain the absorbent capacity of the WTO system;  and third, that they did not further addto the existing asymmetry in the balance of benefits between developed and developing countries.
66. Proposals for new issues from the developing c ountries would need to be included to maintain
the balance of interests and benefits among Members.  The positive agenda of the developing
countries could include issues such as elimination of tariff peaks and escalation, and enhanced
provisions for special and differential treatment.  The inclusion of new issues needed to be decided byconsensus and only after adequate study and examination.  In this context, Pakistan was very
concerned at attempts to transform the WTO into a sort of supra-national instrument for the
realization of various social, environmental and other unrelated objectives.  Those attempts were
apparently propelled by protectionist lobbies and not by morality about the dangers of globalization.
Political leaders, especially leaders of great nations, needed to identify these protectionist forces.  Ifthey did not, they could do great damage to the prin ciples of the multilateral trading system that had
contributed so greatly to the expansion of their own economic prosperity.  The universality of the
WTO was an important goal.  It was ironic that the accession of certain developing countries such as
China, Saudi Arabia and Oman was being unduly obstructed by avoidable and excessive demands.
Pakistan fully upheld the supremacy of the multilateral trading system.  It believed that the WTO,being a custodian of the multilateral trading system, had the responsibility to speak up for full and
faithful implementation of the agreements and for upholding multilateralism over regionalism.  At the
Third Session of the Ministerial Conference, Members would decide on new negotiations for furtherWT/MIN(98)/WS/M/2
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liberalization.  The objective and spectrum of such negotiations needed to ensure a balance of
interests and equitable benefits for all Members.  The developing countries, including least-developed
countries, should be principal beneficiaries of such new trade liberalization, and marginalization
needed to be reversed.  Wider and equitable economic growth would create large markets and greater
economic opportunities for all nations, developed and developing.  That had been, and would remain,the secret of success of the open, equitable and rule-based multilateral trading system.
67. The representative of the Netherlands said that the WTO and its agreements were very
important to the daily lives of citizens, not only in the capacity of entrepreneurs and workers, but also
as consumers.  Successive rounds of trade liberalization had led to a far greater supply of goods and
services, often at far lower prices.  It had had a tremendous positive impact on living standards and
the quality of life of people.  Unfortunately, the positive impact was too often taken for granted, and
remained invisible in political terms.  On the other hand, those who were hit by globalization, or thosewho feared its consequences, were very vocal.  That was why the WTO and governments of
individual Members needed to make a vigorous and systematic effort to make the general public
aware of the many benefits of trade and investme nt liberalization. That was necessary, but was not
enough.  Consumers wanted to be sure that the products they bought were safe to use or eat.  Many of
them did not want to buy goods that had been produced through methods which caused seriousdamage to the environment.  Many wanted to be sure that the workers who produced the goods were
not being exploited in violation of core labour standards.  They wanted to know whether animal
products had not been produced by cruel methods.  These so-called consumer concerns touched on the
very sensitive area of the relationship between trade rules and rules and standards in other areas.  The
Netherlands firmly believed that the WTO needed to address these problems.  If it did not, there was arisk that support for the multilateral trading syst em could be undermined.  The WTO and its Members
needed to have an open mind and to enter into a systematic dialogue with NGOs and the general
public.  As had been stated by the US President and by the Director-General, transparency was the
key word.  Also, as the Prime Minister of the United Kingdom had remarked, attempts to abuse
consumer concerns for protectionist purposes needed to be forcibly resisted.  The Netherlands hadalways done that and would continue to do so.  Addressing the issues consumers cared about did not
necessarily mean that the WTO was also required to  solve them.  Other fora were often much better
suited to that task.  Governments and the WTO needed, in any case, to ensure that consumers could
make informed choices for themselves.  A final word was needed about the important issue of trade
and the environment.  Too often, the issue was simplified to a North-South confrontation, in which
parties seemed to be unwilling to acknowledge each others' real intentions and real problems.  There
was also not enough recognition of the important and impressive efforts made by developingcountries to protect their environment. A real dialogue was required, for example by organizing
regional seminars in which, on both sides, not only trade experts but also environmental experts could
take part.
68. The representative of Chile said he wholeheartedly endorsed the European Community's
initiative to begin preparatory work for a new round of negotiations to be called the Millennium
Round.  Members should decide at the 1999 Ministerial Conference to launch a new round, which
should comprise a process with clear mandates, a "single undertaking", and a pre-established end-
date.  Beginning a multilateral negotiating process would also contribute to the public debate on the
multilateral trading system and a better understanding of the benefits of liberalization.  Hence, the
new round would become an important element to sa tisfy the concern for greater transparency in the
work of the WTO.  Any new round should include all items of interest to Members, and the process
should begin simultaneously in all areas.  He agreed with Brazil that the negotiations could not be
sectoral, because this would be disruptive and make it much more difficult to achieve a balanced
outcome.  Like Hong Kong, China, his Government wished multilateral disciplines on investment to
be a major component of a new round of negotiations, and the necessary work to be undertaken in thisarea.  It also considered that work in the field of competition policy should be stepped up, and if a
consensus existed, this should be a subject of future negotiations.  He emphasized that agriculture was
a priority sector for Chile.  The agricultural negotiations were set to begin in 1999, and not 2000 asWT/MIN(98)/WS/M/2
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some delegations had suggested. Chile believed that the efforts to launch a new multilateral round
should not hinder the initiation of the undertakings agreed in Marrakesh nor serve as an excuse for
delaying them.  The negotiations to pursue agricultural liberalization were a necessary condition for
preserving the balance of what had been agreed at Marrakesh.
69. Chile supported the efforts to establish the WTO Secretariat on a permanent basis.  The
preservation and improvement of the institutional structure and infrastructure as well as additional
resources were essential to ensure that it could respond to the growing demands placed on it by
Members.  An example was the strong pressure for Secretariat assistance in the dispute settlement
area and also in the preparation of studies for Members.  Chile wished also to thank the United States
for its offer to host the next Ministerial Conference and offered the United States its support in
preparing the Conference.  Finally, with regard to electronic commerce, Chile firmly supported the
idea that the General Council should prepare a broad work programme on electronic commerce so asto have a more thorough knowledge of its implications and effects in the various areas of trade.  It
hoped that at the next Ministerial Conference a report on the progress made under this work
programme could be submitted.  As Chile understood it, the political declaration on the status quo that
Ministers would be making in their Declaration referred to electronic transmissions as such and not to
the goods or services marketed or supplied through such transmissions.  The status quo situationwould extend until the Third Ministerial Conferen ce, at which point a new decision on this subject
would have to be taken.
70. The representative of Cuba said that Cuba's position on present realities and its main views
concerning the future work of the WTO had already been expressed by its President at the
50th Anniversary Commemoration meeting.  Fifty years on from the Havana Charter, it was worthrecalling the second paragraph of its Article 1, which gave as one of its purposes "to foster and assist
industrial and general economic development, particularly of those countries which are still in the
early stages of industrial development and to encourage the international flow of capital for
productive investment".  More recently, the Agreement Establishing the WTO had established the
need for "positive efforts designed to ensure that  developing countries, and especially the least
developed among them, secure a share in the growth in international trade commensurate with the
needs of their economic development".  Both these precepts remained fully valid today.  While it was
true that the needs of trade and economic life in general called for a faster pace of multilateral
negotiations, a sense of measure in weighing up advantages and obligations should prevail.  It was not
appropriate that, while developing countries' efforts to liberalize their trade and adjust their legislation
had not yet led to better access to the markets of developed countries, they should become absorbed in
negotiations aimed at deepening and broadening the scope of the WTO to new sectors that suited alimited number of countries.  Any step in this direction should be progressively brought into line with
the interests and circumstances of all Members from the multilateral standpoint.  Not only should
account be taken of the need for longer periods for the fulfilment of obligations by developing
countries, but a case-by-case analysis of the implications of the possible liberalization of new sectors
on the economies and trade of developing countries should be carried out.  Measures should be takento avoid further deterioration of these economies, or  at least to provide compensation in some areas
where they had a comparative advantage.  Although all were Members of this Organization, they did
not all have the same level of development, and therefore in speaking of equality of obligations one
was from the outset denying genuine equity.
71. Furthermore, in setting the future guidelines fo r the WTO, it should be made clear that the
work programme should only cover those recommendations resulting from the consideration of other
subjects that had been proposed and accepted.  A realistic programme should contain elements aimed
at narrowing the gap between rich and poor countries  rather than increasing it.  To that end, the
development dimension should be included throughout the work of designing the programme.  It was
also necessary to take into account the heavy burden that the process of negotiating and implementingthe Agreements under the WTO represented for developing countries.  In the future activities of the
General Council, the concept of acceptance involving an active and deliberate consensus by allWT/MIN(98)/WS/M/2
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Members should prevail.  Otherwise, one would be obliged to enter into commitments for which their
countries were not ready, and which would be detrimental to their economies, to their living
standards, and consequently to the entire international economic system.  Furthermore, the entire
process should be carried out through the General Council, and with the greatest transparency in the
negotiations.  In the present circumstances, efforts should be made to achieving market access andfinancial resources through a fair and flexible multilateral trading system that did not simply pursue
the limited objectives of a small group of highly industrialized countries.  To guarantee this, one
should not be hasty, but rather take the necessary time to ensure that the foundations on which one
was working embodied this premise.
72. The representative of Denmark said that the continued process of liberalization and the
reduction of trade barriers were essential to global wealth and freedom.  However, the globalization of
the world economy was putting new demands on the WTO.   In this regard, he wished to make four
points.  With respect to trade and environment it was essential to ensure widespread public support for
the multilateral trading system.  If the WTO were perceived as not tackling the concerns of high
priority to the public, the multilateral trading system and its objective of freer trade would lose vital
support.  Maintaining this support meant not lim iting the WTO's involvement to explorations among
officials.  The proposal to hold a high-level meeting on trade and environment was a constructive one.The issue of trade and environment was of a very high priority to the Danish government, but full
attention had to be given to the special situation of developing countries and the need to avoid
creating new trade barriers.  Second, in the context of trade and labour standards, pressure had been
mounting since the Singapore Conference for the multi lateral trading system to contribute to the
improvement of core labour standards.  He expressed the hope that the ILO labour conference to beheld soon would be an important step in addressing this issue.  The WTO could support the efforts
within the ILO by collaborating with it.  Third, integrating the developing countries, and in particular
the least-developed countries, into the global economy had to be a top priority for the WTO.
Improved market access for goods and services of interest to developing countries was necessary, and
Denmark would continue to support any initiative in this direction.  Improved market access fordeveloping countries had to be a key element in any progress on trade and environment and on trade
and core labour standards.  Market access alone, however, would not solve all the problems of
developing countries.  Trade-related technical assistance was necessary.  He recalled that at the high-
level meeting on least-developed countries, Denmark had made concrete commitments in this regard,
and he confirmed that offer.  Fourth, with the increased public attention on international trade policy,
criticism relating to transparency, openness and democracy had also increased.  The WTO had to find
a way of tackling the increased public interest in its decisions and decision-making process.  Events inGeneva outside the meeting rooms during the past few days had clearly illustrated this need.  Apart
from shielding the WTO from criticism, greater transparency would also play a key role in
communicating the benefits of trade liberalization, thus generating more public support for the WTO.
He stressed that no initiative on openness should put the effectiveness of the WTO at risk, although
there was no inherent conflict between the two.  While recognizing the steps already taken by theWTO, Denmark stood ready to promote further the issue of openness.  Striving towards more
transparency was an on-going process.  One way forward might be the setting up of a working group,
or another body of similar nature on openness and transparency.
73. The representative of Fiji said that new issues could not sensibly be addressed while Members
were still occupied with their implementational obligations.  Resources alone did not permit these
tasks to be fulfilled.  His country was committed to the built-in agenda.  However, in addressing any
new issues, Members would have to be sensitive to two important considerations.  First, the interests
of the developing countries should be paramount in order to bring about equity in the final result.
Second, as the new issues tended to come comfortably close to the domain of domestic policies, care
should be taken to not unnecessarily prejudice internal security or sensitive cultural and traditionalpolicies.WT/MIN(98)/WS/M/2
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74. The representative of Iceland said that in tackling the challenges of globalization, the WTO
had to remain responsive to new realities and recep tive to new ideas.  The multilateral trading system
had to be as dynamic as the world it sought to serve.  Iceland was firmly committed to ongoing WTO
work and the built-in agenda, including negotiations on services and agriculture mandated to start by
the year 2000.  Iceland could, however, envisage a more comprehensive negotiating environment andbelieved that Members should keep an open mind to placing other issues on the agenda.  An overall
balance among the different interests of Members had to be found.  This would best be achieved in the
context of a comprehensive negotiating round.  Iceland supported the idea of launching negotiations
on industrial tariffs alongside those already foreseen.  It would be looking to create a more liberal
trading environment for fish and fisheries-related products, which it believed was an area of
unfinished business.  Trade, competition and investment policies were increasingly merging into a
unified whole, and ongoing work could enable Members to embark on negotiations on multilateralrules and disciplines to govern these interlinkages.  Traditional trade barriers had fallen away to reveal
an array of complex trade procedures that remained a burden on business.  Iceland was convinced that
there was scope for WTO rules in the area of trade facilitation.
75. As a nation heavily dependent on natural resources, Iceland was firmly committed to the
objective of sustainable development.  Trade liberalization and environmental protection policies hadto develop in harmony if this was to be realized.  The multilateral trading system had an important
role to play in this respect and should pursue a more ambitious agenda in the area of trade and the
environment.  The WTO had to start looking beyond the analytical to the operative.  To give the
process political impetus, Iceland supported the idea of the WTO holding a high-level meeting on
trade and environment in the near future.  While electronic commerce might still be in its infancy, theshape of things to come was readily apparent.  Iceland attached great importance to the creation of a
liberal environment within which electronic commerce could prosper, and welcomed the proposed
Declaration on Global Electronic Commerce as a si gnificant step in this direction.  Iceland was
committed to keeping electronic transmissions free from customs duties.  Further work in this area
should aim to clarify to what extent current WTO rules applied to electronic commerce and define, asappropriate, the scope for new or improved disciplines.  These were ambitious objectives, but ones
befitting a new millennium.  Iceland was prepared to commit itself to a preparatory process that would
enable Ministers at the Third Session to take any appropriate decisions, by consensus, on the nature
and scope of the negotiating environment at the turn of the century.  Iceland looked forward to
working with other Members towards this end.
76. The representative of Italy recalled that in Singapore, Ministers had taken the important
decision to establish a working group charged with studying the relationship between trade and
investment.  That decision had marked a positiv e start.  He underlined the growing role that
investment played in the development of internationa l trade relations and the growing need to define a
legal framework at the multilateral level guaranteeing, in a balanced way, the rights and obligations in
this area.  Members could not limit themselves to following, sometimes with considerable delay, the
events that took place in the world economy, but should anticipate them or, should this not bepossible, interpret them.  Investment had become  a powerful tool for promoting the exchange of
goods and services and hence for fostering integration, economic growth, employment, sustainable
development and increasing the standard of living of all citizens.  Members' task was therefore not to
hinder but to accelerate the development of this "virtuous circle", by creating the necessary conditions
for an increasingly high level of liberalization and investment protection.
77. The WTO was the ideal forum for discussing and defining the rules ensuring respect for
countries' most diverse needs.  He was aware that there were some doubts and reservations regarding
the possibility of achieving multilateral agreements in this field, which had slowed down negotiations
in other international organizations.  This demonstrated the attention with which all countries,
regardless of their level of development, followed th is complex issue, an attention that stemmed from
the need to safeguard fundamental principles, in addition to the needs of special economic sectors.
These principles were national sovereignty, public order, security, the health of citizens, andWT/MIN(98)/WS/M/2
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environmental protection, among others.  Existing international agreements had not jeopardized these
principles, which meant that there already was a path along which Members should move together in
order to reach multilateral solutions.  The results would not be rapid or definitive, and action should
start now and proceed step by step.  The first objective could, for example, be a commitment to non-
discrimination.  In today's global economy, fair competition among investors increased development
opportunities and produced a positive spin-off in terms of financial contributions, know-how and
professional skills.  In order to ensure this, it was necessary to create a favorable climate that attracted
investments while at the same time providing for adequate protection.  Italy hoped that at the end of
the preparatory work, the Group set up in Singapore would be able to produce a report that paved the
way for the launching of a new round of negotiations to be decided upon at the next Ministerial
meeting.
78. The representative of Mauritius considered that the future activities of the WTO should focus
on the implementation of existing agreements and the built-in agenda within the agreed time-frame
for negotiations, particularly in Agriculture, and work towards solving problems which had cropped
up in the wake of the conclusion of the Uruguay Round.  The future work of the WTO should ensure
that the multilateral trading system brought about a fair playing field where all Members were able to
reap equitable benefits.  More importantly, the economic and social dimensions of development, i.e.,the fundamental concerns and needs of developing countries, should be integrated into the WTO rule-
based system.  In this regard the following issues had to be addressed as a matter of urgency:  (i) the
numerous existing measures in favour of developing countries should be implemented;  (ii) the
relevant agreements should be reviewed to take into account problems that had arisen since 1995, for
example, the duration of the transitional periods for compliance and the periodicity of notificationrequirements;  (iii) the negotiating procedures needed  to be better structured to prevent attempts to
thrust into the multilateral system agreements en tered into by some Members outside the framework
of the WTO.  Initiatives not in conformity with the philosophy of the multilateral trading system
undermined its credibility;  (iv) subsidy rules had to be reviewed in favour of developing countries,
which should be allowed to maintain measures required to strengthen their economic diversificationand industrialization programmes;  and (v) concrete measures had to be taken to alleviate the negative
impact of the reform process in agriculture on the food import bill.
79. In his opening address, the Director-Gener al had mentioned issues of public concern
including, inter alia,  social conditions, employment, public health and cultural diversity.  These
considerations were at the very heart of his countr y's development strategy, and it had striven hard to
maintain a system where man was at the centre of development.  This had been made possible through
the judicious use of earnings secured through Mauritius's long-standing trade arrangements, someeven preceding the GATT.  In this connection, he not ed that the concept of the multifunctional role of
agriculture was now gaining momentum with the OECD, the WTO and other international
institutions.  It was time for the WTO to fully acknowledge this role in agriculture and, more
specifically, its development dimension.  The security and predictability guaranteed by trade accords
had not only allowed Mauritius to maintain sustained economic growth in a sustainable manner buthad also helped to mitigate the numerous inherent weaknesses which characterized economies of
small islands.  In Singapore, Members had committed themselves to addressing the problems of the
least-developed countries and the risks that marginalization represented for certain developing
countries.  Members had also reaffirmed the importance of special and differential treatment for
developing countries to enable them to integrate in to the multilateral trading system.  In line with that
pledge, Mauritius proposed that the Committee on Trade and Development be requested to examine
the particular problems and difficulties which small island countries faced in integrating into the
multilateral trading system, and to make appropriate recommendations.  Mauritius suggested that
while examining these issues, the Committee should take into account the following features of small
island states:  (i) domestic demand was limited because of their small size, which discouraged theflow of investment both domestic and foreign;  (ii) lack of natural resources compelled economic
operators to rely solely on imported raw materials and capital equipment.  The transportation cost of
these materials as well as the small scale of production inevitably led to sharp rises in productionsWT/MIN(98)/WS/M/2
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costs.  Further, remoteness from the main export ma rkets resulted in higher freight costs.  In spite of
these serious constraints, it had been possible for export oriented industries of small island economies
to market their products mainly because of preferential treatment; and (iii) most of these small island
countries were heavily dependent on imports of foodstuffs and other basic necessities, not only
because of their size but also because of adverse climatic conditions.  The resulting high import billscreated heavy strains on their balance-of-payments situation.  This could only be partially redressed
through higher export earnings.  His delegation had noted that some Members wanted to negotiate on
a sectoral basis besides launching negotiations on new issues, some of which were beyond
comprehension at the present time.  Mauritius joined the large number of delegations which had
requested awaiting the outcome of the evaluation exercises currently under way before taking a
position.
80. The representative of Turkey recalled his earlier views with regard to the full implementation
of the Uruguay Round Agreements and the need to take into consideration the legitimate concerns of
developing countries.  However, in spite of such di fficulties there was merit in trying to move ahead.
Turkey believed in the need to maintain the momentum towards the achievement of an even wider
liberal and rule-based international trade environment and to build upon the successes of the past
years.  A priority was work on the built-in agenda.  It was hoped that the negotiations scheduled tobegin in the year 2000 on agriculture, services and intellectual property would consolidate and widen
the scope of the multilateral trading system.  Regarding decisions taken in Singapore, Turkey was
waiting for the Working Groups on Investment, Competition, and Transparency in Government
Procurement to conclude their work.
81. In the field of competition, the examination conducted by the Working Group would provide
benefits, especially to countries not having national competition policies.  Given the importance of
competition policies in globalization, Turkey welcomed the work undertaken by the Working Group
on Interaction between Trade and Competition Policy.  Sound and multilaterally accepted competition
policies would further serve to liberalize world trade by opening markets on the basis of the same
criteria.  His delegation was participating actively in the ongoing work of these groups, and whentheir work was completed, would determine its approach on how best to tackle these important issues
within the WTO.  Electronic commerce was another area gaining importance recently.  This topic
would be among the most important factors shap ing the future trade environment and undoubtedly
one of the most vital issues on the agenda of the forthcoming negotiations.  However, Members
should also keep in mind the rapidly growing need for establishing appropriate infrastructure,
particularly for the developing countries in this field.  Turkey had an open mind towards the future,
and was confident that the present meeting would provide the basis for a consensus that took intoaccount the concerns and interests of all Members.
82. The representative of Uganda believed that the focus of the WTO at the present time should
be the implementation of existing agreements and the built-in agenda.  However, the WTO as a forum
for negotiations among its Members had to keep pace with changing times and the rapid evolution of
ideas.  Therefore, Uganda was prepared to consider the reports of the Working Groups on Trade andInvestment, Trade and Competition, and Transparency in Government Procurement when these were
completed.  These were distinct issues, which shoul d not be put on the same footing as those on which
there was already agreement to conduct negotiations under the WTO rubric.  Any future agenda had
also to include the follow-up of the high-level meeting on least developed countries.  The success of
the WTO in promoting trade liberalization and its binding dispute settlement mechanism might tempt
some to use it as a vehicle for achieving other objectives which, though desirable, were not central to
its mission.  In this connection, he quoted from a recent issue of The Economist newspaper which
stated that "The WTO must also decide how closely to become involved in more esoteric issues such
an antitrust rules, foreign-investment restrictions, workers' rights and environmental protection.WT/MIN(98)/WS/M/2
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These matters are conceptually complex and particularly contentious because they intrude on what
many governments consider to be domestic policy.  The WTO must strike a balance between
attacking domestic policies that seriously distort trade and avoiding infringements of national
sovereignty."
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