WORLD TRADE WT/MIN(98)/ST/71
18 May 1998
ORGANIZATION
(98-2078)
MINISTERIAL CONFERENCE Original: English
Second SessionGeneva, 18-19 May 1998
THAILAND
Statement Circulated by H. E. Dr. Supachai Panitchpakdi,
Deputy Prime Minister of Commerce of Thailand
First of all, let me express my deep gratitude to the Chairman of the Ministerial Conference,
H. E. Mr. Pascal Couchepin and the Swiss Governme nt as well as the people of Switzerland for their
hospitality and contribution to the success of this important even t.  I also would like to express my
sincere appreciation to the Director-General, Mr . Renato Ruggiero and all the staff at the WTO
Secretariat for their hard work and dedication throughout the year as well as their special effort inmaking this Ministerial Conference a success.
This year marks the 50th Anniversary of the multilateral trading system.  This occasion is
indeed special.  It represents a landmark in m odern economic history which has gone through a long
road towards liberalization.  We have come a long way since nations recognized the risk ofgovernments pursuing restrictive economic policies in protecting their war-torn economies fifty yearsago, and at that time decided to pursue an outward-looking and more open trade policy.
Multilateral trading systems as engine for world growth
The setting up of multilaterally ag reed disciplines, various  tariff-cutting Rounds, the
conciliation and dispute settlement within the framework of the GATT as well as the adherence to thebasic principle of non-disc rimination have, to an impressive ex tent, contributed to  the stab ility and
predictability, hence, growth in international trade.
It is recognized that the conclusion of the Uruguay Round signified the most comprehensive
and far-reaching reform by far and endorsed confid ence in the multilateral trading system.  The most
significant results of the Round were the inclusion of important new agreements such as agriculture,textiles, services, intellectual property rights and trade-related investment measures, and theestablishment of the WTO and its new and more effective dispute settlement mechanism.
All this occurred at a time of changing world economic environment and greater call for
equitable share of economic and development fruit.  Given this, it is both opportune and useful toexamine and evaluate our performance thus far and set a vision for our future.
Implementation
In general, the overall implementation of the Uruguay Round has proceeded in accordance
with the commitments entailed in various WTO Agreements.  But it must also be noted that there areareas where greater efforts are needed from Members to meet their obligations.  In this regard,genuine endeavour and determination must be exerted by all Members in complying with theWT/MIN(98)/ST/71
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agreements in order to achieve full and faithful implementation of the commitments.  Among others,
the following areas of implementation should be highlighted.
1. Agriculture
It is the first time that ground rules on the subject of agriculture were set.  We recognise that
this has been a big step forward, however, implementation of agriculture commitments during the pastyears have indicated that there is still room for improvement.
1.1 Some Members have yet to demonstrate their earnest exertion to fully abide by the stipulated
obligations.
1.2 Strict compliance to tariff reductions and elimination of market access restrictions, subsidies
and distortions are needed to truly bring about a fair and market-oriented agricultural tradingsystem.
1.3 Members are urged to intensify their effort to fully conform with the Agreement on Sanitary
and refrain from using sanitary and phytosanitary measures as disguised trade barriers.
2. Textiles and clothing
Textiles and clothing is anothe r area of marked achievement of the Uruguay Round.  It is
important that this trade must truly be integrated into the rule-based and non-discriminatory system ofGATT within the stipulated time-frame.  The first two stages of integration reveal that liberalization inthis sector has not been meaningful to developing countries.  Most of the products under restrictionsremain to be integrated towards the end of the transition period.  Such eventuality poses a seriousobstacle at achieving smooth and effective transition into GATT.  While only a few quantitativerestrictions have been eliminated in the first seven years of the Agreement, new barriers to tradeincluding repeated anti-dumping actions as well as other customs and administrative formalitiesimposed by developed countries have unnecessary added to unfair restrictions against imports fromdeveloping countri es.  The unsparing use of transition sa feguard measures had also eroded the
benefits, if any, derived from the implementation so far.  In this light, we call for Members to:
2.1 Resolve to ensuring full and faithful implementation of the provisions of the Agreement on
Textile and Clothing;
2.2 resist attempts towards protectionism; and
2.3 adopt immediate and positive m easures to demonstrate comm itment to liber alization and
elimination of discriminatory treatment.
We also call for the Textile Monitoring Body, as the supervising body of the agreement, to
provide and ensure transparency in its functioning and to adhere to a proper standard of reviewconsistent with the precedents which have been established by the Panel and Appellate decisionsrelating to the implementation of the Agreement.
3. Anti-dumping
Greater liberalization since the implementation of the Uruguay Round commitments has
resulted in greater trade expansion but unfortunately it occurred with the unwelcome accompanimentof increased use of anti-dumping measures.  We urge that Members use the anti-dumping measuresWT/MIN(98)/ST/71
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sparingly and truthfully to the language of the Agreem ent.  At the same time, we also have concern on
the anti-circumvention investigations since the establishment of the WTO.  This is due to the fact thatthere has not been an agreement on uniform rules on anti-circumvention, we, therefore, urge that
Members refrain from taking this measure while the process is still on-going.
4. Dispute settlement
The Dispute Settlement Understanding can rightly be considered as another significant
achievement of the Uruguay Round and the WTO thus  far.  The increased number of cases brought
by countries big and small under this mechanism a nd a number of interpretations of key provisions
indicate the health of the system .  Although the effectiveness and cr edibility of the dispute settlement
have been generally satisfied, there are some key elements which are of importance to the success andviability of the system:
4.1 Strict and timely compliance with the recommendations;4.2 increased availa bility of legal experts assistance to developing countries;
4.3 increased capability of the Secretariat to cope with increasing number of dispute cases;  and4.4 adherence to the provisions with regard to confidentiality of panel process and its documents.5. Integration of developing countries
One of the objectives of the Uruguay Round is to integrate the developing countries into the
multilateral trad ing system as it is important for thei r economic development and global trade
expansion.  Developing c ountries should be able to participat e in multilate ral trading system with
assurance that their participation would lead not only to obligations but also their entitled benefits. Many developing countri es are still overwhelmed with difficultie s due to their lack of knowledge and
resources.  There is urgent need to intensify efforts in certain areas to make the integration yieldsbetter and greater benefit to the developing and the least developed countries such as:
5.1 Existing WTO provisions on special and differential treatment;5.2 technical assistance;  and
5.3 market access for products from the developing and the least developed countries.Future activities:  Enhanced credibility
For the WTO to be viable and credible, it should have  the ability to  correct its weaknesses, at
least on the above-mentioned aspects.  At the same time it should also be able to discharge fully itscommitments resulting from the Marrakesh mandated built-in agenda, adapt to the ever changingglobal economic environment and face the challenges that lie ahead as the world moves towards andinto the next millennium.
Tasks ahead
In the near and medium term, the tasks ahead of the WTO are two-fold.  On the one hand, we
need to deal successfully with th e built-in agenda, and on the other, we must  take into account theWT/MIN(98)/ST/71
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demands posed by the fast changing international economic environment.  The results of the Uruguay
Round contain numerous unfinished or partially fini shed elements.  The achievements of the Uruguay
Round negotiations could be considered as important stepping stones in this regard.
Built-in agenda
Major tasks
Several WTO Agreements and Ministerial Decisions called for further negotiations as well as
reviews of certain rules and disciplines.  One of the major tasks ahead of us in this respect will be tofine-tune the relevant timetables, and in some cases to define the appropriate steps which will lead tothe fulfilment of the work programme as stipulated in the respective agreements and decisions.
Renewed negotiation on agriculture
Preparatory process must begin as soon as possible in order to allow the renewed negotiation
on agriculture to take place before the end of 1999 as scheduled in the Agreement with a view toconclude expeditiously.  The mandate and the conduct of the negotiations must be independent of anycall for or scepticism of a new broad-based round of trade negotiations.
Thailand supports others who have called for a framework of negotiation addressing all areas
affecting agriculture trade, namely export subsidies, market access and domestic support.
Furthermore, in pursuing further liberalization, support to the economic development needs of
developing countries, including their technical assistance requirements, must be continued while theprinciple of special and differential treatment for developing countries must also remain an integralpart of the future negotiations.
Potential issues
It is also important to recognise the appropriate, reasonable and operable improvement of the
existing rules might be vital to the WTO to enhance its relevance in the evolving world economy.
Globalization is an irreversible fact of life in  the modern world, the important question facing
us is how best to deal with the inevitable process of globalization.  Therefore, from time to time, theWTO needs to review and redress any shortcomings or loopholes which exist in its system.
While it is true that there are extensive issues available on the table, we need to ensure that we
do not close our eyes on other evolving development in the global economy.  Nevertheless, in takingon board any issue, it would require endorsement from Members on the basis of consensus.
Indeed, issues such as invest ment, competition and transparency in government procurement
were brought to our attention at Singapore, and currently, their study processes were being carriedout.  In this relation, it must also be emphasized that future consideration on how to proceed withthese issues must be subject to the outcome of the study processes.
Preparation without pre-judgements
The preparation process for the next Ministerial Conference must be without any pre-
judgement.  While nothing is to be precluded, there should be a sense of priority where issues relatingto implementation, mandated negotiations and other future work already stipulated in the WTOprovisions must be proceeded accordingly.WT/MIN(98)/ST/71
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Recognizing that liberalizati on is a significant process to  uphold the multila teral trading
system.  Thailand is monitoring the discussion on th is subject with profound interest and will stand
ready to cooperate with all Members in exploring all elements which could be involved.
At the same time, any proposal to be put forward must clearly address interest of developing
countries.  Furthermore, it is also important that the preparatory process for our future discussionmust not prejudge our decisions, especially whether and how new round of negotiations should belaunched.
Organization's objectives vs. national interest
The long term challenge of the WT O is its ability to rec oncile national in terest with that of the
organization.
We have seen, time and again, in this organization, countries venture to set the agenda of the
WTO based on issues which were in line with their interest and priority.  In Singapore, we saw newissues such as investment, comp etition policy, transparency in government procurement and trade
facilitation bei ng shoved into the WTO's basket.  We feel  that Members should, at the same time,
invest our collective efforts in the strengthening of the system.  This should be a truly meaningful keyagenda for our future in pursuing the objectives of the organization.  The following issues must beaddressed:
1. Genuine integration of devel oping as well as least developed countries into the multilateral
trading system;
2. a truly levelled playing field where all Members can compete fairly despite their sizes and
economic strength;
3. improvement of decision making process:  compromises in the past had been achieved at the
expense of objectivity of the system and resulting in an ambiguity which generated time-consuming debates, diverse interpretations and created loopholes; 
4. a fine and delicate balance to preserve individual national interest and the systemic interest is
essential though admittedl y difficult to achieve.
Primacy of multilateralism
The relevance, credibility and efficiency of the multilateral trading system will very much
depend on how the above issues are addressed and problems resolved.  The second challenge for theWTO in the long run is to maintain and strengthen its role as the main driving force in tradeliberalization, to ensure sustainable growth and development.  The WTO must take on challengeswithout wavering and assume the leading role so that regionalis m will, in no way, replace the
multilateral trad ing system as a primary fo rce shaping global trade, but rather supplement and
reinforce the liberalization process entrusted by the WTO Members.  It is important that regionalgroupings must complement and contribute to the st rengthening of the multilateral system.
Coherent international economic policy
The third systemic long term challenge is how to generate greater coherence in international
economic trade and financial policy.  In today's complex and globalized economic structure, coherentpolicy coordination among the IMF, World Bank and the WTO is absolutely crucial.  Theseorganizations must reinforce their efforts to ensure that their respective policies i.e. trade, monetaryand social and development are mutually supportive. This would help lessen the problem ofWT/MIN(98)/ST/71
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marginalization and prevent potential disruption which might arise from misconduct in one of the
policy areas as well as minimize adverse impact on ot hers, as happened in the case of current financial
crisis in Asia.
Firm commitment
Despite all the hardship currently facing our nation, Thailand remains unwavering with out
commitment towards liberalization.  We firmly believe that through the continuation of our outwardlooking and open trade policy, we will revive our economy as well as  secure sustainable prosperity
and economic growth in the years ahead.
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