. /.WORLD TRADE
ORGANIZATIONWT/MIN(99)/ST/91
2 December 1999
(99-5299)
MINISTERIAL CONFERENCE
Third SessionSeattle, 30 November - 3 December 1999Original:  Spanish
PERU
Statement by H.E. Mr. Juan Carlos Hurtado Miller
Minister for Industry, Tourism, Integration and
International Trade Negotiations
Allow me to start by reiterating Peru's interest in the continuing improvement of the
multilateral trading system, which must be developed according to clear, stable and predictable rules
adopted in the WTO to generate benefits which are fairly distributed among all Members.  It is with
this in mind and in the light of the subjects which we are debating here in Seattle that my delegationwould like to share some observations on our experience and on those areas which we consider to be a
particular priority.
From 1990 onwards Peru embarked on a far-reaching economic and institutional reform with
policies geared to stabilizing an economy that was subject to hyperinflation and recession, tosignificantly reducing levels of protection in goods and services, to allowing market-determined
pricing, to liberalizing capital flows and effectively monitoring the functioning of the financial
system.  Peru has remained on this path, continuing its efforts to liberalize the economy, having
established a firm basis for sound economic growth which has been reflected in major advances in
foreign trade and in investment.
In this context, the commitments undertaken in the World Trade Organization have served to
consolidate these reforms and also to reinforce the external legitimacy and credibility of domestic
public policies.  In this way, Peru has complied with the Uruguay Round Agreements, and we intend
to continue being as diligent in fulfilling our commitments.  Peru is convinced that regional
integration agreements help to facilitate the full  participation of the developing countries in the
multilateral trading system.  Accordingly, Peru is actively participating in the Andean Pact and in
negotiations for the formation of the Free-Trade Area of the Americas in 2005.
We are aware that trade liberalization is the most effective way to become integrated in the
world economy.  However, liberalization is not enough in itself to achieve rapid and sustained
benefits for our nations.  What is also needed is an environment of economic and political stability onthe domestic front, and an equivalent commitment towards openness and stability from other
countries, especially the most developed.  A more coherent and effective link is also needed between
the WTO and international financial institutions, not to create more conditionality, but to allocate
more resources to give us better conditions for development and at the same time ensure that the
multilateral trading system fosters growth and economic development in an orderly, stable manner.
Peru supports a full round of trade negotiations so that major advances can be made in the
following areas:
In agriculture we hope that the coming negotiations can reduce existing imbalances and take
full account of the interests of the developing countries.  Although Peru is currently a net food-
importer, it also has great potential for exporting agricultural products and it expects a substantial andWT/MIN(99)/ST/91
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ongoing improvement in the conditions of access to the markets for those products.  It is therefore
essential to eliminate as promptly as possible the distortions represented by subsidies to agricultural
exports granted by various countries.  It is also essential to avoid the use of sanitary and phytosanitary
standards as unnecessary barriers to trade.
Furthermore, we are very interested to see the beginning of negotiations on services, which
have a crucial role to play in growth and developm ent.  Peru considers that priority must be given
both to the consolidation of greater openness and to the development of multilateral disciplines.  We
would emphasize the many specific commitments towards liberalization in tourism, a clear sign that
many countries place expectations in this sector as a major source of revenue and job creation.  The
importance to trade and tourism of cargo and passenger transport services is fully recognized.  So it is
becoming vital to resume the subject of the liberaliz ation of ocean transport, and to put air transport
services finally in the multilateral framework of the General Agreement on Trade in Services.
We believe that this round is being launched in a context of accelerated change which we
cannot ignore and which necessitates the study and discussion of new subjects in the context of the
WTO.  In the matter of intellectual property, we consider that innovations, creations and culturalexpressions contained in traditional knowledge and folklore of local and indigenous communities
should be properly recognized, so that the economic value that can be derived from commercial use
be translated into benefits for our nations.  Consequently, Peru hopes that on this occasion this
important subject will be included in the agenda of the WTO negotiations.
In the current context of openness and constant change, we consider that there is no room for
protectionism in any form, since this in itself is a factor which distorts the foundations of the free
market.  We must express our rejection of the proposals to bring subjects into the WTO which belong
to other international organizations, namely labour and environment issues.
Lastly, Peru considers that to guarantee the stab ility and credibility of the multilateral trading
system, it is of fundamental and pressing importance to define concrete and binding provisions for the
application of the principle of special and differential treatment in favour of the developing countries;
in this way it will be possible to adopt, within the multilateral framework, appropriate, ongoing and
effective mechanisms to facilitate the fulfilment of  commitments, without harming our countries' trade
and development interests.
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