WORLD TRADE WT/MIN(96)/ST/68
11December 1996
ORGANIZATION(96-5243)
Original: Spanish MINISTERIAL CONFERENCE
Singapore, 9-13December 1996
ECUADOR
Statement byH.E. Mr.Ruben Flores
Deputy-Minister ofForeign Trade
MayIfirstofallthank theGovernment ofSingapore forthehospitality theyhaveextended
tousatthisfirstMinisterial Conference.
Ecuador joined theWorld Trade Organization inJanuary 1996, after alongprocess of
negotiation. Membership intheWTO ispartandparcel ofthepolicy ofopenness andcloser tieswith
external markets which Ecuador hasbeenfollowing inrecent years. Theintense short-term economic
pressures experienced lastyear,forinstance, didnotinduce Ecuador toresort toprotectionist expedients,
which isevidence ofitsrespect forfreetrade conducted onatransparent andequitable basis in
conformity withmultilateral rules whose application andobservance should betheconstant concern
ofallthecountries thattoday make uptheWTO.
Mycountry believes thattheWTO mustplayapivotal roleinattaining theobjective ofincreased
well-being andfaster economic growth inallregions oftheworld. Freetrade boosts employment,
attracts investment, promotes technological development andleads toindustrial upgrading andoverall
progress. Freetradecanincrease earnings intraditionally depressed, localized sectors, andspecifically
inagriculture.
Theachievements ofthesepasttwoyears following theconclusion oftheUruguay Round have
beengenerally positive. Much ofthebuoyancy ofworld trade istheresult oftheremoval oftariff
barriers negotiated inthatRound. Fordeveloping countries, andEcuador inparticular, itisof
fundamental importance thatthecommitments agreed should berespected andthatthere should be
nodisguised forms ofprotectionism, linked tolabour standards ortoenvironmental protection, for
example.
Freetrade canbedeveloped further, provided thatwepromote agreements based onequity
rather thanthepursuit ofunlimited protection thatonlyserves theinterests ofsome countries considered
inisolation.
Economic globalization means cooperation rather thanconfrontation. Theworld ofthefuture
callsforconsensus. Thepolarization ofinterests canexacerbate conflicts and,inthecaseofthe
international trade ofgoods andservices, thiscould haveverynegative consequences.
Asweapproach thetwenty-first century, wethedeveloping countries demand thatpriority
begiven toeconomic andsocial development. Here, thegoalmustbeincreased trade, within asystem
thatisconstantly being improved andmade more equitable.
Against thisbackground, Ishalloutline mycountry 'sposition onseveral issues thatwillbe
decisive forthefuture progress oftheWTO andfortheattainment ofitsobjectives.WT/MIN(96)/ST/68
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Firstly, Ecuador considers necessary thefulfilment ofallthecommitments assumed byMember
countries withtheconclusion oftheUruguay Round. Italsobelieves thatagreater effort isneeded
asregards market access forproducts fromdeveloping countries andtheelimination offarmsubsidies
andgrants indeveloped countries, ifwegenuinely intend tofollow openanduniversal policies.
Secondly, Ecuador believes thatonlythescrupulous observance ofsuchcommitments canpave
thewayfortheopening ofanewround ofnegotiations ontariffreductions, which would alsoaddress
thereduction ofnon-tariff restrictions. Above all,however, thenewround should focus itsattention
onfacilitating compliance withtransparent disciplines andprocedures thatwould underpin trade
liberalization, inthose areas where itisstillpossible toapply unjustified protectionist measures and
regimes fornotveryobvious reasons.
Thirdly, Ecuador isoftheopinion thatoneofthemostimportant advances inWTO lawhas
taken place inregard todispute settlement, which isofvitalimportance todeveloping countries. This
isoneoftheachievements thatshould bejealously preserved, inorder toboost theconfidence of
Members intheOrganization anditsrules, thereby making adecisive contribution totheattainment
ofitsfundamental goals.
Fourthly, Ecuador doesnotbelieve thatlabour issues should bedealtwithinthisforum. These
areissues thatarenotwithin thepurview oftheWTO. They riskpolarizing positions rather than
fostering consensus andcould interfere withthework ofthecompetent organization, theInternational
Labour Organization.
Itwould alsoseem appropriate toexamine thereasons forthechange, insuchashort space
oftime, intheperception thatitwasthedeveloping nations -andnotthedeveloped ones-which were
being affected, viainternational trade, bytheexistence ofdiffering labour standards. Thisdoesnot
mean thatEcuador inanywaysupports theexploitation ofworkers. Ecuador hasverystrictregulations
which would apply inanysuchcases. Thisproposal ispredicated upon theneedtokeeptheWTO 's
attention focused onthose matters thatgenuinely come within itspurview, without anydistractions
thatmight cause ittolosesightofitssoleobjective ofpromoting andconsolidating freertrade, where
much stillremains tobedone.
Fifthly, itbears repeating thatthechanges introduced bymany developing countries inrecent
years could riskparalysis orevenfailure ifmarkets arenotopened further andifthemultilateral
principles andagreements reached indifferent sectors arenotrespected. Member countries mustnote
thattheimproved macroeconomic performance being pursued bymany developing countries could
beseriously undermined iftheflowoftheirexports isobstructed inanyway.
Likewise, Ecuador believes thatalthough there arematters ofverygreat interest toparticular
developed countries which havebeengiven priority atthismeeting, notimeshould belostinlaunching
anin-depth study oftheproblems which we,thedeveloping countries, havebeenfacing forsome time
now.
Asregardstheproblemsarisingfromthelinkagebetweeninternationaltradeandtheenvironment,
Ecuador isoftheopinion thatthisareashould begiven priority intheimmediate future. Itisdifficult
fordeveloping countries tostrike abalance between trade, growth andenvironment, though inthe
caseofEcuador wedomake aconstant effort. What doesneedtobemade clear, however, isthat
considerations ofenvironmental protection should notbeusedasapretext forapplying unjustified
restrictions within themarkets ofthedeveloped countries.WT/MIN(96)/ST/68
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Finally, Ecuador believes thatspecial consideration should begiven totheneedtomake progress
inexamining therelationship between integration schemes andmultilateral rulesandconclude improved
andmore suitable agreements intheareas ofservices, telecommunications andinvestment.
Ecuador further believes thatthelasting success oftheWTO willlargely depend onitsability
toensure thatallitsMembers arebeneficiaries under thenewworld economic system, andtomake
every effort toachieve equality ofopportunity. Inthiscontext, cooperation infavour ofdeveloping
countries isofparamount importance.
Thatisthemajor taskthatwemust continue shouldering.