WORLD TRADE WT/MIN(98)/ST/26
18May1998
ORGANIZATION(98-2016)
Original: English MINISTERIAL CONFERENCE
Second Session
Geneva, 18and20May1998
HUNGARY
Statement Circulated byH.E. Dr.Szabolcs Fazakas,
Minister ofIndustry, Trade andTourism
Hungary considers thatthefirst50years oftheGATT/WTO system havebeenaformidable
success andcontributed toworld-wide growth andprosperity. Oureconomic history bears clearwitness
tothevalidity ofthefundamental GATT principles andtotheenormous damage thatregional autarchy,
bilateralism andexcessive State intervention cancause toaneconomy.
Thereintegration ofHungary intotheworld economy andthegeneral opening ofourmarket
inthepasttenyearsledtotheverysignificantmodernization,deep-goingstructuralchangesandincreased
international competitiveness.
Theprocess ofeconomic transformation hasarrived atitsconclusion. Asaresult ofconsistent
privatization andthenecessary legislative andinstitutional changes afully-fledged market economy
hasbeenestablished. Thetransformation process hasbeenverypainful forthepopulation butthe
sacrifices weren 'tinvain: themacroeconomic equilibrium hasbeenachieved andthecountry ison
thepathofsustainable, dynamic andexport-led growth.
TheinternationalbusinesscommunityrecognizedtheresultoftheHungarianeconomictransition
byarather substantial inflow ofFDIwhich contributed toimproved efficiency andcorporate governance
aswellasrobust export performance. Theprosperity ofHungary islargely dependent onasupportive
external economic environment, therefore weattach highimportance toawell-functioning multilateral
system which offers stability andpredictability ininternational markets.
Tobecome afullmember oftheEUisthemostimportant national priority forHungary. The
recent commencement oftheHungary-EU accession negotiations brought thisfullmembership within
reach. Itisourfirmbelief thatthepresent enlargement oftheEUwillbeofconsiderable benefit not
onlytotheparticipants butalsotothirdcountries andthatthesteps which aregoing tobetaken will
beinconsistency withboththeletter andthespirit oftheWTO.
Inthisregard itisworth mentioning that:
- Within theframework ofthepreparation foraccession totheEUHungary hasjust
recently bound far-reaching commitments concerning theliberalization ofitsfinancial
andtelecommunications services regime onanMFN-basis. Aspartofthelegal
harmonization itadopted andiseffectively enforcing legislation, among others, inthe
fieldofintellectual property rights, public procurement, competition policy which
significantly improve theaccess totheHungarian market ofgoods andservices.
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- theaccession willnecessarily leadtothefurther significant reduction oftheHungarian
MFN-duty levels andtheenlargement itself willeffectively contribute tothe
market-oriented reform oftheCommon Agricultural Policy inaccordance withthe
long-term objectives oftheWTO Agreement onAgriculture.
Hungary hasaclear interest inastrong, dynamic andcredible WTO system. Itisourview
thatthiscanbeensured onlybythefull,timely andfaithful implementation ofallthecommitments
andtheadoption ofanambitious, dynamic andforward-looking WTO work programme. Westrongly
believe thatthesetwobasicconditions ofsuccess arenotinconflict, onthecontrary, theyaremutually
supportive, theartificial confrontation ofthese aspects would castadarkshadow onthefuture ofthe
WTO.
TheHungarian Government isconvinced ofthedesirability ofthecommencement ofaglobal,
comprehensive round ofnegotiations tobestarted ontheturnofthecentury which would encompass
theelements oftheBuilt-In Agenda, further reduction ofindustrial tariffs, thenewissues identified
intheDecisions taken attheSingapore Ministerial Conference, inparticular regarding competition
andinvestment aswellasother trade-related issues suchaselectronic commerce which isfiguring
prominently among theareas which represent ahugetrading potential.
Asfarastheissue ofimplementation isconcerned weconsider thattheoverall picture is
satisfactory. Inthisrespect letmejustrefertothedispute settlement mechanism, oneofthecornerstones
oftheWTO which functions wellandsignificantly strengthens thecredibility andimage ofthe
organization.
Hungary contributed toandwelcomes thesuccessful conclusion ofthenegotiations onbasic
telecommunications andfinancial services. Ourownexperience confirms thattheattachment tothe
WTO principles andtheresulting market opening ledtotheestablishment ofamodern competitive
business infrastructure andledtothesubstantial inflow offoreign capital which isnecessary forthe
further modernization oftheeconomy.
Atthesame timeitcannotbedenied thatincertain areas there areproblems (e.g.thelack
ofcommon understanding onsystemic issues ishindering thereviews ofthenotified agreements in
theCommittee onRegional Trading Arrangements, thework relating tostatetrading enterprises has
notgone farenough, theprogress isveryslow inongoing negotiations inthefields ofservices,
particularly onrules ofmodifications ofGATS schedules andwewere expecting more expeditious
progress ongeographical indications intheTRIPS area).
Hungary considers thattheprocess ofaccessions issomewhat slow. Incertain cases these
negotiations appear toneglect objective criteria because ofpolitical considerations. Atthesame time
itisalsoclearthatsome oftheacceding countries havetoundertake further significant efforts toensure
fullconformity withWTO rulesandtooffermeaningful market access opportunities before theycan
jointheorganization.
Inconcluding, letmeexpress ourconviction thatonlyaWTO which isresponsive tothe
emerging newchallenges ofachanging global trading environment canensure thattheorganization
cancontinue toplayitscentral roleofproviding therulesanddisciplines forgoverning international
trade tothebenefit ofalltheMembers oftheWTO. Iwould liketostatethatHungary willspare no
efforts tocontribute tothisgoal.
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