WORLD TRADE WT/FIFTY/H/ST/7
19May1998
ORGANIZATION(98-2068)
50thANNIVERSARY Original: English
Geneva, 19May1998
BRAZIL
Statement byH.E. Mr.Fernando Henrique Cardoso,
President
1. Iamverypleased toparticipate inthecommemoration ofthe50thAnniversary ofGATT and
oftheentering intoforceofthemultilateral trading system. Likemany otherfriendly nations represented
here, Brazil contributed totheestablishment ofthissystem andhasbeenactively involved inallstages
ofitsdevelopment.
2. During thesefirstfouryears aftertheconclusion oftheUruguay Round, theBrazilian economy
hasundergone profound changes. Stability wasattained andwebegan totreadthepathofdevelopment
with social justice. Initsforeign trade, Brazil made boldstrides bothregionally andglobally.
MERCOSUR wasconsolidated asaninstrument foropenintegration while Brazil concurrently and
significantly increased itsimports from allorigins. Thisincrease illustrates theextent towhich our
partners havebeenabletotapthepotential ofourmarket. Italsodemonstrates thedetermination of
theBrazilian Government toadopt along-term perspective forinternational trade, striving fordynamic
equilibrium rather thanmomentary commercial surpluses.
3. Forthese conditions tocontinue toprevail, itis,however, necessary forBrazilian goods and
services toenjoy, fortheir part, better access opportunities tothemain markets, aswell as
non-discriminatory treatment. Brazil istoday among thetenlargest economies intheworld, witha
diversified industrial baseandacompetitive agriculture thatcanfurther expand overavastlandarea.
Suchanabundance ofproductive factors enables ustosupply ourpartners withavariety ofproducts
atvarious processing stages. Thesumofourexports andimports isstillataround 13percentofGDP,
afigure thatunderscores thepossibilities forfurther expansion.
4. Butforthisexpansion tooccur itisimperative thattheworld economy continue togrow and,
consequently, thattherebenobacksliding intheliberalizing trendofinternational trade. Itisimperative
toresist theprotectionist demands ofthose opposed tocompetition. Itisfurther imperative tofully
preserve theletter andspirit ofmultilateralism, which isthepillar ofthesystem wecelebrate today.
5. Brazil isconcerned attheapplication oftrade legislation whose compatibility with
WTO Agreements isdoubtful. Countervailing duties oranti-dumping measures areoften perversely
usedforprotecting obsolete industries. Indeveloped countries itisnotuncommon todiscover that,
under theguise oftrade defence measures, anefficient governmental bureaucracy hasmore than
compensated forthedeficiency incompetitiveness ofcertain sectors.
6. Weareequally concerned about attempts toraisebarriers totheaccess ofourproducts under
thepretext ofassuring better environmental protection. Today Brazilian society displays keen
environmental awareness, towhich theGovernment hasresponded byadopting wide-range policies.
Wehavebeenactively participating intheWTO Committee onTrade andEnvironment andengaging
indebates inanopenandconstructive manner.WT/FIFTY/H/ST/7
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7. With regard totheissue ofarelationship between trade andlabour standards, itwould seem
tousunjust andsenseless, given theveryphilosophy thatinspires GATT, toseekguarantees forthe
improvement ofworking conditions through punitive trade measures whose onlyconsequence would
betoaggravate thesocial question. Themultilateral treatment oftheissue was,inanycase, settled
in1996 byadecision adopted atMinisterial levelinSingapore.
8. Thesocial question, which issocomplex andurgent andwhich affects practically allcountries,
represents afundamental challenge forinternational cooperation anddemands increased anddirect action
intheappropriate fora.
9. Inworld agricultural trade, Brazil andmany othercountries continue towitness withperplexity
theoperation ofthegreatest protectionist andsubsidizing apparatus everputtogether forthepreservation
oftheinterests ofonesector. More thanUS$160 billion continues tobespent eachyearbydeveloped
countries soastoprevent theiragriculture from being exposed tocompetition rules. And, what is
more, soasalsotopreclude theapplication ofthose rules inthirdmarkets. LastApril, inSydney,
theCairns Group reaffirmed whatithadagreed toinRiodeJaneiro in1997, andrecalled theneed
thatthenextWTO agriculture negotiations integrate agriculture intotherulesofthemultilateral trading
system.
10. Wearedisturbed atthecontinuing useofslogans andconcepts ofdoubtful anthropological
orenvironmental soundness totrytojustify whyfaircompetition between partners forthebenefit of
consumers andtaxpayers cannot apply totheagricultural sector, asitdoestoothers. Ibelieve this
isneither justifiable norfair.Wedeveloping countries alsohavetocopewithoften-harmful competition
fromimported products, aswellaswiththepressures unemployment brings tobearonthesocial fabric.
Yet,despitetheimmensedisadvantagebroughtbylowerlevelsofincome,productivityandtechnological
capacity, wearetrying todowhatwebelieve isnecessary inorder toadvance inthedirection oftrade
liberalization. Wearealsoexposed toquestioning from theLegislative Branch ofGovernment and
frompublic opinion. Thepersistence ofprotectionism andofexport subsidies toagricultural trade is
notjustthegreatest anomaly stilltobecorrected butalsothemostunfair todeveloping countries which
arecompetitive inthissector.
11. Brazil reiterates itsadherence totheprimacy ofthemultilateral trading system andhasan
optimistic viewofthefuture ofthisOrganization. Weareproud tohavebeenoneofthe23original
contracting parties oftheGeneral Agreement in1947, justasweareproud ofourcontribution toits
development andongoing improvement.
12. Among thegreatadvances thatweremade during theUruguay Round, Icannot failtohighlight
thenewdispute settlement system. Thelatter hasthefundamental roleofguaranteeing aswift and
impartial defence oftherights ofall.Itshould betrustworthy forallcountries, averting thepossible
temptation onthepartofsome totrytouseforce inorder toimpose theirowninterpretation ofrules.
13. Having beenstrengthened bytheUruguay Round, thesystem should guard against anyattempts
atvitiating thetruespirit ofmultilateralism.
14. Sectoral negotiations -quickly concluded among some Members inorder tobeextended to
others -donotcontradict themost-favoured-nation clause. Theynevertheless deviate fromtheprinciple
contained inthePreamble oftheMarrakesh Agreement thatestablishes thisOrganization andwhich
seeks toensure that"developing countries […]secure ashare inthegrowth ininternational trade".
Although suchaccords mayconcern dynamic sectors, separate negotiations become ameans ofshielding
fromcompetition certain obsolete segments, which, asagriculture itself, remain artificially protected
andbecome marginalized from thecentral thrust ofthenegotiating process.WT/FIFTY/H/ST/7
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15. ThisOrganization hasbefore itanagenda which stems from previously settled agreements
andunderstandings andwhich establishes aprogramme fornegotiations incertain specific areas. Brazil
would notshirk from examining theexpansion ofthisagenda (inwhat isalready being called the
"Millennium Round"), aslongassuchexpansion doesnotinterfere withthenegotiating process already
defined foragriculture, norisintended toincorporate onlyspecific sectors ofinterest tosome countries.
16. Inanycase, thisexercise should nottakeplace before thecommitments undertaken inthe
Uruguay Round areimplemented, soasnottoupset thebalance oftheconcessions agreed toatthat
time.
17. ThisOrganization istheguarantor ofasystem wewishtoseeasevergrowing instrength and
prestige. Asanoriginal signatory andanactively involved party, Brazil willdoitspartforthistobe
attained. Thesystem 'sstrength willdepend, however, ontheperception byallthatthebenefits are
equitably shared. Itisindispensable thatthemain trading partners fullyadhere toagreed rules and
comply withdecisions taken bytheOrganization atitsvarious levels. Itislikewise essential toshow
political courage inorder toresist pressures andtowork towards world trade asnotmerely themeans
foraselective andexclusive form ofglobalization.
18. Inthese 50years, themultilateral trading system helped bring about asignificant increase in
international trade. Itthusboosted production andemployment.
19. Reflecting theintense transformations ofthecontemporary world, thesystem -thatis,today,
theWTO -hasacquired auniversal vocation andwider responsibilities. Itsmain challenge nowis
tocontribute, through asetofequitable trade rules, towards correcting thedisparities indevelopment
andinwelfare thatcontinue toafflict theworld welivein.
20. Wemustthink bigandunderstand thattrade isafundamental toolforourcountries toattain
thegreater objectives ofpeace, development andsocial justice. Theliberalization weseekonlymakes
sense ifitmoves uscloser tothese goals, andwillonlyreach itsfullest justification ifitcontributes
toovercome inequalities bothbetween andwithin nations.
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