WORLD TRADE WT/FIFTY/H/ST/9
19May1998
ORGANIZATION(98-2093)
Original: English 50thANNIVERSARY
Geneva, 19May1998
COMMONWEALTH OFDOMINICA
Statement bytheHonourable Edison C.James,
Prime Minister
The50thAnniversary oftheestablishment ofthemultilateral trading system provides the
opportunity foranevaluation oftheachievements andshortcomings, aswellasthechallenges and
opportunities facing theglobal economy. Werecognize thecrucial rolethatwasplayed bytheGATT
anditssuccessor, theWTO, inencouraging opentrade regimes anddismantling tariffs andnon-tariff
barriers inthetrade ingoods andservices. Theprimacy ofatransparent, fairandequitable
rule-based multilateral trade system under theWTO, including thedevelopment ofregional trading
agreements cansafely bereaffirmed byallcountries.
Thisisnottosaythatallcountries haveseenthebenefit ofthesystem. Infactthroughout
these 50years therehavebeenclearevidence thatalarge number ofcountries, allofthemdeveloping
countries, andparticularly least-developed countries, havebeenfalling behind. Inthefouryears since
theestablishment oftheWTO evenclearer disturbing signs haveemerged oftrends thatpoint inthe
direction ofexclusion rather thaninclusion andofmarginalization rather thanintegration. Moreover,
these trends arebeginning tohavequiteserious negative effects onconfidence incountries which only
ashort timeagowere viewing theirfuture prospects withsome considerable optimism.
Developing countries, andparticularly theleast-developed, havederived theleastbenefit from
trade liberalization inspite ofmeasures taken intheGATT, beginning inthe50s,toassist these
countries, including theadoption in1979 ofthe"Enabling Clause" which made theprinciple of
special anddifferential treatment fordeveloping countries apartoftheGATT legalframework.
Wewelcome theinitiatives thathave been taken within theWTO framework inthe
implementation ofthePlanofAction forLeast-Developed Countries agreed atinSingapore. The
High Level Conference heldlastOctober demonstrates thattheWTO isconscious oftheneeds ofthe
least-developed countries. Wecongratulate Member Countries, bothdeveloped anddeveloping, as
wellasthecooperating International Agencies fortheirimportant contributions tothePlanandhope
thatitwillbeimplemented expeditiously.
ButIspeak foraCountry andaRegion which donotfiteasily intoanyoftheWTO
classification ofcountries. They arethose other categories ofdeveloping countries caught between
theemerging economies andtheleast-developed, theneeds ofwhich arebeing overlooked. Imake
specific reference tosmall developing economies suchasDominica, which arefacing thechallenge
ofbuilding theirexport andinstitutional capacities toallow them tobecome effective participants in
thenewhighly competitive global environment andthusavoid marginalization.
Ifsmall developing economies aretobeabletoattract investment, expand production,
improve product quality, meet standards, inshort compete effectively andgrasp theopportunitiesWT/FIFTY/H/ST/9
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presented intheWTO Agreements, thenitisimperative thattheir need foradequate transitional
periods andforsupport bealsorecognized.
But,while wepress formore attention tobepaidtoourparticular concerns, werecognize
thatitisuptoustoidentify ourproblems, andarticulate these intheWTO andother international
organizations, working withthem toensure thatweriseabove ourconstraints.
Oneverytroubling areaistherecent experience wehavehadintheresolution ofthedispute
ontheEUbanana import regime. Ithashadanadverse impact ontrade withourtrading partners
andundermined confidence intheWTO process. Webelieve thattherearesome important principles
andprocedures requiring improvement aswebegin thereview oftheDispute Settlement
Understanding (DSU). Theso-called "systemic" complaints raised byamajor trading partner, not
onlyruntheriskofupsetting thebalance ofrights andobligations, butalsoundermining thebalance
ofbenefits todeveloping countries, laboriously negotiated during theUruguay Round.
Weareparticularly concerned about theblind andinsensitive application ofWTO Rules which
could havetheeffect ofnullifying alltheefforts being made toprepare theeconomies forintegration
intotheWorld Economic System.
Isaythese things nottosound alarmist bells butbecause Ispeak foracountry whose
economy hastraditionally depended onasingle crop, bananas. Thiscropiswellsuited toconditions
inmycountry aswellasinalloftheEastern Caribbean andother countries intheCaribbean
Community. InthecaseoftheWinward Islands, itaccounts forwelloveronehalfofallexport
earnings andabout afifthofGDP. Theindustry isthemajor source ofemployment, andthemajority
ofhouseholds receive anincome, directly orindirectly fromtheproduction andmarketing ofbananas.
Itisarural industry inwhich almost theentire rural community isengaged, producing bananas on
predominantly small family plots, often situated onhillsides. Asubstantial number ofthebanana
farmers arewomen. Atthemoment, there isnosystem more guaranteed toensure thatacashincome
reaches theneediest inthesociety ortoaddress thespecial problems oftherural poor. Inaddition
toitscontribution toeconomic development thebanana industry is,therefore, asignificant guarantor
ofsocial andpolitical stability notonlyinmyownbanana producing country butintheentire
Caribbean Region. Icannot therefore assess 50years ofthemultilateral trading system, especially
itsevolution since theestablishment oftheWTO, outside ofthecontext ofitstreatment ofthetrade
inbananas anditsimpact onourcountries.
Inasmall island economy thedevelopment options arenotmany. Thereform process is
painful andthediversification process difficult. More over, allofthese initiatives depend fortheir
success onincreased financial resources tofund infrastructure, training, andtogainaccess to
technology. Increased financial flows, inturn, depends onastable economic andpolitical
environment. Itistherefore notsufficient totalkabout thenon-discriminatory character ofWTO.
Theinstitution must alsopromote anddefend anorderly trading system thatseeks tospread the
benefit ofglobal economic growth andtrade toallcountries, irrespective oftheirsizeorlevel of
development. Itmaywellbethatthetaskisbeyond theWTO acting alone. Inthiscase, inaddition
totheGeneva based institutions, itmight benecessary toengage other institutions whose development
missions maybemore allembracing.
Thus aswestructure theagenda anddefine thework programme fortheperiod ahead wewill
needtobearinmind certain important considerations thathavenotsofarbeenallowed toinform
earlier deliberations anddecisions.
Itwillbearrepetition thatbecause oftheirinherent deficiencies some countries arenotnow
abletotakeadvantage ofthemany opportunities being presented asaresult oftheliberalizationWT/FIFTY/H/ST/9
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process inspiteofthetremendous efforts thattheyaremaking toposition themselves toobtain atleast
some ofthebenefits ofthesystem andinspite, alsooftheirenormous commitment toreform. Itis
simply afactthattheWTO membership consists ofcountries atvarying levels ofdevelopment and
different trading interests. Thesystem must beabletorespond tothedifferent needs, inorder that
allcountries among them, prominently, small island developing States could derive some benefit.
Above allitisimportant torecognize thatthenecessary adjustments toaglobal economy willnot
proceed atthesame paceinallcountries norhavethesame effect inallplaces.
Inthisregard, aswelook totheperiod ahead thefocus oftheWTO, should beon
implementation oftheexisting agreements andthebuilt-in agenda, andonclosing thegapwhich exists
between itsMember States.
Anessential requirement ofthiswork programme should beanevaluation oftheimpact of
theimplementation oftheagreements todetermine thebenefits tooradverse effects ondeveloping
countries. Specifically, there should beanevaluation oftheAgreement onAgriculture todetermine
theextent towhich countries aremeeting theirreduction commitments andtheimpact onNet-Food
Importing Developing Countries especially withregard totheMinisterial Decision onthepossible
negative effects ofthereform programme onleast-developed andnet-food importing developing
countries.
Inrelation tonewnegotiations apoint which cannot bestressed toooften withregard tonew
issues, istheability ofsmall developing countries tocopewiththeWTO 'spresent andfuture work
programme, which willinvolve negotiations. Theinability ofnational administrations toadequately
prepare fornegotiations could adversely affect theleveloftheirparticipation.
Wepropose thatmachinery beestablished within theWTO toexamine thespecial
circumstances ofsmall States, particularly islands, given theirrecognized fragility andvulnerability,
withaviewtodetermining howtherulescould bestructured totakeintoaccount these disadvantages.
Asourcountries increase efforts toimplement theWTO Agreements, duerecognition should
begiven totheneedforadequate transitional periods andforsupport ofourefforts atthenational
level. Inthisregard, wewould emphasize theneed forcontinuing andincreasing thetechnical
assistance provided bytheWTO, UNCTAD, ITUandrelevant agencies toenable ourcountries to
participate more effectively intheWTO arrangements.
Ithink theperiod ahead isanexciting oneformultilateral cooperation intrade, investment
andother areas, andtheCaribbean Community isdoing allitcantoposition itselftoparticipate fully
intheglobal process.
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