WORLD TRADE
ORGANIZATIONWT/MIN(99)/ST/37
1 December 1999
(99-5247)
MINISTERIAL CONFERENCE
Third Session
Seattle, 30 November - 3 December 1999Original:  Spanish
COSTA RICA
Statement by H.E. Mr. Samuel Guzowski
Minister of Foreign Trade
We know that the negotiations in Geneva before this Conference were not easy and we still
do not have a Ministerial Declaration that is an acceptable text.  However, we trust that the hours of
work that remain this week will enable us to arrive at a consensus on future work in the WTO.
Costa Rica recognizes that trade liberalization makes a decisive contribution to economic
growth and, therewith, a higher standard of living for nations.  That is why we have placed great
hopes in the decisions of this Conference.  The WTO's five years of life have confirmed the enormous
value of the multilateral trading system.  We nonetheless believe that it is necessary at this time togive fresh impetus to the uncompleted task of liberalizing trade.  This decisive step should be the
immediate launching of a new round of multilateral trade negotiations.
The round should fulfil the basic objective of st rengthening the multilateral trading system.  If
we are to achieve this, we cannot now give way to isolated pressures designed to hold off that
objective.  It is the needs of the vast majority of ou r peoples that must persuade us not to let go of this
crucial opportunity to move ahead in strengthenin g the rules of the multilateral trading system.
Costa Rica is of the view that the new round should entail broad-based negotiations that are
balanced and governed by the "single undertaking" principle.  I shall refer briefly to some of the
negotiating areas to which we attach most importance.
We believe that agriculture must receive the greatest attention on the agenda for the
negotiations.  This trade sector was marginalized for many years and, even today, is not subject to the
same rules as apply to other products, something which must be remedied in this round.  There are
major distortions in agriculture, which is affected by domestic support and export subsidy policies
which create serious imbalances in world prices of agricultural products and they seriously penalizeefficient producers in developing countries.  Costa Rica cannot accept that, despite the well-known
imbalances in the sector, some Members should oppose the elimination of distorting measures and
endeavour to seek further justification today to perpetuate such practices, which deepen the breach
between the developed countries and the developing world.
Our objective in the coming negotiations is for the agricultural sector to receive similar
treatment to that given to industrial products, by fully incorporating it in the Organization's rules and
establishing a fair, market-oriented agricultural trading system.
Costa Rica also attaches importance to some problems which have been indicated in the
subjects concerning implementation of the agreements and recognizes the need to find a solution to
some of them.  However, we believe that, to do so, it is necessary to respect the implementation of theUruguay Round commitments.  We believe that these amendments should not simply be treated asWT/MIN(99)/ST/37
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mere problems of implementation when they involve changes in the delicate balance of rights and
obligations achieved in Marrakesh.  A solution to these problems must therefore be sought in the
context of the new round of negotiations by changing the relevant agreements.  It is from this
standpoint that Costa Rica endorses the idea of reviewing the Anti-Dumping Agreement, something
we support because we regard it as essential to prevent some countries from using these measures forprotectionist purposes.
Probably one of the areas of greatest importance in the WTO is dispute settlement, because it
truly guarantees predictability and security in international trade relations.  While the system,
governed by the Dispute Settlement Understanding, has functioned satisfactorily for five years, the
experience of a large number of panels and of the Appellate Body leads us to the conclusion that it
could function better in some respects.  Consequently, it has been deemed necessary to introduce anumber of changes in the relevant rules and procedures.  Costa Rica has cooperated throughout the
year in the review of the Understanding in the Dispute Settlement Body.  We are convinced that the
results achieved so far in this context will streng then the WTO dispute settlement system's rules and
provide better tools.  For this reason, Costa Rica has firmly co-sponsored the text setting out the
results of the review.
At the Singapore Ministerial Conference we agreed on mandates that have made for fruitful
work in several trade-related areas.  Costa Rica considers that this work is sufficient for some of the
areas to be included in the negotiations in this  new round.  In particular, my Government hopes that
these negotiations will lead to the incorporation of multilateral rules in the WTO for dealing with
investment.  We believe that there is an unquestionable link between investment and the development
of export capacity, improved competiveness between countries, job creation and the transfer of
technology.  For this reason, we feel it absolutely essential to work out a framework of basic rules on
investment which, in our opinion, should be based on the principle of non-discrimination and
guarantee a stable and predictable investment climate.
Similarly, we support the inclusion of the subject of trade facilitation in the forthcoming
negotiations.  We believe that the establishment of a set of disciplines and provisions to simplify
customs procedures will contribute to development and to the participation of all countries, especially
developing countries, in international trade.  We have welcomed the proposals by developed countries
on the introduction of technical assistance and coop eration programmes for developing countries in
this area.
Costa Rica favours the completion of the negotiations on the Information Technology
Agreement, known as ITA II, as soon as possible,  preferably during this Ministerial Conference.
My Government also supports the extension of the present practice of not imposing customs
duties on electronic transactions and the work programme on electronic commerce.
Costa Rica supports the resumption of negotiations in various areas of the WTO.  In assessing
the new subjects, the criterion we have followed fo r incorporating them in the negotiations has been
that they should contribute to trade liberalization.  In the same way, this criterion has led us to rejectthe incorporation of subjects which do not contribute to or which threaten trade liberalization.
Costa Rica is concerned about the interest some Members display in incorporating subjects
which have no direct bearing on trade and which may open the door to new forms of protectionism,
such as the topic of trade and the environment.  Environmental protection has been and will continueto be a priority concern for our country, but this should be done through the appropriate international
agreements and not through incorporating it in WTO disciplines.  There would be a risk of the
international community diverting its attention from the proper solutions to serious environmental
problems and, instead, of punitive trade measures gaining the upper hand.WT/MIN(99)/ST/37
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As to workers' rights, I must point out that for more than half a century Costa Rica has had
advanced labour legislation guaranteeing respect for such rights and has played an active part in the
International Labor Organization (ILO).  Costa Rica believes that this subject should continue to be
dealt with in that organization and not in the WTO, for it is not a trade subject and there is a threat that
it could be used for protectionist purposes.  The Si ngapore Ministerial Declaration clearly established
the guidelines for dealing with this subject by stat ing that the International Labor Organization is the
appropriate body.  Accordingly, we do not think it necessary to add more to what was agreed on at
Singapore in this regard.
Another subject of profound concern lies in the proposals regarding transparency in the
functioning of the WTO.  My Government has support ed and will continue to support transparency in
the Organization but does not deem it appropriate to try to change its intergovernmental nature.  TheWTO already functions transparently and governments, even those of the smallest countries, have an
opportunity for their voice to be heard and to partic ipate in all decisions and indeed to secure respect
for their rights under the dispute settlement system.  For its part, the WTO has facilitated access for
the public to documents, even through an Internet site, has distributed numerous publications and has
a dynamic Information and Press Division.  We therefore believe that the WTO performssatisfactorily in regard to transparency.
To turn to other topics, I should like to express our satisfaction at the important number of
countries which have joined the WTO recently and the large number that are in the process of doing
so.  We trust that their negotiations will culminate in them joining the Organization shortly.  We lookpositively on the headway made by the People's Republic of China in its accession process,
particularly the recent conclusion of the bilateral negotiations with the United States.  We hope that it
will complete bilateral negotiations with all the Members which have not yet been concluded and will
join the WTO in the near future.  It is also gratifying to see that Chinese Taipei (Taiwan) has made
substantial progress in its accession process and has completed all its bilateral negotiations.  We hopethat it will join the WTO very soon.  Lastly, I should like to take this opportunity to reaffirm the Costa
Rican Government's commitment to the multilateral trading system and its readiness to contribute to
the launching of a new round of multilateral negotiations before this Conference ends.
I should like to convey the gratitude of the Government of Costa Rica to the President of the
Ministerial Conference, Ambassador Charlene Barshefsky and to the Government of the
United States.  Similarly, I should like to express our gratitude to Mr. Mike Moore, Director-General
of the WTO and to the Secretariat and to Mr. Ali Said Mchumo, Chairman of the General Council, for
their endeavours in this direction.
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