WORLD TRADE
ORGANIZATIONWT/MIN(98)/ST/71/Rev.2
10 June 1998
(98-2342)
MINISTERIAL CONFERENCE
Second SessionGeneva, 18 and 20 May 1998Original:  English
THAILAND
Statement Circulated by H.E. Dr. Supachai Panitchpakdi,
Deputy Prime Minister and Minister of Commerce
Revision
First of all, let me express my deep gratitude to the Chairman of the Ministerial Conference,
H.E. Mr. Pascal Couchepin and the Swiss Government as well as the people of Switzerland for their
hospitality and contribution to the success of this important event.  I also would like to express my
sincere appreciation to the Director-General, Mr. Renato Ruggiero and all the staff at the WTO
Secretariat for their hard work and dedication through out the year as well as their special effort in
making this Ministerial Conference a success.
This year marks the 50th Anniversary of the multilateral trading system.  This occasion is
indeed special.  It represents a landmark in modern economic history which has gone through a long
road towards liberalization.  We have come a long way since nations recognised the risk of
governments pursuing restrictive economic policies in protecting their war-torn economies fifty years
ago, and at that time decided to pursue an outward-looking and more open trade policy.
Multilateral trading system as engine for world growth
The setting up of multilaterally agreed disciplines, various tariff-cutting Rounds, the
conciliation and dispute settlement within the framew ork of the GATT as well as the adherence to the
basic principle of non-discrimination have, to an impressive extent, contributed to the stability and
predictability, hence, growth in international trade.
It is recognised that the conclusion of the Uruguay Round signified the most comprehensive
and far-reaching reform by far and endorsed confidence in the multilateral trading system.  The mostsignificant results of the Round were the inclusion of important new agreements such as agriculture,
textile, services, intellectual property rights and trade-related investment measures, and the
establishment of the WTO and its new and more effective dispute settlement mechanism.
All this occurred at a time of changing world economic environment and greater call for
equitable share of economic and development fruit.  Given this, it is both opportune and useful toexamine and evaluate our performance thus far and set a vision for our future.
Implementation
In general, the overall implementation of the Uruguay Round has proceeded in accordance
with the commitments entailed in various WTO agreem ents.  But it must also be noted that there are
areas where greater efforts are needed from Members to meet their obligations.  In this regard,genuine endeavour and determination must be ex erted by all Members in complying with theWT/MIN(98)/ST/71/Rev.2
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agreements in order to achieve full and faithful  implementation of the commitments.  Among others,
the following areas of implementation should be highlighted.
1. Agriculture
It is the first time that ground rules on the subject of agriculture was set.  We recognize that
this has been  a big step forward, however, implementation of agriculture commitments during thepast years has indicated that there is still room for improvement.
1.1 Some Members have yet to demonstrate their earnest exertion to fully abide by the
stipulated obligations.
1.2 Strict compliance to tariff reductions and elimination of market  access restrictions,
subsidies and distortions are needed to truly bring about a fair and market-oriented
agricultural trading system.
1.3 Members are urged to intensify their effo rt to fully conform with the Agreement on
Sanitary and Phytosanitary and refrain from using sanitary and phytosanitary
measures as disguised trade barriers.
2. Textiles and clothing
Textile and Clothing is another area of marked achievement of the Uruguay Round.  It is
important that this trade must truly be integrated into the rule-based and non-discriminatory system ofGATT within the stipulated time-frame .   The first two stages of integration reveal that liberalization
in this sector has not been meaningful to developing countries.  Most of the products under
restrictions remain to be integrated towards the end of the transition period.  Such eventuality poses as
serious obstacle at achieving smooth and effective transition into GATT.  While only a few
quantitative restrictions have been eliminated in the first 7 years of the Agreement, new barriers to
trade including repeated anti-dumping actions as well as other customs and administrative formalities
imposed by developed countries have unnecessary added to unfair restrictions against imports from
developing countries.  The unsparing use of transition safeguard measures had also eroded the
benefits, if any, derived from the implementation so  far.  In this light, we call for Members to:
2.1 Resolve to ensuring full and faithful implementation of the provisions of the
Agreement on Textile and Clothing;
2.2 resist attempts towards protectionism;  and
2.3 adopt immediate and positive measures to demonstrate commitment to liberalization
and elimination of discriminatory treatment.
We also call for the Textile Monitoring Body, as the supervising body of the Agreement, to
provide and secure transparency in its functioning and adhere to a proper standard of review
consistent with the precedents which have been established by the panel and appellate decisionsrelating to the implementation of the Agreement.
3. Anti-dumping
Greater liberalization since the implementation of the Uruguay Round commitments has
resulted in greater trade expansion but unfortunate ly it occurred with the unwelcome accompaniment
of increased use of anti-dumping measures.  We urge that Members use the anti-dumping measuressparingly and truthfully to the language of the Agreement.   At the same time, we also have concern
on the anti-circumvention investigations since the establishment of the WTO.  This is due to the factWT/MIN(98)/ST/71/Rev.2
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that there has not been an agreement on uniform rules on Anti-circumvention, we, therefore, urge that
Members refrain from taking this measure while the process is still on-going.
4.  Dispute Settlement
The Dispute Settlement Understanding can rightly be considered as another significant
achievement of the Uruguay Round and the  WTO thus far.  The increased number of cases brought
by countries big and small under this mechanism and a number of interpretations of key provisionsindicate the health of the system.   Although the effectiveness and credibility of the dispute settlement
system  have been generally satisfied, there are some key elements which are of importance to the
success and viability of the system:
4.1 Strict and timely compliance with the recommendations;
4.2 increased availability of legal experts assistance to  developing countries;
4.3 increased capability of the Secretariat to cope with increasing number of dispute
cases; and
4.4 adherence to the provisions with regard to confidentiality of panel process and its
documents.
5. Integration of developing countries
One of the objectives of the Uruguay Round is to  integrate the developing countries into the
multilateral trading system as it is important for their economic development and global tradeexpansion.  Developing countries should be able to participate in multilateral trading system with
assurance that their participation would lead not only to obligations but also their entitled benefits.
Many developing countries are still overwhelmed with  difficulties due to their lack of knowledge and
resources.    There is urgent need to intensify ef forts in certain areas to make the integration yields
better and greater benefit  to the developing and the least developed countries such as :
5.1 Existing WTO provisions on special and differential treatment;
5.2 technical assistance;  and
5.3 market access for products from the developing and the least developed countries.
Future activities:  Enhanced credibility
For the WTO to be viable and credible, it should have the ability to correct its weaknesses,  at
least on the above-mentioned aspects.  At the same time, it should also be able to discharge fully its
commitments resulting from the Marrakesh mandated built-in agenda, adapt to the ever changing
global economic environment and  face the challenges that lie ahead as the world move towards and
into the next millennium.
Tasks ahead
In the near and medium terms, the tasks ahead of the WTO are two-fold.  On one hand, we
need to deal successfully with the built-in agenda, and on the other,  we must take into account thedemands posed by fast changing international economic environment.  The results of the Uruguay
Round contain numerous unfinished or partially finished elements.  The achievements of the Uruguay
Round negotiations could be considered as important stepping stones in this regard.
Built-in AgendaWT/MIN(98)/ST/71/Rev.2
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Major tasks
Several WTO agreements and Ministerial decisions called for further negotiations as well as
reviews of certain rules and disciplines.  One of the major tasks ahead of us in this respect will be to
fine-tune the relevant timetables, and in some cases to define the appropriate steps which will lead to
the fulfilment of the work programme as stipulated in the respective agreements and decisions.
Renewed negotiation on agriculture
Preparatory process must begin as soon as possible in order to allow the renewed negotiation
on agriculture to take place before the end of 1999 as scheduled in the Agreement with a view to
conclude expeditiously.  The mandate and the conduct of the negotiations must be independent of any
call for or scepticism of a new broad-based round of trade negotiations.
Thailand supports others who have called for a framework of negotiation addressing all areas
affecting agriculture trade, namely export subsidies, market access and domestic support.
Furthermore, in pursuing further liberalization, support to the economic development needs of
developing countries, including their technical assistance requirements, must be continued while the
principle of special and differential treatment for developing countries must also remain an integral
part of the future negotiations.
Potential issues
It is also important to recognise that appropriate, reasonable and operable improvement of the
existing rules might be vital to the WTO to enhance its relevance in the evolving world economy.
Globalization is an irreversible fact of life in the modern world, the important question facing
us is how best to deal with the inevitable process of globalization.   Therefore, from time to time, the
WTO needs to review and redress any shortcomings or loopholes which exist in its system.
While it is true that there are extensive issues available on the table, we need to ensure that we
do not close our eyes on other evolving developm ent in the global economy. Nevertheless, in taking
on board any issue, it would require endorsement from Members on the basis of consensus.
Indeed, issues such as investment, competition and transparency in government procurement
were brought to our attention at Singapore, and currently, their study processes were being carriedout.  In this relation, it must also be emphasised that future consideration on how to proceed with
these issues must be subject to the outcome of the study processes.
Preparation without pre-judgements
The preparation process for the next Ministerial Conference must be without any
pre-judgement.   While nothing is to be precluded, there should be a sense of priority where issues
relating to implementation, mandated negotiations and other future work already stipulated in the
WTO provisions must be proceeded accordingly.
Recognising that liberalization is a signific ant process to uphold the multilateral trading
system, Thailand is monitoring the discussion on this subject with profound interest and will stand
ready to co-operate with all Members in exploring all elements which could be involved.
At the same time, any proposal to be put forward must clearly address interest of developing
countries.  Furthermore, it is also important that the preparatory process for our future discussion mustWT/MIN(98)/ST/71/Rev.2
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not prejudge our decisions, especially whether and how new round of negotiations should be
launched.
Organization’s objectives vs. national interest
The long term challenges of the WTO is  its ability to reconcile national interest with that of
the organization.
We have seen, time and again, in this organization, countries venture to set the agenda of the
WTO based on issues which were in line with their interest and priority.  In Singapore, we saw new
issues such as investment, competition policy, transparency in government procurement and trade
facilitation being shoved into the WTO’s basket.  We feel that Members should, at the same time,
invest our collective efforts in the strengthening of the system.   This should be a truly meaningful key
agenda for our future in pursuing the objectives of the organization. The following issues must be
addressed :
1. Genuine integration of developing as well as least developed countries into the
multilateral trading system;
2. a truly levelled playing field where all Members can compete fairly despite their sizes
and economic strengthen;
3. improvement of decision making process:  compromises in the past had been
achieved at the expense of objectivity of the system and resulting in an ambiguitywhich generated time-consuming debates, diverse interpretations and created
loopholes;  and
4. A fine and delicate balance to preserve individual national interest and the systemic
interest is essential though, admittedly difficult to achieve.
Primacy of multilateralism
The relevance, credibility and efficiency of the multilateral trading system will very much
depend on how the above issues are addressed and problems resolved.  The WTO must take on
challenges without wavering and assume the leading role so that regionalism will, in no way, replace
the multilateral trading system as a primary force shaping global trade, but rather supplement and
reinforce the liberalization process entrusted by the WTO Members.  It is important that regionalgroupings must complement and contribute to the strengthening of the multilateral system.
Coherent international economic policy
The third systemic long term challenge is how to generate greater coherence in international
economic, trade and financial policy.  In today’s complex and globalized economic structure,
coherent policy co-ordination among the IMF, World Bank and the WTO is absolutely crucial.. These
organizations must reinforce their efforts to ensure that their respective policies i.e. trade, monetary
and social and development are mutually supportive.  This would help lessen the problem ofmarginalization and prevent potential disruption which might arise from misconduct in one of the
policy areas as well as minimise adverse impact on others, as happened in the case of current financial
crisis in Asia.
Firm commitment
Despite all the hardship currently facing our nation, Thailand remains  unwavering with our
commitment towards liberalization.  We firmly believe that through the continuation of our outwardWT/MIN(98)/ST/71/Rev.2
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looking and open-trade policy, we will revive our economy as well as  secure sustainable prosperity
and economic growth in the years ahead.
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