WORLD TRADE WT/MIN(96)/ST/7
9December 1996
ORGANIZATION(96-5178)
MINISTERIAL CONFERENCE
Singapore, 9-13December 1996
AUSTRIA
Statement byHannes Farnleitner
Austrian Federal Minister forEconomic Affairs
Head oftheAustrian Delegation
FirstofallIwould liketothank you,Mr.Chairman, andtheGovernment ofSingapore for
hostingthefirstMinisterialConferenceoftheWTOandtocongratulateyouonitsexcellentorganization.
Mysincere thanks arealsoaddressed totheChairmen ofallWTO bodies andtotheDirector-General,
Mr.Ruggiero, andhisSecretariat, allofwhom havecreated optimal preconditions forourwork.
After twoyears ofexperience withthesetofrules established intheMarrakesh Agreement
wegather heretoevaluate whathasbeenachieved sofarandtoidentify areas inwhich further efforts
towards refining theworld trade system should bemade. Itisofsymbolic importance thatthis
Ministerial Conference takes place inacountry belonging tothemost dynamic economic region in
theworld. From Singapore 'sexample anumber ofcountries could learn about thepreconditions and
theuseofeconomic competitiveness.
Themultilateral trading system emerged strengthened from theUruguay Round. National
implementation ofthese results poses aconsiderable challenge tomany countries. Webelieve that
byandlargethischallenge hasbeenpositively met. Yet,aclearpicture canonlybemade ifsufficient
dataareavailable. Thisiswhyweconsider itindispensable thatthenotification obligations should
befullyimplemented.
Facing newchallenges ofworld trade Imight refer inthiscontext totheexperience ofthe
Austrian economy which wasoneoftheweakest inEurope aftertheSecond World Warandisnow
oneofthemost efficient.
Those sectors ofoureconomy which wereliberalized (against theirwill)already inthefifties
arenowthemostcompetitive ones, providing employment andhighincome. Ontheother handthe
sectors sheltered aslongaspossible, forexample, foodprocessing andcertain services liketelecom,
arenowinstructural troubles. Thatiswhywethink thatfreemarket access toforeign competitors
wasandisthebestmeans todynamize economies.
Increasing international competition notonlypromotes structural change butcauses ofcourse
alotofcomplaints, beitfromproducers, members andorganizations oftheworkforce andincreasingly
from certain groups ofconsumers.
InAustria wehadandhaveaveryintensive discussion onso-called newissues. Ourpolitical
parties andtheHouse ofParliament areverysensitive toitems liketrade andinvestment, trade and
competition, trade andenvironment andtrade andcorelabour standards.
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TheStandingCommitteeoftheAustrianParliamentpassedlastweekaResolution,whichobliges
mebylawtosuggest andinsist, thatthisConference should setupaworking committee oncorelabour
standards asdefined bytheILOandtoaskforamandate tocontinue andtointensify thework inthe
Committee forTrade andEnvironment. From myownexperience asaneconomist Iknow thatthe
realization ofthese corestandards willnotinfluence negatively theexisting comparative advantages
ofdeveloping countries.
Increasingly organized groups ofconsumers arefocusing theirefforts onvoluntary positive
labelling. InAustria asinother countries products produced under certain bestpractices arepreferred
byconsumers while others arerefused: firsteffects canbeseenalready. Ifthisdevelopment will
continue wemayseeanewnon-tariff barrier emerge.
Thereforeanopendialogueonsensitivenewitemsmayremoveobstaclestofurtherenhancement
ofinternational trade andtomeet theincreasing criticism towards globalization. Some, atleastin
Europe, regard theso-called "social model" ofEurope asthemost endangered species.
Ascompetition increases worldwide wehavetopayadequate attention tothesituation ofthe
leastdeveloped countries. Ourefforts should therefore befocused onabetter market access fortheir
products andtoprovide them withmore technical assistance. Austria welcomes therefore theAction
Planelaborated forLLDCs.
Ishould addanother observation fromtheAustrian experience: weknow thatweareahigh-cost
country andcompetitiveness hastorelyonpermanent technological innovation.
Thatisthereason whywearesensitive totheworldwide implementation ofintellectual property
rights. There isasaying inAustria: theterm"Copyright" doesnotperseinclude therighttocopy.
While agreat number ofcountries aregathered hereinSingapore, some important countries
likeRussia andChina andsome others arestillwaiting tojointheWTO. Their membership -provided
thattheyareprepared toaccept therules -would beanimportant pushfortrade.
WTO wasfounded asanorganization withoutstanding goals, letususethisConference to
prove thatitisalready anoutstanding organization.