WORLD TRADE WT/FIFTY/H/ST/8
18May1998
ORGANIZATION(98-2054)
50thANNIVERSARY Original: English
Geneva, 19May1998
UNITED STATES
Statement byH.E. Mr.William J.Clinton,
President
Near theendofWorld WarII,asleaders andordinary citizens began todream ofasystem
thatwould prevent areturn towar,President Franklin Roosevelt asked thepeople oftheUnited States,
andtheworld, tolookahead topeace. Hesaidthat"abasic essential topermanent peace isadecent
standard ofliving forallindividual menandwomen andchildren inallnations. Freedom fromfear’
iseternally linked with freedom from want.’"
Andso,atmid-century, afarsighted generation ofleaders acted onthebitter lessons of
protectionism, devastating depression andwar. They embraced therevolutionary ideathatfreedom -
freedemocracies, freemarkets, thefreeflowofideas, thefreemovement ofpeople -would bethe
surest route tothegreatest prosperity forall. They were confident thatgrowing economic
interdependence would leadtogreater peace among nations. Andtheeconomic alliances andinstitutions
theycreated -theIMF, theWorld Bank, theGATT -builtaplatform forprosperity thathaslasted
tothisday.
Inthefullness oftime, theyhavebeenproven spectacularly right. World trade hasincreased
fifteenfold. Atrading community thatbegan with23member nations nowembraces 132economies,
and31more areworking tojoin. Russia andChina, where theshackles ofstatesocialism oncechoked
offenterprise, aremoving tojointhethriving community offreeeconomies. Trade iscreating prosperity
among thenations oftheAmericas andoffers hopetoemerging economies inAfrica.
Now, ontheedgeofanewmillennium, wearecreating aneweconomy: driven bytechnology,
powered byingenuity, drawing uscloser. Onanygiven day,overthree million people taketothe
aironcommercial flights. Three decades ago,phone linescould onlyaccommodate 80callsatone
timebetween Europe andtheUnited States; today theycanhandle 1million. IntheUnited States,
economic output hastripled, while thephysical weight ofthegoods produced hasbarely changed.
Theworld 'snewwealth largely comes from thepower ofideas.
Thisdynamic, idea-based newglobal economy offers thepossibility oflifting billions ofpeople
intoaworldwide middle class. Yetitalsocontains within ittheseeds ofnewdisruptions, new
instabilities, newinequalities, newthreats totheglobal economy. Thechallenge ofthemillennial
generation therefore istocreate aworld trading system attuned tothepaceandscope ofthenewglobal
economy, onethatoffers opportunity forallourpeople, andonethatmeets theprofound environmental
challenges weshare.
Wetookthefirst,vitalstepwhen wecreated theWorld Trade Organization in1995 --agoal
thathadeluded ourpredecessors fornearly halfacentury. TheUruguay Round thatfounded theWTO
amounted tothebiggest taxcutinworld history --$76billion ayearwhen fullyimplemented. And
injustfouryears, world trade isup25percent.WT/FIFTY/H/ST/8
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Since 1995, wehavebegun tobuild theinfrastructure fortheneweconomy, withhistoric
Agreements onInformation Technology, Telecommunications, andFinancial Services affecting trillions
inglobal commerce eachyear.
AttheG-8Summit justconcluded inBirmingham, theleaders worked onideas tostrengthen
theinternational financial architecture sothatprivate capital markets canspurrapid growth while
minimizing theriskofworldwide economic instability.
Now, wemustbuildontheseachievements withanewvision oftrade, tobuild amodern WTO
ready forthe21stCentury.
First, wemust pursue anever-more-open global trading system.
Today, letmestateunequivocally thatAmerica iscommitted toopentradeamong allnations.
Economic freedom andopentrade havebrought unprecedented prosperity inthe20thCentury -they
willwiden thecircle ofopportunity inthe21stCentury. Inmyowncountry, onethirdofthestrong
economic growth wehaveenjoyed these pastfiveyears wasgenerated byexports. Forevery country
engaged intrade, openmarkets dramatically widen thebaseofpossible customers forourgoods and
services. Wemust press forward. Redoubling ourefforts toteardown barriers totrade willspur
growth inallourcountries. Itwillcreate goodjobsandboost incomes. Itwillbring newopportunities
forourpeople. Anditwilladvance thefreeflowofideas, information andpeople thatarethelifeblood
ofdemocracy andprosperity.
Globalization isnotapolicy choice -itisafact. Butallofusfaceachoice. Wecanwork
toshape these powerful forces ofchange tothebenefit ofourpeople. Orwecanretreat behind walls
ofprotection --andgetleftbehind intheglobal economy. Atamoment when, forthefirsttimein
human history, amajority oftheworld 'speople liveunder governments oftheirownchoosing ...when
theargument overwhich isbetter -freeenterprise orstatesocialism -hasbeenwon...when people
onevery continent seektojointhefreemarket system, those ofuswhohavebenefited fromthatsystem
andleditcannot turnourbacks. Formypart,Iamdetermined topursue anaggressive market opening
strategy inevery region oftheworld. AndIwillcontinue towork withmembers ofbothparties in
theCongress oftheUnited States tosecure fast-track negotiating authority.
Second, wemust recognize thatintheneweconomy, thewayweconduct trade affects
thelivesandlivelihoods, thehealth andthesafety offamilies around theworld.
Wemust build atrading system forthe21stCentury thathonours ourvalues asitexpands
opportunity. Wemustdomore tomake surethatthisneweconomy liftsliving standards around the
world, andthatspirited economic competition among nations never becomes aracetothebottom in
environmental protections, consumer protections andlabour standards. Weshould levelup,notlevel
down. Without suchastrategy, wecannot build thenecessary public support fortheglobal economy.
Working people willonlyassume therisksofafreeinternational market iftheyhavetheconfidence
thatthissystem willwork forthem.
TheWTO wascreated toliftthelivesofordinary citizens; itshould listen tothem. Ipropose
theWTO, forthefirsttime, provide aforum where business, labour, environmental andconsumer
groups canspeak outandhelpguide thefurther evolution oftheWTO. When thisbody convenes
again, Ibelieve thattheworld 'stradeministers should sitdown withrepresentatives ofthebroad public
tobegin thisdiscussion.WT/FIFTY/H/ST/8
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Third, wemust domore toharmonize ourgoalofincreasing trade with ourgoalof
improving theenvironment andworking conditions.
Enhanced trade canandshould enhance --notundercut --theprotection oftheenvironment.
Indeed, theWTO Agreement initspreamble explicitly adopts sustainable development asanobjective
ofopen trade, including acommitment topreserve theenvironment andtoincrease thecapacity of
doing so.Therefore, international trade rules must permit sovereign nations toexercise theirright
tosetprotective standards forhealth, safety andtheenvironment andbiodiversity. Nations havea
righttopursue those protections --evenwhen theyarestronger thaninternational norms. Iamasking
thatahigh-level meeting beconvened, tobring together tradeandenvironmental ministers, toprovide
strong direction andnewenergy totheWTO 'senvironmental efforts intheyears tocome, ashasbeen
suggested bytheEuropean Commission.
Likewise, theWTO andtheInternational Labour Organization should commit toworktogether,
tomake certain thatopentrade liftsliving conditions, andrespects thecorelabour standards thatare
essential notonlytoworkers rights, buttohuman rights everywhere. Iaskthetwoorganizations '
Secretariats toconvene atahighleveltodiscuss theseissues. Thisweekend, G-8leaders voiced support
fortheILO'sadoption ofanewdeclaration andameaningful follow-up mechanism oncorelabour
standards when theILOMinisters meetnextmonth inGeneva. Ihopeyouwilladdyoursupport.
Wemustwork hardtoensure theILOisavibrant institution. Today, Itransmitted totheSenate for
ratification theILOConvention aimed ateliminating discrimination intheworkplace.
Eachofus,inourownnations, mustdoeverything wecantogiveallourpeople theeducation
andtraining tomake themostoftheirlives. Because theneweconomy isbased onideas, information
andtechnology,thereturntoeducationhasneverbeenhigherandthelostopportunityfrombeingwithout
skills hasnever beengreater. These trends cannot bereversed. Ourgoalmustbetohelpmore people
benefit fromthepossibilities oftheneweconomy evenasweensure thattheforces oftechnology and
newtrade patterns donotaggravate inequality orreinforce poorlabour conditions.
Fourth, wemustmodernize theWTO byopening itsdoors tothescrutiny andparticipation
ofthepublic.
Wehavelearned, through longtrialanderror, thatgovernments workbestwhen theiroperations
areopen tothose whoareaffected bytheir actions -that, asAmerican Supreme Court Justice
Louis Brandeis famously said,"sunshine isthebestofdisinfectants."
TheWTO should takeevery feasible steptobring openness andaccountability toitsoperations.
Today, when onenation challenges thetrade practices ofanother, theproceeding takes place
behind closed doors. Ipropose thatallhearings bytheWTO beopentothepublic, andallbriefs by
theparties bemade publicly available. Toachieve thisend,wemust change therules ofthis
organization. Buteachofuscandoourpart-now. TheUnited States today formally offers toopen
upevery panel thatweareaparty to-andIchallenge every other nation tojoinusinmaking this
happen.
Today, there isnomechanism forprivate citizens toprovide input inthese trade disputes.
Ipropose thattheWTO provide theopportunity forstakeholders toconvey theirviews, suchasthe
ability tofileamicus briefs ’,tohelpinform thepanels intheirdeliberations.
Today, thepublic must waitweeks toreadthereports ofthese panels. Ipropose thatthe
decisions ofthese trade panels bemade available tothepublic assoonastheyareissued.WT/FIFTY/H/ST/8
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Fifth, wemust haveatrading system thattapsthefullpotential oftheInformation Age.
Theinformation technology revolution isthegreatest force forprosperity inourlifetimes.
TheInternet isthefastest growing social andeconomic community inhistory -aphenomenon with
unimagined, revolutionary potential toempower billions ofpeople around theworld. Ithasbeencalled
thedeath ofdistance ’,making itpossible forpeople towork together across oceans asiftheywere
working down thehall. Fouryears ago,there werelessthanthree million people withaccess tothe
Internet. Today, there areover100million people, andthenumber isdoubling every year.
Today, therearenocustoms duties ontelephone calls, faxmessages, e-mail, orcomputer data
links when theycross theborder. Wehavespent 50years tearing down barriers totrade ingoods
andservices. Now, let'sagree thatwhen itcomes toelectronic commerce, wewillnever erectthese
barriers inthefirstplace.
Iaskthenations oftheworld tojointheUnited States inastandstill onanytariffs toelectronic
transmissions sentacross borders. Wecannot allow discriminatory barriers tostuntthedevelopment
ofthemostpromising neweconomic opportunity indecades. Earlier today, attheSummit withthe
EU,weagreed todeepen ourcollaboration inthisarea. Andlastweek, Prime Minister Hashimoto
andIagreed tomove forward together, withamarket-oriented private sector-led approach toenhance
privacy, protect intellectual property, andencourage thefreeflowofinformation andcommerce on
theInternet. Ihopewecanbuildaconsensus thatthisisthebestwaytoharness theremarkable potential
ofthisnewmeans ofcommunication.
Sixth, atrading system forthe21stCentury must becomprised ofgovernments thatare
open, honest, andfairintheir practices.
Inaneraofglobal financial markets, prosperity depends upon government practices thatare
based ontheruleoflawinstead ofbureaucratic caprice, cronyism, orcorruption. Investors demand
itandtheirlossofconfidence canhavesudden, swiftandsevere effects, withripples throughout regional
economies.
Withitsinsistence onrulesthatarefairandopen, theWTO plays apowerful roletoward open
andaccountable government --buttheWTO hasnotdoneenough. Bynextyear, allMembers ofthe
WTO should agree thatgovernment purchases should bemade through openandfairbidding. This
single reform could openup$3trillion ofbusiness tocompetition around theworld. AndIaskevery
nation intheworld toadopt theanti-bribery convention developed bytheOECD. Boththese steps
would promote investor confidence andstability.
Finally, wemust develop anopen global trading system thatmoves asfastasthe
marketplace.
Inanerainwhich product life-cycles aremeasured inmonths, andinformation andmoney
move around theglobe inseconds, wecannolonger afford totakeseven years tofinish atraderound,
ashappened during theUruguay Round, orletdecades passbetween identifying andacting onatrade
barrier. Inthemeantime, newindustries arise, newtrading blocs takeshape, andgovernments invent
newtrade barriers every day.
Weshould explore whatnewtypeoftradenegotiating round isbestsuited totheneweconomy.
Weshould explore whether there isawaytoteardown barriers without waiting forevery issue in
every sector toberesolved before anyissue inanysector isresolved. Weshould dothisinaway
thatisfairandbalanced, thattakes intoaccount theneeds ofnations large andsmall, richandpoor.WT/FIFTY/H/ST/8
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ButIamconfident wecangoabout thetaskofnegotiating trade agreements inawaythatisfaster
andbetter thantoday.
Agriculture, forexample, isattheheartofAmerica 'seconomy andmany ofyours --andtearing
down barriers toglobal tradeiscritical tomeetthefoodneeds ofagrowing world population. Starting
nextyear, weshould aggressively begin negotiations toreduce tariffs, subsidies, andother distortions
thatrestrict productivity inagriculture. Wemustdevelop rules, rooted inscience thatwillencourage
thefullfruits ofbiotechnology. AndIpropose thatevenbefore negotiations nearconclusion, WTO
Members should pledge tocontinue making annual tariffandsubsidy reductions --ensuring thatthere
isnopause inreform.
Wemust recognize thatthefastest growing industry intheworld isservices --andtheone
leastdisciplined byWTO rules. Sowhen services negotiations arelaunched, Ibelieve itisessential
thatweengage inwide-ranging discussions toensure openness fordynamic service sectors, suchas
express delivery, environmental, energy, audio-visual, andprofessional services.
Wemustcontinue ourstrong momentum tofurther dismantle industrial tariffs. Agoodplace
tostartwould beanagreement onthesectors -fromchemicals toenvironmental technology -proposed
byAPEC. Andwemust move forward onstrengthening intellectual property protection.
Atrading system thathonours ourvalues. AWTO thatisopenandaccountable. Atrading
system insyncwiththeInformation Age. Acommitment tocombating corruption. Anewapproach
totrade talks. Tomove forward withthisagenda -Iaminviting theTrade Ministers oftheworld
toholdtheirnextmeeting intheUnited States in1999.
Think about theopportunity thathasbeen presented tous;thechance tocreate anew
international economy ...inwhich openmarkets andopeneconomies spark undreamed ofinnovation
andprosperity ...inwhich theskills ofordinary citizens power theprosperity ofnations ...inwhich
theglobal economy honours those same values thatguide families inraising children andnations in
developing good citizens ...inwhich poor people findopportunity, dignity andadecent lifeand
contribute toprosperity ...inwhich increasing interdependence among nations enhances peace and
security forall.Thiswillbetheworld ofthe21stCentury -ifwehavethewisdom anddetermination,
thecourage andclarity, ofourforbears ahalfcentury ago.
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