WT/GC/W/803/Rev.1  
 
2 October  2020 
(20-6685) Page: 1/2 
General Council  Original: English  
 
IMPORTANCE OF MARKET -ORIENTED CONDITIONS  
TO THE WORLD TRADING SYSTEM  
STATEMENT FROM BRAZIL , JAPAN , AND THE UNITED STATES  
Revision* 
The following statement, dated 29 September 2020, is being circulated at the request of the 
delegations of Brazil , Japan , and the United States.  
 
_______________  
 
 
We, Brazil , Japan,  and the United States, jointly recognize  the importance of market -oriented 
conditions to the world trading system.  
 
We recall  that the World Trade Organization (WTO)  was established to promote Member economies ' 
participation in a world trading system "based on open, market -oriented policies and the 
commitments set out in the Uruguay Round Agreements and Decisions. "1  
 
We also recall  that the establishment of the WTO reflected Members ' "desire to operate in a fairer 
and more open multilateral trading system for the benefit and welfare of their peoples " and, during 
the period of time during which the Uruguay Round was being negotiated,  "significant measures of 
economic reform and autonomous trade liberalization were implemented in many developing 
countries and formerly centrally planned economies. "2  
 
We express  our serious concerns with non -market -oriented policies and practices that have resulted 
in damage to the world trading system and lead to severe overcapacity, create unfair competitive 
conditions, hinder the development and use of innovative technologies, and undermine the proper 
functioning of international trade.  
 
We affirm  that market -oriented conditions are fundamental to a free, fair, and mutually 
advantageous world trading system, to ensure a level playing field for Members ' enterprises for the 
benefit of their citizens.  
 
We recognize  the importance of a Member 's right and ability to regulate in the public 's interest, 
promoting the public 's welfare and helping to establish a level playing field for all market participants.  
 
 
* This revision is to add Japan as co -sponsor to the submission.  
1 Marrakesh Declaration of 15 April 1994, fifth preambular paragraph.  
2 Marrakesh Declaration, paras. 2 and 4.  WT/GC/W/803/Rev.1  
 
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  We affirm  Members ' enterprises should operate under market -oriented conditions and note the 
following elements indicate and are important so that market -oriented conditions exist for market 
participants3: 
 
1. decisions of enterprises on prices, costs, inputs, purchases, and sales are freely 
determined and made in response to market signals;  
2. decisions of ente rprises on investments are freely determined and made in response to 
market signals;  
3. prices of capital, labor, technology, and other factors are market -determined;  
4. capital allocation decisions of or affecting enterprises are freely determined and made in 
response to market signals;  
5. enterprises are subject to internationally recognized accounting standards, including 
independent accounting;  
6. enterprises are subject to market -oriented and effective corporation law, bankruptcy law, 
competition law, and private property law, and may enforce their rights through impartial 
legal processes, such as an independent judicial system;  
7. enterprises are able to freely access relevant information on which to base their business 
decisions; and  
8. there is no significant governm ent interference in enterprise business decisions described 
above.  
We are willing to work with WTO Members in order to strengthen our collective commitment to open, 
market -oriented policies in order to achieve market -oriented conditions that are critical t o ensure a 
level playing field and a fairer and more open world trading system that benefits our peoples.  
 
__________  
 
3 This statement is without prejudice to the rights or obligations of any Member under the Marrakesh 
Agreement Establishing the World Trade Organization.