WT/GC/W/796  
 
20 February 2020  
(20-1329) Page: 1/2 
General Council  
3-4 March 2020  Original: English  
 
 
THE IMPORTANCE OF MA RKET -ORIENTED CONDIT IONS TO THE  
WORLD TRADING SYSTEM  
DRAFT GENERAL COUNCI L DECISION  
Communication from the United States  
The following communication, dated 20 February 2020, is being circulated at the request of the 
delegation of the United States.  
 
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The General Council decides  to adopt this declaration on the importance of market -oriented 
conditions to the world trading system.  
 
The General Co uncil recalls  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 
 
The General Council also recalls  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 U ruguay 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  
 
The General Council expresses  its 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 for workers and businesses, hinder the development and use of 
innovative technologies, and undermine the proper functioning of international trade.  
 
The General Council affirms  that market -oriented conditions are fundamental to a free, fair, and 
mutually advantageous world trading system, to ensure a level playing  field for Members ' workers 
and businesses.  
 
The General Council affirms  Members ' citizens and businesses should operate under market -oriented 
conditions and notes the following elements indicate and are important so that market -oriented 
conditions exist for market participants:3 
 
i. decisions of enterprises on prices, costs, inputs, purc hases, and sales are freely 
determined and made in response to market signals;  
ii. decisions of enterprises on investments are freely determined and made in response 
to market signals;  
 
1 Marrakesh Declaration of 15 April 1994, fifth preambular paragraph.  
2 Marrakesh Declaration, paras. 2 and 4.  
3 This decision is without prejudice to the rights or obligations of any Member under the Marrakesh 
Agreement Establishing the World Trade Organiz ation.  WT/GC/W/796  
 
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  iii. prices of capital, labor, technology, and other factors are market -determin ed; 
iv. capital allocation decisions of or affecting enterprises are freely determined and made 
in response to market signals;  
v. enterprises are subject to internationally recognized accounting standards, including 
independent accounting;  
vi. 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;  
vii. enterprises are  able to freely access rel evant information on which to base their 
business decisions; and  
viii. there is no significant government interference in enterprise business decisions 
described above.  
The General Council agrees  to reaffirm Members ' commitment to open, market -oriented policies in 
order to achieve market -oriented conditions that are critical to ensure a level playing field for workers 
and businesses and a fairer and more open world trading system that benefits their peoples.  
 
 
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