WORLD TRADE  
ORGANIZATION  WT/MIN(09)/ST/77 
2 December 2009 
 (09-6148) 
MINISTERIAL CONFERENCE 
Seventh Session Geneva, 30 November - 2 December 2009 Original:   English 
 
  
PHILIPPINES 
 
Statement by HE Mr Manuel A.J. Teehankee
 
Permanent Representative to the WTO   
   Mr Chairman, on behalf of the Philippine de legation, I would like to extend our warmest 
congratulations to you and the Vice-Chairpersons on your election to the leadership of the Seventh 
Session of the Ministerial Conference of the World Tr ade Organization.  We are also grateful to the 
Swiss Government and the Canton of Geneva for th e efficiency of the arrangements for this session. 
  We regret that we have not returned to Ge neva, the long-time home of the multilateral trading 
system, to celebrate the fulfilment of the Doha Deve lopment Agenda.  However, I think this is one of 
the best places in the world to continue thinki ng about the WTO in the current global economic 
environment, and the development challenges of the 21
st century. 
  The challenges that we face today are many.  In a world of over 6.5 billion people at least 
80 per cent of humanity lives on less than ten dollars a da y.  Millions of children  die every year before 
they are five years old, even from diseases that ma y be prevented by established health care practices 
or available pharmaceutical drugs.  In developing co untries, women continue to die during childbirth.  
While innovations in health a nd human development have made  significant contributions to 
increasing life expectancy, lowering the number of malnourished people, adva ncing literacy levels, 
and enhancing economic growth, major challenges rema in to be surmounted by the developing world. 
  We need to educate 120 million school-age ch ildren currently out of classrooms, to help 
250 million working children, to provide safe waste disposal for some 2.6 billion people, and to 
eradicate poverty and malnutrition that results in some  25,000 child deaths each day.  The state of the 
world's basic social services also shows millions  of people not having sufficient food, one billion 
people lacking access to safe and potable water,  and 2 billion living without sanitation supplies. 
 
 Indeed, we are confronted by daunting challenges.  The Philippines had embraced 
industrialization, trade liberalization, and globali zation, in the hope of winning the fight against 
poverty and underdevelopment.   In the 1960s, the Philippines led the region in  growth and economic dynamism.  We had a 
sizeable manufacturing sector that grew 6.7 per cent annually, fuelling an annual GDP growth rate of 
5.1 per cent.  This economic performance was sust ained in the 1970s when the economy posted an 
annual average growth rate of 6 per cent but then  again at a cost of certain basic and political 
freedoms.  In the 1980s, gross domestic product grew  by only an annual average of slightly over 
1 per cent.  And thus began some 20 years of va rious boom-bust cycles generated by BOP problems, 
oil embargoes, political instability, global economic slowdowns, the Asian fina ncial crisis, and many 
internal factors like low savings ratios, and low tax collection rates. 
 WT/MIN(09)/ST/77 
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   In the last eight years, the Philippines did finally achieve a level of economic stability with an 
average real growth in GDP of 4. 8 per cent based on policies that are anchored on open markets and 
economic fundamentals.   Yet, our experience and experimentation demons trates that much more needs to be, and can 
be, done for the Philippines to substantially bene fit from the growth opportunities of free and open 
markets.  Sound economic policy making requires fo cusing on ensuring a more equitable distribution 
and allocation of economic resources, directly alleviating poverty, encouraging innovation and 
technological advancement, and optimizing and increasi ng levels of growth, coupled with a coherent 
trade policy that is grounded not on pure mercan tilism, but on development objectives that facilitate 
steady and sustainable economic growth for the greatest number of citizens. 
  Indeed, developing countries have sometimes adopted trade liberalization measures even 
without the required capability to compete with the mo re efficient firms of developed countries.  To 
some extent, this has led to the closure of many domestic companies and the unemployment of 
personnel not prepared or adequately  re-trained for other employment. 
  Globalization and trade liberalization have not  necessarily improved and corrected persistent 
inequalities between and within countries.  The wo rld's wealthiest countries with approximately 
one billion people account for around three-quarters of world GDP.  While low-income countries 
comprising about half of world population produce only 3.5 per cent of world GDP, the world's 
billionaires of only around 500 people were estimated, pr ior to the recent financial crisis, to be worth 
over 7 per cent of world GDP.   In a world characterized by McDonalds, N okia, and Hollywood, globalization has easily 
created national societies with economic needs and a consumerism that cannot be satisfied by most 
developing countries.  Migration was thus embraced by millions of people since the end of the second 
World War;  in fact, it is a major characteristic of my own country's experience in the last four 
decades or so.  As such, this phe nomenon has created a diaspora of around ten million Filipinos to 
about 180 countries around the world.  But more  significantly, there has also been a most 
disconcerting movement of people from the countryside to the cities.  
 The impact of trade liberalization and globa l capitalism challenges the stability of already 
fragile institutions such as the family and the political community as well as economic structures of 
developing markets.  And while the implications of international flows in trade, finance, information 
and technological change are apparent, it remains di fficult to anticipate the social consequences of 
uncertain economic growth, job insecurity and margina lization.  Add to all these the painful austerity 
and restructuring measures, and surely the total social impact will mean suffering for the common 
man.   It is, therefore, simply apparent that while there has been sustained economic growth in the 
world economy, we remain lacking in efforts to ensu re that the benefits of development are enjoyed 
by all, including the poor and marginalized sectors of society.  Social justice must prevail over sheer 
market efficiency. 
  As eloquently articulated by the Programme  of Action of the World Summit for Social 
Development in Copenhagen, "ec onomic activities … are a fundamental basis for social progress.  
But social progress will not be realized simply through the free interaction of market forces." 
 
 We have gathered in Geneva to speak about  the WTO and the multilateral trading system in 
the current global economic environment.  Now more than ever, the WTO needs to think about its role 
in addressing the development challenges of our tim e.  To recall the words of our predecessors in 
adopting the Marrakesh Declaration, the multilatera l trading system should be for the benefit and  WT/MIN(09)/ST/77 
 Page 3 
 
 
  welfare of our peoples.  That declaration, in 1994,  and our actions here in Geneva 15 years hence, 
should reaffirm the timeless aspiration of GATT 1947 th at international trade must raise standards of 
living.   We have to build a mature political structure w ith strong, responsible institutions that foster 
international cooperation.  We shoul d also develop a viable economic re gime with effective, adequate 
mechanisms like open markets that facilitate grow th in trade and commerce and are constantly 
improving the living standards of all peoples.  Equall y, we must have a reliable social foundation in 
which there are proactive, progressive organizati ons – governmental and non governmental – that care 
for the disadvantaged and support people's empowerment. 
 
 In a world of globalization and interdependence,  technology and innovations are also crucial.  
It is thus imperative that developing countries be given access to modern technology in order to 
enhance their capacity to compete in world trade,  particularly with the introduction of new and 
innovative goods and services.  The diffusion of advanced technology now concentrated in a few 
countries and the removal of existing hindrances to the transfer of technology should go a long way 
towards improving the ability of developing count ries to improve the quality of their products and 
diversify their exports.   Furthermore, capacity-building, particularly  in terms of the development of the human 
resource base of developing countries will remain a critical ingredient for sustained economic growth.  
Investment in human capital through wide-based educational systems and technical training 
programmes will be crucial for the achievement of our development objec tives.  Through innovative 
education and training, we will be able to draw in all sectors of our societies to more fully participate 
in the development process.  It will also empow er our women and give opportunities to our youth and 
allow the participation of vulnerable groups in the over-all process of development, transforming 
them into valuable and equal partners in sustai ned economic growth and sustainable development. 
  In sum, it is our challenge in the WTO to ensure that the organization and the multilateral 
trading system provide the necessary environmen t, tools, and assistan ce towards the successful 
integration of all economies, pa rticularly developing countries, into the mainstream of the 
international economic system.  It is no l onger enough to embrace trade liberalization and 
globalization;  rather, a more critical element requi red would be to help developing countries put in 
place the necessary domestic infrastructures, instituti ons, systems and enterprises that will form the 
foundation of effective internationa l competition and industrialization. 
  This building process is also important because it considers the varying levels of development 
with which countries around the world engage trade liberalization and globalization.  This building 
process shall truly operationalize the theory and phi losophy behind special and differential treatment, 
which is that of recognizing the need to nurture  enterprises and workfor ces, and even economies, 
before they are put out into the sometimes ru thless world of competition and globalization. 
  We have to start looking at the world from a more holistic and dynamic perspective, if only to 
understand the challenge of poverty more clearly. 
  In this context, I submit that the development agenda for the 21
st century can not confine itself 
to achieving mere sustained economic growth.  It  must encompass all dimensions of development 
from delivery of basic social services to improving technology, to ensuring that the benefits of 
development are enjoyed by all, including th e poor and marginalized sectors of society. 
  In this regard, the multilater al trading system needs to be  anchored in achieving socio-
economic progress in larger freedoms, particularly in the fields of human security and human development.  Eradicating poverty should remain  the centrepiece of world governance for the WT/MIN(09)/ST/77 
Page 4  
 
  immediate future.  There will have to be adopted a broad range of policies and actions that contribute 
to efforts at improving the lives of people.  There wi ll have to be an appr opriate economic framework 
based on sound macro-economic policies, well-deve loped national infrastructures, strengthened 
institutions and human resources, as well as meeti ng basic human needs like shelter and social 
welfare.  These are the key factors that must be addressed by the new development agenda. 
 
 International trade, in particular, has to beco me one of the main engines for development and 
there is a need for the political will to establis h a just and equitable multilateral trading system. 
  As we gather at this our 7
th Ministerial Conference, there is a need to emphasize that an open, 
rules-based, predictable trading system is required for fairness in trading relationships between and 
among nations.  We must support the work of the WTO in monitoring protectionism and our national 
responses to the current world economic slowdown.   We must also take this opportunity here at  MC7 to renew our resolve towards delivering on 
Doha's development agenda by 2010.  We must  now translate the political commitments of our 
leaders into concrete progress in the negotiations through a clear mandate to our senior officials and 
experts to continue to engage with each other here  in Geneva with the end in mind of the closure of 
the Round.  In concluding the DDA, we the WTO Me mbers will be able to use an updated multilateral 
trading framework, less trade-distorting and to be implemented over many years to come, as our new 
blueprint to achieve economic growth  and sustainable development.  And in so doing, we are taking a 
positive and concrete step towards dismantling the irony that, while unprecedented wealth and 
prosperity is being created in certain parts of th e world as a result of the globalized economy, large 
pockets of poverty abound in many areas of the wo rld that remain completely detached from the 
global economic infrastructure and the multilateral trading system.  
 As a final note, and as the international community prepares for the UN Climate Change 
Conference in Copenhagen, it is also perhaps time for us to persevere in the area of sustainable 
development.  One of the greatest challenges for us in the coming years is to ensure that our children 
and their children's children are able to sustain th eir lives on the planet.  Issues of climate change, 
biodiversity, forest and water management, and disaster s are some of the concerns that have taken on 
a new vitality for humanity in the last ten years or so .  If we do not act to contain the damage already 
done and mitigate future harm, irreversible damage may be inflicted on the environment and the very 
delicate eco-systems.   At the Pont de la Machine  in downtown Geneva, there is a timely and interesting exhibit 
about walls that divide people around the world.  In comments displayed at the exhibit, it was noted 
that there is only one wall in Geneva, the Reformati on Wall, and that this inte rnational city is more 
concerned about building bridges.   It is part of the WTO's challenge today to build a progressive human community, and a world 
that gives practical meaning to sustainable deve lopment for all peoples, through the progressive 
removal of trade boundaries and barriers coupled w ith financial policy coherence, domestic policy 
support, capacity building, technology and infrastru cture development, and safety nets.  While we 
must focus and address macro-economic policy issues,  we must never lose sight of the need for a 
global economic environment that caters to the we lfare of the people, especially the poor and the 
marginalized.  And in this city of building bridges and consensus among nations, my delegation 
firmly believes that we can live up to this challe nge, by working together in bringing down the walls 
that keep us apart and achieving freer and fairer global trade towards a better life for all of our 
citizens.  
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