WORLD TRADE  
ORGANIZATION   
WT/MIN(11)/ST/96 
17 December 2011 
 (11-6729) 
MINISTERIAL CONFERENCE 
Eighth Session Geneva, 15 - 17 December 2011 Original:   English 
 
  
HOLY SEE 
 
Statement by H.E. Mr Silvano Maria Tomasi 
Apostolic Nuncio 
(Speaking as an Observer) 
  1. The Eighth Ministerial Conference of the WTO takes place at unprecedented times for the 
world economy.  The recovery from the financial cr isis of 2008 lasted only few months and there are 
already clear signs of a slowing down of economic activity in advanced and emerging economies.  If 
these signs are confirmed, the world risks to plunge in a double dip recession which could entail prolonged periods of stagna tion and high unemployment. 
2. The economic situation in advanced economies and in Europe is reason for particular 
concern.  The debt crisis is forcing several Eu ropean countries to implement tough fiscal policies, 
with the risk of worsening the economic cycle.  In  these cases the weakest are penalised the most, in 
particular young adults, who experience an unemploymen t rate at the highest level in decades, and the 
poor confronted with a strong increase in inequality in all countries. 
3. Evidence from the recent financial crisis has shown us that trade has been an effective tool in 
helping a rapid recovery.  Now the primary challe nge WTO faces is to sustain this approach and 
discourage countries to give in to the temptation of  protectionism that promises to deliver some 
illusory short-run benefits while preven ting more conspicuous long-term gains. 
4. An additional burden could be imposed on the s houlders of the young and of the poor if they 
are deprived of such an effective tool for improving the economy as an open trade. 
5. In this context, the Delegation of the Holy See would like to recall the ethical foundation of 
trade.  Ethics is not an external element of the economy and the economy does not have a future if it 
does not take into account the ethical dimension.  The economy functions not only through 
self-regulation of the market and much less through ag reements limited to reconciling the interests of 
the most powerful countries, but it needs also to take  into account that it functions at the service of 
man.  The production of resources and goods and their strategic management require a sense of ethics 
and of the common good since without them the ec onomy becomes naïve, cynical and destined to 
failure.  In fact, every economic decision has a mo ral consequence.  The economy needs an ethical 
perspective centred on the person and able to offe r sure points of referenc e to new generations.  
Economic and commercial activities oriented to development should be able to reduce poverty 
effectively and to alleviate the suffering of the mo st unprotected.  On several occasions the Holy See 
has called attention to the urgency of a new and profound reflection on the meaning and objectives of 
the economy and of a far-sighted revision of the gl obal financial and commercial architecture in order 
to correct problems of functioning and distortions.  This revision of international economic rules must 
be integrated in the framework of a new global model of development.  In reality, it is required by the 
planet's ecological state of health, and, above all,  by the cultural and moral crisis of man, and the WT/MIN(11)/ST/96 
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  symptoms have been evident everyw here for a long time.  As Pope Benedict XVI states:  "taking care 
of the needy means not just giving bread to the hungry, but also letting yourself ponder the causes why the other person is hungry."  Only with the acceptance of effective rules that protect the 
management of the economy in an ever more inte rdependent world, our efforts will be directed 
toward the pursuit of the common good. 
6. Despite the seriousness of the general economic  condition and despite the strong need for 
improving trade, we observe that trade negotiations are at an impasse.  This stalemate has lasted for 
several years and there is no sign that the current round of negotiations will be  concluded in the near 
future.  There is a concrete risk that the en tire Doha Development Round may end in failure 
jeopardising all the efforts devoted to th e promotion of development through trade. 
7. However, looking at the work conducted during th e last years, as the "Easter package" clearly 
shows significant progress has been made in several areas, and an agreement can be within reach.  In 
other critical areas such as agriculture, positions are distant and a solution does not seem to be close. 
8. During the current year serious attempts have been conducted in order to reach an agreement 
on a smaller set of issues - the so called LDC plus pack age - in order to take a step forward toward the 
implementation of the Doha Devel opment Agenda.  Despite the failure of this new attempt, the 
Delegation of the Holy See supports the adoption of  a pragmatic approach and the consolidation of 
the progress made so far.  This option ensures that countries will reap the trade liberalization benefits 
that, in some areas, remain significant.  If the oppor tunity is missed, the poor will end up paying the 
highest cost. 
9. The success of the Aid-for-Trade  initiative gives evidence of the potential benefits deriving 
from trade and, on the other hand, of the cost of inact ion.  In fact, lack of decision seems to turn into 
an effective tool through which several c ountries are pursuing protectionist policies. 
10. Another positive achievement is given by the group of countries whose accession has so 
significantly advance that they are at the threshol d of completion.  The creation of an "Accessions 
Commitments Database" (ACDB) allows Members,  acceding governments and the Secretariat, to 
rapidly and efficiently retrieve information on "commitment language", for all completed accessions 
under Article XII of the Marrakesh Agreement.  Ensuring transparency and predictability in the 
accession process remains a key priority for the Member ship and the Secretariat.  In this sense my 
delegation, appreciating all the efforts made by th e Director-General and the Secretariat, underlines 
the need for enhanced technical assistance and cap acity-building to help LDCs to complete their 
accession process, implement their commitments and b ecome integrated into the multilateral trading 
system. 
11. One area where progress will deliver significant a nd tangible benefits to  poor and developing 
countries is that of the Rules of Origin (ROO).  Negotiations to harmonize non-preferential rules of origin were launched sixteen year ago, but an agr eement has not been reached so far.  A solution to 
this problem will determine a significant step towards a more stable clear and predictable set of rules 
for trade talks.  Transparency and predictability ar e particularly valuable for developing countries 
which are much penalised by the comple xity of the current set of rules. 
12. Preferential Rules of Origin (ROO) should be am ended in favour of poor countries.  Often for 
these economies, the potential benefits deriving fro m the margin of preferences are not captured 
because of the presence of strict ROO.  In prac tice ROO go against the realization of comparative 
advantages since poor countries tend to specialis e in very simple activities characterized by 
low-added value.  If advanced economies wish to use trade as an effective tool to lift countries out of 
poverty they need to recognize that giving poorer countries a margin of preference is not enough 
without rules of origin that allow these ec onomies to really exploit the preferences.  WT/MIN(11)/ST/96 
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  13. After years of standstill, the Ministerial Conference provides an opportunity to start taking 
tangible steps toward the implementation of the Doha Development Agenda.  WTO Members must 
"think big" in order to conclude a broad deal, ot herwise the risk of the marginalization of the 
multilateral trading system will become real.  A positive conclusion of the Round will represent a 
win-win situation:  a chance for developed countri es to strengthen the confidence in the multilateral 
trading system, to guard against the rise of protectionism, and to boost the global economy while 
reducing its asymmetries;  a chance for newly emerging economies to lock in those benefits permanently while avoiding new trade arrangements that may well exclude them;  last but not least, a chance for the poorest developing countries to rea lize the gains of the Doha Development Agenda 
promised long ago. 
14. To sum up, the human family has not been created to serve the market, but the market, to 
serve the human family.  If this principle is resp ected, even though times are difficult, fear will give 
way to hope.  
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