. /.  WORLD TRADE  
ORGANIZATION   
WT/MIN(11)/15 
15 December 2011 
 (11-6540) 
MINISTERIAL CONFERENCE 
Eighth Session Geneva, 15 - 17 December 2011 Original:   English 
 
  
ADDRESS BY MR. PASCAL LAMY 
DIRECTOR-GENERAL 
  
 The year 2011 will be remembered for its turbulence and instability. When we thought we 
had turned the corner from the 2009 economic cris is, the outlook for the world economy seriously 
worsened.  High volatility in financial markets and sovereign debt concerns  have damaged business 
and consumer confidence. Global grow th is stuttering across nations and, as a result, trade is slowing 
down.  Unemployment remains at unacceptably high levels. The development gains made in recent 
years are disappearing.    In the midst of this tempest citizens from across the globe have taken to the streets to demand 
stability, fairness, accountability. They are dema nding solutions to address the challenges of our 
interconnected world. 
 
 As trade has contracted, the multilateral tradi ng system has provided an anchor for national 
trade policies. It has helped moor them to our values of openness, non-discrimination, transparency 
and rule of law. But the strong storm waves are l oosening the anchor and now risk dislodging it. This 
would be very bad news. The cost to the world eco nomy of high intensity protectionism would be in 
the order of $ 800 billion, the estimated value of  space or "water" in WTO commitments today.  
  By improving the credibility of the WTO, by ensuring it keeps moving forward, you have a contribution to make towards restoring global stability  and predictability.  A freer, fairer and more 
development friendly trading system is part of the so lution.  Exiting the crisis will be easier if it is 
done in the spirit of global co-operation. Going-it-al one will make it more painful and longer.    
 
 As I outlined in my recent letter to you, your work and achievements in the last two years has 
advanced the WTO agenda.     Just this morning the 42 parties to th e Government Procurement Agreement reached 
consensus on a package of measures opening and modernising their procurement policies.  
  This week we will mark the arrival of four new Members of the WTO family, taking us to 157: Russia, Montenegro and two LDC Pacific Islands  - Vanuatu and Samoa. It shows that adherence 
to multilateralism and its values remains high. Th ese accessions also bring the WTO closer to 
universality.  
   Your work on Aid for Trade has firmly embedded trade capacity building as a necessary 
complement to global trade opening. As a result of th e Third Global review last July, we now have an 
agenda for future work towards sustaining financing and showing concrete results.  
  
 You have also agreed improvements to the WT O monitoring functions which will be helped 
by the Integrated Trade Intelligence Portal which we are launching today.  WT/MIN(11)/15 
Page 2  
 
   A large number of highly complex disputes ar e being resolved peacefully, without resorting 
to uncontrolled retaliation, reminding us of the uniqueness and value of the WTO Dispute Settlement 
System.    But, so far, you have failed in your endea vours to amend the WTO rule-book to make global 
trade fairer and more open. The Doha Developmen t Round is at an impasse. At the same time the 
number of bilateral and plurilateral trade agreements keeps rising, demonstrating that the benefits of 
trade opening are not in question. How do we explain this paradox?    Some say that bilateral deals provide a faster route to trade opening as they allow participants 
to omit the most politically difficult issues such as agriculture and fisheries subsidies, anti- dumping 
rules or tariff peaks.  Some argue it is easier to  conclude deals when you can pick and choose your 
partners. For others, this proliferation is mo re driven by geopolitics than by economics.  
  Be that as it may, it is time Members of the WTO face up to the reality of this growing 
contradiction. We can no longer bury our head in th e sand. We need to understand the root causes of 
our inability to advance multilateral trade opening and a regulatory agenda, and to build a collective 
response. Blaming others will not help.   You will need to address the essential question behi nd the current impasse: different views as 
to what constitutes a fair balance of rights and ob ligations within the trading system, among Members 
with different levels of development.  What is th e right share in the contributions and aspirations of 
advanced economies and emerging markets. What is the right combination of reciprocity among trade 
partners with similar levels of development a nd flexibility, which would provide weaker Members 
with space to adjust to greater competition.  It is clear that progress in multilateral trade negotiations, 
as in climate change negotiations, will require a political response to this political question.  
 
 All of you believe that this should be done step-by-step, gradually moving forward the parts 
of the Doha Round which are mature, and re-thinki ng those where greater differences remain. But to 
be credible, this needs to be translated, sooner ra ther than later, into an operational work plan.  
  But in my view this is not enough. We also need to look at the real drivers of today's and 
tomorrow's world trade, at today's and tomorrow's obstacles to trade, at today's and tomorrow's trade 
patterns, at how to keep transforming trade into deve lopment, growth, jobs and poverty alleviation.  In 
sum, we must equip the WTO with XXI century software.    In order to facilitate this discussion, in  2012 I will be convening a "panel of multi-
stakeholders of the WTO" to analyse all these elem ents and report to the entire Membership by the 
end of next year.  I believe this can provide a usef ul contribution to your own reflections in what is, 
and should remain, a Member-driven Organization.   The multilateral trading system is at a crossroads. In an interlinked world economy in constant transformation, it cannot stay put. Either it advances in the spirit of shared values and 
enhanced co-operation, or we will face a retreat from multilateralism, at our own peril. Waiting for 
better times will simply not suffice. A consensus for inaction would simply mean a consensus for 
more pain for all.   My call today is for all of us to stand up for the values of multilateralism. For major players to 
exercise leadership and to muster political cour age to act together for greater trade opening and 
reform. To place the interests and needs of devel oping countries and, in particular, those of the 
poorest, at its heart.  And to start thinking seriously  about the dire consequences of not doing so in the 
midst of a worsening crisis.  To act now in favour of a stronger multilateral trading system tomorrow. 
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