WORLD TRADE
ORGANIZATIONWT/MIN(99)/ST/135
2 December 1999
(99-5342)
MINISTERIAL CONFERENCE
Third SessionSeattle, 30 November - 3 December 1999Original:  English
HOLY SEE
Statement by Monsignor Osvaldo Neves de Almeida
Head of Delegation of the Holy See
(Speaking as an Observer)
1. The Holy See is pleased to participate in the Third Ministerial Conference of the WTO, as it
acknowledges the importance of a rules-based Multilateral Trade System (MTS) for the world
economy and for the development of each country.  As an observer, the Holy See has been followingwith great interest the ongoing debate on the sc ope and objectives of the upcoming Millennium Round
negotiations, and takes this opportunity to submit some concerns and suggestions on the issues at
stake.
2. The initial implementation of the Uruguay Round Agreements has shown significant progress
made by developing countries in adopting polic ies of market liberalization, but poverty and
marginalization have not been defeated.  Nevertheless, the poorest countries (i.d.  those in the UN
LDC list and many other poor, small or transition economies), still hoping that trade could be a
decisive help in their development, are struggling to adapt to the WTO rules and to the global trading
system.  The Holy See considers that the MTS will only be accomplished when such countries are
able to integrate themselves w ithin the international community, while keeping their ability to
promote the human and sustainable development of their citizens.
The positive answer of developing countries to the propositions of the Marrakesh Act and of
the Singapore and Geneva Conferences should find a corresponding response from the big economic
powers in the promotion of a trade environment th at is friendly to development and to the fight
against extreme poverty.  It is especially striking that the LDCs' share of international trade is still
only about half of one per cent, having declined since 1990.  Further efforts are needed therefore to
ensure that all partners have the opportunity to benefit from open markets and the free flow of goods,services and capital.  As Pope John Paul II wrote in the Encyclical Letter Centesimus Annus , "The
poor ask for the right to share in enjoying material goods and to make good use of their capacity to
work, thus creating a world that is more just and prosperous for all.  The advancement of the poor
constitutes a great opportunity for the moral, cultural and even economic growth of all humanity"
(N.28).  In his message to the Global Forum for Poverty Eradication, the Director-General of the
WTO, Mr. Mike Moore, stated very clearly that "the objective of trade must be the lifting of living
standards".  The Holy See thus invites negotiators to take into account the needs of developing
countries and the difficulties they face in gaining access to international markets.
3. The inability of LDCs and weak economies to take full advantage of the opportunities
provided by the existing WTO Agreements includes, among other problems, a shortage of skilledpersonnel able to tackle the complexity of WTO working structures and rules, the inability to upgrade
domestic regulations, weak institutional infrastructure (especially in sophisticated areas, such as
intellectual property law), and the high cost of maintaining missions in Geneva.  These constraints
should be addressed through a substantial increase in the provision of all kinds of assistance (such asWT/MIN(99)/ST/135
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that supplied by the technical cooperation activities of WTO, UNCTAD and ITC) so that the
negotiating capacity of these countries may be developed and sustained (Cfr.  Pope John Paul II,
Encyclical Centesimus Annus  (1991), N.59).
So far, LDCs and other poor countries have been unable to take advantage of the dispute
settlement mechanism because of their lack of financial resources and paucity of legal expertise.Panels could be made more representative, by including experts from developed, developing and
least-developed countries.  The proposed Legal Advi sory Center should be established without further
delay, in order to meet the needs of poor countries in terms of securing their rights through the use of
the DSU.
Fast-track membership of WTO by those poor, small or transition economies which are not
yet members could also be an important part of the efforts of the international community.  A clear
and simplified procedure could be established for potential members, so that they might be acceptedwithin a year and not be subject to commitments that go beyond those of LDC Members of WTO.
4. The improvement of poor countries legal and managerial expertise will be void if not
accompanied by measures designed to promote the substantive participation of their trade in the MTS.
These measures should begin with the fulfillment of existing rules in ways that ensure an effective
response to the concerns of developing countries.  The implementation of the special and differentialtreatment provisions, while providing such countries with technical, legal and financial assistance, are
a step in this direction.  Viewed comprehensively, special and differential treatment goes beyond
preferential tariffs and transition periods, and addresses key elements of economic growth and
development - knowledge, technological skills and Information.
Among the arrangements which will further strengthen the trade position of LDCs and other
weak countries, an agreement on obligatory duty-free and quota-free market access for all products
originating in LDCs seems still very desirable, despite the difficulties implied in its implementation.
The Holy See also hopes that the next negotiating round will meet the main expectations of
developing countries, in order to promote devel opment and poverty alleviation and to enable all
countries, especially the weakest economies, to reap the full benefits of the MTS.
5. Liberalization of trade in agriculture, which is of great importance to developing countries
that are food and raw material exporters, should not be accompanied by undesirable effects on net
food-importing developing countries.  The poorest countries should be able to take advantage of any
further opening of agricultural markets, while keeping their ability to establish appropriate trade
policies to promote their own production.  Such a specific legal umbrella in favor of LDCs and
NFIDCs should be complemented with all the necessary technical and financial assistance, bilateral
and multilateral, to increase local food production and to assure food security.
6. Article 66.2 of the TRIPS agreement was conceived to compensate the constraints imposed
by the new intellectual property regime.  Its provisions, therefore, need to be implemented in ways
that promote the mobilization of science in favor of development.  The poorest countries are subject to
particular difficulties in terms of weather, soils, agriculture, basic health and tropical diseases which
can only be overcome through a constant flow of specific knowledge.  The provisions of the TRIPS
should not impede rapid and cheap access to the means for production of essential drugs and to other
medicines needed to face the main scourges suffered by the poorest countries' populations, Beyond
the existing TRIPS, new legal tools which take into account both the due share of essential technology
and the reasonable interests of patents and copyright owners will be helpful in overcoming the
technological gap.  Further scientific and political work should also be undertaken in order to deviseWT/MIN(99)/ST/135
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ways of protecting and integrating in the MTS biodiversity, traditional knowledge, folklore and
farmers' rights.1
7. There are some sensitive questions concerning developed countries, as well as middle incomeand poor countries, such as human rights, labour questions, environmental degradation, biotechnology
and health which, notwithstanding their links with trade, will have their full solution beyond the
confines of WTO.  All of these need to be handled in a spirit of prudence and cooperation, while
seeking a broad and long-term consensus on the basics of human sustainable development.
8. Questions of human and labour rights deserve particular attention.  The Holy See greatly
appreciates the ILO Declaration on Fundamental Princi ples and Rights at Work, and considers it to be
an appropriate response to the challenges presented by the globalized economy.  Child labour,
organized prostitution, slavery and forced labour, and the proscription of labour unions can never be
part of national policy or be defended by a country's right to development (Cfr.  Pope John Paul II,Encyclical Laborem Exercens  (1981), N.17).  But, in order to facilitate full compliance with the
principles enunciated in the ILO Declaration, rich countries need to avoid any kind of protectionism
in the guise of the aforesaid principles.
9. The international debate should acknowledge the Multilateral Environment Agreements in
ways that are fair, non-protectionist and able to cope with the most urgent problems of the poorest
countries, so as to promote the conditions necessary for authentic human ecology (Cfr.  Pope John
Paul II, Encyclical Centesimus Annus  (1991), N.38).  The economic cost of international environment
management should be borne mainly by the richer countries, in order to avoid imposing on LDCs and
weak economies additional burdens and strain.
2
10. In addition, the beneficial insertion of LDCs, small, poor and transition economies into the
global economy requires an innovative and consistent commitment to relieving the burden of
international debt, and to renewing and increasing bilateral and multilateral ODA.  This approach
goes beyond the competence of WTO, but is necessary for the well-being of the MTS itself.
11. Finally, civil society is increasingly becoming an important player in global governance.  The
WTO has undertaken a series of initiatives in order to make the work of the Organization moretransparent and open towards civil society.  Howeve r, the WTO has faced a series of constraints in
this first phase of dialogue;  among others, the lack of adequate personnel, funds and information for
systematic contact with civil society groups.
12. Looking towards the future, it will be important  for the WTO to build a more systematic; and
constructive dialogue with representative civil society groups and to devise mechanisms for
permanent accreditation and regular consultation.  Sharing the experiences of other international
organizations, especially the United Nations system, could also be helpful at this stage.  Specialefforts should be made to include civic groups from developing countries and ensure a representative
spectrum of organizations.  NGOs could, for their part, stimulate debate on the issues at stake in the
WTO and thus produce a more fruitful exchange at all levels.
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1 Cfr.  Convention of Biological Diversity, 5 June 1992.
2 Cfr.  Rio Declaration on Environment and Development, UNCED, 92.  Principle N.  7.