WORLD TRADE WT/MIN(96)/ST/64
11December 1996
ORGANIZATION(96-5242)
Original: English MINISTERIAL CONFERENCE
Singapore, 9-13December 1996
MALAYSIA
Statement bytheHonourable Dato'SeriRafidah Aziz
Minister ofInternational Trade andIndustry
ThisSingapore Ministerial Meeting isbasically areview forum toevaluate theprogress or
otherwise oftheimplementation ofthevarious Uruguay Round Agreements. TheGeneral Council 's
report hasidentified several problems anddifficulties ofimplementation faced bymany countries, and
itisimportant thattheWTO gives priority tothenecessary measures toresolve thedifficulties and
assist therelevant countries toovercome theirimplementation problems.
Itcannot bedoubted thatnotification problems, forexample, arise because notification
requirements arebothcomplex andcumbersome, andnecessitate substantial expertise andresources
ofMembers. Asnotification isanessential partofimplementation because itprovides atransparency,
andisthebasis formonitoring compliance, itisimportant thatweexamine howthese notification
procedures could befurther streamlined andsimplified.
Asregards therules oforigin, work informulating harmonized rules inthisareaismoving
forward ataslowpace, resulting insome countries unilaterally imposing arbitrary rules oforigin
affecting thetextile exports ofdeveloping countries. Such action thusrenders meaningless the
liberalization programmes under theAgreement onTextiles andClothing.
Intheareaofanti-dumping, wemust ensure thatwork onanti-circumvention measures be
completed assoonaspossible, andwemust address theflagrant action ofsome countries toresort
toanti-dumping measures asatoolfortradeharassment. Suchmeasures areunjustifiable, andnegatively
impact upon trade andinvestment oftheaffected countries.
Through various rounds ofnegotiations inthepast,therehasevolved astrengthened multilateral
trading system thatisrule-based anddiscipline oriented. However, therecent unilateral action bya
WTO Member topassandattempt toenforce domestic legislation withextraterritorial application,
willsurely undermine theefforts ofoverfourdecades tostrengthen themultilateral trading system.
Suchanaction isalsocontrary totheaspirations andobjectives oftheWTO, andIwould like
tourgeMembers oftheWTO toreject suchaction, andtoreaffirm theprimacy ofthemultilateral
trading system.
Ontheissueoftradeandenvironment,itisnecessarytoemphasizethatenvironmentalprotection
should bepursued inthecontext ofsustainable development, andthefundamental WTO principle of
non-discrimination should notbeundermined inthepursuit ofenvironmental objectives. Forexample,
while werecognize therationale forlabelling andeco-labelling inproviding consumers withinformation
inorder tomake theirchoice, theindiscriminate useofsuchschemes isaffecting exports ofdeveloping
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Wemustensure thatindeveloping eco-labelling schemes, thecriteria adopted areagreed to
multilaterally, andnotbiased against particular exports ofdeveloping countries.
There hasbeenacceptance oftheprinciple thatcountries, especially thedeveloping economies,
willliberalize theirservices sector atapacecommensurate withtheircapacities todoso,andwith
theirlevels ofeconomic development.
Inorder toenable thedeveloping countries topositively contribute towards theliberalization
process, inparticular intheareaofextended negotiations infinancial services, maritime transport and
basictelecommunications, itisimportant thattheprinciple ofprogressive liberalization befullyadhered
toandrespected. Noundue pressure should beplaced oncountries toextract more thanwhat they
canoffer.
ThefutureworkprogrammefortheWTOhasbeenclearlylaidout,andthismeetinginSingapore
must ensure thatallelements inthebuilt-in agenda aredulyimplemented.
Thisalready heavy workload dictates thatthefocus oftheWTO should notbedetracted by
extraneous issues, fromthemoreimportant workrelating toimplementation, completing theunfinished
business andthebuilt-in agenda.
During thecourse ofthisSingapore Ministerial Meeting, itisclearthatnewissues havetaken
centre stage, anddebate hasbeendominated byhowWTO should treatsuchissues, attheexpense
ofweightage thatshould begiven tothereview process andtheexisting work programmes oftheWTO.
Discussion anddebate ontheissue oflabour standards haveproven tobeadivisive factor.
ForMalaysia, wereject anyattempt tolinklabour standards andother social clauses totradeandtrade
action, andwealsoreject anymove todiscuss anddeliberate labour standards andother social clauses
intheWTO.
Malaysia accepts thefactthatcountries mustobserve internationally recognized corelabour
standards, butissues pertaining tolabour andlabour standards mustbedealtwithintheILO,theonly
competent body todoso.
Malaysia alsorejects theuseoftrade measures toenforce labour standards, andreaffirms the
stand thatthecomparative andcompetitive advantage oflow-wage countries should notbeputinto
question.
Ontheissue oftherelationship ofinvestment totrade, Malaysia cannot accept orsubscribe
toanymove towards theformulation ofmultilateral investment rulesintheWTO, although work on
aneducative process canbesupported, provided itdoesnotleadtoanegotiating process.
Malaysia doesseesome merit inaWTO working group studying theissues raised byMembers
ontrade-related competition lawsandpolicies, along withanti-competitive practices andabuse oftrade
measures. However itisimportant thatsuchastudy doesnotleadtonegotiations within theWTO.
Ithasbeenreported thatdespite theexpansion inglobal trade thetrade of48oftheleast
developed countries havedeteriorated, andtheirinterest marginalized. Certainly theWTO hasthe
responsibility toassist thesecountries andensure thattheyeventually benefit fromtheworkprogramme
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Therefore Iwould liketoreiterate thattheWTO andtheSecretariat giveduepriority tothe
existing work before themandnottobepreoccupied withthenewissues being introduced byinterested
parties.
TheWTO cannot beregarded asamultipurpose organization thatcanbecalled upontodebate
andaddress therange ofsocial issues affecting Members, andthevarious social illsoftheworld.
These issues arebestandappropriately dealtwithbyother competent organizations.
TheWTO should focus ontrade andthepromotion ofworld trade. Theensuing economic
growth resulting from enhanced trade ofWTO Members would assist toalleviate thesocial and
socio-economic problems, including contributing towards better working conditions fortheirworkforce.