WORLD TRADE WT/MIN(98)/8
20May1998
ORGANIZATION(98-2109)
Original: English MINISTERIAL CONFERENCE
Second Session
Geneva, 18and20May1998
VIIISUMMIT MEETING OFTHE HEADS OFSTATE
AND GOVERNMENT OFTHE GROUP OFFIFTEEN
Cairo, Egypt, 11-13 May1998
Joint Communique
Thefollowing JointCommunique hasbeenreceived fromthePermanent Mission ofJamaica
withtherequest thatitbecirculated totheSecond Session oftheMinisterial Conference.
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1. We,theHeads ofState andGovernment oftheGroup ofFifteen, metinCairo, Egypt, on
11-13 May1998, forourEighth Summit, tojointly review theinternational economic situation, in
particular thedevelopments infinancial markets, andtoanalyse their impact ontheprocess of
development indeveloping countries andtheworld economy atlarge.
2. Wearewitnessingpositiveeconomicperformancebyanumberofcountries.However,economic
growth formany others hasbeenmodest andwecontinue towitness uneven distribution ofbenefits
amongst andwithin countries. Some developing countries areencountering adverse effects asaresult
ofthecurrent trend inworld trade. Moreover, therecent developments inEastandSouth-East Asia
giverisetoserious concern. While thefullimplications ofthefinancial crisis inEastandSouth-East
Asiaontheworld economy remain uncertain, thereisagrowing realization thatgreater attention needs
tobefocused onbetter managing thetrend towards amore globally interdependent financial market.
3. AtourSeventh Summit inKuala Lumpur, Malaysia, in1997, wecalled foranappropriate
global response todealwithboththefinancial crisis inEastandSouth-East Asiaandthestrengthening
ofregional andinternational cooperation inmanaging suchcrises inthefuture. Several stepsandactions
havebeentaken since then. Welookforward tocontinued broad-ranging deliberations, consultations
andevaluation inanumber offorainthecoming months onthecauses, theimplications, theresponses
andthelessons tobelearned fromthiscrisis. Thisisanon-going process thatshould beactively pursued
bytheinternational community, taking intoaccount thedevelopment needs ofdeveloping countries
intheshort andthelongrun.
4. Thefinancial crisis inEastandSouth-East Asia isnotanisolated oranunprecedented
phenomenon. Financial crises havebeenoccurring withgreater frequency inbothdeveloped and
developing countries withsevere impact ongrowth, employment anddevelopment.
5. Actions taken byboththeprivate sector andgovernments contributed totriggering thecrisis.
Inadequate supervision oflenders hasbeenequally responsible forexcessive risktaking. Consequently,WT/MIN(98)/8
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theburden ofthecrisis should beappropriately andequitably shared between private lenders, borrowers
andgovernments. Furthermore, wecalluponinternational financial institutions toincrease theirrole
inproviding specialized assistance andstrengthening cooperation among theirmembers withaview
topromoting international financial stability.
6. Theglobal implications ofthefinancial crisis inEastandSouth-East Asiadepend notonly
onhowthecrisis ismanaged inthecountries concerned, butalsoonthepolicy responses oftherelevant
international financial institutions andthemajor developed countries toenhance stability inthe
international financial system andtopreserve adequate growth inworld markets.
7. Wenotethatcountries affected bythecrisis, including some members oftheG-15, havetaken
significant measures tostrengthen prudential regulation andsupervision oftheirdomestic financial
institutions, aswellascorporate governance andmacroeconomic fundamentals. Tofullyrestore market
confidence andcapital flows andresume growth, itisessential thatthese measures besupported by
agreater availability offinancial resources fromtheinternational monetary anddevelopment finance
institutions anddonor countries. Inthisregard, wewelcome thecreation bytheInternational Monetary
Fund ofthenewSupplemental Reserve Facility. Westress, however, thatfinancial assistance should
notbeaccompanied byunnecessary additional conditionality.
8. Wenotewithserious concern thesocial stress thatthefinancial turbulence andeconomic turmoil
arepresently inflicting ontheaffected countries. Macroeconomic measures designed torestore market
confidence willnotyield theintended results iftheyleadtosocial strife. Social safety netsneedto
bestrengthened asintegral elements ofstabilization andadjustment programmes toprotect themost
vulnerable segments ofthepopulation andtopreserve thegains attained inpoverty alleviation over
many decades.
9. Notwithstanding theroleofimmediate measures toaddress thecrisis, webelieve thatthere
isanurgent needtoreview theexisting international financial arrangements andtoensure theiradequacy
inthefaceoftherapidly evolving financial markets. Wetherefore support thecallmade bytheG-24
tostrengthen andcoordinate thework ofinstitutions forfinancial market surveillance andsupervision,
andtopursue discussions andstudies inrespect ofinternational arrangements forthesupervision and
regulation offinancial markets andinstitutions. There isalsoaneedforgreater dialogue between the
developed anddeveloping countries onasystematic basistoaddress thechallenges posed bytherapidly
integrating financial markets andexpanding international capital flows.
10. Wealsoconsidered theprecautionary andregulatory measures thatsome developing countries
havetaken tomanage theflowofforeign capital intotheireconomies. Werealize theneedforcontinued
consultation andcooperation among developing countries inexchanging experiences ondealing with
theimplications ofthefinancial crisis andavoiding future ones. Weareconfident thattheEastand
South-East Asian countries facing thiscrisis willovercome theirdifficulties andwillbestrengthened
bytheexperience gained intheprocess.
11. Itisimperative thatinfacing thecurrent crisis, theattention oftheinternational community
isnotdivertedfrompressingproblemsfacingdevelopingcountriesandleast-developedcountries(LDCs)
inparticular,themajorityofwhichareinAfrica.Inlightoftheproposalsunderconsideration,especially
theimportance ofcapital flows, bothprivate andofficial, forthedevelopment ofdeveloping countries,
weunderscore thenecessity toredouble efforts toimplement thecommitments toprovide concessional
flows andtotreatflexibly theexternal debtoftheheavily indebted poorcountries. Increasing official
developmentassistance(ODA),whichisnowatitslowestlevelinthelastthreedecades,wouldcontribute
toreducing poverty andincome disparities thatcould leadtosocial tension.WT/MIN(98)/8
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12. Webelieve thateventually thefinancial crisis willbeovercome byEastandSouth-East Asia,
andthattheprolonged andrepeated pressures against theircurrencies andthesocial costinvolved
including massive unemployment, necessitate immediate action tobetaken tocurbthedestabilizing
effect ofcurrency speculation. TheG-15urges thedeveloped countries acting inconcert withdeveloping
countries, aswellastheInternational Monetary Fund, theWorld Bank andtheUnited Nations to
accelerate thereview oftheworld financial system, withtheobjective ofensuring thatshort-term capital
flows aresupportive ofexpanding trade, employment anddevelopment.
13. TheG-15Ministers ofTrade andEconomics metinCairo on8May1998. They addressed
issues related totheWorld Trade Organization (WTO) anditsSecond Ministerial Conference, theimpact
ofdevelopments ininternational financial markets ontrade anddevelopment andthefollow-up tothe
previous meeting oftheG-15 Ministers ofTrade andEconomics inKuala Lumpur, andinparticular
tofacilitate andenhance trade andinvestment cooperation among themselves. TheMinisters hada
useful exchange ofviews withtheDirector-General oftheWTO, andtheSecretary-General ofthe
United Nations Conference onTrade andDevelopment (UNCTAD) which contributed toabetter
understanding ofissues under consideration. TheMinisters highlighted theconcerns andexpectations
ofdeveloping countries andagreed tocontinue theirconsultations andcooperation withaview to
promoting theirshared interests intheliberalization agenda inthemultilateral trading system.
14. TheFiftieth Anniversary oftheestablishment ofthemultilateral trading system (MTS) provides
atimely occasion foranevaluation oftheachievements andshortcomings, aswellasthechallenges
andopportunities facing thesystem. Werecognize thecrucial rolethatwasplayed byGATT andits
successor, theWTO, inencouraging opentrade regimes anddismantling tariff andnon-tariff barriers
inthetrade ingoods andservices. Wereaffirm theprimacy ofatransparent, fairandequitable
rule-based multilateral trading system under theWTO, including thedevelopment ofregional trade
agreements. Inthisrespect, wewelcome results achieved bydeveloping countries inestablishing various
regional agreements consistent withtheMTS.
15. However, theMTS stillfaces important challenges. These include theeffective integration
andparticipation ofalldeveloping countries, including LDCs, insuchawayastomaximize the
development dividend andpotential benefits tobegained fromthesystem; providing meaningful access
tomarkets forproducts ofexport interest todeveloping countries, especially those facing significant
tariff andnon-tariff barriers inareas suchasagricultural andprocessed agricultural products, textiles
andclothing, leather products, tropical products, etc;andensuring theequitable distribution ofthe
benefits oftheMTS. Wereiterate ourbelief thatunilateral measures withextraterritorial effects are
incompatible withtheMTS. Weurgedeveloped countries toresist callsforprotectionism andreiterate
ourrejection oftheuseoftrade measures orinstruments, including anti-dumping andcountervailing
dutyprovisions, andstandards andregulations forprotectionist purposes, ortopromote orenforce
non-trading objectives, principles ordisciplines, including those related tolabour standards andthe
environment.
16. Thefullandeffective implementation oftheUruguay Round Agreements should beapriority
oftheWTO. Particular attention should begiven totheimplementation ofspecial anddifferential
provisions invarious WTO Agreements infavour ofdeveloping countries, aswellastheimplementation
oftheDecision onMeasures inFavour ofLeast-Developed Countries andtheDecision onMeasures
Concerning thePossible Negative Effects oftheReform Programme onLeast-Developed andNet-Food
Importing Developing Countries. Developing countries should continuously review theimplementation
ofthecommitments ofdeveloped countries intheURAs, particularly inareas ofexport interest to
developing countries, andaddress anyshortcomings thattheyface.WT/MIN(98)/8
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17. Wereaffirm ourcommitment totheachievement ofuniversality intheMTSassoonaspossible.
Therapid accession ofdeveloping countries seeking tobecome WTO members, through atransparent
process, willcontribute tothisgoal. Tothisend,theterms ofaccession ofthese countries should
beinaccordance withWTO rules.
18. Thefuture work oftheWTO should beanother priority. Wehavetoensure thattheinterests
ofdeveloping countries arefullytaken intoaccount inthebuilt-in agenda oftheURAs andinanyfuture
WTO negotiations. Itisimperative thatdeveloping countries assume anactive roleinshaping the
future ofinternational economic relations. Ouractive participation intheWTO iskeytothepreservation
andfurtherance ofourinterests intheMTS. Itisofgreat importance inthiscontext fordeveloping
countries toidentify theirinterests anddevelop aproactive "Positive Agenda" topromote theseinterests.
Wewelcome withappreciation theofferbyIndia tohostanintergovernmental meeting inthesecond
halfof1998 toidentify ways andmeans ofoperationalizing special anddifferential treatment for
developing countries intheWTO.
19. Webelieve thattradeisanessential element intheeconomic recovery ofEastandSouth-East
Asia. Tothisend,maintaining liberal andopenworld markets should beencouraged. Wealsowelcome
theinitiative launched bytheG-8tomake short-term trade financing available toaffected economies.
However, thisfinancing should neither betiedtounnecessary additional conditionality, norshould
itopenthedoortodisguised export subsidies.
20. Wereiterate theprinciples contained inAgenda 21andintheConvention onBiodiversity on
theconservation ofbiodiversity andtheprotection ofbiogenetic resources. Inparticular, wecallupon
ourdeveloped-country partners totakeappropriate measures forthefairandequitable sharing ofbenefits
fromtheuseofgenetic resources andtodevelop measures toimplement therights ofcountries oforigin
orcountries providing genetic resources.
21. Wecommend theroleofUNCTAD inensuring thatthedevelopment perspective isfully
addressed intheareas offinance andtrade.
22. Wereaffirm ourcommitment toSouth-South Cooperation andwillenhance oursupport for
andparticipation inG-15 projects. Wearecommitted tostrengthening G-15 economic andtrade
cooperation focusing onrealistic andfeasible objectives. Thiswillbeachieved through, interalia,
improving existing activities, information andexperience exchange mechanisms, aswellasintra-G-15
trade andinvestment promotion activities.
23. Wereiterate ourcallfortheprivate sector intheG-15 tostrengthen theirnetworking relations
inorder toexpand trade andinvestment within theG-15. Inthisregard, wewelcome thedecision
bytheG-15 Chambers ofCommerce toestablish theG-15 Federation ofChambers ofCommerce and
Industry andthesigning ofanagreement inthisrespect inCairo on7May1998. Wewelcome the
convening oftheFirstSeminar onStandards andQuality organized byIndia andvalue theaction plan
itadopted, including theestablishment ofaG-15Forum forConsultation andCooperation onStandards,
Quality andMetrology. Wealsowelcome theofferbyIndia toprovide thesecretariat forthisForum.
24. Wereiterate ourbelief thatthere isaclearneedforaconstructive andpositive North-South
dialogue. Consultations between developed anddeveloping countries, including between theG-15
andtheG-8,onspecific andconcrete issues arenecessary ifwearetoeffectively dealwiththechallenges
ofglobalization andmaximize theopportunities thatitcanprovide. Such adialogue canstartatthe
levelofourPersonal Representatives andhighofficials from theG-8inpreparation forameeting at
thelevelofMinisters ofForeign Affairs which mayleadtoaSummit-level meeting induecourse.
Wehopethatthisobjective thatwasconveyed bythePresident ofEgypt tothePrime Minister ofthe
United Kingdom canbepursued bythePrime Minister ofJamaica, thenextChairman oftheG-15.WT/MIN(98)/8
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25. Wediscussed thethreat posed byterrorism topeace andstability atnational andinternational
levels. Terrorist actsundermine political integrity, destroy social fabric anddisrupt democratic
institutions. Theyalsoundermine economic growth anddevelopment. Wetherefore strongly condemn
allkinds ofterrorism, theirperpetrators andallthose whosupport them under whatever guise. We
callforenhanced international cooperation toprevent andcombat thismenace.
26. Aswecommemorate the50thAnniversary oftheUniversal Declaration ofHuman Rights,
itisimperative toembrace abalanced approach inaddressing allhuman rights including therightto
development asrecognized intheVienna Declaration. Ajointeffort isrequired bytheinternational
community fortherealization oftherighttodevelopment inapractical manner taking intoaccount
itsgreat significance inanerawhere ourpeoples arefaced withthetwinchallenges ofglobalization
andliberalization.
27. Weagreed toaccept theformal request ofSriLanka tobecome amember oftheGroup of
Fifteen andtoinvite SriLanka totheIXSummit inJamaica. Concerning membership, wewillbe
guided bytheconclusions andrecommendations setforth inthepaper entitled "Group ofFifteen 's
pastexperiences andpossible future directions inthe21stcentury conclusions andrecommendations"
adopted attheVIISummit.
28. Weexpress ourdeepest appreciation toEgypt foritsableandeffective leadership ofourGroup
overtheduration ofitsChairmanship. Wethank thepeople andGovernment ofEgypt fortheirwarn
hospitality andtheexcellent organization thattheyhaveprovided forthesuccessful holding oftheEighth
Summit oftheGroup ofFifteen.
29. Wewelcome withappreciation thegenerous offers oftheGovernment ofJamaica tohostthe
Ninth Summit oftheGroup ofFifteen inFebruary 1999andtheGovernment ofEgypt tohosttheTenth
Summit intheyear2000.
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