WORLD TRADE WT/MIN(96)/ST/28
9December 1996
ORGANIZATION(96-5194)
Original: English MINISTERIAL CONFERENCE
Singapore, 9-13December 1996
TURKEY
Statement byH.E. Ms.Ayfer Yilmaz
Minister ofState forForeign Trade
Itisagreatprivilege formeandmydelegation toparticipate inthisFirstMinisterial Conference
oftheWorld Trade Organization. Iwould liketotakethisopportunity tothank theGovernment of
Singapore forthewonderful organization ofthisConference andforthewarm hospitality extended
tous.
Iwould alsoliketoexpress ourappreciation tothedistinguished Director-General forhis
important contributions thatenabled theWorld Trade Organization totakeitsplace among theforemost
international organizations ofourday.
Iamconfident thattheWTO willgainevenfurther prominence intheyears tocome asthe
dominance oftrade inournational economies become evenmore important anditscontribution to
thewell-being ofthepeoples oftheworld willbemore andmore evident.
Thefirsttwoyears ofthisOrganization haveshown thatthedecision taken atMarrakesh to
establish theWTO hasbeenacorrect one.Withitsmembership ofover120countries andmany others
waiting tojointheOrganization, theWTO hasalready consolidated itsposition. Thereport ofthe
Director-General outlining theactivities oftheOrganization during itsfirsttwoyears illustrates this
reality veryaccurately.
TheTurkish Government believes thatliberalization oftrade atregional levelcontributes to
trade expansion intheglobal context.
Intheregional framework, themost important steptaken byTurkey wasthecompletion of
theCustoms Union withtheEuropean Union on31December 1995. TheCustoms Union willbethe
main factor shaping Turkey 'sliberal foreign trade policies andorientations within thewider WTO
framework.
Indeed, thesteps taken byTurkey orthose thatwillbetaken intheverynearfuture arein
compliance withitsobligations forthecompletion oftheCustoms Union. Astheyareparallel toits
commitments vis-à-vis theWorld Trade Organization, these measures willfacilitate andaccelerate
Turkey 'simplementation oftheWTO provisions.
Inthisregard, Iwould liketogivebriefinformation about theareas inwhich wearetaking
measures within theframework oftheCustoms Union. They cover thefollowing:
Foreign trade
- Abolition oftariff andnon-tariff barriers;WT/MIN(96)/ST/28
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- common customs tariff towards thethirdcountries;
- customs code;
- liberalization oftrade inagro-industrial products.
Internal practices
- Competition policy;
- intellectual andindustrial property protection;
- rules onState aids;
- public procurement procedures;
- harmonization ofstandards;
- harmonization ofagricultural policy;
- environmental cooperation.
Turkey isalsoaveryactive member oftheBlack SeaEconomic Cooperation Organization,
(BSEC), andtheEconomic Cooperation Organization, (ECO). These twoorganizations cover anarea
ranging from theBalkans inEurope totheboarders ofChina inAsia. Many members ofthese
organizations havenotyetjoined theWTO. Turkey istrying itsbesttopromote theobjectives ofthe
WTO alsowithin theframework ofthese organizations. Weseeourregional initiatives asa
complementary element ofourparticipation intheglobal trading system.
Turkey isconvinced thataliberal international trade system based ontheprinciples offree
competition, non-discrimination andelimination ofbarriers totradewillserve theinterests andwelfare
ofthewhole global community. Weseeourregional initiatives asacomplementary element ofour
participation intheglobal trading system embodied intheWTO.
Themeasures wehavetaken inlightofthese policies haveproved thatweareontheright
track.
Indeed, when Turkey started toimplement itstradeliberalization policies inthe1980s, itranked
67thintheworld share ofexports and51stinimports. Today, ithasbecome 36thintheformer and
27thinthelatter. When considered from thetrade volume aspect, werankasthe16thcountry in
theWTO. Before theCustoms Union withtheEuropean Union, thetariff protection inTurkey was
about 21percent. Itisnowdown to5.6percentandissettofallfurther to3.5percentwiththe
implementation byTurkey oftheEU'sUruguay Round commitments.
Webelieve ourmainpriority should betoseethattheUruguay Round commitments arefully
implemented. Atthesame timemultilateral trade liberalization should besustained. Every support
should begiven toachieve theefficient functioning oftheWTO andthemultilateral trading system.
Weareoftheviewthatintroduction ofnewissues forthefuture work oftheWTO should notpromote
newforms ofprotectionism.
Werecognize theneedfortimeandassistance bysome developing countries toachieve these
objectives. Weknow thatoncetheyareready, theywillbeevenmore enthusiastic toparticipate in
newinitiatives. However, theseconsiderations should notleadustobereluctant tonewissues. Because,
theultimate objective before usisfullliberalization andweshould notlosemomentum sosoonafter
wehaveembarked onthispromising venture wecalltheWTO.
Webelieve thatweshould startpreparing theground forfurther initiatives. TheTurkish
approach toissues liketrade andinvestment; trade andcompetition andmore transparent rules in
governmentprocurementwillbeshapedbytheseconsiderations.Infact,astheworldgraduallyabandons
protection through tariffs, countries begin toobserve theenforcement oftrade-related measures moreWT/MIN(96)/ST/28
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andmore strictly. Failure toimplement theuniversally acclaimed principles likefaircompetition or
intellectual property rights, orcompliance withinternational standards concerning consumer safety
ortheenvironment, willinpractice eliminate theopportunities ofacountry formarketing itsproducts
abroad. Under these circumstances, anycountry thatwishes tohaveaplace inworld trade, integrate
intotheworld economy andstimulate economic growth, should trytoimplement these principles as
effectively aspossible.
Taking thisopportunity, Iwould liketobriefly statetheviews ofTurkey ondifferent issues
thatweshallbetaking upduring thisConference.
I. BUILT-IN AGENDA
Dispute Settlement System
Dispute settlement system istheheart oftheWTO system. Itgives theopportunity toevery
country toprotect itstrade interests notonthebasis ofeconomic power butonthebasis ofcommon
andenforceable rules. Weunderstand thatbetween January 1995and18October 1996over40distinct
matters havebeenraised intheDSB, andinrespect of12different matters dispute settlement panels
havebeenestablished. Thisdemonstrates thatthedispute settlement system isanoutstanding success
oftheWTO 'sfirsttwoyears. However, theDispute Settlement Understanding should beinterpreted
insuchawaytoattach special consideration totheregional initiatives which arecomplementary to
themultilateral system embodied intheWTO. Furthermore, allMembers should refrain fromattitudes
representing double standards vis-à-vis theregional integrations.
Notification obligation
Great importance should beattached tothework ofnotifications. Webelieve thattransparency
oftheWTO system mainly depends onhowcomplete thecompliance withnotification requirements
is.Moreover, acredible notification process isessential fortheeffective operation oftheWTO. Hence,
wesupport theestablishment ofastrong body withamandate toreview thenotification obligations
andprocedures throughout theWTO Agreement.
Accessions
Twenty-eight countries haveapplied tojointheWTO. Many ofthem aremajor developing
countries, andamong themost significant emerging markets. Webelieve thatfurther participation
ofdeveloping countries inthemultilateral trading system willcontribute substantially totheexpansion
ofworld trade, economic growth andprosperity tothebenefit ofall.Weattach great importance to
thesuccess oftheaccession negotiations. Theaccession procedures should ofcourse beconcluded
incompliance withthebasic principles oftheWTO. Wewelcome therecent conclusion ofaccession
process forEcuador, Bulgaria, Mongolia andPanama.
Technical cooperation anddeveloping countries
Asstated bytheDirector-General inhisreport, thetechnical cooperation activities oftheWTO
havegained further importance withtheaccession ofnewmembers andactive participation frommany
other developing members.
Trade anddevelopment andtheparticipation ofthedeveloping countries
Weallrecognize thattheactive participation ofdeveloping countries intheUruguay Round
negotiations have facilitated thecreation oftheWTO. Participation ofthedeveloping countriesWT/MIN(96)/ST/28
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strengthens themultilateral trade rules anddisciplines andpaves thewaytothefulluniversality of
theOrganization.
Since theentry intoforce oftheWTO Agreements, there hasbeen significant growth in
international trade bothingoods andcommercial services andtheshare ofthedeveloping countries
bothinoutput andrevenue terms ininternational trade hasincreased.
Wealsorecognize thatdeveloping andtheleastdeveloped countries needbothtechnical and
financial assistance toimplement thedevelopment policies andtoadjust themselves tothecompetitive
environment intheglobal economy.
Inthisrespect, weencourage theCommittee onTrade andDevelopment tocontinue itswork
andsupport the"WTO PlanofAction" forLLDCs andthe"Guidelines forWTO Cooperation" prepared
bytheCommittee.
Additional market access opportunities should begranted totheLLDCs asoutlined bythe
Director-General intheLyon G7Summit.
Services
Turning tounfinished business, wemustensure ameaningful andimportant outcome ofthe
current negotiations intheservices area. These arethenegotiations onbasic telecommunications and
maritime transport. Ouraimistoobtain substantial market access andnational treatment commitments
onMFN basis. Inthiscontext, ourpriority should bethesuccessful conclusion oftheongoing
negotiations inthese areas.
Bearing inmindtheshare ofcommercial services ininternational tradeandtheneedforfurther
liberalization inthissector:
1. Turkey expects allMembers tocontribute tothenegotiations onbasic
telecommunications.
2. Weshould beprepared tostartnegotiations onfinancial services in1997. Further
liberalization inthisfieldwillensure transparency, non-discrimination andadditional
gains foralltheparticipating countries.
3. Working Party onGATS Rules should continue itswork toprovide asound basisfor
theinitiation andcompletion ofthenegotiations onemergency safeguard andpublic
procurement. Strengthened multilateral disciplines willserve toestablish abalance
between therights andtheobligations ofthedeveloped anddeveloping Members.
4. Negotiations onmaritime transport services should startassoonaspossible.
Ontheotherhand, specific needs andtherequirements ofthedeveloping andtheleastdeveloped
Members should betaken intoaccount toallow their fullparticipation intheprocess forfurther
liberalization.
Intellectual property
Theinclusion ofintellectual property protection intheUruguay Round through theTRIPS
Agreement isamajor achievement.WT/MIN(96)/ST/28
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Strengthened multilateral disciplines inintellectual property protection andenforcement will
ensure smooth operation ofmarket forces andfaircompetition intheglobal economy.
Wewould liketostress theimportance offullimplementation oftheTRIPS Agreement and
inparticular theneedtoextend thescope ofgeographical indications beyond thewines andspirits to
foodstuffs, handicraft andagricultural products. Discussions should startin1997 toenable the
TRIPSCounciltodevotesufficienttimeandenergytodevelopaworkprogrammeforfurthernegotiations
inthisfield.
Trade andenvironment
Theenvironment andtrade relationship isanother issue thatdeserves ourattention. Turkey
isfully conscious oftheimportance ofenvironmental concerns. Itwelcomes thework thatwas
undertaken bytheCommittee onTrade andEnvironment, addressing therelationship between trade
andenvironment.
There isstillaneedtocontinue toworkontheevaluation ofrelationship between themultilateral
environmental agreements andthemultilateral trading system, aswellasensuring transparency.
Wewould liketounderline theneedtoavoid recourse tounilateral anddiscriminatory trade
measures under theguise ofenvironmental protection andtopayappropriate attention tothespecial
conditions andneeds ofthedeveloping countries.
Regional trade agreements
Webelieve thatregional arrangements facilitate theintegration ofthecountries ofthatregion
withtheglobal economy. Weareoftheviewthatfullcompliance withtheprovisions oftheGATT 1994
would make theregional agreements complementary tothemultilateral system.
Theestablishment ofthe"Committee onRegional Trade Agreements" andtheworkundertaken
bythatCommittee isanimportant indication ofthepolitical willoftheMember countries tobring
theregional agreements before theWTO forexamination.
TheCommittee should continue itswork asoutlined initsterms ofreference toachieve greater
transparency andconsistency withGATT 1994 rules.
Textiles andclothing, functioning oftheTMB
Agreement onTextiles andClothing (ATC) isoneofthemostimportant achievements ofthe
Uruguay Round. Ibelieve thatfullimplementation oftheATC willenable thedeveloping countries
toincrease their export earnings andtoachieve sustainable development through participation in
international trade.
Wearesatisfied withtheimpetus gained during thefirststage ofimplementation oftheATC.
Weencourage allWTO Members toapply theATC fully soastoachieve smooth transition and
integration ofallthetextiles andclothing products totheGATT 1994attheendofthetransition period.
Werecognize theimportant jobdonebytheTMB forsupervising theimplementation ofthe
ATC under difficult circumstances.
Weareconfident thatgreater transparency willbeprovided intheTMB'sfuture work.WT/MIN(96)/ST/28
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Rules oforigin
Turkey fullysupports theongoing work intheWTO fortheharmonization ofnon-preferential
rulesoforigin andbelieves thatthedocument onIntegrated Negotiating TextfortheHarmonization
Work Programme willfacilitate theso-called Harmonization Work Programme. Wealsobelieve that
itcontributes totheefficiency ofthenegotiations andprovides abasis forthecoherence oftherules
thatarebeing established.
Agriculture
Turkey gives importance tothespecial needs ofnetfood-importing developing countries as
wellastheleast developed ones stemming from theimplementation oftheAgricultural Reform
Programme.
Sanitary andphytosanitary measures
Being aware ofthenecessity ofdeveloping aprocedure tomonitor theprocess ofinternational
harmonization andtheuseofinternational standards, guidelines andrecommendations, Turkey endorses
theapproach setoutbytherelevant committee.
Furthermore,wereiterateourcommitmenttothefullimplementationoftheAgreementincluding
itsnotification andother transparency provisions.
II. NEW ISSUES
Government procurement
Turkey supports theideaofestablishing agroup toconduct astudy anddevelop amultilateral
agreement ongovernment procurement practices.
However, suchamultilateral initiative should beflexible enough toaccommodate avariety
ofexisting national procurement regimes. Itshould alsopermit satisfactory time-limit tocountries
toadjust theirdomestic procedures, keeping inmind thatanewimitative isalong-term process.
Inorder tofollow upthedevelopments intheareaofgovernment procurement, Turkey applied
totheCommittee onGovernment Procurement forobserver status. Itwasgranted thisstatus asof
June1996.
Trade andinvestment
Turkey isready tojoinaconsensus aiming atbeginning anexamination oftherelationship
between trade andinvestment.
However, intheconduct ofthisworkintheWTO, special attention mustbepaidtodevelopment
dimension andthepriorities ofthedeveloping countries.
Another aspect thatneeds tobeconsidered intheconduct ofthiswork istheoutcome ofthe
ongoing negotiations attheOECD onMultilateral Agreement onInvestment (MAI). Ibelieve that
important progress hasbeenachieved during thesenegotiations. Theresults oftheMAIcould contribute
tothework aiming atanexamination process oftherelationship between trade andinvestment.WT/MIN(96)/ST/28
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Ontheother hand, inorder toensure thedevelopment dimension oftheissue theeducative
contribution oftheUNCTAD tothisprocess isessential.
Trade andcompetition policy
Theneedforstrengthening thecoherence between tradeandcompetition policies today ismore
evident. Infact,insome oftheUruguay Round Agreements andUnderstandings there areprovisions
regulating trade-related competition issues. Ibelieve thatininternational trade, openandsecure market
access conditions against anti-competitive practices could beachieved.
IwouldliketostateourreadinesstojoinaconsensuswithintheWTOontheproposaltoestablish
aworkinggroupopentoallMemberstostudyissuesraisedbyMembersrelatingtotradeandcompetition
policies inorder toidentify anyareas thatmaymerit further consideration intheWTO framework.
Trade andlabour standards
Ibelieve thatthedebates onlabour standards donotconstitute apriority issue oftheWTO
Agenda. TheInternational Labour Organization isthemost appropriate forum forsuchwork.
Further liberalization
Turkey supports thenewsector specific initiatives likeInformation Technology Agreement
(ITA) andtheenlargement ofthecoverage ofzeroforzerotreatment forcertain pharmaceutical products
forfurther tariff liberalization.
Trade facilitation
Turkey gives highpriority tothesimplification andharmonization ofimport andexport
procedures since complexity ofsuchprocedures could constitute aburden totrade. Therefore, we
recognize thesignificance oftrade facilitation asanimportant partinarriving atlower trade barriers
andimproved market access.
Iamconvinced thatunder your guidance, weshall conclude ourmeeting inSingapore,
successfully, andontheeveofthefiftieth anniversary ofthemultilateral system weshalllooktowards
thenextcentury withmore confidence.