Last, the new directive establishes broad competition principles for the post-1998 environment, particularly in regard to interconnection, licensing and financing of universal service. Member states with very small networks may be granted a derogation of up to two years. It is designed to steer the debate in the run-up to the first ministerial meeting of the WTO in Singapore in December, where the environment will feature prominently. The report maintains that an open multilateral trading system makes possible a more efficient use of natural resources and contributes to lessening demands on the environment. Further, as regimes in the former communist bloc have shown, economic inefficiency can lead to disastrous environmental consequences.
Friction arises when domestic rules hamper or discriminate against imports.
Such rules must be non-discriminatory and must avoid disguised protectionism. Conflicts also occur when nations tackle trans-frontier problems by setting rules beyond their jurisdiction. Former Commission President Jacques Delors. If there is a major disappointment in the trade area it has been our inability to elicit the support of the EU in an energetic effort to open up Asian markets, particularly China and Japan. Outgoing US Ambassador to the EU Stuart Eizenstat.