B4-0666/98

Resolution on the Second Ministerial Conference of the World Trade Organization (WTO)

The European Parliament,

- having regard to its resolution of 13 November 1996 on the World Trade Organization (WTO) ((OJ C 362, 1.12.1996, p. 152.)),

- having regard to its resolutions of 24 May 1996 on the negotiations in the World Trade Organization (WTO) on trade and the environment ((OJ C 166, 10.6.1996, p. 260.)) and 30 April 1998 on environmental, health and consumer protection aspects of world trade ((Minutes of that sitting, Part II, Item 23.)),

- having regard to the Commission statement on the Second WTO Ministerial Conference held from 18 to 20 May 1998,

- having regard to the participation of its delegation in that conference,

A. whereas, over the 50 years of its existence, the General Agreement on Tariffs and Trade (GATT) made a significant contribution to economic growth and increased prosperity by eliminating barriers to trade,

B. whereas, however, the industrialized nations and, recently, the newly-industrialized countries have been the chief beneficiaries of this increased prosperity, whilst many developing countries are still suffering from severe poverty,

C. whereas the establishment of the WTO in 1995 created an urgently needed institutional framework for the globalization process, a framework which must be further developed and completed in the years to come,

D. whereas, in view of the differing provisions worldwide in the areas of environmental protection, labour standards and competition rules, there is increasing opposition among the general public to the further liberalization of markets in goods and services,

1. On the 50th anniversary of the establishment of GATT, declares itself satisfied with the progress achieved in the sphere of international trade;

2. Notes that in the first three years of its existence the WTO has not only established an effective mechanism for settling trade disputes, but has also acted as a forum for continuing negotiations on the opening-up of markets, as demonstrated by the conclusion of the agreements on financial services, information technology and basic telecommunications services;

3. Notes that WTO rulings, in particular the decision on hormones, have clarified certain legal issues relating to environmental protection;

4. Regards the fact that 132 states have thus far joined the WTO and more than 30 are currently negotiating the terms of their accession as impressive proof of the need for a worldwide body to draw up and monitor the legal framework for global trade;

5. Points out, however, that the WTO can call itself a worldwide organization only when states such as the People's Republic of China and the Russian Federation are members on the same terms as all other states;

6. Endorses the final declaration of the WTO Ministerial Conference, issued on 20 May 1998 in Geneva, and, in that connection, calls for the WTO to hold negotiations on all aspects of electronic trade;

7. Notes that the agreements negotiated during the Uruguay Round are generally being properly implemented by the WTO member states, but acknowledges, at the same time, the problems faced by many developing countries in honouring their commitments, particularly in the areas of the protection of trade-related intellectual property (TRIPs) and trade-related investment measures (TRIMs);

8. Calls on the industrialized nations and, in particular, the Commission to provide the developing countries concerned with the technical assistance they need and, if necessary, to examine whether their problems can be solved by adjusting the implementation deadlines;

9. Calls on the industrialized nations and, in particular, the Commission, when implementing the agreement on the liberalization of trade in textiles and clothing, to pay greater attention to the legitimate interests of the developing countries so as to avoid a situation in which the main thrust of the opening of the market is deferred to the year 2005; insists that the developing countries must for their part honour their trade policy commitments;

10. Calls on the Commission to prepare carefully the renegotiation of the agreement on agricultural trade scheduled for the year 2000 and to take considerations relating to world trade into account in the reform of the common agricultural policy following the enlargement of the EU to the east;

11. Draws attention to the responsibility of the EU, as the world's most significant regional economic integration entity, for ensuring that these processes take place in accordance with WTO rules and broaden and strengthen the multilateral trading system;

12. Calls on the Commission to examine in detail the links which should exist between the multilateral trading system and agreements on regional economic integration, in which context the acquis communautaire and the substance of agreements such as the Lomé Convention between the EU and the ACP States must be safeguarded;

13. Is concerned that the work in the area of trade and the environment has thus far produced no results; welcomes, therefore, the proposal to give this process fresh political impetus by calling in the near future a meeting of senior government representatives;

14. Calls for the precautionary principle to be explicitly upheld as a priority basis for all decisions which have an impact on public health and consumer protection;

15. Notes that issues concerning trade and labour standards will continue to be dealt with in the International Labour Organization (ILO), and hopes that at the ILO Ministerial Conference in June 1998 progress will be made in this area which provides the ILO with the instruments it needs to enforce internationally agreed minimum standards;

16. Regrets the fact that the WTO has not worked together with the ILO on the application of core labour standards, as it was urged to do in the statement issued at the 1996 Singapore Summit;

17. Regards the opening of a fresh round of negotiations at the beginning of the next millennium as desirable, provided that it covers all areas of interest to the WTO's contracting parties, in particular the link between trade and fundamental problems such as core labour standards, environmental protection and public health, that it is thoroughly prepared and that it receives broad endorsement, in particular from the developing countries, which make up more than 80% of the WTO member states;

18. Advocates, in this connection, that the negotiations should cover issues relating to the international rules on direct investment and competition policy; advocates, further, the drafting of a code of conduct for international firms regarding compliance with minimum ecological and social standards;

19. Proposes that the role of the international financial markets and the IMF in the globalization of world trade should be investigated in greater detail and that the EU, its Member States, the WTO and international financial institutions should work together more closely in this sphere;

20. Calls on the Commission, in future negotiations on trade in services, to insist that the specific cultural identity of the EU Member States should be safeguarded;

21. Regards greater transparency in the work of the WTO vis-à-vis the general public as an urgent requirement and supports the proposal that hearings in connection with dispute settlement procedures should be held in public;

22. Regrets the fact that the most recent agreements between the EU and the USA with regard to unilateral, extraterritorial American trade sanctions (Helms-Burton Act) run counter to the multilateral nature of the WTO and represent a step backwards in relation to the anticipated outcome of the dispute settlement procedure from which the EU has now unfortunately withdrawn, and takes the view that the Helms-Burton Act should cease to apply to all WTO member states;

23. Calls on the Commission to submit to Parliament an annual report on EU trade policy which would serve as the basis for a broad public debate on the subject;

24. Calls, at the same time, for more stringent direct democratic scrutiny of the WTO's work;

25. Instructs its President to forward this resolution to the Council, the Commission, the governments and parliaments of the Member States and the WTO Secretariat.