Opinion of the Economic and Social Committee on the 'World Trade Organization (WTO)'
Date: 1999-01-27
Institutions: European Economic and Social Committee
Subjects: ESC opinion, World Trade Organisation

12.4.1999

EN

Official Journal of the European Communities

C 101/43

Opinion of the Economic and Social Committee on the ‘World Trade Organization (WTO)’

(1999/C 101/12)

On 29 January 1998 the Economic and Social Committee, acting in accordance with Rule
23(3) of its Rules of Procedure, decided to issue an opinion on the ‘World Trade Organization
(WTO)’.

The Section for External Relations, which was instructed to prepare the Committee’s work
on the matter, adopted its opinion on 17 December 1998. The rapporteur was Mr Giesecke.

The Committee adopted the opinion set out below at its 360th plenary session (meeting of
27 January 1999) by 87 votes to five, with one abstention.

0. Summary

0.1.
The worldwide economic growth recorded over
the last few decades is showing signs of faltering. The
weaknesses are to be found in the financial system,
rather than in the world trade system, which has
made a considerable contribution to increasing global
prosperity in the course of the 50 years of operation of
GATT and the work of the recently established WTO.
Against the background of the present critical situation,
the course is being set for a new round of world
trade negotiations. The attendant stock-taking of the
situation, together with the drive to open up further
markets are, in the Committee’s view, an appropriate
way of giving a new impetus to the global economy.

0.2.
In the light of the current national situation, the
Committee believes that the EU must assume a leading
role for a number of reasons, notably because of its
distinctive experience in the field of integration. With
this aim in view, the EU needs to adopt a uniform
approach and engage in joint strategic preparation.

0.3.
The Committee has always maintained a watch-
ing brief on the trade liberalization processes, putting
forward both constructive and critical observations. In
its present opinion, the Committee revisits a number of
issues relating to the current global economic situation
which it regards as of particular importance.

0.4.
Apart from the overall gloomy prospects for the
world economy, the consequences of the accelerated
process of globalization are being felt by many groups
of the population in almost every country of the world.
The economic adjustments which have to be made tend
initially to have a negative impact, in particular on
employment. Positive aspects, such as security of supply,
lower import prices,
improved product-quality and
many other benefits are less clearly recognized.

The contraction of national sovereignty attend-
0.5.
ant upon globalization gives rise to questions as to the
democratic legitimacy of international organizations
and their ‘legislation’.

The WTO’s procedure for settling disputes is
0.7.
regarded as a success story; one of the reasons for its
success is clearly to be found in the provision whereby
tradesanctions may be threatened andimposed inaccord-
ance with strict rules. This provision is therefore a tool
which other international regulatory sectors, ranging
from protection of the environment, social rights and
consumer protection to human rights, would like to use.
Caution needs to be exercised here for a great variety of
reasons. This must not happen if it is contrary to the
official position of individual WTO member states. If
unacceptable conditions are to be changed, however, the
campaign by specialist international organizations to
convince the relevant authorities should be stepped up
and, in the final analysis, there is a need to engage in
concrete negotiations. The Committee welcomes the for-
mal declaration adopted by the International Labour
Conference on 18 June 1998 and urges speedy worldwide
implementation of the principles adopted in respect of
minimum rights for workers.

0.8.
International trade negotiations and procedures
for settling disputes must not, however, continue to be
carried out behind closed doors. The legitimate interests
of the various organizations representing civil society
should be involved in these processes in an appropriate
way; care should, however, be taken to avoid blurring
the responsibilities. The Committee firmly believes that
lasting progress in the field of trade policy can only be
made in the industrialized countries — and, in particular,
also in the developing countries and the transition
countries — if the ground has first been prepared by
means of effective publicity through the media and
NGOs.

0.9.
The next round of trade negotiations will be based
on the outcome of the Uruguay Round; an appraisal will
have to be carried out in the meantime of the way in which
the results of the Uruguay Round havebeen implemented.
The next round of trade negotiations should, however,
not be dependent on full implementation of the commit-
ments which have been entered into.

0.10.
The resumption of negotiations in respect of
agricultural products and services should go ahead on
time in the year 2000, as agreed.

The WTO, which works on the basis of consensus
0.6.
between all
its member countries, has developed a
procedure for settling disputes which has gained wide-
spread recognition; in view of the increasing demands
placed upon it, however, this procedure will have to be
extended.

0.11.
The EU would be in a better strategic position
if the next round of trade negotiations were to be carried
out on a much broader basis. It is essential to win over
to this standpoint both the US, which is reticent on this
matter and, above all, the developing and transition
countries. Whilst the latter group of countries do, at

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present, regard the continued existence of liberal world
trade
attempts
very
should,however, be made to stimulate a keen interest
on their part in further moves towards liberalization.

important,

provisions

as

0.12.
Starting points for such an approach can be
found in several fields: in the very area of agricultural
products the EU should go on the offensive in the
negotiations, on the basis of the implementation of CAP
reform. The service sector offers opportunities for
employment which should be made more readily recogni-
zable.

0.13.
It is likely to be more difficult to make progress
in the environmental and social fields: the reservations
and anxieties of a large number of developing countries
are — still — too great. It is, however, a matter of
importance to the Committee that environmental and
labour standards be applied more widely;
it calls
upon the European Commission to stipulate that the
participation of the EU in the next round of negotiations
shall be conditional upon the achievement of this
objective. Special efforts will have to be made to explain
the situation in this field the developing countries.

0.14.
It is proposed that a WTO working party on
trade and employment be set up. It is also likely that
the desire of many developing countries to see the
introduction of international rules on competition will
have increased. They will also now be more keenly
interested in the subject of direct investment than was
hitherto the case; a model for an agreement in this field
at OECD level has however run into the sands. The
introduction of global rules on electronic commerce
provide opportunities for developing countries and
countries undergoing reform, in particular. The initial
outlines of such rules are emerging.

1.

Introduction

The General Agreement on Tariffs and Trade
1.1.
(GATT) has been successfully promoting trade liberal-
ization for a period of 50 years, to the benefit of an ever
larger part of the world population. But the trade
liberalization process is now confronted by quite serious
problems and unanswered questions over the way ahead.
This situation has arisen despite the fact that the
establishment under international law of the World
Trade Organization (WTO) has paved the way for
ever-closer international economic cooperation.

1.2.
The reasons for this are manifold — structural
and cyclical. Some of the least developed countries
whose share of world trade has declined now consider
themselves to be more disadvantaged than ever.

Other developing countries and a number of transition
countries have made progress as regards their partici-
pation in world trade, but continue to be sceptical about
a trading system which is managed by western countries
and geared to western values.

As far as the US is concerned, since the signing of the
NAFTA Treaties the present Congress has been loath
to endorse a wide-ranging WTO round of liberalization.
Some hope is provided by the invitation of the US

president to the next meeting of ministers to be held in
the US in 1999.

1.3.
The financial and economic crisis which is
spreading from Asia to take on world-wide proportions
could place a serious obstacle in the way of the
achievement of further liberalization under a new round
of world trade negotiations. Many developing countries
and some transition countries are experiencing a decline
in growth, which is essential for employment. Banking
systems are under tremendous pressure; this inevitably
poses a threat to the enterprises to which they have lent
money. Millions of workers are going on the dole and
have no adequate social protection. For many countries
which have become too accustomed to success, this
situation represents a setback, the full consequences of
which cannot yet be calculated.

1.4.
The Committee takes the view that the global
trading system has not been responsible for generating
these crises or aggravating them. On the contrary, an
undiminished WTO system does, in the Committee’s
opinion, provide the only dependable platform on the
basis of which collapsing economies can be rebuilt. In
view of the high level of dependency on external trade
(which,
in the developing countries, counts for an
average of 38 % of the national product) and in view of
the need to bring in foreign capital and know-how, open
markets provide solid benchmarks for those responsible
for planning reform. At the same time special assistance
needs to be provided to the developing countries to help
groups which lose out as a result of structural change.

1.5.
In the Committee’s view lessons should be
drawn from this crisis, in particular, by international
institutions with responsibility for the financial sector;
such bodies should make their appropriate contribution
towards the establishment of a new world economic
and financial order. Against this background, trade
protectionism or moves to impede the flow of direct
foreign investment would not only be self-defeating for
the country concerned but would also pose a threat to
the whole of the global economy because of the global
domino effect.

As a result of the growth in international trade,
1.6.
the advantages — and also the drawbacks — of trade
liberalization have been brought home to an increasing
number of people. In view of the fact that employment
issues, the protection of public health, consumers and
the environment, and the maintenance of the basic
labour standards are matters which are becoming
increasingly important world wide, we now find our-
selves at a new stage in which trade policy is being
widely used as a tool; this initially represents a new
experience. In order to step up the pressure to implement
agreements, i.e. in order to provide sanctions, attention
is increasingly being focused on the regulating machinery
for international trade — the WTO — which has
worked so effectively in the past. Serious questions are
thus being posed as regards the perceived role of the

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WTO, which has hitherto concentrated on removing
trade barriers.

1.7.
It therefore comes as no surprise that at the most
recent WTO ministerial meeting, held on 18-20 May
1998, a large number of NGOs issued a strong call for
an end to the exclusive nature of earlier negotiations,
for greater transparency and for a more significant role
to be given to representatives of civil society. In the
Committee’s view the new transatlantic dialogue —
which it has welcomed — is a model example of how
broader interests can be included in the trade debate.

1.8.
The Committee would like to draw attention, in
good time, before steps are taken to chart the course for
a further round of trade negotiations, to a number of
issues in respect of which it has a special expertise or has
demonstrated particular commitment. The Committee
hopes that these issues will be of special interest to the
European Council, the European Parliament and the
Commission, particularly in view of the fact that, the
Committee believes that, in the light of the current
political and economic climate, the EU must assume a
leading role.

2.

Institutional issues relating to the WTO

2.1.
There is, in the Committee’s view, a fundamental
conflict between the desire of all WTO members for
free access to world markets and a wide-ranging — and
fully justified — need which may be felt for regulation.
In this conflict WTO members should give top priority
to achieving the main objective of the WTO, i.e. the
opening-up of markets on a non-discriminatory basis.
All requests for regulation of foreign trade and payments
should be carefully scrutinized accordingly; essential
intervention in this field should respect the principle of
‘minimal invasion’.

In the Committee’s view new member countries
2.2.
should soon be brought into the WTO in order to
enhance the economic weight of the expanding WTO
regulating machinery.

2.3.
The secret of the success of GATT and, later,
the WTO, over the last 50 years is to be found, above
all,
in two fields: (a) the establishment of trading
standards, which have always been laid down on the
basis of a consensus of all the member countries and
have therefore taken account of the varying needs of the
affiliated states and (b) the settlement of disputes, an
area in which the WTO’s approach is based upon a
careful blend of pragmatism and observance of legal
procedure, geared to the needs of the respective cases.
There is no doubt that the threat of imposing trade
sanctions in the wake of decisions taken by the disputes
panel was, and is, of decisive importance.

2.4.
Despite considerable differences in the develop-
ment level reached by WTO member states and their
forms of administration, GATT and, subsequently, the
WTO have succeeded in defining uniform trade rules
which, however, in a number of cases will only come
into force upon the expiry of various time limits.

The flexibility of the system is also demonstrated by the
multilateral treaties which have been concluded within
the framework of the WTO and involve only those
countries involved in the particular issues.

2.5.
In the light of the increasing number of compli-
cated standards and the consequent high demands placed
on the calibre of administration in the member countries,
the issue of advisory services is gaining in importance.
In the Committee’s view this task should be largely
taken over, in accordance with the principle of division
of labour, by the international organization which
has the necessary technical competence. A number of
examples may be quoted here: cooperation with other
specialized international organizations, in particular the
International Trade Centre; special trade-promoting
measures to help the least developed states; and the
work of the World Intellectual Property Organization
(WIPO) in the complex field of the Agreement on
Trade-Related Aspects of Intellectual Property (TRIPS).
It is clear, however, that not only problems of relations
between the organizations themselves and funding arise
in this respect but also problems with regard to the
availability of independent experts. The industrialized
countries should recognize the need for them to make a
contribution with a view to promoting good governance
in the developing countries and transition countries.

2.6.
The disputes settlement procedure adopted by
the WTO has learnt from the weaknesses of the earlier
GATT procedures and has gained an international
standing within a short period of time. Particularly in
view of the fact that the US has had to acquiesce to the
decisions taken by the disputes panel, the procedures
for settling disputes adopted by the WTO are generally
regarded as successful.

Observers draw attention to the emergence of an
independent WTO commercial law and a move towards
the establishment of legal principles. This is, however,
a matter of increasing concern to the weaker member
countries of the WTO. In this case, too, the Committee
recommends extreme prudence; the cohesion of the
body of states making up the WTO is a valuable asset.

The number of applications for arbitration in connection
with TRIPS which are likely to be introduced from the
year 2000 onwards will test the capacity of the bodies
responsible for settling disputes and prompt a number
of questions with regard to the procedure. The scope
for improving the procedure — particularly in respect
of disputes relating to TRIPS — must therefore be
examined.

2.7.
The Committee supports the proposals put
forward by the European Commission for improving
the procedure for settling disputes. These proposals
partly tie in with criticism expressed by the US. The
investigations carried by members of the disputes panel
could, for example, be simplified and made more brief
if full-time professional experts, who were familiar with
all the details involved in the procedure, could be used
for that purpose. A reduction in the period of time

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between the application to convene a panel and a
moment where the Appellate Body issues its final
recommendation could, in particular, make the pro-
cedure still more efficient, even though the present time
frames are already both substantially shorter and more
clearly defined than was the case under the old GATT
procedure.

WTO member states not directly involved in a given
procedure, but having a major interest in the issue,
should be given full access to the documents and
information. In this way, they should be able to put
forward their views and arguments, where appropriate.

2.8.
The US, in particular, regards the implementation
machinery in respect of recommendations by the disputes
panel as inadequate. To give an example, a state which
is ruled against by the disputes panel can all too readily
switch to new forms of trade restrictions which serve
the same purpose. WTO member states which are
injured parties in this respect then have to initiate a
new procedure before the disputes panel and the full
timelimits apply once again. The Committee, therefore,
urges that
the problem of substitute measures be
examined in connection with the rules in respect of
sanctions.

2.9.
The Committee is pleased to note that the WTO
preamble, drawn up in the 1990s, expressly mentions
sustainable development as one of the goals of free
trade and also contains a commitment to protect the
environment. In this context, the Committee regrets that
it has so far not been possible to convince a larger
number of member countries that the fundamental
workers’ rights adopted by the ILO, the ‘core labour
standards’ (freedom of association and the right to
engage in collective bargaining; outlawing of forced
labour and child labour; and a ban on all forms of
discrimination over careers and employment) should
also form part of the principles of international trade.

2.10.
The Committee also takes the view that the
world trade order, which currently has the backing of
the community of nations, is a valuable asset which
must not be jeopardized; this system must not be
overburdened with issues additional to environmental
and labour standards. These points are particularly
important in view of the very clear problems of the
cohesion of member countries: 80 % of the WTO
member countries are either developing countries or
transition countries.

2.11.
The crises which have recently affected the
global economy underline the need for a higher level of
cohesion between the policies pursued by the inter-
national economic organizations. It has rightly been
pointed out that neither national nor international
institutions have been up to the task of meeting the needs
of global economic structures. Since the establishment of
a single global body to deal with all economic issues is
likely to remain a utopian vision, the Committee calls
for the vitally necessary cooperation between the

maximum number of international organizations to be
placed on an institutional footing without delay; the
Committee does, however, fully appreciate the problems
involved.

2.12.
The Committee welcomes the establishment
of a High Level Working Group bringing together
representatives of the WTO, the IMF and the World
Bank, for the purpose of setting out joint guidelines for
cooperation between these bodies. The Committee does,
however, deplore the fact that representatives of the
ILO have not been included in this High Level Working
Group; this omission should be rectified. The benefits
of such cooperation had already become clear by
the end of the Uruguay Round, thereby leading the
ministerial conference in Marrakesh to recommend such
a course of action.

2.13.
The crisis in Asia and the problems involved in
overcoming this crisis clearly indicate that the present
close links between capital markets and markets for
goods make it necessary to establish clear, general
regulatory conditions. A large number of other organ-
izations have a role to play here by cooperating closely
so as to strengthen their positions on a reciprocal
basis and to bring about ongoing modernization. The
standards laid down by the Bank for International
Settlements (BIS), could be applied to a greater extent
by the international financial organizations. Turning to
the non-financial sector, it is primarily the following
bodies which have a role to play here: UNCTAD, WHO,
FAO, UNEP, WIPO and ILO. Coordinated action by
all the bodies, whose roles are partially complementary,
can promote: a return to orderly financial markets;
healthy macro-economic fundamentals; social security
networks; and non-discriminatory access to markets in
goods and services. It is only by combining these factors
that it will be possible to achieve a high qualitative level
of economic growth which generates employment, eases
poverty-related problems and promotes sustainable
development of the global economy.

2.14.
In its capacity as the mouthpiece for representa-
tive groups in European civil society, the Committee
draws attention to the need to make the work of the
WTO more transparent for the public and the continuing
low level of cooperation with the respective NGOs
concerned. The Committee recognizes the progress that
has been made since the last ministerial meeting in
Geneva, particularly with regard to the provision of
information via the Internet. It is now, above all,
desirable for documents which are not particularly
confidential to be released more quickly.

In view of the fact that the on-going process of
2.15.
globalization is giving rise to anxiety, modern trade
policy should be backed up by campaigns to win over
hearts and minds, above all at national level, but also at
international level. In this respect, too, the particular
need for measures to be explained in the developing and
transition countries should be addressed. A convincing

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drive to provide explanations and information may, in
these countries in particular, serve as an example of
democracy in action. The reservations of many people
in developing countries over foreign investment should
be dispelled by compliance of investors with OECD
guidelines for multinationals.

The Committee takes the view that, particularly in the
time of crisis which lies ahead, it will only be possible
to make progress in the field of world trade if the general
public can be convinced of the benefits of open markets.
Such a public relations exercise is labour-intensive; it is
however absolutely necessary.

2.16.
Participation by the relevant, representative
NGOs plays an increasingly important role here. Such
NGOs should be fully briefed, as soon as possible, at
both national and international level; they should also
be consulted, in particular in the run-up to policy-making
decisions. The entitlement to make written submissions
and the right to have their views taken into account and
to receive detailed answers should be made available —
subject to clear rules — to both sides.

The Committee notes that closer cooperation is taking
place at international level between key NGOs. In this
field, too, the interests of the developing countries and
the reform countries should be taken into account, in
particular, and, wherever possible, be given financial
support. As it develops the WTO will, of course, also
have to consider the issue of granting observer status to
internationally recognized NGOs.

The NGOs should not participate in those areas which
are the responsibility of governments or parliaments or
where the effectiveness of the WTO’s work would be
jeopardized.

2.17.
As the settlement of disputes is an area of
fundamental importance to the development of WTO
law, many NGOs will clearly be particularly interested
in this field. The issues which are the subject of disputes
and the procedures involved need to be addressed with
considerable sensitivity. Not all parties to disputes will
wish to take the publication of submissions and expert
opinions as far as the US president has let it be known
that his country wishes to do.

In all disputes a consensus should be reached between
the parties involved on where the line should be
drawn with regard to publicity. The secrecy which was
maintained as a matter of principle in the GATT
period should however be dropped. The Commission’s
proposal that panel members organize hearings involv-
ing representatives of groups which are involved in
the issue concerned and groups which have specialist
knowledge should be examined as part of the drive
to improve transparency such a measure must not,
however, delay the proceedings.

3.

Implementation of the results of the Uruguay Round

The Committee takes the view that the stock-
3.1.
taking of the extent to which the commitments entered

into under the Uruguay Round have been fulfilled must
not be carried out in a routine bureaucratic fashion. The
important point is to draw policy conclusions for the
future development of free trade from the weaknesses
which have become apparent. This step is particularly
necessary in view of the deterioration in the world
economy. However necessary further developments may
be, they have to be based on a firm foundation.

3.2.
Individual countries which may have been drag-
ging their heels as regards the fulfilment of their
commitments should have their attention drawn to this
fact in an appropriate form. If such a failure to keep in
step with other countries is due to administrative
weaknesses, administrative assistance should be pro-
vided, wherever possible.

Given world economic trends, further develop-
3.3.
ment of the WTO system as a whole must not, however,
be dependent upon whether all previous commitments
have been fulfilled. The incentives to make further
progress towards trade liberalization which have arisen
in a large number of areas should, instead, be taken up.

4. Negotiating strategy

4.1.
The further negotiations on agricultural products
and services, agreed upon at the Uruguay Round, should
get underway on schedule in the year 2000. The topics
for the next round of negotiations, decided upon
in Marrakesh and Singapore, should continue to be
carefully prepared, with the agreement of all WTO
Member States, so as to ensure that speedy results are
achieved with the attendant urgently required boost for
economic growth and employment. If the negotiations
drag on for longer than three years, this would damage
the credibility of the WTO system in view of the pressing
economic problems to be addressed.

4.2.
The Committee supports the EU’s desire to
incorporate the talks on agricultural products and
services, on which firm agreement has already been
reached, into negotiations covering the broadest possible
range of issues. In this context careful consideration
should be given to the extent to which the ‘Singapore
topics’ are relevant, whilst not being too time-
consuming. The interest of just the EU and possibly also
the US is unlikely to be adequate justification for them
to be included in the negotiations.

4.3.
For various reasons, in the foreseeable future,
enthusiasm for a broader round of world trade nego-
tiations is unlikely to be very great, either in the US or
in third world countries. The EU should therefore make
special efforts to secure the interest of the third world
countries (which make up 80 % of the member countries
of the WTO) in achieving progress.

An initial starting point here could be to provide
4.4.
the developing countries and reform countries with
more advice on how to use the WTO instruments,
including the procedure for settling disputes. Whilst
such a move would be labour-intensive, and therefore
also costly, the OECD states and their institutions
should recognize the need to expand their support.

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Cooperation with UNCTAD — perhaps along the lines
of the work of the International Trade Centre (ITC) in
promoting exports — could perhaps be stepped up in
this context.

4.5.
Further moves to facilitate trade would also be
beneficial to the developing countries and the reform
countries. One approach would be to consolidate the
zero-rated tariffs on industrial products (as has happened
in the case of the Lomé states); action could also be
taken in the fields of customs procedures, customs values
and country-of-origin rules. The removal of red tape in
these areas would, of course, also benefit the business
community in the industrialized countries.

The Committee regards the European Com-
4.6.
mission’s Action Plan for Trans-Atlantic Economic
Partnership (TEP) as providing an opportunity for the
two leading global economic partners to assume a
pioneering role in bringing about multilateral liberal-
ization. The Committee expressly welcomes the realistic
objectives set out by the Commission: the removal of
bilateral trade barriers, the avoidance of trade disputes
and the promotion of strict standards as regards the
protection of the environment and consumers. The
achievement of mutual recognition of product standards
and test procedures (Mutual Recognition Agreement —
MRA) in a number of product areas represents a success
in practical terms which the Committee trusts will soon
be extended to cover other areas. It is to be hoped that
the TEP may help to resolve the threat posed by the
dispute over EU banana imports. The recent arbitrary
announcement of the US Administration that it will
unilaterally impose selective sanctions against the EU
it will damage the
products is quite unacceptable;
credibility of not only the WTO disputes settlement
procedure, but also the TEP as a whole.

4.7.
The Committee would, however, reiterate its
warning — already expressed in its Opinion on the
New Trans-Atlantic market (CES 859/98) — against
undermining the WTO’s system of multilateral agree-
ments through the introduction of bilateral agreements.
This could result in smaller WTO member countries, in
particular developing countries, losing interest in the
forthcoming round of WTO negotiations; this could
lead to the benefits gained by the EU and the US
from bilateral partnership turning into disadvantages
as regards relations with third countries. Particularly
against the background of the current delicate situation
facing the global economy, there is a danger that serious
damage could also be done at this level. The Committee
therefore repeats its call for bilateral negotiations with
the US to be conducted only in parallel with the
preparations for the forthcoming round of WTO multi-
lateral negotiations.

5. Preparation of the next round of negotiations on

agricultural products

5.1.
In the course of its deliberations on the agricul-
tural proposals submitted by the Commission under
Agenda 2000, it became more and more clear to the
Committee that the worsening situation in the various
trouble spots in the world would have the effect of
increasing, rather than decreasing, the pressure for
further moves to liberalize EU agricultural policy. The
EU and the Cairns states are spearheading action in this
respect. As is its usual practice, the Committee issued
constructive and critical opinions on these proposals (1)
in which, in the light of the forthcoming international
negotiations and accession talks,
in
particular, the involvement and likely consequences in
respect of all groups of the population connected with
agriculture. The Committee believes that is absolutely
essential to maintain the European agricultural model
defined in Luxembourg.

it highlighted,

5.2.
The Committee welcomes the agricultural pro-
posals under Agenda 2000; they will provide a detailed
basis both for the continuation of the debate on the
development of the CAP and for the attendant decisions.
The Committee supports the Commission’s view that
the reform being pursued has to take account of the
following four factors:

1) a growth in the global population of approximately

one billion over the next ten years;

2) the resumption in the year 2000 of the negotiations
on the further liberalization of international markets
for agricultural products;

3) the expected enlargement of the EU to include the

CEEC and Cyprus;

(1) See the ESC opinions on the: agricultural aspects of the
Commission Communication ‘Agenda 2000’ — OJ C 407,
28.12.1998; Proposal for a Council Regulation establishing
common rules for direct support schemes under the
common agricultural policy — OJ C 407, 28.12.1998;
Proposal for a Council Regulation on the common organ-
ization of the market in beef and veal — OJ C 407,
28.12.1998; Proposal for a Council Regulation on the
common organization of the market in milk and milk
products and the proposal for a Council Regulation
amending Regulation EEC 3950/92 establishing an
additional levy in the milk and milk products sector — OJ
C 407, 28.12.1998; Proposal for a Council Regulation
amending Regulation (EEC) No 1766/92 on the common
organization of the market in cereals and repealing Regu-
lation (EEC) No 2731/75 fixing standard qualities for
common wheat, rye, barley, maize and durum wheat and
the Proposal for a Council Regulation establishing a
support system for producers of certain arable crops —
OJ C 407, 28.12.1998; Proposal for a Council Regulation
on support for rural development from the European
Agricultural Guidance and Guarantee Fund (EAGGF) —
OJ C 407, 28.12.1998.

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4) the continuation of the Euro-Mediterranean partner-

ship.

proteins, but also in other product sectors, such as beef
and veal and milk.

5.3.
The Committee also endorses all the specific
objectives of the future CAP, namely: competitiveness
of agriculture in the EU on the internal and world
markets; food-safety and -quality for consumers; stable
farm incomes; incorporation of environmental objec-
tives into the CAP; sustainable agriculture and renewable
sources of energy; alternative sources of income for
farmers and their families; and the simplification of EU
legal provisions.

The Committee does, however, regret that less attention
has been paid to: a) the promotion of land use which
takes account of specific regional characteristics; b) the
impact of the CAP on upstream and downstream
areas of activity and c) the strengthening of producer
organizations. The Committee takes the view that some
of the Commission’s proposals veer too much towards
a renationalization of CAP.

5.4.
As regards the strategy to be adopted, the
Committee would point out that, bearing in mind all
previous experience, the EU should avoid adopting a
mainly defensive position when going into the next
round of WTO negotiations. The policies set out in the
individual points of Agenda 2000 provide sufficient
flexibility with regard to the individual negotiating
positions.

5.5.
It is very important that the EU should not call
into question — even at the end of the negotiations —
the direct payments to EU farmers for the period
2000-2006. Furthermore, in view of the possibility of a
fall in prices, a residual level of external protection —
adequate to meet requirements — should be maintained.
Particular attention should be paid to public health and
quality standards: these standards should be observed
in reality.

The labelling of food products and animal feed contain-
ing genetically modified organisms, hormones, etc. will,
in the Committee’s view represent a major challenge in
the forthcoming international negotiations. The EU
should champion the recognition of EU public health
and food standards in international discussions.

The Committee shares the Commission’s view as regards
the need to introduce global environmental and labour
standards and pay greater attention to the interests of
consumers.

The Committee underlines the fact that the next
5.6.
WTO negotiations will not be the last ones to be
held. International trade agreements have become a
permanent fixture. The package of CAP reform measures
which are currently being targeted and are to come into
force in the year 2000 must provide the EU with an
adequate negotiating basis in respect of its international
obligations. No effort should be spared to ensure that
EU farmers will not be called upon a second time to
pick up the bill. Such a pro-active approach should be
employed not just in respect of cereals, oilseeds and

6. Continuation of the negotiations on trade in services
[General Agreement on Trade in Services (GATS)]

The Committee regards the inclusion of services
6.1.
in the WTO global trading system, brought about
by the GATS, as a considerable step forward. The
Committee therefore finds it all the more regrettable
that, in most cases, the specific obligations in respect of
market access and national treatment assumed by the
WTO members, hardly go beyond the status quo which
is already observed by the governments. The Committee
therefore expects the negotiations getting under way in
the year 2000 to achieve more substantial progress
in order to ensure continued worldwide interest in
achieving a comprehensive liberalization of external
trade. It is important that the negotiations cover all
types of services, also taking in sectors not covered by the
Uruguay Round, such as courier services, environmental
protection services, training and medical care. Consider-
ation should also be given to the issue of consumer
protection.

Future negotiations should also extend beyond the
question of market access and national treatment:
national regulations and licensing requirements must be
transparent, appropriate and involve the minimum extra
work, so as to ensure that (a) domestic and foreign
competitors are given equal opportunities; (b) employ-
ment is boosted and (c) consumers enjoy the benefits of
a high level of competition in respect of price and
quality.

6.2.
The agreements which have already been reached
under GATS suffer from being opaque. It is thus
difficult to assess the benefits of these agreements
to service-providers, and above all to consumers in
industrialized and developing countries. The WTO
should therefore make the existing treaty provisions
more transparent by issuing them in a standardized
form.

6.3.
The Committee welcomes the outcome of the
negotiations on the liberalization of basic telecommuni-
cations services and financial services (1). The Committee
would at the same time draw attention to the need for
the same employee rights to be applied to new forms of
working, made possible by electronic means (tele-
working), as are applied to traditional forms of work.
Efforts must also be made to ensure that all groups within
the population have access to the new communications
technologies and that the rights of consumers continue
to be fully safeguarded. In the Community’s view the
successful outcome of these negotiations was facilitated
by the fact that the benefits to national economies of

(1) See the ESC’s Opinion on the Proposal for a Council
Decision concerning the conclusion on behalf of the
European Community, as regards matters within its com-
petence, of the results of the World Trade Organization
negotiations on financial services — OJ C 407, 28.12.1998.

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liberalization in these sectors were readily apparent.
Reduced costs and improved services in the field of
communications benefit the whole economy, as do
improvements in the efficiency of the financial markets.
These successes have to be weighed against the disap-
pointing impasse which has been reached in negotiations
on professional services. The Committee takes the
view that the overall economic benefits of liberalizing
professional services are not sufficiently widely recog-
nized, with the result that there is little pressure to
negotiate in this sector.

6.4.
The Committee therefore calls upon the Com-
mission to examine the macroeconomic impact on
employment and income of liberalization in key service
sectors (e.g. commerce, professional services, transport),
taking account of the contribution by these sectors to a
modern infrastructure. Such a study would demonstrate
the benefits which would accrue to the users of services
— i.e. consumers in the broadest sense of the term —
from liberalization, thereby boosting public interest in
seeing more rapid progress in the negotiations. This
would apply not only to the EU, but, perhaps to an even
greater extent, also to the developing countries, which
have not yet fully recognized the development oppor-
tunities available to them in the service sector. Putting
across this message is also a task for UNCTAD.

In the run-up to future negotiations consideration
6.5.
should be given to the possibility of replacing the
schedules of commitments by, lists of exemptions from
across-the-board liberalization. Negotiations would
then range from the achievement of full market access,
with national treatment, in the respective sectors to the
question of the exemptions. This approach would enable
greater transparency to be achieved both in the talks
themselves and as regards their outcome.

7. Trade and the environment

7.1.
Even before the Singapore ministerial conference
the Committee had addressed in detail, the issue of the
relation between the liberalization of world trade and
the environment (1). The Committee underscored the
point which had been made by the World Bank to the
effect that the main cause of environmental problems
did not lie in trade liberalization but rather in the
inability of the markets and the authorities to take
adequate account of the environment when setting
prices. The Committee therefore urged the OECD to

(1) ESC Opinion on World trade and the environment — OJ
C 407, 28.12.1998. In this opinion the Committee set out
detailed observations on the Commission’s Communi-
cation No 96/54.

continue its work on the polluter pays principle (PPP).
This approach would provide good possibilities for
internalizing environmental costs.

The principle of taking precautionary action must,
however, be given priority — both in respect of decisions
impact and decisions
which have an environmental
which impact on public health and consumer protection.

7.2.
Every state has the right to apply to imported
goods the rules in force in respect of its own products.
This right is, however, matched by the responsibility to
keep exporters and governments in the countries of
supply regularly briefed on these rules. Differences that
may occur in the environmental protection policies of
individual states must not lead to a situation in which
compensatory levies or export refunds are introduced
to offset comparative economic disadvantages in given
states. In the event of cross-border regional environmen-
tal problems or global environmental problems the states
concerned must find a joint solution. Supplementary
commercial measures may form a key part of such
multinational environmental agreements (MEA). This
has already occurred in the case of 18 out of the overall
total of 180 MEAs.

7.3.
The Committee also agrees with the Commission
that unilateral measures to resolve cross-border or global
environmental problems occurring outside the sovereign
territory of importing states must be avoided. Such
problems should be settled through multilateral environ-
mental protection agreement. In future, trade restrictions
should be introduced only with the full agreement of
the WTO and should only include such provisions as
are absolutely necessary for the achievement of the
objectives concerned. Such agreements must be ham-
mered out by international environmental bodies; the
United Nations Environment Programme (UNEP) will
have an important role to play here in future.

The Committee also believes that the concerns
7.4.
of the developing countries and the countries undergoing
reform have to be taken very seriously. Attention must
be paid in pursuing trade and environmental policy to
ensuring that the prospects of these countries for making
economic progress and their export possibilities are not
jeopardized. Efforts must be made to find an appropriate
way to tackle excessive exploitation of the environment,
taking account of the abovementioned consideration.
The Committee endorses the proposals and ideas put
forward at that time by the Commission and draws
attention in particular to training programmes, techno-
logical research and advisory services.

7.5.
In its abovementioned opinion the Committee
proposed that disputes in this area in particular should
be resolved in the most open possible manner and with
the participation of NGOs. The panels should of course
have sufficient opportunity to consult scientists and
technical and environmental experts.

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7.6.
The Committee notes that the public and parlia-
ments are attaching greater importance to the environ-
mental components of international trade policy. This
being the case, the Committee welcomes the invitation
extended by Sir Leon Brittan, Member of the European
Commission, to WTO trade and environmental minis-
ters to hold a meeting early in 1999; this meeting could
provide a fresh impetus for early coordination of trade
and environmental policies. Since the Rio Conference,
attempts have been made to overcome the tendency to
compartmentalize responsibilities.

7.7.
The Committee also believes that another key
problem needs to be addressed, namely the fact that the
OECD states are dealing with ever more complex issues
and proposed solutions in this field at the level of their
own organization. Many of the developing countries
regard a large number of these issues and problems as
being by no means key issues. The point has been
underlined by debates in the WTO’s environment
committee. To quote an example, the OECD advocates
national environmental audits in respect of trade instru-
ments and agreements. OECD member states are expect-
ed to draw up environmental audits in connection
with the preparation of international trade agreements
whenever such agreements are likely to have a consider-
able impact on the environment. The developing
countries clearly view such preparations with scepticism
and regard themselves as being placed at a disadvantage
from the outset. Assistance from the UNEP or UNCTAD
should therefore be stepped up.

7.8.
The Committee believes that considerable efforts
will need to be made to enable the developing countries
to recognize that, at least in the longer term, the debate
on the principle of taking preventive action is also of
major importance to them. The Committee regards this
as being a task for the WTO, which should, here too,
once again act in liaison with the relevant specific UN
body.

8. Trade and minimum labour standards

8.1.
For a considerable time now, the Committee has,
on various occasions, sought to help bring about the
application throughout the world — and particularly
in the developing countries — of the ‘Core Labour
Standards’ formulated by the ILO. The Committee does
of course recognize the difficulty in securing application
of these core labour standards in the conditions which
apply in many developing countries, even if the govern-
ments concerned show an apparent readiness to accept
these standards. The Committee has therefore welcomed
the active advisory role played by the ILO in this context.

At the International Labour Conference (ILC)
8.2.
held in June 1998 attention was drawn to the fact that
all ILO member states, including those which have yet
to ratify the relevant conventions on core labour
standards, are obliged to incorporate into their policies
the four basic rights set out in point 2.9 above. As
previous appeals to this end made in recent years have

met with little success, the Committee welcomes the
decision taken at the ILC to apply a simpler procedure
for an annual check on whether the fundamental
workers’ rights are being applied in practice in these
states. Consideration is also being given to the possibility
of calling upon the services of a specially established
group of experts when carrying out this task.

The Committee trusts that these new measures

8.3.
will have a positive effect.

Even if there appears to have been a change in
8.4.
the attitude of a number of states which previously
rejected the binding application of the core labour
standards, consideration of the use of trade restrictions
continues to provoke opposition. Efforts must however
be made to bring about worldwide application of these
core labour standards as soon as possible. The ILO
member states are obliged to bring about the application
of these standards at national and international level
under the three-part declaration of principle on the
implementation of basic workers’ rights and human
rights (see point 8.2 above). The Committee therefore
urges that the campaigns to convince people of the
benefits of trade liberalization be stepped up and also
urges that a fresh attempt be made to reach international
consensus on this delicate issue. A WTO working party
would provide the appropriate platform for reaching
such a consensus. The Committee already welcomed in
an earlier opinion the introduction of special EC
tariff preferences to promote observance of labour and
environmental standards (1). The Committee deplores
the fact that many countries have failed to avail
themselves of these tariffs.

8.5.
The Committee recognizes that the best way to
raise labour and social standards in the developing
countries is to remove poverty and to establish demo-
cratic structures. Providing market access to products
from the developing countries, together with other
measures which seem appropriate and offering positive
incentives may help to achieve this goal. The Committee
also expects that the declaration formally adopted at
the ILC in June 1998 will have a positive impact.

9. Trade and employment

9.1.
The Committee takes the view that consideration
should be given to establishing a WTO working party
on trade and employment. The welfare benefits gener-
ated by international trade do not accrue to all the
partners involved in equal measure. In cases where
restructuring is necessary, individual regions and sectors
of employment have to meet temporary adjustment
costs, some of which may be considerable.

9.2.
In order to ensure that measures to liberalize the
global economy meet with broad acceptance, structural
change must be made as socially palatable as possible

(1) OJ C 40, 4.2.1999.

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for workers. The working party should examine practi-
cal ways of achieving this,
in the light of earlier
experience and instruments with protective clauses.

10. Trade and competition

10.1.
The Committee draws attention to the fact that,
in the ongoing process of globalization following the
extensive removal of national trade barriers, the develop-
ment of international competition is a very important
factor in improving living standards. Not only the
community of states but also an increasing number of
individuals are expressing their distrust of the growing
number of cross-border mergers and strategic alliances.
A system of rules governing international competition,
covering as many countries in the world as possible, is
required.

The Committee is aware that several possi-
10.2.
bilities are currently being discussed. Some experience
has been gained in the extra-territorial application of
national competition laws by means of cooperation
between various national or regional monopoly com-
missions. The principle of ‘positive comity’ is used in
this respect for the exchange of information between
monopoly commissions and as a basis for reciprocal
support. This form of international competition moni-
toring is however limited for a number of reasons.
Securing the relevant information about companies and
markets in other countries is an expensive business.
Furthermore, whilst one competition authority can
provide others with information on specific issues —
provided that it is made available by the firms concerned
— the individual authorities may well draw different
conclusions from such information since they do not
apply the same criteria. Bilateral arrangements are
bound in the end to lead to the establishment of opaque
provisions which always remain incomplete and open
to manipulation.

10.3.
In the light of the global trend towards large
cross-frontier mergers, the establishment of an inter-
nationally-recognized corpus of competition law, backed
up where possible, by a world anti-trust commission,
would be a very important step with a view to main-
taining market-economy competition structures.

10.4.
The Committee believes that progress at inter-
national level is likely to be achieved only very slowly
in view of the persistent strong trends in the industrialized
countries — and in the developing countries and
reforming countries, which are concerned about sover-
eignty — to pursue national interests. Furthermore, few
countries have up to now focused on competition policy
issues; the objective involved here is also markedly
different from the goal of commercial policy, namely to
open up markets and remove barriers.

by developing and transition countries has brought
about an increasing recognition amongst those countries
that open frontiers make it necessary above all for states
to be internationally competitive and that any form of
national preference serves to reduce this very competi-
tiveness. These states, too, now see the introduction of
their own competition laws as a means of promoting
international competitiveness. Over forty developing
and transition countries have introduced their own
competition laws over the last two decades. At the WTO
ministerial conference in Singapore, it was therefore
possible to reach agreement between all the member
states on the establishment of a working party to
examine competition issues. In this context UNCTAD
also provided clear examples in respect of its member
states of how low levels of competition hold back
development.

10.6.
Against this background the Committee joins
the EU Commissioner responsible for competition mat-
ters, Mr van Miert, in proposing that every effort be
made in the next round of negotiations to achieve what
is currently feasible. Even under the more difficult
circumstances which we currently have to face, attempts
could be made to:

a)

formulate a number of core competition law criteria
which should be incorporated into national pro-
visions governing competition, including those of
the developing countries. These criteria could
include, for example, a definition of restrictive trade
practices, the abuse of dominant market positions
and a number of provisions governing mergers;

b) reach agreement on a small number of basic inter-
national principles, covering issues such as how to
deal with export cartels or carving up of markets
along regional lines;

c) achieve general closer cooperation between national
competition authorities which could above all pro-
mote the exchange of experience and, in some cases,
the exchange of non-confidential information;

d) steps should be taken at least to consider the
development of machinery for resolving disputes in
which enterprises are also directly involved. Account
could be taken here of the experience gained in
applying the WTO disputes procedure.

10.7.
It is not absolutely essential to address in this
context the application of the WTO anti-dumping rules,
which have been criticised by a large number of
developing countries. Competition law and anti-
dumping law are, at least from an EU standpoint, issues
which are to be tackled at different levels.

11. Trade and investment

The Committee has however been pleased to
10.5.
note that increasing participation in international trade

Globalization is characterized not only by the
11.1.
rapid increase in international trade but also by the

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sharp increase in cross-border investment by enterprises
over the last decade; an additional defining feature is
speculative financial capital movements, which are not,
however, taken into account under the WTO system.
The key investing countries have in the past concluded
a large number of very divergent bilateral agreements
with the most important beneficiary states setting out
rules governing access to the market for investors, legal
protection and the settlement of disputes. Past experience
and the rapid increase in international direct investment
have highlighted the need for a regulatory system,
applicable to as many countries in the world as possible.

11.2.
Against a background of intensifying compe-
tition to attract and keep industry and under the pressure
of the current economic crises, many governments —
motivated by the need to create jobs — are endeavouring
to offer favourable conditions to foreign investors. It
has, however, so far not even been possible to conclude
a Multilateral Agreement on Investment (MAI) between
the OECD States. The causes of this lack of agreement
are political differences of opinion, inter alia the issue
of the extent to which such an agreement should
incorporate environmental and labour standards. Criti-
cal observers draw attention to a desire to achieve
perfectionism in the formulation of the target standards.

The Committee would, however, point out that a
long-term commitment of private foreign capital, to-
gether with the desired transfer of high-calibre know-
how and technology, will only be achieved if all the
basic conditions meet high standards.

11.3.
The question which arises, however, is whether
the rules on the settlement of disputes, agreed upon in a
MAI, will have to go so far as to entitle each individual
foreign investor to take proceedings against the govern-
ment of a country benefiting from investments. Granting
such a right to private investors is bound to be viewed
by many states as representing an unacceptable restric-
tion of national sovereignty which goes well beyond the
provision to be laid out in the MAI whereby domestic
and foreign capital are placed on an equal footing. Many
states are not prepared to subordinate their national
policies to such an extent to international economic
interests. The collapse of the OECD negotiations at the
beginning of December 1998 was therefore greeted with
sympathy by many developing and newly industrialized
countries. The efforts to perfect the rules in this field
have clearly gone too far.

11.4.
The Committee recognizes the need for a
uniform body of rules to be introduced at global level
as soon as possible. It had at an early stage advocated
that these issues be addressed by the WTO (1). Should
the OECD initiative not prove successful, the Committee
proposes that the WTO working party rough out an
international agreement on the basis of the OECD texts
and existing bilateral treaties. The Committee does,

however, feel that the cultural sector and traditional
copyright (particularly for writers, artists and actors)
should be excluded.

11.5.
The Committee calls for the key environmental
criteria and the core labour standards to be included.
They should however be included in such a way as to
preclude an improper protectionist interpretation of the
provisions (a task which is likely to be rather difficult).
Clear definitions and rules must therefore be set out.
The OECD guidelines in respect of multinationals
should also be taken into account in an appropriate
form. National states must continue to be entitled to lay
down investment conditions — which must be the same
for domestic and foreign investors — under their
national legislation covering the fields of labour-law,
social provisions, the environment and taxation. Experi-
ence has shown that foreign investment in developing
countries has helped to raise environmental and labour
standards. The MAI is to stipulate equal treatment for
foreign and domestic investors; this would rule out
failure to meet existing national standards.

11.6.
In this context it should, in the Committee’s
view, also be stipulated that special economic zones
must comply with the labour standards applicable in
the countries where they are located. Tax and customs
concessions and administrative facilities would still be
available as incentives for investors.

12. Electronic commerce

12.1. Whilst welcoming the progress made in telecom-
munications technology, the Committee has made a
number of critical observations in its opinions in this
field. It has recently issued an opinion on indirect
taxation (2). Economic transactions can now be carried
out and trade can be conducted in knowledge and
services through the use of electronic media. The supply
available to consumers is thus becoming more extensive
and cheaper. The electronic media also enable enterprises
in the less competitive developing countries to improve
their competitiveness. Small enterprises, in particular,
are thus able to offset disadvantages which they have
vis-à-vis large competitors. The use of electronic media
facilitates sales of particular products, since there is no
need to have a distribution network consisting of
‘bricks-and-mortar’ branches.

12.2.
If consumers and enterprises throughout the
world are to be able to exploit, from the outset and in
confidence, the opportunities presented by the new
technologies for facilitating, at lower costs, increased
trade which promotes living standards, a suitable legal
and regulatory framework will have to be introduced,
particularly in respect of data protection, legal certainty,
consumer protection and abuse of the Internet involving
internationally recognized offences. This framework
should, however, be flexible enough to avoid jeopardiz-
ing, on the one hand, the freedom of movement of

(1) OJ C 153, 28.5.1996, point 1.2.

(2) OJ C 407, 28.12.1998.

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suppliers and customers and, on the other hand, progress
in the further development of information and communi-
cations technology.

12.3.
The WTO is best placed of all the international
organizations to establish a framework which strikes a
balance between the above requirements. The pro-
gramme of work decided upon at the Ministerial
Conference held in May 1998 and enacted by the General
Council in September 1998 therefore deserves the EU’s
full support. This does not, however, rule out a valuable
contribution being made by the OECD with a view to
clarifying somewhat complex issues, such as taxation,
consumer protection,
intellectual
property, confidentiality, electronic signatures.

the protection of

12.4.
The proposal by the US government that the
Internet be declared a free trade zone and that all
products and services supplied through digital trans-
actions be exempted from customs duties and other
taxes should be carefully considered by the international
community. The agreement on exemption from customs
duties — which expires at the end of 1999 — sealed at
the second WTO ministerial conference held in May
1998 should provide an adequate test period.

The Committee believes that particular prob-
12.5.
lems also arise over the taxation of digital services. If
we are to have a fair taxation system, there will have to
be equal taxation for equal transactions, irrespective
of whether operations are carried out physically or
electronically.

12.6.
The Committee takes the view that the introduc-
tion of a ‘bit tax’, involving a form of transaction tax

Brussels, 27 January 1999.

on the quantity of data transferred to data networks,
would not be the right approach. Such a tax, which would
only be levied on businesses transactions conducted
electronically, would curb the growth and employment
potential of this medium and limit the scope for private
initiatives and creativity.

As the Committee pointed out in its most recent
12.7.
opinion on electronic commerce and indirect taxation,
the European and US authorities are considering introdu-
cing tax provisions in respect of electronic commerce,
working in close liaison with the business community.
This consultation should embrace representatives of
commerce, enterprises and all other social and economic
groups, in particular consumers and employees. Concern
has been expressed over the fact that tax measures taken
without consideration of the global context could have
damaging effects on economic achievement, investment
and the employment situation (e.g. the shifting of
production to other countries, the creation of a climate
which hampers investment, and a loss of competi-
tiveness). In its opinion the Committee warned against
formulating ad-hoc solutions with regard to the taxation
of electronic commerce. This form of commerce, which
forms part of a root-and-branch restructuring of society
and the way in which business enterprises operate, is
creating new problems for all areas of the taxation
systems. Furthermore, there is currently a tendency
further to increase the tax burden on labour, thereby
making taxation systems increasingly unfair.

In its opinion the Committee put forward
12.8.
detailed observations on the ideas set out by the
Commission and drew attention to a number of contra-
dictions.

The President

of the Economic and Social Committee

Beatrice RANGONI MACHIAVELLI