
First
there was the success of the Singapore Ministerial
Conference, which built on the achievements of the WTO's
first two years, and laid a firm political foundation for
future progress. Understanding the reasons why Singapore
was such a success can help us to see what is needed to
ensure similar success on future occasions. First
of all, skilful chairmanship of the conference played a
very important rôle. Furthermore the preparatory work
that was done before we reached Singapore was of critical
importance. This underlines the value of using to the
full the possibilities of a combination of formal and
informal processes in order to reach a working consensus
on many issues before the start of the meeting. The
success of this process was demonstrated by the fact that
we went to Singapore with only two major political
problems - the question of labour standards and the
so-called "new issues". These may have been
complicated in political terms, but by the time they
arrived in Singapore, the issues involved had been
usefully clarified and all the elements for a political
agreement were already on the table.
But
all this would have been insufficient without the
flexibility and commitment to the multilateral system
that all WTO members demonstrated in Singapore. In
particular, I want to pay tribute to the very significant
and positive rôle played by many developing countries.
They have been the real key to success. This leadership
rôle has gone a long way to reinforce the sense of
partnership and shared responsibility that has replaced
the old North-South division.
Furthermore,
the success of the Information Technology Agreement added
a concrete liberalizing dimension to the Singapore
achievement - one which was confirmed in March this
year. And no one should underestimate the rôle played by
APEC in shaping the outcome of this Agreement.
As
we all know, the ITA was closely followed by the historic
agreement to liberalize basic telecommunications
services. These sectors involve the raw materials of the
future - knowledge and communication. By
establishing liberalizing commitments and rules in these
areas, we are truly extending the positive impact of the
trading system into the 21st Century. Industrialized
and developing countries alike have joined in these
agreements knowing that by doing so, they are investing
in the basis of future global growth.
These
agreements have underlined and confirmed the success of
the WTO's first two years. The effectiveness of the
dispute settlement procedure, for example, was clear from
the beginning, and it continues to be reinforced as
sensitive and significant cases are either ruled on or
- preferably - encouraged to find an
"out-of-court" settlement. The greatly
increased use of the system by developing countries is
further strong testimony to its credibility.
The
WTO's record of success has given a powerful boost to
what was already a very ambitious agenda. The most
immediate single priority is the negotiations on
financial services. The key point I would like to make is
that we have reached a very important point in the
liberalization of goods and services, and that a success
in financial services is essential to help ensure each of
you - industrialized and developing countries
alike - the necessary infrastructure for growth.
My
message is: do not see this negotiation in North/South
terms. Developing countries, whatever their economic
position, have an even stronger need for competitive
financial institutions.
Only
in liberalizing this sector can you be in a position to
ensure that capital is used efficiently to promote the
growth of domestic industry, and only in this way can you
be in a position to compete in the tough financial world
of the future, where capital markets will be under very
heavy pressure.
This
is why we must conclude an agreement on a fully m.f.n.
basis this year. To do so will require an extra effort on
all sides - but not to do so should be as
unthinkable as it would be short-sighted.
Another
very high priority is the accession negotiations. The
28 candidates range from giants like China and
Russia to small island States - all are developing
countries or economies in transition. I have just
returned from China, and I came away with a very positive
impression of the Chinese Government's commitment to
becoming a WTO member. Now, as we approach the final
stage of the Chinese accession process, there is a need
for flexibility on all sides and a determination to
resolve the crucial outstanding issues in the
negotiations. The success of this negotiation is a shared
responsibility, and it can be assured only if we keep up
the momentum established earlier this year. In concrete
terms, this means making substantive progress on both the
rules issues and market access in the near future.
Another
element of great importance in our agenda for this year
is the High-Level Conference on the Least-Developed
Countries which is to be held in the end of October. This
is a commitment from Singapore which we should all take
with the utmost seriousness. A global trading system
worthy of the name must also embrace the poorest
countries. This Conference will offer some genuinely new
approaches in the effort against marginalization of the
least-developed countries. It will promote a more
thorough integration of technical assistance in the field
of trade among various agencies concerned that we have
seen before. It will give a further boost to the already
promising cooperation between the WTO and other agencies
- particularly the World Bank - in using
new technologies to extend the reach and the
effectiveness of our technical assistance. It will also
provide a focus for renewed efforts to improve access to
export markets for the products of least-developed
countries.
Last
but not least, our agenda includes the preparation of the
50th Anniversary of the multilateral system and the
next Ministerial Conference. It appears to be generally
accepted that these two events should be held in
conjunction in the first half of 1998. There is now an
urgent need to agree on the date. There is also a need to
send a clear and positive message from political leaders
about the importance of this Organization's rôle in the
era of globalization.
We
hear a good deal about the costs of global economic
integration. But the message about the opportunities of
globalization is not coming through so clearly. The
50th Anniversary will be an unparalleled opportunity
for Governments to underline the immense opportunities
for progress, growth and peace represented by global
economic integration.
The
Ministerial Conference might also discuss how to improve
the functioning of the WTO, taking into account its
widening and deepening scope. It should also take stock
of the continuing progress in implementing our
liberalizing commitments, and look forward to the renewed
negotiations in important sectors such as agriculture and
services which are on the near horizon.
The
liberalization process is moving forward continuously at
the multilateral level, because of the implementation of
Uruguay Round commitments, because of accession
negotiations and with the input of regional
liberalization, not least through APEC. It may also prove
possible to turn our attention to other ideas which could
extend the frontier of liberalization, especially in the
area of new technology.
In
all of these important tasks ahead of us, APEC is well
placed to play a leading and creative part. As a new
configuration in international economic relations, APEC
has played a very valuable energizing rôle, at the
multilateral level as well as regional. As the
Asia-Pacific region becomes more and more important in
the world economy, so the impact of what you decide in
APEC assumes a greater global significance. I see your
invitation to me to join you here in Montréal as a
further sign of the complementarity that can and must
link regional initiatives and multilateral trading
system. I am sure that this complementarity will continue
as governments move forward to take up the opportunities
of freer trade and a more integrated world economy at
both the regional and multilateral levels.
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