. /.WORLD TRADE
ORGANIZATIONWT/MIN(99)/ST/87
2 December 1999
(99-5297)
MINISTERIAL CONFERENCE
Third SessionSeattle, 30 November - 3 December 1999Original: English
LAO  PDR
Statement by H.E. Mr. Siadsavath Savengsuksa
Vice-Minister, Ministry of Commerce and Tourism
(As an Observer)
The Director-General of the World Trade Or ganization, Mr. Mike Moore, has pointed out
more than once since his appointment that the least-developed countries are not enjoying fully the
benefits of the global system of open trade.  The Lao People's Democratic Republic sees itself as oneof those economies.  Per capita income in Lao PDR is US$350.  Three quarters of our people work in
subsistence in rural areas.  Infrastructure is weak.  Trained human resources are scarce.
The Lao PDR endorses the calls by others for this round to meet the needs of developing
countries.  This requires undertakings made in the Uruguay Round to be fully implemented and forthis round to focus on core issues.  Non-trade issu es such as labour standards and environment should
be addressed in the appropriate international institutions, not the WTO.  The provisions of greater
access in world markets for the products of developing economies is the single most important thing
the WTO can contribute to improvement of the standards of living of the people of the developing
world.
Lao PDR has applied to join the World Trade Organization so it can fully integrate into the
global trading system.  The Government of the Lao PDR regards membership of the WTO as a
necessary step in the process of modernizing its economy.  The strategy of the Government is to build
growth and prosperity with a market-based economic system.
The aim of the Lao PDR is to complete accession in time to participate in the latter phase of
the multilateral round of trade negotiations which governments have gathered here in Seattle to
launch.  We expect changes will be made to wo rld trade during that round which will be very
important to the Lao PDR.
Lao PDR expects to secure economic benefit from accession to the WTO.  Lao PDR expects
that adoption of WTO rules and obligations will lead to a more productive private sector, higher levels
of foreign investment and a better functioning market mechanism.
Lao PDR also expects tangible trade benefits from membership.  Lao PDR values the right to
non-discrimination which membership of the WTO pr ovides.  Because the Lao PDR is not a member
of the WTO it is not entitled to non-discriminatory treatment of its exports by other countries.
Lao PDR has export interests where membership of the WTO can deliver better opportunities
in foreign markets.  Garments are an important export from the Lao PDR.  The capacity of our
garment manufacturers to export is restricted by trade barriers in major import markets.  Lao PDR isaware that long term liberalization of world garment markets through the WTO will create better
export opportunities.WT/MIN(99)/ST/87
Page 2
Agriculture is also an important export sector fo r Lao PDR.  Many barriers exist to exports of
agriculture.  Like in garments, Lao PDR is aware that liberalization through the WTO will create
better export opportunities.
The Lao PDR is also a landlocked country.  Free dom of transit through third countries is vital
for Lao PDR trade.  The right of freedom of transit which is provided by WTO rules will be very
important to the Lao PDR.
We are aware that to join the WTO we will have to align our laws and practices to WTO
standards and introduce some new laws.  We will have to eliminate non-tariff barriers, reform import
licensing, bind tariffs and introduce new laws for intellectual property and services.
This is a large task.  Accession to the WTO will challenge the capacity of a Lao PDR
institutions and capabilities.  The Lao PDR has received support from a number of countries and
organizations for preparation for accession.  And toda y I would like to record formal appreciation for
that support.
For its part, the Government of the Lao PDR is committed to take the steps necessary to
accede.  The Lao PDR is already midway through a comprehensive review of laws and decrees.  We
can incorporate changes to meet WTO requirements into that process of review.
The Government of the Lao PDR is committed to building growth and prosperity in a market
oriented economy.  I repeat that we recognize that membership of the WTO will support that goal.
We are a least-developed country and we therefore ask for just one thing from Members of the WTO
as we proceed through the accession process.  We respectfully request that they recognize the very
real constraints which our limited human resources impose on our capacity to adopt and operatecomplex administrative arrangements.
In conclusion I would like to urge the Members of the WTO to show the necessary flexibility
to agree on a successful launch of this trade round.  The opening of world markets to exports from
developing economies, in particular least-developed countries, which can be achieved in this round
would give very valuable support to our efforts to improve the standards of living of our people.
__________