WORLD TRADE WT/MIN(98)/ST/13
18May1998
ORGANIZATION(98-2012)
MINISTERIAL CONFERENCE Original: English
Second Session
Geneva, 18and20May1998
ITALY
Statement Circulated byProf. Augusto Fantozzi,
Minister ofForeign Trade
1. Ontheoccasion ofthesecond WTO Ministerial Conference, theimportant results achieved
inthe18months following theSingapore summit should befirstofallunderlined. Infact,three
paramount agreements have been reached instrategic sectors oftheworld economy (Information
Technology, Telecommunications andFinancial Services) andthisconfirms thestrong determination
withwhichWTOMembercountriesovercomealldifficultiesandproceedalongthepathofliberalization.
Anotherimportanttargetwasreachedduringthetop-levelmeetingonLeastDevelopedCountries(LDCs),
which laidthefoundations foracoordinated effort ofInternational Organizations aimed atpromoting
agreater integration ofthese countries intothemultilateral system. Furthermore, theimplementation
oftheagreements reached issatisfactorily under way,incompliance withthecommitments undertaken
atMarrakesh andsubsequently. Progress isalsobeing made inthenumerous negotiations onaccession,
thehopefully rapid conclusion ofwhich willtransform theOrganization intoatrulyuniversal body.
Allthisconfirms theviability ofthesystem andencourages ustopushahead withaprocess thatstarted
50years ago. Weshould takeadvantage ofthecurrent momentum andleapintotheyear2000 with
thelaunching ofanewround ofcomprehensive multilateral negotiations.
2. Thecommitment tonegotiate incertain sectors isalready contained inourworking programme,
which willhave tobecompleted withtheinclusion ofother issues suchasindustrial tariffs, the
relationship between Trade andInvestment, Trade andCompetition, Trade Facilitation, Public Tenders,
etc.The2000 round ofnegotiations willthusbethegreatest effort ofliberalization andwillallow
ustoadequately meetthedemands oftheworld economy.
3. Theestablishment ofWTO anditsfirstyears ofactivity coincide withaperiod ofgreatattention
devoted bycivilsociety tointernational trade. Itfollows thatwehavetodulytakeintoaccount the
requests made bythose groups thatsofardidnottakepartinournegotiations anddecisions. These
requests reflect themost immediate interests ofcitizens, suchasenvironmental protection andthe
protection ofhuman health. Broadly speaking, wehavetomake ajointeffort toovercome thedoubts
andreservations thatarefrequently being voiced withregards totherealadvantages ofliberalization.
Inother words, wehavetodevote greater attention totheproblems ofthemostdisadvantaged groups
andofdeveloping countries. Within anOrganization which isgoing tohaveauniversal nature and
isbased onconsensus, themultilateral system should notbeperceived onlyasasource ofobligations,
butalsoasasource ofbenefits. Theroleofdeveloping countries isessential toreach thistarget.
4. Many people areconcerned about themost recent phenomenon intheworld economy, i.e.
globalization. Idon'twant todescribe theorigin andcharacteristics ofthisphenomenon which, in
myopinion, isbound tolastforseveral years. Alothasbeenwritten about thissubject andendless
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debates havebeenheldattheinternational level. Today, Iwilljustunderline thepositive function
ofglobalization anditscontribution tosolving thedilemma ofregionalism vs.multilateralism.
5. Theprocesses ofregionalism which haverecently gathered momentum cannot butcreate a
globally-integrated economy, sincethechoices made byprivate individuals aswellasnational economic
policies willbeincreasingly dependent onwhathappens inother distant regions oftheworld.
6. Morethaneverbefore,theglobaleconomywillneedamultilateralsystemwhoserulesguarantee
theorderly development ofinternational trade. Ifthisisthetrend, andIbelieve thatitis,itisupto
ustoensure thatthenextphases oftheadjustment process takeplace infullcompliance withthe
principles andrules ofWTO.
7. Although regionalism andmultilateralism aresometimes described asantithetical, there are
many people -myself included -whomaintain thatregional integration significantly contributes to
theglobal liberalization oftrade. Ofcourse, itisimportant tomake surethattheadvantages thatsome
countries undoubtedly derive from regional liberalization donotcreate disadvantages attheexpense
ofcountries thatdonotbelong tothesamearea. Asweallknow, thetrading partners oftheCommunity
haveattached agreatimportance tothisaspect andfollowed withgreatattention theagreements reached
aswellasthesubsequent enlargements oftheEuropean Union.
8. Inthisregard, Ithink thatitwould beinteresting tocarefully analyze theexisting rules and
seeforexample ifthedifferent treatments applied tofreetradeareasandtocustoms unions arejustified.
9. Afirstimportant steptoward amore homogeneous assessment oftreatments wasundoubtedly
theestablishment oftheCommittee onRegional Trade Agreements, which provides aglobal vision
ofthenumerous initiatives which previously were analysed onaseparate basis. Animportant task
oftheCommittee isthatofconsidering thesystemic implications ofregional agreements forthe
multilateral system andmaking appropriate recommendations totheGeneral Council. Iamconvinced
thattheCommittee willperform thisfunction inthebestpossible way,thushighlighting those aspects
ofregionalism thataremore conducive tothedevelopment ofamultilateral system.
10. Itherefore believe thatthere areallthenecessary guarantees toensure thatregionalism and
multilateralism coexist infullcompliance withtherights ofeachWTO Member andwiththecommon
aimtopush ahead with theliberalization process within aframework oftransparent and
commonly-accepted rules.
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