WORLD TRADE WT/MIN(96)/ST/121
12December 1996
ORGANIZATION(96-5308)
Original: Spanish MINISTERIAL CONFERENCE
Singapore, 9-13December 1996
GUATEMALA
Statement byH.E. Dr.JuanMauricio Wurmser
Minister ofEconomy
Ishould liketobegin byexpressing toyouourmost sincere congratulations. From our
experience inrecent days, wecanfullyconfirm thatthework ofthisveryimportant event hasbeen
most ablyandwisely conducted.
Ourprofound gratitude alsogoestothepeople andGovernment ofSingapore fortheirgenerous
hospitality andtokens ofwarm consideration.
After alonganddifficult process, thearmed conflict inGuatemala, which haslasted more
than35years, isdrawing toaclosethrough political negotiation andcommitment, andthishasinvolved
virtually allsectors ofGuatemala 'ssociety. Thefirmandlasting peace agreement willbesigned on
29December inGuatemala City, thusputting anendtothelastofthethree armed conflicts which
haveshaken Central America.
Sincethebeginningofhismandate,PresidentAlvaroArzúhastakendecisionsandgivenimpetus
toaction thathavesetthecountry ontherightcourse. Inthisregard, Ishould liketoemphasize three
fundamental points.
Firstly, what ishappening inGuatemala isaresponse toadeliberate planforchange and
transformation towards thorough democratization ofoursociety. These arenotisolated, fortuitous
orarbitrary acts,noraretheytheoutcome ofchance. They areconsistent efforts togivesubstance
totheprincipal aspirations ofGuatemalan society: tocomplete thepeace negotiations, thereby bringing
security tothepopulation, toengage inavigorous campaign against impunity anddiscrimination, and
tofoster themodernization ofthecountry -allforthepurpose ofenhancing thequality oflifeofall
Guatemalans.
Thesecond partisthatthisisanongoing search toshare theburden inahighly diverse society
thatistrying toovercome itsspecial features anddifferences andsoopen thewaytonational
reconstruction isanendeavour thatisbased onthemostprofound unitywithin thatverysamediversity.
Thethirdpoint isthataglobal effort hasbeenundertaken byallsectors ofsociety, notonly
theGovernment, since theaimistoshape thenewrelations androles thatwillbeplayed bysociety
andtheState, andalsothemost viable andconcrete paths forcoexistence inareconciled country.
Itisalsoimportant toemphasize yetagain thevaluable backing oftheinternational community,
andespecially theencouragement given tothenegotiations bythegroup offriendly countries (the
United States, Mexico, Norway, Spain, Colombia andVenezuela), support forwhich thepeople and
Government ofGuatemala aregrateful andonwhich theysetgreat store.WT/MIN(96)/ST/121
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Inshort, conditions nowaresuchthatheadway canbemade infields where previously itseemed
impossible. There isincreasing room fororganized popular participation, because nowtheGovernment
notonlycommands thepolitical legitimacy thatisnurtured bypeace butitalsohastheproven will
tomove forward onthebasis ofconcrete achievements. Thewhole ofGuatemala nowfaces the
enormous challenge ofdomestic reconciliation andiscalled ontomature asacountry andasasociety.
Twoyears agowemetinMarrakesh tocomplete animportant stage intheeconomic lifeof
ournations, mindful thattheinterdependence ofthenewworld economic order demanded ageneralized
effort atliberalization andaneffective contribution tothemultilateral system. Guatemala accepted
theresults oftheUruguay Round asabridge tothefuture, asameans ofsecuring justandequitable
terms oftrade tosetthecountry onthepathtowards prosperity anddevelopment.
ThisConference istheappropriate framework forengaging inacritical assessment ofthefirst
twoyears inthelifeofourOrganization andtorenew thepolitical willofallMembers tocomply with
thecommitments already entered into. Guatemala, foritspart,hascome tothisforum precisely in
thisspirit.
Although mycountry made major efforts todevelop itseconomy, including, ofcourse,
implementation ofthecommitments toopenuptrade thatstemfrom itsmultilateral obligations, the
armed conflict unquestionably added aheavy burden tothistaskandwasultimately anobstacle to
attaining levels ofgrowth equal totheefforts ofthepeople.
Thisexperience hasstrengthened Guatemala 'sdetermination tosupport theintegration process
inCentral America, aregion which cannowbeseenbytheworld asaregion ofpeace andreconciliation,
committed tostrengthening democracy. Theworld knows thatthepeace isfragile andhasaroused
great expectations inourpeoples. Forthisreason, thepartners intrade whoprovide uswithtrade
opportunities willalsobeCentral America 'spartners inpeace.
With aview toachieving fullintegration intointernational economy andtrade, the
Central American countries havebrought theregion 'strade rules intolinewiththerequirements of
theWorld Trade Organization. TheCentral American integration process isentirely inkeeping with
themultilateral commitment toopening uptrade, because farfrombeing abarrier tothirdcountries,
integration means anexpanded andmore attractive market forourtrade partners. Thisisevidenced
bythefactthat,intheperiod 1990-1995, imports from thirdcountries almost doubled.
Tofoster effective Central American integration asamechanism topromote thegrowth of
theregion sothatitcanfullydevelop itspotential, Central America needs toimprove market access
fortheexport products inwhich weareefficient andcompetitive, andtomove intonewareas that
arecritical foroureconomic development.
With theestablishment ofthenewworld trade order, wesought tostrengthen, develop and
broaden GATT rulesanddisciplines, introducing clearer andmore transparent rules. Fordeveloping
countries, implementation isundoubtedly oneofthemostrelevant points ontheagenda, perhaps the
mostimportant, andwetherefore regret thefailure toimplement theWTO Agreements insectors vital
totheeconomies ofCentral America. Itisdisturbing tofindthatprotectionism isstillalive, andthe
process ofeliminating itisslowandparticularly costly fordeveloping countries.
Inagriculture, westillseenopositive effects. Inthisregard, weurgethemore developed
countries toinitiate, assoonaspossible, further worldwide agricultural reform andtoputanendto
theirdomestic policies forproduction support andexport subsidies inthissector, which definitely make
uslesscompetitive thandomestic producers and,whatismore, distort andunbalance world trade.WT/MIN(96)/ST/121
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Norhavetheeffects beensatisfactory intextiles andclothing. Themainimporters mustinclude
intheinitial stages oftheirintegration withWTO rulesthecategories oftextiles andclothing thatare
aspecial interest toCentral American countries. Itisalsodisturbing thattransitional safeguards are
applied without restraint and,worse still,insuchawayastobeinconsistent withtheAgreement 's
provisions andprocedures. Members mustfulfiltheundertaking togrant significant access increases
toproducts fromsmall suppliers andtodevelop opportunities inmarkets thatarecommercially important
fornewentrants.
Itisappropriate toemphasize thesignificant advance represented bythenewdispute settlement
system, which nowhasmore clear andtransparent rules. ForallMembers, above alldeveloping
countries, itisasuitable means ofresolving tradedisputes, especially when theymanage tomake their
claims heard during theconsultation phase. Wealsoconsider thatthemultilateral system willbe
strengthened asallMembers faithfully abide bypanel reports.
Asource ofserious concern fordeveloping countries liesintheinitiatives tolinktrade to
unrelated issues asawayofimposing conditions onmarket access, thereby invalidating theadvances
inremoving non-tariff barriers, when some ofthose issues fallwithin thejurisdiction ofother forums.
Inparticular, Iwishtorefer tothelabour standards issue. Guatemala isasignatory ofthe
Universal Declaration ofHuman Rights andamember oftheInternational Labour Organization. As
anation, wehaveundertaken tosecure participation bythelabour sector inthebenefits ofeconomic
growth fostered byincreased trade. However, weconsider thatthisissue should bediscussed inthe
onlyqualified forum, which istheInternational Labour Organization. Wedefinitely reject anyinitiative
totiethelabour issuetotradeortoutilize labour standards asarguments fornegotiation andfortrade
pressures.
Wealsowishtomention other issues raised inthisConference. Inthecaseoftheenvironment,
Central America hasincluded itinitsregional agenda, inthecontext ofourAlliance forSustainable
Development. Inourview, environmental considerations cannot beusedasbarriers totrade.
Withreference togovernment procurement, mycountry doesnotobject totheaimofmaking
theprocedurestransparentandfreeofdiscriminationbetweensuppliers.Guatemala'sdomesticlegislation
contains rulesintended precisely toguarantee these goals, inkeeping withthecountry 'soverall legal
system.
Amatter ofvitalimportance toGuatemala isthepromotion ofinvestment asameans ofcreating
jobs,generating foreign exchange, andtransferring technology. Guatemala supports theestablishment
ofagroup tostudy thistopic, without prejudging itsfindings, foritaffords anopportunity toexpress
ourconcerns andgoals. Weneedstable, realandeffective foreign investment thatrespects ourlegal
system andmeets theobjective ofcreating economic well-being forthecountry.
Guatemala ispursuing andgoing further withanopen, transparent policy oftradeinbothgoods
andservices, instrict observance ofWTO rules anddisciplines. Ourhopeisthatourtrade partners
willdothesame, inkeeping withtheprinciple ofsolidarity among nations, which isthefoundation
andultimate justification ofanymultilateral system.
Thispolicy iswidely supported byallsectors ofGuatemalan society andenables ustoreiterate
ourcommitment toactive andresponsible participation intheWTO.