RESTRICTED
WORLD TRADE WT/GC(95)/ST/20
12February 1996
ORGANIZATION(96-0304)
Original: French GENERAL COUNCIL
13and15December 1995
HUNGARY
Statement byMrs. A.Ivanka
FirstSecretary, Permanent Mission totheWTO
Nineteen ninety-five willgodown intheannals oftheWTO asaturning point inthehistory
oftheworld trading system. Indeed, following aperiod ofcoexistence between GATT 1947andthe
WTO themultilateral trading system developed under theauspices oftheoldGATT hasacquired a
newimpetus within theframework oftheWTO, where ithasbeenreinforced andextended tonew
areas.
Iwould liketotakethisopportunity tostress thegreat importance thatHungary attaches to
theWTO multilateral trading system based onasetofrules, andtothecontinuing liberalization of
international trade, without which thatsystem would notbecredible.
Hungary welcomes thestrengthening ofmultilateral trade rules anddisciplines within the
framework oftheWTO andintends torespect themandtoensure thattheyarerespected, bothatthe
multilateral andthenational levels. Weare,andweshallremain, committed totheruleoflawin
international economic andtrade relations asembodied intheWorld Trade Organization.
Three main themes characterize thework oftheWTO initsfirstyear:
- Thesetting upofthevarious different elements ofthenewinstitution;
- thecontinuation ofnegotiations oncertain issues inthefieldofservices leftoverfrom
theUruguay Round;
- theimplementationoftheMarrakeshAgreementsatthenationallevelandtheapplication
ofprovisions forthemultilateral monitoring ofthose Agreements.
Thetaskhasbeen, andremains, adifficult oneandprogress hassometimes beenslower than
wewould haveliked. Nevertheless, wecanrestassured today thattheresults ofourefforts are
unquestionably positive: theinstitutional structure oftheWTO hasnowbeencompleted withtherecent
appointment ofmembers oftheAppellate Body andthenegotiations onfinancial services andmovement
ofnatural persons were completed onschedule, eveniftheparticipation ofcertain Members orthe
degree ofcommitment didnotalways liveuptoexpectations. Other negotiations areunder waywith
aviewtoliberalizing other sectors, andmydelegation hopes thatthey,intheirturn,willbeconcluded
onschedule sothatwecanstartlooking further ahead attheSingapore Ministerial Conference.
Inhisannual report, theDirector-General provides adetailed description oftheWTO 'sactivities
anditsfuture tasks. Formypart,Iwishtotouch onthree subjects only:
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Thisfirstyearofimplementation oftheWTO Agreements willsurely remain engraved inthe
memory ofourcolleagues inanumber ofcapitals asthe"year ofnotifications". Indeed, thedramatic
increase innotification obligations ofallkinds under theWTO Agreement hasledtoanenormous
work overload inthatarea.
Mydelegation isfirmly convinced thatifwearetorespect theobligations wehaveassumed
andifthemultilateral system based onrules istofunction properly, there must betransparency in
trade policy. Oneoftheessential ways ofensuring thattransparency istonotify thedifferent laws
andothermeasures adopted intheareaoftrade. Andyet,fewWTO Members actually metthedeadlines
associated witheachoneoftheirnotification obligations. Thereasons varyaccording tothecountry,
andinhisreport, forexample, theDirector-General speaks oftheparticular problems ofthesmall
developing countries. Butthereareotherproblems thatIwould liketomention: namely, thedifficulties
encountered bysmall administrations faced withradical budgetary restrictions whose official language
isnotoneoftheWTO languages and,above all,whose lawsandeconomic andtrade policies are
undergoing rapidandsubstantial transformation. Itisnoteasyforsuchcountries torespect thestipulated
deadlines. Wetherefore think itwould bewisetoreflect onthepossibility ofintroducing somewhat
more flexibility inthesystem ofnotifications inorder topermit thenotification within thesetdeadlines
ofcertain lawsandother legalactsinthelanguage oforigin while awaiting atranslation intooneof
theWTO languages. Thiswould permit theMembers concerned toputtheircards onthetable as
proof oftheirgoodwill without actually exempting them from theirbasic obligations.
Oneoftheprincipal objectives assigned bytheMinisters fortheWTO atthesignature ofthe
Marrakesh Agreement wastheachievement ofgreater coherence inglobal economic policy making.
Tothatendwedeveloped, already several months ago,asetofguidelines forcooperation withthe
IMFandtheWorld Bank. Itisessential thatwenowconclude cooperation agreements withtheIMF
andtheWorld Bank asquickly aspossible sothatwecanextend thatcooperation beyond theconfines
ofArticles XVoftheGATT 1994 andXIIoftheGATS.
Asthisfirstyearofexistence oftheWTO draws toaclose, weshould alsoturnourattention
tothemain themes ofouractivity for1996, theyearofthefirstMinisterial Conference.
Tobegin with, wemustobviously continue ourimplementation activities bothatthenational
andmultilateral levels. Itisalsoessential thattheongoing negotiations (basic telecommunications,
maritime transport) should besuccessfully concluded within thestipulated deadlines inorder toclear
thewayforfuture liberalization inother sectors, including thetraditional sectors.
Obviously, wemustprepare ourselves forthefirstMinisterial Conference tobeheldinyour
country, Mr.Chairman, Singapore. Theeconomies ofourdifferent countries areinvolved inarapid
process ofglobalization andintegration, andwethink thatiftheWTO istoretain itscredibility and
itsrole,itmust keepabreast ofthose developments andadapt itsownactivities accordingly.
Wethink thattherearetwoadditional areas towhich theWTO should turnitsattention: trade
andinvestment, andcompetition. Inthelightoftheforthcoming Ministerial Conference inSingapore,
itwould bewisetobegin thinking about these questions assoonaspossible.
Wearefirmly convinced ofthelinkbetween thesuccess ofinternal reforms ontheonehand,
andtheexistence, ontheother hand, ofanopenmultilateral trading system thatleadstowards increased
liberalization while atthesame timeestablishing asetofrules anddisciplines tohelpgovernments
combat theinevitable protectionist pressures.
Itiswiththisrelationshipbetweeninternalreformandthedevelopmentofthemultilateralsystem
inmind thatweprepare ourselves forthe1996 agenda.