WORLD TRADE
ORGANIZATIONWT/MIN(99)/ST/67
1 December 1999
(99-5296)
MINISTERIAL CONFERENCE
Third Session
Seattle, 30 November - 3 December 1999Original:  Spanish
NICARAGUA
Statement by H.E. Mrs. Azucena Castillo
Minister of Development, Industry and Trade
Nicaragua has come to this Third Conference with the intention of supporting a new round of
negotiations that will level the playing field in which we have been operating since 1950.
I should like to make some remarks on the need to achieve palpable results in this new stage
of negotiations that will lead to (a) an improvement of the conditions of access of the goods and
services of the small economies, (b) an extension of special and differential treatment and
(c) strengthening of the dispute settlement system.
Market access
Nicaragua fully participated in the multilateral negotiations held as part of the Uruguay
Round and has fully carried out all its commitments.  Placing its confidence in free trade and viewing
the WTO as a central pillar of that system, Nicaragua has carried out substantial reforms in its trade
policy, including unilateral tariff reductions and the granting of greater access in the services sector,
but we are still waiting for all the Members of the WTO to make similar efforts.
The concrete results that Nicaragua expects to obtain from a new round of negotiations on
market access are:  significant access for agricultural products, and the elimination of subsidies,
accompanied by a general review of all disciplines, in particular those relating to tariff quota
allocation and administration.
Relationship between the foreign debt and market access
My Government firmly believes that a lasting solution to the foreign debt problem facing
highly indebted poor countries such as Nicaragua cannot be separated from the question of access tothe world's largest markets.  As my Government stated during our first trade policy review a few
weeks ago we cannot ignore the fact that to a large extent the origin of the debt problem lay in the
lack of export opportunities.  It is for this reason that Nicaragua considers it to be of vital importance
that this Third Ministerial Meeting of the WTO show an awareness of the significance of substantial
and preferential access for the highly indebted poor countries, so that they can meet the complianceexpectations of implementation on the part of the developed countries, which are now advocating new
measures that would operate to the detriment of our competitive advantages.
I should like to take this opportunity to express our sincerest gratitude to the countries that
have recently supported Nicaragua's eligibility for the Highly Indebted Poor Country Initiative, to the
Group of Seven for its decision to broaden the scope of that Initiative and to the governments that
have subsequently put forward proposals for a definitive and lasting solution to our debt problem.  Tothose same countries that are present here we are requesting a similar set of policies within the WTO.WT/MIN(99)/ST/67
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Accordingly, at the new WTO negotiations, it is vitally important to achieve greater
cooperation and interaction between the World Trade Organization and the international financial
agencies such as the International Monetary Fund and the World Bank, so as to avoid coming into
conflict with the conditions laid down by the ad justment and structural reform programmes that
restrict the implementation of commitments made within the WTO.
Special and differential treatment:  fair and equitable treatment
- Inadequacies of the current special and differential treatment
Nicaragua, as a small developing economy subject to the strict disciplines imposed by severe
structural adjustment, is requesting, as a significant means of helping towards the development of thesmall economies, an extension of special and differential treatment.
The so-called special and differential treatment resulting from the Uruguay Round has not
been sufficient to guarantee better access conditions for the small economies.  Moreover, the
reduction in the MFN tariffs after the Uruguay Round has contributed towards the erosion of theGeneralized System of Preferences (GSP) to the detriment of the competitiveness of the developing
countries.
Furthermore, the distortions introduced into trade in agriculture by the developed countries
that can pay domestic subsidies are increasing, thereby undermining the very limited participation bythe small economies in international markets and causing serious social repercussions by endangering
one of their few areas of participation in world trade.
The current fall in the world prices of basic agricultural products has clearly revealed the
vulnerability of the economies of countries such as Nicaragua.  The WTO has an obligation to carryout an urgent review of the agricultural trade po licy on agriculture approved in the Uruguay Round, so
that the developing countries can also share in the benefits and opportunities of a balanced
liberalization of trade that takes account of each country's productive structures and its influence in
the international system of supply and demand.
The principle that trade is a means of raising the standard of living of our peoples, and not an
end in itself, must prevail in this forum so that we all – all the countries taking part – achieve positiveresults.  Consequently, we are calling for a fair system in the WTO that will ensure access for our
agriculture under transparent and competitive conditions.
There are reasons for this.  It needs to be repeated that the obstacles facing the developing
countries are many, low levels of industrialization, a lack of access to new technologies, excessivedependency on the trade in primary products and a high degree of exposure to the volatility of
international prices, a lack of capacity for establishing the necessary technical norms and standards as
rapidly as the developed countries, difficulties in preventing the theft of traditional and indigenous
technologies, and the struggle to achieve food security.  It is for that reason that the World Trade
Organization is under an obligation to ensure that a new round of negotiations achieves an extensionof special and differential treatment that finds real expression in fair and equitable treatment
guaranteeing greater and better conditions of access to goods and services markets.
Services
In this field Nicaragua also supports a legally binding liberalization of trade in services
through the inclusion of all sectors and modes of supply.WT/MIN(99)/ST/67
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Dispute settlement
Similarly, we are in favour of strengthening the dispute settlement system and ensuring
respect for the legal framework already established and hope to see effective use of the dispute
settlement mechanisms on the part of the developing and least-developed countries.
Consequently, we support the establishment of an Advisory Centre on WTO Law for the
developing countries so as to give us greater opportunities to exercise our full rights in the panels and
arbitration systems that are at present beyond the reach of the small economies.
Employment and environmental issues
On  behalf of my country I should like to reiterate the position expressed at the Second WTO
Ministerial Conference in Geneva on the need to take up labour topics in the proper forum:  the
International Labour Organization.  Nicaragua is a signatory to and has always shown respect for the
seven basic agreements of that Organization and has sought to ensure their fulfilment.  We are a
responsible country committed to social welfare and sustainable development.  However, we areopposed to the use of employment or environmental conditions so as to block access to a specific
market.
Figures and statistics on trade and employment, far from representing a threat to the
industrialized countries, are in their favour and show a significant gap with the developing countries,which are facing high levels of unemployment and a worrying situation of social unrest.  It needs to
be said that there was clear evidence of the power of manipulation of powerful sectors yesterday,
Tuesday, 30 November, here in Seattle, but there are also millions of workers and peasant farmers in
the developing countries that are silently asking, w ithout being present here in Seattle, for the creation
of jobs and the reduction of poverty so as to be able to meet their basic needs.  As responsiblegovernments and countries we cannot allow large trade unions with the power to organize
demonstrations to drown out those voices that we silently hear in our consciences.
We feel sure that our hard work in the new trade negotiations will help to raise the standard of
living of our peoples, thereby reflecting the fairness and transparency that we must show in the
conduct of our global relations.
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