WORLD TRADE WT/MIN(98)/ST/53
18May1998
ORGANIZATION(98-2036)
Original: Spanish MINISTERIAL CONFERENCE
Second Session
Geneva, 18and20May1998
VENEZUELA
Statement Circulated byDr.Hector Maldonado Lira,
Minister ofIndustry andTrade
1. Theholding oftheSecond Ministerial Conference oftheWorld Trade Organization isacause
ofsatisfaction forVenezuela, especially asitcoincides withthecommemoration ofthe50thAnniversary
ofthemultilateral trading system. Ourcountry considers thattheliberalization oftrade andthe
integration ofeconomies arethefoundations foreconomic growth andthat,through suchgrowth, they
cancontribute tothesocial development ofnations.
2. TheUruguay Round hasmade important contributions tostrengthening those foundations,
increasing market access opportunities andconsolidating asetofmultilateral rules anddisciplines.
With thesupport offered bythese rules anddisciplines, countries should beabletoorchestrate
international economic policies which willbecome more andmore harmonious andcomplementary,
while remaining consistent withthedevelopment objectives ofeachandevery oneofthem. Itisthe
jointresponsibility ofthedeveloped anddeveloping countries toensure thatboththeimplementation
oftheexisting rulesanddisciplines andtheirimprovement andpossible extension, areinkeeping with
those purposes. Wemust notlosesightofthefactthatweareunited inseeking thewell-being and
fulfilling thehopes ofprogress ofeachofoursocieties, objectives ofwhich liberalization should be
aninstrument.
3. Thepreamble totheAgreement Establishing theWorld Trade Organization recognizes that
trade relations should ensure positive achievements interms ofemployment andanincrease inreal
income andproduction. Thisisconsistent withtheconcept ofliberalization asaninstrument of
development, bothinitsexpressions ofeconomic growth andinthose ofthesocial progress ofcountries.
Consequently, themultilateral trading system itself, inthegradual refinement ofitsrules, should offer
opportunities forthedeveloping countries andtheleast-developed countries toacquire policy tools
which areeffective instimulating aproductive development which willserve themasabasisfortheir
successful integration inworld trade.
4. Within thisframework, theliberalization oftrade becomes anecessary component ofthe
economic reform programmes which many developing countries andleast-developed countries are
implementing. Butwemustrecognize therealdifficulties thatsome ofthose countries canencounter
bothinadopting theadjustment measures required bythemultilateral system andindealing withthe
social costs anddomestic tensions thatareusually generated inthetransition phases.
5. Acrucial areainwhich what hasbeensaidwithregard toproductive development policies
isofconsiderable relevance isthatofforeign direct investment, where ourcountries mustguarantee
non-discriminatory treatment andthenecessary legal security forinvestors while atthesame time
maintaining thecapacity toorchestrate incentives designed toattract more investments andensure
technology transfer toactivities andlineswhose modernization andintegration areregarded aspriorities.WT/MIN(98)/ST/53
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Future negotiations inthisareamustnotlosesightoftheneedtoestablish provisions thateffectively
respond tothese requirements.
6. Ontheother hand, theimplementation ofsome agricultural disciplines presents significant
challenges todeveloping countries which, likeVenezuela, arenetimporters andareengaged inaprocess
ofmodernizing andincreasing productivity. Inthissector, thedeveloped countries must commit
themselves, inthecoming negotiations, toreducing theasymmetries intheirfavour resulting from
theUruguay Round negotiations. Thecommitments assumed byourcountry onthatoccasion have
beensteadily andeffectively putintopractice, although theeffort atliberalization andmodernization
hasnotbeenfreefromsocial andpolitical repercussions andhashadtobesupplemented bymeasures
intended toencourage, within theframework ofthemultilateral rules, thestability ofproduction and
employment. Thisisapriority areaforVenezuela ontheagenda ofnegotiations within theWTO and
wehopethatthosenegotiationswillreducetheasymmetrywhichexistsinfavourofthemajoragricultural
producers while offering opportunities fortheadoption ofrules thatwillfacilitate theapplication of
policies directed towards theproductive development andimproved competitiveness ofouragriculture.
7. Thecases Ihavementioned areexamples ofsituations where theprinciple ofthespecial and
differential treatment ofdeveloping country Members, which must bemaintained andstrengthened
inthemultilateral trading system, must begiven concrete andeffective expression.
8. Venezuela, which isplaying anactive partinvarious systems ofopenregionalism, hasnodoubts
concerning thecompatibility andcomplementarity ofregional agreements within themultilateral system.
WeviewtheregionalagreementsasstrengtheningtheresultsoftheUruguayRound,sincetheycontribute
tothegrowth andliberalization ofinternational trade. Wemustalsohighlight theefforts being made
bytheregional blocs topromote therationalization ofregulatory frameworks within theirmarkets,
thusconsolidating theprocess oftransparency andmodernization ofinstitutions, andcontributing to
thefulfilment oftheobligations ofthemultilateral trading system.
9. Thetransparency andbalance ofinterests withwhich thefuture work oftheWTO iscarried
outwillguarantee thestability andcredibility ofthemultilateral trading system. Inourview, theWTO
hastwobasic tasks intheimmediate future: toresolve theimplementation problems andtocontinue
assessing thefulfilment oftheobligations under theAgreements already inforce, ontheonehand,
andtocontinue improving those Agreements asprovided forinthe"built-in agenda" andthedecisions
oftheSingapore Ministerial Conference, ontheother. ForVenezuela, thenegotiation andreview
ofAgreements provided forinthebuilt-in agenda should begiven priority overthenegotiation ofnew
subjects, particularly iftheyleadtonewobligations thatwould bedifficult forsomedeveloping countries
orleast-developed countries tofulfil. Themultilateral trading system cannot ignore thedifficulties
ofasocial, economic andpolitical nature which some ofthese countries mustfaceincoping withany
newobligations thattheymust accept inthefuture.
10. Intheopinion ofVenezuela, itwould bepremature forthisConference toreach decisions
concerning thecontent ormodalities offuture negotiations, though thatisnoobstacle totheexisting
working groups continuing anddeepening theirwork within theirpresent mandate. Wedonotobject
totheWTO beginning, from1999onwards, toconsider possible proposals thatitsMembers maywish
tosubmit onnewsubjects, butwemustemphasize thatitwillbefortheThird Ministerial Conference
todetermine themodalities andthescope ofsuchdiscussions.
11. Atthismoment, when wearestillinthestageofimplementing theUruguay Round Agreements,
technical assistance isnotonlyabasic factor inenabling thedeveloping countries toputintopractice
thereforms needed toadapt totherequirements andobligations ofthemultilateral trading system,
butalsoamechanismfordevelopingtheircapacitytoenjoythebenefitsoftradeliberalization.Venezuela
applauds theactivities aimed atdeveloping andpromoting greater participation oftheleast-developedWT/MIN(98)/ST/53
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countries intheWTO system andconsiders thatthose activities should continue, without prejudice,
however, totheiraccess totheactivities benefiting theother developing countries.
12. Venezuela regards ascounter-productive theattempt tolinkthemultilateral rulesofinternational
trade withsubjects thatareoutside theirscope suchasthedefence ofhuman rights andtherights of
workers. Werepeat thatthose topics havemore suitable andspecialized forums inwhich theyare
dealtwithbyourGovernments andbythenational sectors concerned, forums inwhich ourcountry
participates actively indefending andpromoting those rights throughout theworld.
13. Ourcountry wishes tohighlight theimportance ofthedispute settlement system asameans
ofguaranteeing theongoing confidence ofMembers intheWTO. Tothatend,itreiterates the
importance ofthereview process approved attheSingapore Ministerial Meeting, inasmuch asitwill
make itpossible toimprove thesystem, enabling Members toexercise theirrights andfulfil their
obligations inamore effective andtransparent manner. ThatiswhyVenezuela reiterates itsopinion
thattheefficacy ofamechanism ofthiskindwillbemaintained totheextent thateffective participation
bytheMember States inthevarious stages oftheprocess isguaranteed, without limitations thatcould
arisefrom anyincapacity toobtain legaladvice orfrom thelackoftheeconomic resources tocover
thecosts ofusing thesystem.
14. Lastly, Iwishtotaketheopportunity ofVenezuela 'sparticipation inthisimportant meeting
toexpress ourgratitude foritsexcellent organization andtoexpress ourpleasure, onceagain, atthe
commemoration ofthe50thAnniversary ofthemultilateral trading system.
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