WORLD TRADE
ORGANIZATIONWT/MIN(98)/ST/118
20 May 1998
(98-2180)
MINISTERIAL CONFERENCE
Second Session
Geneva, 18 and 20 May 1998Original:  Spanish
GUATEMALA
Statement Circulated by H. E. Mr Juan Mauricio Wurmser,
Minister for the Economy
1. On behalf of the Government of Guatemala and in my own name, I wish to express our
gratitude to the authorities of the WTO and all those who have worked so hard to ensure the success
of this very important Conference.
2. There can be little doubt that during our work we have benefited from the exchange of ideas
afforded by a gathering such as this in order to r each a better understanding of the multilateral trading
system.  We have each also renewed our commitment to continue contributing towards itsenhancement.
3. I should like to refer to a matter that arouses great expectations, namely the future activities of
the WTO as a permanent forum which cannot and must not come to a halt.  The future abounds with
challenges and opportunities which, like all the Me mbers of this Organization, Guatemala has decided
to tackle with determination and commitment.
4. These opportunities must be properly consistent with the overall objectives of our countries so
as to ensure that the benefits of multilateral trade are extended to all Member countries of the WTO.
In other words, we consider that these opportunitie s should effectively offer gains to all members of
the multilateral trading system.
5. As countries with small economies, we trust that the sacrifices imposed on us by the
liberalization of trade will, in the long term, lead to greater benefits.  Nevertheless, we must state that
this expectation will not be fulfilled if we do not achieve a balance between gradualism and openness.
6. There is of course a commitment to future agri cultural negotiations within the implementation
agenda.  Guatemala considers these negotiations to be a priority and the most appropriate way of
promoting its development because, like many of you, we depend to a large extent on our agricultural
and agro-industrial exports.  This is the reason for our determination to work with you all tirelessly
and without delay in order to obtain better access opportunities for our products.  Our efforts towardsopenness should be given their just reward in terms of real and effective opportunities for products in
which we are particularly competitive.  We have trie d to be efficient and competitive, in most cases
without being dependent on support or protection.  The best incentive that our trade partners could
give us therefore is an environment that is free of discrimination, capable of giving us the best terms
of trade for our exports.WT/MIN(98)/ST/118
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7. We express our concern at the way in which textile-importing developed countries have
implemented the Agreement in the first two stages  of integration, because unfortunately these have
not resulted in greater liberalization of trade in such products.  Guatemala considers that the access
opportunities offered by the Agreement should be extended through the reduction of tariff and non-
tariff barriers.
8. The question of services is also of interest to us, but it is obvious that countries such as
Guatemala can only participate in trade in services if they are given suitable conditions to strengthen
this sector and develop their potential.  For this purpose, it is essential that all Members of the WTO
respect the principles and rules formulated to achieve expansion of services under conditions of
transparency and progressive liberalization, recognizing the existing imbalances and facilitating
access to technology and information for countries such as Guatemala.
9. As far as rules governing multilateral trade are concerned, we cannot refer to the future
challenges without expressing our concern at the establishment of non-tariff barriers through recourse
to rules of origin, technical and phytosanitary barriers, environmental measures and other measures
not related to trade disciplines.
10. We wish to reaffirm our belief in the dispute settlement mechanism as the means of ensuring
that the benefits under the WTO Agreements become effective.  The consultation mechanism has ledto mutually satisfactory solutions in many trade disputes, and the panels and the Appellate Body
conduct their work with professionalism and a sense of responsibility.  Nevertheless, Guatemala
considers that these efforts will only meet their objective if the dispute settlement mechanism offers
the appropriate channel for restoring effective exercise of its rights and is capable of ensuring that
violations that are found to exist are not replaced by measures that are equally inconsistent with theWTO.  In other words, the system's credibility depends on prompt and full implementation of the
recommendations of panels and the Appellate Body.
11. Regarding the future agenda, Guatemala would like to see the inclusion of such important
issues as trade and investment, trade and competition policy, facilitation of trade, and electronic trade.
Guatemala does not fear the future because it is confident that this forum will be able to guidediscussion of these issues towards genuine liberalization that will give us all, both developed and
developing county Members, better terms of trade, better employment opportunities and a better
quality of life for all the world's population.
12. The emergence of trade blocs would appear to be contrary to the objectives of multilateralism
and there is a danger that they might become unassailable fortresses for those who do not belong to
them.  Open regionalism, however, however with the right perspectives and policies that promote
respect for the WTO's principles can reinforce th e growth of the global economy and with it the
multilateral system.
13. I began by saying that the future contained challenges and opportunities.  Guatemala's
justification for demanding these opportunities lies in the Government's determination to turn them
into concrete benefits for the people by creating new sources of permanent jobs that will raise
standards of living.  Likewise, our framewor k for action is aimed at good management of
macroeconomic policy, and better and more numerous education, health and infrastructure
programmes, so as to provide an integral contribution to the virtuous circle of sustainable economic
development.
14. Guatemala supports the commencement of preparations for the work programme for the Third
Ministerial Conference in September 1998 in the expect ation that it will lead to greater liberalization
of trade, provided that it takes into account the interests of all the WTO's Members and its outcome
results in an overall balance.WT/MIN(98)/ST/118
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15. The Second Ministerial Conference of the WTO has undoubtedly met its objectives;  it has
provided the appropriate framework for a free and frank exchange of ideas and concerns and has
allowed us to assess the substantial progress made.  It has also served as a forum for reflection,
allowing us to become aware of what remains to be done and to reaffirm our commitment to the
objectives of the WTO.  Since the establishm ent of the GATT, whose 50th Anniversary we are
celebrating, we have set ambitious goals;  we reaffirmed in Marrakesh, and at the conclusion of this
Conference we cannot diminish our efforts to achieve a global economic order that meets the
expectations of our peoples.
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