WT/MIN(96)/DEC
18 December 1996World
Trade Organization : Ministerial Conference, Singapore,
9-13 December 1996
SINGAPORE MINISTERIAL DECLARATION
Adopted on 13 December 1996
Purpose
1.
We, the Ministers, have met in Singapore from 9 to 13
December 1996 for the first regular biennial meeting of
the WTO at Ministerial level, as called for in Article IV
of the Agreement Establishing the World Trade
Organization, to further strengthen the WTO as a forum
for negotiation, the continuing liberalization of trade
within a rule-based system, and the multilateral review
and assessment of trade policies, and in particular to:
*
assess the implementation of our commitments under
the WTO Agreements and decisions;
*
review the ongoing negotiations and Work Programme;
*
examine developments in world trade; and
*
address the challenges of an evolving world economy.
Trade
and Economic Growth
2.
For nearly 50 years Members have sought to fulfil, first
in the GATT and now in the WTO, the objectives reflected
in the preamble to the WTO Agreement of conducting our
trade relations with a view to raising standards of
living worldwide. The rise in global trade facilitated by
trade liberalization within the rules-based system has
created more and better-paid jobs in many countries. The
achievements of the WTO during its first two years bear
witness to our desire to work together to make the most
of the possibilities that the multilateral system
provides to promote sustainable growth and development
while contributing to a more stable and secure climate in
international relations.
Integration
of Economies; Opportunities and Challenges
3.
We believe that the scope and pace of change in the
international economy, including the growth in trade in
services and direct investment, and the increasing
integration of economies offer unprecedented
opportunities for improved growth, job creation, and
development. These developments require adjustment by
economies and societies. They also pose challenges to the
trading system. We commit ourselves to address these
challenges.
Core
Labour Standards
4.
We renew our commitment to the observance of
internationally recognized core labour standards. The
International Labour Organization (ILO) is the competent
body to set and deal with these standards, and we affirm
our support for its work in promoting them. We believe
that economic growth and development fostered by
increased trade and further trade liberalization
contribute to the promotion of these standards. We reject
the use of labour standards for protectionist purposes,
and agree that the comparative advantage of countries,
particularly low-wage developing countries, must in no
way be put into question. In this regard, we note that
the WTO and ILO Secretariats will continue their existing
collaboration.
Marginalization
5.
We commit ourselves to address the problem of
marginalization for least-developed countries, and the
risk of it for certain developing countries. We will also
continue to work for greater coherence in international
economic policy-making and for improved coordination
between the WTO and other agencies in providing technical
assistance.
Role
of WTO
6.
In pursuit of the goal of sustainable growth and
development for the common good, we envisage a world
where trade flows freely. To this end we renew our
commitment to:
*
a fair, equitable and more open rule-based
system;
*
progressive liberalization and elimination of tariff
and non-tariff barriers to trade in goods;
*
progressive liberalization of trade in services;
*
rejection of all forms of protectionism;
*
elimination of discriminatory treatment in
international trade relations;
*
integration of developing and least-developed
countries and economies in transition into the
multilateral system; and
*
the maximum possible level of transparency.
Regional
Agreements
7.
We note that trade relations of WTO Members are being
increasingly influenced by regional trade agreements,
which have expanded vastly in number, scope and coverage.
Such initiatives can promote further liberalization and
may assist least-developed, developing and transition
economies in integrating into the international trading
system. In this context, we note the importance of
existing regional arrangements involving developing and
least-developed countries. The expansion and extent of
regional trade agreements make it important to analyse
whether the system of WTO rights and obligations as it
relates to regional trade agreements needs to be further
clarified. We reaffirm the primacy of the multilateral
trading system, which includes a framework for the
development of regional trade agreements, and we renew
our commitment to ensure that regional trade agreements
are complementary to it and consistent with its rules. In
this regard, we welcome the establishment and endorse the
work of the new Committee on Regional Trade Agreements.
We shall continue to work through progressive
liberalization in the WTO as we are committed in the WTO
Agreement and Decisions adopted at Marrakesh, and in so
doing facilitate mutually supportive processes of global
and regional trade liberalization.
Accessions
8.
It is important that the 28 applicants now negotiating
accession contribute to completing the accession process
by accepting the WTO rules and by offering meaningful
market access commitments. We will work to bring these
applicants expeditiously into the WTO system.
Dispute
Settlement
9.
The Dispute Settlement Understanding (DSU) offers a means
for the settlement of disputes among Members that is
unique in international agreements. We consider its
impartial and transparent operation to be of fundamental
importance in assuring the resolution of trade disputes,
and in fostering the implementation and application of
the WTO agreements. The Understanding, with its
predictable procedures, including the possibility of
appeal of panel decisions to an Appellate Body and
provisions on implementation of recommendations, has
improved Members' means of resolving their differences.
We believe that the DSU has worked effectively during its
first two years. We also note the role that several WTO
bodies have played in helping to avoid disputes. We renew
our determination to abide by the rules and
procedures of the DSU and other WTO agreements in the
conduct of our trade relations and the settlement of
disputes. We are confident that longer experience with
the DSU, including the implementation of panel and
appellate recommendations, will further enhance the
effectiveness and credibility of the dispute
settlement system.
Implementation
10.
We attach high priority to full and effective
implementation of the WTO Agreement in a manner
consistent with the goal of trade liberalization.
Implementation thus far has been generally satisfactory,
although some Members have expressed dissatisfaction with
certain aspects. It is clear that further effort in this
area is required, as indicated by the relevant WTO bodies
in their reports. Implementation of the specific
commitments scheduled by Members with respect to market
access in industrial goods and trade in services appears
to be proceeding smoothly. With respect to industrial
market access, monitoring of implementation would be
enhanced by the timely availability of trade and tariff
data. Progress has been made also in advancing the WTO
reform programme in agriculture, including in
implementation of agreed market access concessions and
domestic subsidy and export subsidy commitments.
Notifications
and Legislation
11.
Compliance with notification requirements has not been
fully satisfactory. Because the WTO system relies on
mutual monitoring as a means to assess implementation,
those Members which have not submitted notifications in a
timely manner, or whose notifications are not complete,
should renew their efforts. At the same time, the
relevant bodies should take appropriate steps to promote
full compliance while considering practical proposals for
simplifying the notification process.
12.
Where legislation is needed to implement WTO rules,
Members are mindful of their obligations to complete
their domestic legislative process without further delay.
Those Members entitled to transition periods are urged to
take steps as they deem necessary to ensure timely
implementation of obligations as they come into effect.
Each Member should carefully review all its existing or
proposed legislation, programmes and measures to ensure
their full compatibility with the WTO obligations, and
should carefully consider points made during review in
the relevant WTO bodies regarding the WTO consistency of
legislation, programmes and measures, and make
appropriate changes where necessary.
Developing
Countries
13.
The integration of developing countries in the
multilateral trading system is important for their
economic development and for global trade expansion. In
this connection, we recall that the WTO Agreement
embodies provisions conferring differential and more
favourable treatment for developing countries, including
special attention to the particular situation of
least-developed countries. We acknowledge the fact that
developing country Members have undertaken significant
new commitments, both substantive and procedural, and we
recognize the range and complexity of the efforts that
they are making to comply with them. In order to assist
them in these efforts, including those with respect to
notification and legislative requirements, we will
improve the availability of technical assistance under
the agreed guidelines. We have also agreed to
recommendations relative to the decision we took at
Marrakesh concerning the possible negative effects of the
agricultural reform programme on least-developed and net
food-importing developing countries.
Least-Developed
Countries
14.
We remain concerned by the problems of the
least-developed countries and have agreed to:
*
a Plan of Action, including provision for taking
positive measures, for example duty-free access, on
an autonomous basis, aimed at improving their overall
capacity to respond to the opportunities offered by
the trading system;
*
seek to give operational content to the Plan of
Action, for example, by enhancing conditions for
investment and providing predictable and favourable
market access conditions for LLDCs' products, to
foster the expansion and diversification of their
exports to the markets of all developed countries;
and in the case of relevant developing countries in
the context of the Global System of Trade
Preferences; and
*
organize a meeting with UNCTAD and the International
Trade Centre as soon as possible in 1997, with the
participation of aid agencies, multilateral financial
institutions and least-developed countries to foster
an integrated approach to assisting these countries
in enhancing their trading opportunities.
Textiles
and Clothing
15.
We confirm our commitment to full and faithful
implementation of the provisions of the Agreement on
Textiles and Clothing (ATC). We stress the importance of
the integration of textile products, as provided for in
the ATC, into GATT 1994 under its strengthened rules and
disciplines because of its systemic significance for the
rule-based, non-discriminatory trading system and its
contribution to the increase in export earnings of
developing countries. We attach importance to the
implementation of this Agreement so as to ensure an
effective transition to GATT 1994 by way of integration
which is progressive in character. The use of safeguard
measures in accordance with ATC provisions should be as
sparing as possible. We note concerns regarding the use
of other trade distortive measures and circumvention. We
reiterate the importance of fully implementing the
provisions of the ATC relating to small suppliers, new
entrants and least-developed country Members, as well as
those relating to cotton-producing exporting Members. We
recognize the importance of wool products for some
developing country Members. We reaffirm that as part of
the integration process and with reference to the
specific commitments undertaken by the Members as a
result of the Uruguay Round, all Members shall take such
action as may be necessary to abide by GATT 1994 rules
and disciplines so as to achieve improved market access
for textiles and clothing products. We agree that,
keeping in view its quasi-judicial nature, the Textiles
Monitoring Body (TMB) should achieve transparency in
providing rationale for its findings and recommendations.
We expect that the TMB shall make findings and
recommendations whenever called upon to do so under the
Agreement. We emphasize the responsibility of the Goods
Council in overseeing, in accordance with Article IV:5 of
the WTO Agreement and Article 8 of the ATC, the
functioning of the ATC, whose implementation is being
supervised by the TMB.
Trade
and Environment
16.
The Committee on Trade and Environment has made an
important contribution towards fulfilling its Work
Programme. The Committee has been examining and will
continue to examine, inter alia, the scope of the
complementarities between trade liberalization, economic
development and environmental protection. Full
implementation of the WTO Agreements will make an
important contribution to achieving the objectives of
sustainable development. The work of the Committee has
underlined the importance of policy coordination at the
national level in the area of trade and environment. In
this connection, the work of the Committee has been
enriched by the participation of environmental as well as
trade experts from Member governments and the further
participation of such experts in the Committee's
deliberations would be welcomed. The breadth and
complexity of the issues covered by the Committee's Work
Programme shows that further work needs to
be undertaken on all items of its agenda, as contained in
its report. We intend to build on the work accomplished
thus far, and therefore direct the Committee to carry out
its work, reporting to the General Council, under its
existing terms of reference.
Services
Negotiations
17.
The fulfilment of the objectives agreed at Marrakesh for
negotiations on the improvement of market access in
services - in financial services, movement of natural
persons, maritime transport services and basic
telecommunications - has proved to be difficult. The
results have been below expectations. In three areas, it
has been necessary to prolong negotiations beyond the
original deadlines. We are determined to obtain a
progressively higher level of liberalization in services
on a mutually advantageous basis with appropriate
flexibility for individual developing country Members, as
envisaged in the Agreement, in the continuing
negotiations and those scheduled to begin no later than 1
January 2000. In this context, we look forward to full
MFN agreements based on improved market access
commitments and national treatment. Accordingly, we will:
*
achieve a successful conclusion to the negotiations
on basic telecommunications in February 1997; and
*
resume financial services negotiations in April 1997
with the aim of achieving significantly improved
market access commitments with a broader level of
participation in the agreed time frame.
With
the same broad objectives in mind, we also look forward
to a successful conclusion of the negotiations on
Maritime Transport Services in the next round of
negotiations on services liberalization.
In
professional services, we shall aim at completing the
work on the accountancy sector by the end of 1997, and
will continue to develop multilateral disciplines and
guidelines. In this connection, we encourage the
successful completion of international standards in the
accountancy sector by IFAC, IASC, and IOSCO. With respect
to GATS rules, we shall undertake the necessary work with
a view to completing the negotiations on safeguards by
the end of 1997. We also note that more analytical work
will be needed on emergency safeguards measures,
government procurement in services and subsidies.
ITA
and Pharmaceuticals
18.
Taking note that a number of Members have agreed on a
Declaration on Trade in Information Technology Products,
we welcome the initiative taken by a number of WTO
Members and other States or separate customs territories
which have applied to accede to the WTO, who have agreed
to tariff elimination for trade in information technology
products on an MFN basis as well as the addition by a
number of Members of over 400 products to their lists of
tariff-free products in pharmaceuticals.
Work
Programme and Built-in Agenda
19.
Bearing in mind that an important aspect of WTO
activities is a continuous overseeing of the
implementation of various agreements, a periodic
examination and updating of the WTO Work Programme is a
key to enable the WTO to fulfil its objectives. In
this context, we endorse the reports of the
various WTO bodies. A major share of the Work Programme
stems from the WTO Agreement and decisions adopted at
Marrakesh. As part of these Agreements and decisions we
agreed to a number of provisions calling for future
negotiations on Agriculture, Services and aspects of
TRIPS, or reviews and other work on Anti-Dumping, Customs
Valuation, Dispute Settlement Understanding,
Import Licensing, Preshipment Inspection, Rules of
Origin, Sanitary and Phyto-Sanitary Measures, Safeguards,
Subsidies and Countervailing Measures, Technical Barriers
to Trade, Textiles and Clothing, Trade Policy Review
Mechanism, Trade-Related Aspects of Intellectual Property
Rights and Trade-Related Investment Measures. We
agree to a process of analysis and exchange of
information, where provided for in the conclusions and
recommendations of the relevant WTO bodies, on the
Built-in Agenda issues, to allow Members to better
understand the issues involved and identify their
interests before undertaking the agreed negotiations and
reviews. We agree that:
*
the time frames established in the Agreements will be
respected in each case;
*
the work undertaken shall not prejudge the scope of
future negotiations where such negotiations are
called for; and
*
the work undertaken shall not prejudice the nature of
the activity agreed upon (i.e. negotiation or
review).
Investment
and Competition
20.
Having regard to the existing WTO provisions on matters
related to investment and competition policy and the
built-in agenda in these areas, including under the TRIMs
Agreement, and on the understanding that the work
undertaken shall not prejudge whether negotiations will
be initiated in the future, we also agree to:
*
establish a working group to examine the relationship
between trade and investment; and
*
establish a working group to study issues raised by
Members relating to the interaction between trade and
competition policy, including anti-competitive
practices, in order to identify any areas that may
merit further consideration in the WTO framework.
These
groups shall draw upon each other's work if necessary and
also draw upon and be without prejudice to the work in
UNCTAD and other appropriate intergovernmental fora. As
regards UNCTAD, we welcome the work under way as provided
for in the Midrand Declaration and the contribution it
can make to the understanding of issues. In the conduct
of the work of the working groups, we encourage
cooperation with the above organizations to make the best
use of available resources and to ensure that the
development dimension is taken fully into account. The
General Council will keep the work of each body under
review, and will determine after two years how the work
of each body should proceed. It is clearly understood
that future negotiations, if any, regarding multilateral
disciplines in these areas, will take place only after an
explicit consensus decision is taken among WTO Members
regarding such negotiations.
Transparency
in Government Procurement
21.
We further agree to:
*
establish a working group to conduct a study on
transparency in government procurement practices, taking
into account national policies, and, based on this study,
to develop elements for inclusion in an appropriate
agreement; and
*
direct the Council for Trade in Goods to undertake
exploratory and analytical work, drawing on the work of
other relevant international organizations, on the
simplification of trade procedures in order to assess the
scope for WTO rules in this area.
Trade
Facilitation
22.
In the organization of the work referred to in paragraphs
20 and 21, careful attention will be given to minimizing
the burdens on delegations, especially those with more
limited resources, and to coordinating meetings with
those of relevant UNCTAD bodies. The technical
cooperation programme of the Secretariat will be
available to developing and, in particular,
least-developed country Members to facilitate their
participation in this work.
23.
Noting that the 50th anniversary of the multilateral
trading system will occur early in 1998, we instruct the
General Council to consider how this historic event can
best be commemorated.
*
* * * *
Finally,
we express our warmest thanks to the Chairman of the
Ministerial Conference, Mr. Yeo Cheow Tong, for his
personal contribution to the success of this Ministerial
Conference. We also want to express our sincere gratitude
to Prime Minister Goh Chok Tong, his colleagues in the
Government of Singapore and the people of Singapore for
their warm hospitality and the excellent organization
they have provided. The fact that this first Ministerial
Conference of the WTO has been held at Singapore is an
additional manifestation of Singapore's commitment to an
open world trading system.
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