Purpose
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
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
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
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
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
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
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
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
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
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
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.
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
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
We remain concerned by the problems of the
least-developed countries and have agreed to:
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
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
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
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
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
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
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
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
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.
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.