TEXT: STATEMENT FROM THE 32ND QUADRILATERAL TRADE MEETING
(Ministers review global trade agenda)

Washington -- The trade ministers from the United States, Canada, the European Union and Japan say that member nations of the World Trade Organization (WTO) should take action at their May 1998 ministerial to better position themselves to take decisions in multilateral negotiations scheduled for 1999 in such areas as agriculture.

The ministers held their 32nd Quadrilateral Meeting April 29-30 in Versailles, France, issuing a "Chairman's Statement" to describe the major points covered in the gathering.

The so-called "Quad Ministerial" meetings are convened to coordinate international trade and investment policies among the four major trading partners and to chart future action.

The Chairman's Statement says the Quad members will carry forward on commitments already made in the World Trade Organization and other fora for further liberalization of world trade and investment regimes.

Following is the text of the Chairman's Statement issued April 30:

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CHAIRMAN'S STATEMENT

Ministers from Canada, the European Union, Japan and the United States met in Versailles for the 32nd Quadrilateral Meeting to review recent developments in international trade and investment and to consider future directions.

We reaffirmed our belief in the central role of the multilateral, rule-based trading system embodied in the World Trade Organization. This system has successfully contributed to remarkable growth in trade in goods and services, and in international investment, thereby benefiting economic growth, employment and social progress. We affirmed our support for the WTO as the primary forum for trade liberalization, and agreed that, building on recent successes, we must continue to pursue further, broad-based multilateral liberalization.

We agreed that a major task for all Members of the World Trade Organization in future is to ensure that the contribution of the WTO to enhancing sustainable growth, prosperity, jobs and to improve environmental protection is better communicated to the public, and that the WTO remains open and responsive, to the concerns of society in general. We agreed also on the need to intensify efforts to ensure that WTO activities contribute to achieving the objectives of sustainable development. We look forward to seeing a positive outcome of the June ILO meeting aiming at a declaration on core labor standards and a follow-up mechanism and agreed to jointly review the results.

We discussed the prospects for the WTO Ministerial in May 1998, and agreed on the contribution that the Quad could make to the success of that meeting: first, a reaffirmation by all of the primacy of the multilateral system for trade issues. Secondly, reaffirmation of the importance that all Members attach to the full and timely implementation of their WTO commitments. Third, recognition of the benefits -- to sustainable development, growth and jobs -- of further and broad-based liberalization within the WTO framework including in new areas. And fourth, the need to make the WTO a truly global organization both through expanding its membership and through assisting the full integration of least developed countries into the global trading system.

We agreed that the 1998 WTO Ministerial should set in motion a process that would enable decisions to be taken in 1999 on the scope and modalities of such further liberalization, and that it should encompass the subjects of the WTO's built-in agenda, issues arising from the decisions made at the Singapore ministerial, and further issues of interest to members, including remaining barriers to trade in industrial products. We agreed that further liberalization must be sufficiently broad-based to appeal to the range of WTO members' concerns, and must be capable of bringing timely results and benefits.

We reviewed progress on a number of important, specific issues likely to be addressed at the WTO May Ministerial or subsequently as part of the WTO's work programme.

On the economic difficulties facing several Asian economies, we affirmed our belief that with full implementation of the necessary regulatory and structural reforms, continued market openness and strong mutual support, stability would be restored. We noted the Japanese action plan should contribute to Japanese recovery as well as to that of other countries in the region. We recognized, however, that the current difficulties continue to pose challenges for the international trading system. In this respect we concluded that it should be in the interests of all WTO Members to commit to keep markets open, to continue with economic reform, and to pursue further multilateral liberalization building an current levels of market access as the best means to overcome protectionist pressures. In this regard we stress the importance of improved co-ordination between the IMF and the WTO Secretariat and look forward to receiving progress report. Stable and predictable rules for foreign direct investment would also contribute significantly to restoring growth in the affected Asian markets.

On investment issues, we therefore welcomed the fresh sense of direction created by the recent outcome of the OECD Ministerial meeting and are determined to pursue the work underway in the WTO. As we agreed at the OECD Ministerial meeting, we will seek the support of all our partners for next steps towards the creation of investment rules in the WTO.

On the accession of new countries to the WTO, we agreed that it is essential that all trading nations become members of WTO. We undertook to intensify our efforts to obtain the early accession of candidate countries, large and small, on the basis of mutually acceptable and commercially viable market access commitments and adherence to WTO rules. We requested our officials to review the status of all pending accessions in that light and to report back to us.

On the integration of the least developed countries into the WTO system, we agreed to consider what additional measures, further to last year's High Level Meeting, could be taken to increase market access opportunities for products originating in these countries, and to urge other WTO Members to do the same. We agreed also to continue to co-ordinate the provision of technical assistance to strengthen their participation in the international trading system, as well as to assist their full and timely implementation of WTO commitments.

On Transparency, we agreed on the importance of strengthening public confidence in the multilateral system through improvements that will provide for better transparency in the WTO's work. Accordingly, the Quad agreed to encourage the Director General to explore means within the WTO that would allow for enhanced consultations with representatives of the civil society, Ministers recalled the 1996 WTO decision on derestriction adopted with a view to making the WTO more transparent including in the area of dispute settlement. Noting that this decision will be reviewed in July of this year, we agreed to actively encourage a review of all relevant issues of transparency, while preserving the government-to-government nature of institution.

On Trade and the Environment, we affirmed our commitment to a high level meeting of trade and environment representatives under the auspices of the WTO well before the 1999 Ministerial meeting. We shall jointly seek to identify the synergies which exist between trade and environment policies and reap -- in a way that is visible to our publics -- both the environmental and economic benefits they can bring. We invite the CTE to continue the process of broad-based consultations among members and with interested NGOs and business groups with a view to improving full understanding of all related issues.

On Trade and Competition, we stressed that effective competition laws are a necessary complement to trade liberalization and that the WTO can make an important contribution in this regard. We highlighted the merits for all WTO members of implementing core competition principles domestically for the benefit of sound economic development. We strongly support the WTO working group on the interaction between trade and competition policy and consider that the report which is to be presented to the General Council later this year should be forward-looking so as to permit appropriate decisions on next steps within the WTO.

On Trade Facilitation, we agreed on the importance of this to the international trading and business community, which is looking to the WTO for solutions. We agreed that the analytical work called for in the Singapore ministerial declaration should be undertaken promptly. Recalling the constructive results of the recent symposium on this subject, we agreed to recommend that the General Council assess these results with a view to intensifying forward looking work.

On Procurement, we share the aim of increasing membership of the GPA and of improving the existing agreement. We also reaffirmed our full support for the work of the Working Group on Transparency. We urge all participants to intensify efforts with the aim of completing work and reaching agreements on both issues by the end of 1999, taking due account of the diversity of national policies and practices.

On Services, we agreed that we needed to set in train proper preparations in consultation with our private sectors and other interested parties far the negotiations, given the considerable benefits to be gained for all Members of the WTO. Major employment and wealth creation for both developed and developing countries would result from further wide-ranging liberalisation of trade in services. We therefore agreed to work to ensure that conditions be in place for negotiations to begin promptly and in earnest at the beginning of the year 2000. We note the progress made in the accountancy sector, which we want to bring into force as a basis for further access-oriented work.

On Agriculture, the QUAD reaffirmed the commitments that they undertook at the conclusion of the Uruguay Round.

Electronic commerce will be an engine of economic growth in the 21st century. It includes a vast array of issues, such as privacy and domain names. The subject is being actively studied on several tracks, including the OECD, leading to the Ottawa Ministerial Conference, the US initiative pursuant to its "Framework for Global Electronic Commerce", the wide range of test-bed projects conducted by Japan and EU ideas for an International Charter. Recognizing that electronic commerce is critical to the effective functioning of the multilateral trading system, QUAD Ministers agreed to work together towards agreement on a declaration on the trade-related aspects of global electronic commerce, in time far the 50th Anniversary celebration at the WTO. Ministers expect this to lead to a comprehensive work programme in the WTO, covering trade-related issues, including work on the market access treatment of cross-border commerce. Ministers are encouraged by discussions to date with all their partners and will work to develop as soon as possible consensus on a standstill to preserve current practices of not imposing customs duties on electronic transmissions. This would be without prejudice inter alia to current practices regarding customs duties an goods ordered electronically but delivered physically and the treatment of the electronic value integral to goods; and to the outcome of the examination that is undertaken in the broader context of the WTO work programme on electronic commerce. QUAD Ministers believe that the work programme should be completed in time for the inclusion of any recommendations for action on the agenda of the 3rd Ministerial conference to be held in 1999.

On Intellectual Property and Customs Valuation, we underlined the importance of full and timely implementation by all Members. In light of the impending expiration of the transitional periods envisaged in the agreements, we are ready to further assist Members in their efforts to bring their laws and practices into line with their obligations, in co-ordination with the WTO, other multilateral institutions and private sector.

On ITA II, building on the agreement reached at Singapore, we endorse the agreed upon work programme, including the expansion of product coverage, resolving classification divergences and work on ensuring unhindered market access for II products. We urge participants to complete their work to expand product coverage within the agreed timetable (30 June 1998) and to move forward on the other elements of the programme including in particular non-tariff measures. We also encourage broader country participation in the ITA, including those acceding to the WTO.

Finally, we agreed to meet again in Japan no later than Spring 1999.

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