*{World Trade: Toward a Millennium Round? [http://www.weforum.org/site/knowledgenavigator.nsf/Content/World%20Trade%3A%20Toward%20a%20Millennium%20Round%3F?open&topic_id=300250000&theme_id=300]

            29.01.1999

            Annual Meeting 1999

            World trade: toward a millennium round?}

            Panellists at this session agreed that there should be a new round of multilateral trade talks and that it should be concluded within three years. But they disagreed on the approach and the agenda.

            US Trade Representative Charlene Barshefsky said the basic work of the Uruguay Round has yet to be completed because a large part of the world, including China and Russia, has yet to be integrated into the multilateral trading system. Several factors are threatening to derail or delay further trade liberalization. These include the Asian crisis, frustration over persistent trade barriers, the feeling among developing countries that free trade benefits developed countries more and the lack of infrastructure in developing countries to sustain further liberalization. The United States, she stressed, wants to expand free trade in services, manufacturing and farm products. Vice-President Al Gore announced the same day in Davos that the US will push for an outright elimination of tariffs in agriculture subsidies. Washington favours a sectoral approach to talks, she said, but this approach is not meant to supplant multilateralism. "The real point is that multiple approaches will be needed to tackle not only the fast pace of technology and change but the need of our industrial community to grow and the need for job creation," Barshefsky said. The Clinton Administration is calling for a new Round not because of the hype surrounding the millennium but because it views a growing "reversion to broader protectionism responses" within the US with concern.

            Jose Miguel Insulza, Minister of Foreign Relations of Chile, said negotiations for the new Round should be broad and comprehensive but he has reservations on whether the sectoral approach is appropriate. The talks should include all WTO members. He also questioned whether the WTO, a governmental organization, is the best forum for discussing some of the issues suggested such as labour, which would inevitably involve non-government organizations. There should also be no linking of trade sanctions to labour standards.

            Nobutaka Machimura, State Secretary for Foreign Affairs of Japan, said his country also supports a new Round, but in order to achieve common goals, the talks must include all WTO members, especially developing countries. Governments should also rally support from the public for greater trade liberalization.

            Sergio Marchi, Minister for International Trade of Canada, said the Uruguay Round has strengthened world trade and created new rules but it has also left many stones unturned. It is important for governments to convince their people of the virtues of free trade. Marchi said there is a need to "square the circle" on trade and environment, trade and labour, and even trade and culture.

            Sir Leon Brittan, Vice-President of the European Commission, said he is not convinced by the arguments put forth by those who oppose an early Round. The lesson learned from the Asian crisis is not that freer trade is bad for developing countries but that these countries should strengthen the foundations of their institutions, increase transparency and eliminate cronyism and corruption. He also dismissed the argument that the outcome of the Uruguay Round needs time to be digested before another Round is launched. Europe, he added, supports negotiations on a wide range of issues including investments, competition, environment and labour standards. The tasks ahead for Europe are to persuade opponents of an early Round to support it, to identify the issues to be discussed and to engage the wider community in the benefits of more liberalization.                  

                  *{Contributors:       Barshefsky Charlene
                  Bergsten C. Fred
                  Brittan of Spennithorne Leon
                  Insulza José Miguel
                  Machimura Nobutaka
                  Marchi Sergio}