The New Round: Korea's Perspective
The Honorable Han Duck-Soo
Minister for Trade
Republic of Korea
Thank you, Mr. Prestowitz. It is my delight and honor to share my thoughts with the distinguished guests here today, along with Ambassador Barshefsky and Minister Fernandez de Soto.
Much has been discussed about "getting the WTO back on track" after the difficulties we had in Seattle. Here, I would like to present my perspective on 1) how the Seattle experience should be understood, 2) why we still need a comprehensive new round, and 3) what needs to be done to launch it.
Let me begin with the Seattle experience. Many criticisms have been raised about the lack of outcome at the Seattle Ministerial Meeting. However, now four months have passed, and it is time to assess the efforts made there with more coolheadedness.
For those of us who were there, it is inevitable for us to confess that we had some adversities that were not easy to overcome. First of all, the Meeting started with many substantial areas of disagreement, although much preparation had been done in Geneva with the hardworking and never-ending efforts of our Ambassadors in Geneva and the WTO Secretariat led by the Director General Mike Moore. Some of the members favored a comprehensive agenda, while others argued for a manageable package. Second, the amount of time available at the Meeting in Seattle added more difficulty, given the complexity of the issues that needed to be resolved. Third, with that insufficient time given, we had to seek the efficiency in generating an agreement, while trying to maximize the participation of more than 130 members. Quite naturally, the goals of achieving higher efficiency and securing larger participation created conflicts. Fifth, to add to all these difficulties, outside the meeting halls we had great disruptions occurring on the streets.
Despite all these adversities, those of us at the Meeting stayed up many nights and worked very hard to produce an agreed package. In particular, the Chair of the Ministerial, Ambassador Barshefsky, and Director General Mike Moore demonstrated strong leadership in steering our endeavors. And the representatives of other major economies made commendable efforts to work together and reach an agreement. As a result, we indeed made much progress, by the end, in generating a convergence of views on agriculture, services, market access for non-agricultural goods and other areas. I feel that we were very close to presenting a wrapped package. If we had a little more time, I think we could have possibly done it. It is, however, very regrettable that, in the final hours, the situation did not permit it, and we had to suspend the Ministerial.
Therefore, because of the remarkable efforts and important progress made in Seattle, I am still optimistic and hopeful. Despite all the criticisms and doubts, I believe that it is possible to start a comprehensive new round of WTO negotiations - soon.
1. The Need for a New Round
Now, let me turn to the question of why we need a new round. I will begin with a little bit of background. Globalization has been in progress for some time now at a remarkably fast speed. It promises more jobs, economic growth, and better living standards. But these benefits do not come to those who avoid globalization. The benefits are available only to those who are willing to participate proactively in the globalized market. How then can we proactively participate? In the WTO context, it means continuing liberalization and market opening, maximizing the benefits of free trade, and maintaining the relevance of the WTO in the world trading order of the 21st century.
Therefore, we see straightforward reasons for needing a new round, and they have not changed because of the Seattle experience. The first reason is the need to maintain the momentum for market opening. Multilaterally-orchestrated market opening can minimize domestic resistance to liberalization.
The second reason is found in the need to keep protectionism in check. We need to strengthen and refine the WTO rules, in order to prevent unilateral actions of protectionism. Since we have seen the recent rise of anti-dumping and safeguard actions, I am sure many advocates of free world trade share this concern.
The third reason, I have already mentioned. A new round of WTO negotiations will make the WTO more relevant to the globalization process in this new century and make it more effective in dealing with new challenges resulting from the changing world trade environment.
Let me be very clear. Korea is one of the countries that benefited the most from the world free trade order, and 63% of our GDP currently depends on international trade. Therefore, our commitment to the cause of a comprehensive new round is firm.
2. The Need for a Comprehensive Agenda
In this respect, the case for a comprehensive agenda for the new round is self-evident. First, in order to maintain the momentum of liberalization, we need to further broaden the market opening for manufactured products. Second, we need to refine the rules that are vulnerable to protectionist abuse. Obviously, anti-dumping rules belong to this category. Third, to deal with the challenges rising from globalization, we need to establish new rules on investment, competition policy, government procurement, e-commerce, and other areas. Fourth, we need to address the issues of development and various social concerns. Therefore, we need to address the issues of development and various social concerns. Therefore, we need to generate the willingness to be flexible and to broaden the scope of the WTO to cover those areas.
Only a comprehensive approach to the new round will promise us a better balance of interests and therefore a better chance for success.
1. Post-Seattle Actions
As soon as the dust settled after the Seattle Ministerial, the Quad and other key members of WTO have immediately engaged themselves in talks to build confidence among the members and to try to launch the new round again. I find such efforts highly encouraging.
There are, however, pessimists who argue that the launching of a new round would be difficult this year due to various reasons, including the upcoming US election. I do not share such a view. Domestic political schedules cannot stand in the way, when there is firm commitment and political will of the members. I am optimistic that a comprehensive new round can be launched sooner rather than later.
2. Multi-Track Approach
For an earliest possible launching of the new round, we now have to employ a multi-track approach.
A. Confidence Building Measures
First of all, we need to regain the confidence lost in Seattle. Director General Mike Moore has been making critical contributions to this issue. We recognize that confidence building cannot be a SUFFICIENT condition for a new round, but it is a very important NECESSARY condition for it. Korea will do its best to join this effort. For instance, to the extent possible, we will contribute to offering better market access to the LDCs. Korea supports the increase of the WTO budget for promoting technical cooperation. We will implement our own programs for capacity building for LDCs. Also, Korea is willing to be flexible on the issue of extending transition periods. As for the issue of ensuring more transparency within and without the WTO, we support any suggestions that promise practical and tangible results.
B. Balancing of Interests
The second task is seeking a better balance of interests among members. We need sufficient effort on this front, before the launching of the new round. For that, members should be willing to re-evaluate their positions and find ways to offer more flexibility. Outside the realm of the WTO, members should now be engaged in as much dialogue as possible among themselves through various formal and informal contacts. In this regard, I am hopeful that the APEC forum scheduled to take place in Seoul next week will make an important contribution to this end.
C. Negotiations on BIA
As the third task, we should ensure the faithful participation of all members in the negotiations on the built-in-agenda (BIA), regarding agriculture and services.
However, I want to point out that we should be more ambitious than that. We need to be clear of our ultimate objective and not be entirely caught up with the BIA. We cannot lose sight of the need for the new round because of the work required by the BIA negotiations.
D. Building Domestic Support
The last task is building domestic support. For the launching of a new round, it is imperative to secure support from the business community, political leaders, social groups, and the public. We learned from the Seattle experience that without domestic support, our efforts are in vain. Korea, for one, will carry out extensive domestic campaigns to heighten public awareness and understanding of the benefits of open and free trade.
To close, I would like to encourage everyone here to be as optimistic as i am. We all know that our task is a difficult one.
However, despite the difficulties, I am sure that our determination and dedicated efforts will open the way for the new round of WTO negotiations.
I am looking forward to a lively discussion and active exchange of ideas here in this very important session.
Thank you very much.