10 December, 2018
Thank you, Director General.
I would like to begin by thanking you for the briefing of your recent activities, and Chairsof Negotiating Groups for their updates.
Today I do not intend to repeat China’s positions on various specific topics, but to touchupon the issue of WTO reform which is getting popular in this organization and elsewhere. Iknow some people are in favor of this issue while some others are quite cautious, someare optimistic while some others feel the opposite, and some take quick actions while someothers respond slowly. But what I want to convey to the entire membership here is that atthis critical moment when the multilateral trading system facing severe challenges, Chinais willing and ready to do its due part. We support necessary reform of the WTO, inorder to enhance its authority and efficacy, to build an open world economy.
The Chinese government recently put forward three basic principles and five suggestionson WTO reform, which I believe many colleagues are aware. Please allow me to take this opportunity to elaborate a bit more so that Members could have better and morecomprehensive understanding.
Firstly, the WTO reform shall preserve the core values of the multilateral trading system,including non-discrimination and openness. We shall uphold the primacy of the multilateraltrading system, and reinforce the centrality of the multilateral trading system ininternational trade liberalization and facilitation.
The reform shall place the priority on addressing the existential problems faced by theWTO, which are, to take up and resolve the issue of Appellate Body member appointmentblockage as soon as possible, rein in actions of unilateralism and protectionism with thestrings of the WTO rules, and ensure the smooth functioning of all aspects of the WTO.
On rule-making and negotiations, the WTO reform shall address the imbalance of trade rulesand respond to the latest developments of our times: on the one hand, to address the long-term distortion of international agricultural trade by over-subsidization from developedMembers, and prevent abuse of trade remedy measures; on the other hand, to keep theWTO rules relevant by including 21st century issues such as Investment Facilitation forDevelopment, E-Commerce and MSMEs, and concluding fisheries subsidies negotiation next year. Further, the reform shall respect Members’ development models, and address theabuse by some developed Members of export control measures in obstructing technologycooperation. China opposes special and discriminatory disciplines against state-owned- enterprises in the name of WTO reform.
Secondly, the WTO reform shall safeguard the development interests of developingMembers, and address the difficulties developing Members encounter in their integration intoeconomic globalization, by providing developing Members with flexibility and policy space, orspecial and differential treatment, needed for their economic development.
In this regard, developing Members are capacity-constrained in various aspects, which isthe most realistic difficulty to them. Therefore, it is reasonable that the very first thingthe entire membership should consider, when initiating or negotiating a topic, is thecapacity constraint of developing Members.
China is the largest developing country in the world, and is willing to take upcommitments and make further contributions commensurate with its level of developmentand economic capability. However, China will never agree to be deprived of its constitutional entitlement to special and differential treatment as a developing Member.
Director General just mentioned the South-South Dialogue on LDCs and Developmentheld last Friday, participated by DDG Agah and many Ambassadors of LDCs. The discussionwas very insightful, and we will continue to organize similar events in the future.
Thirdly, we all know wher the crisis of WTO comes from, but whatever a particular countryor a particular individual thinks about the WTO, it can only serve as the context rather thanthe reason for the reform of the WTO. In the reform process, the inclusion of agenda, theformulation of any work plan as well as the final outcomes shall be undertaken throughextensive consultations, based on mutual respect and dialogues on equal footing. Theprocess shall be inclusive and open to all Members.
We may go along with the notion that Members agree, maybe starting with groups oflike-minded ones, to explore the way forward on some issues. At the same time however,we also need to duly consider the views and needs of developing Members and fully consultwith them.
All in all, we need to go step by step to achieve gradual progress instead of imposing one’sposition on others. The reform cannot be dictated by a few, nor decided by an exclusive small group of Members. Should any multilateral disciplines be achieved, Members shall followthe practice of decision-making by consensus.
Thank you, Director General.
