Release No. 0217.98 

Remarks

                               by
            U.S. Agriculture Secretary Dan Glickman
                   (Head of U.S. Delegation)
                       on Implementation
            at the WTO Second Ministerial Conference
                      Geneva, Switzerland
                          May 18, 1998


     "The United States places a high priority on the full and effective
implementation of the historic agreements we concluded in the Uruguay Round.

     "You probably would expect me, as the Secretary of Agriculture, to focus
entirely on implementation of the Agreement on Agriculture.  Well, I won't
disappoint you but today as Head of the U.S. Delegation, I also want to make a
few general points about implementation.  

     "First, it is fair to say that we will only be able to have the support
from people around the world for new agreements if we can show that existing
agreements are fully respected and implemented.

     "We have a job to do in ensuring that the public has a better
understanding of our agreements and how the WTO operates.  Since this is an
issue that I know the President will speak to this evening, perhaps we  can
come back to this point at our next meeting.

     "Second, the next several years will be critical for all of us.  We face
deadlines in terms of transitions -- for example, in TRIPS or customs
valuation -- two among many agreements that are part of the infrastructure of
the trading system.   If these Agreements don't work, we all suffer, including
agriculture.  

     "Lack of IPR protection stifles innovation and investment.  Poor
valuation and customs practices invite corruption and diminish the value of
concessions we all bargained hard for in our market access negotiations.

     "And, all of us will soon come to the end of the road in terms of
phasing in our reduction commitments, requiring us to work quickly to maintain
trade liberalization.

     "This presents enormous challenges for all of us.  And, it creates
tremendous opportunities as we look to the future.

     "In terms of agriculture, I often have to answer the question -- is the
WTO good for American agriculture?  Are the rules sufficient to give producers
and consumers the confidence to look to global markets?

     "I always answer yes, but some actions taken, particularly in
agriculture, threaten to undermine the system.

     "For the United States, we have brought a number of important
agricultural cases through the dispute settlement process.  Unfortunately, in
two of the cases, the losing party has yet to take steps to bring its measures
into compliance.  

     "Many have said that the dispute settlement understanding was one of the
jewels of the Uruguay Round.  So for the WTO to maintain its credibility,
Members must adhere to their obligations.

     "We are also seeing countries adopt more creative ways to keep their
markets closed.  Now actions are taken in the name of consumer protection and
health regulations which frankly have no basis in health or science and in
reality undermine consumer confidence.  That's not good for domestic
producers, or international markets -- and it is NOT good for the WTO.

     "The Committee on Agriculture has done serious work on implementation
issues that should help us in preparing for the negotiations that will be
launched at our 3rd ministerial conference and improve public support for
continued reform.

     "We have been successful in opening markets by the tariff reductions
provided in the Round.

     "TRQ's have been established and in most cases trade in not restricted
by arbitrary requirements.

     "Countries have changed their subsidy policies to meet the quantitative
limits established in the Agreement.

     "Countries have changed measures that cannot be justified by sound
science.

     "My conclusion is that the result has been important.  Trade has
increased and we see a rationalization of domestic policies.

     "In the U.S. case, our 1996 Farm Bill took significant steps to reduce
subsidy levels and decouple much of our domestic support from production
decisions, going well beyond what our WTO commitments are today.  We are eager
to work with other countries to continue the reform process.

     "I agree with others who say that our report card on implementation will
help guide us forward.  
                                
     "Further reductions in tariffs, expansion and possible elimination of
TRQ's and better administration will be key to market access.  We see more
ways to tighten the disciplines already provided -- from domestic subsidies to
the operation of State Trading Enterprises and the SPS Agreement. 

     "On Wednesday, we will have put in place an important process to help
prepare for 1999.  We have taken care of the procedures, now we need to turn
to substance.  It is clear to us that our experience with implementation will
help shape how we move forward." 

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