[Weekly Compilation of Presidential Documents Volume 34, Number 21 (Monday, May 25, 1998)]
[Pages 926-931]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks at the World Trade Organization in Geneva, Switzerland

May 18, 1998

    Thank you very much, Director General Ruggiero, Federal Councillor 
Couchepin, your Excellencies, thank you for the opportunity to address 
you on this most important occasion.
    Near the end of World War II, as leaders and ordinary citizens began 
to dream of a system that would prevent a return to war, President 
Franklin Roosevelt asked the people of the United States and the world 
to look ahead to peace with these words: He said, ``A basic essential to 
permanent peace is a decent standard of living for all individual men 
and women and children in all nations. Freedom from fear is eternally 
linked with freedom from want.''
    It was that understanding that led a farsighted generation of 
postwar leaders, determined to avoid past errors of protectionism and 
isolationism, to embrace what was then still a revolutionary idea, that 
freedom--freely elected governments, free markets, the

[[Page 927]]

free flow of ideas, the free movement of people--would be the surest 
route to the greatest prosperity for the largest number of people.
    They were also confident that growing economic interdependence would 
lead to greater peace among nations. The economic alliances and 
institutions they created--the IMF, the World Bank, the GATT--built a 
platform for prosperity and peace that has lasted down to the present 
day.
    In the fullness of time, events have confirmed the convictions of 
the founders of the international system. World trade has increased 
fifteenfold; average tariffs have declined by 90 percent; the trading 
community has grown from 23 nations to 132, with 31 more working to 
join. Russia and China, where the shackles of state socialism once 
choked off enterprise, are moving to join the thriving community of free 
democracies. Trade is creating prosperity among the nations of the 
Americas and offers hope to the emerging economies of Africa and Asia.
    On the edge of a new millennium, our people are creating a new 
economy, a very different one from that our founders faced 50 years ago. 
The new one is driven by technology, powered by ingenuity, rewards 
knowledge and teamwork, flexibility and creativity, and draws us closer 
across the lines that have divided us for too long.
    On any given day, over 3 million people take to the air on 
commercial flights. Three decades ago phone lines could only accommodate 
80 calls at one time between Europe and the United States. Today, they 
can handle one million calls at one time. In the United States alone, 
economic output has tripled while the physical weight of goods produced 
has barely changed. The world's new wealth largely comes from the power 
of ideas.
    This new global economy of ideas offers the possibility but not the 
guarantee of lifting billions of people into a worldwide middle class 
and a decent standard of living, the opportunity to give their children 
a better life. Yet it also contains within it, as we all know, the seeds 
of new disruptions, new instabilities, new inequalities, new challenges 
to the balance of work and family, of freedom and security, of equal 
opportunity and social justice, of economic growth and a sustainable 
environment.
    The challenge of the millennial generation here gathered is, 
therefore, to create a world trading system, attuned both to the pace 
and scope of a new global economy and to the enduring values which give 
direction and meaning to our lives. We took the first vital step when we 
created the World Trade Organization in 1995, a goal that had alluded 
our predecessors for nearly half-century. The Uruguay round that founded 
the WTO amounted to the biggest tax cut in history, $76 billion a year 
when fully implemented. Since that event, world trade has increased by 
25 percent. Since 1995, we also have begun to build an infrastructure 
for this new economy, with historic agreements on information 
technology, telecommunications, and financial services, which together 
affect trillions of dollars in global commerce every year.
    At the G-8 summit just concluded in Birmingham, the leaders worked 
on ideas to strengthen the international financial architecture so that 
private capital markets can spur rapid growth while minimizing the risk 
of worldwide economic instability. Now, we must build on these 
achievements with a new vision of trade to construct a modern WTO for 
the 21st century. I would like to offer you my suggestions.
    First, we must pursue an ever more open global trading system. Today 
let me state unequivocally that America is committed to open trade among 
all nations. Economic freedom and open trade have brought unprecedented 
prosperity in the 20th century; they will widen the circle of 
opportunity dramatically in the 21st. One-third of the strong economic 
growth we have enjoyed in America these past 5 years was generated by 
trade. For every country engaged in trade, open markets dramatically 
widen the base of possible customers for our goods and services. We must 
press forward.
    Redoubling our efforts to tear down barriers to trade will spur 
growth in all our countries, creating new businesses, better jobs, 
higher incomes, and advancing the free flow of ideas, information, and 
people that are the lifeblood of democracy and prosperity. At the

[[Page 928]]

U.S.-EU summit in London today, we embraced this goal and committed 
ourselves to reducing barriers and increasing trade in a dozen important 
areas.
    No matter how much some people might wish otherwise, globalization 
and the technology revolution are not policy choices; they are facts. 
The choice is whether we shape these forces of a new economy to benefit 
our people and advance our values or retreat behind walls of protection 
to be left behind in the race for the future.
    At a moment when, for the first time in all human history, a 
majority of the world's people live under governments of their own 
choosing; when the argument over which is better, free enterprise or 
state socialism, has been won; when people on every continent seek to 
join the free market system, those of us who have benefited most from 
this system and led it must not turn our backs. For my part, I am 
determined to pursue an aggressive market open strategy in every region 
of the world. And I will continue to work with Members of our Congress, 
in both parties, to secure fast-track negotiation authority.
    Second, we must recognize that in this new economy, the way we make 
trade rules and conduct trade affects the lives, daily--and the 
livelihoods, and the health, and the safety of ordinary families all 
over the world. Therefore, our efforts to make the trading system more 
open must themselves be made more open.
    In order to build a trading system for the 21st century that honors 
our values and expands opportunity, we must do more to ensure that 
spirited economic competition among nations never becomes a race to the 
bottom in environmental protections, consumer protections, or labor 
standards. We should be leveling up, not leveling down. Without such a 
strategy, we cannot build the necessary public support for continued 
expansion of trade. Working people will only assume the risks of a free 
international market if they have the confidence that the system will 
work for them.
    The WTO was created to lift the lives of ordinary citizens. It 
should listen to them. I propose the WTO for the first time, provide a 
consultative forum where business, and labor, and environmental, and 
consumer groups can provide regular and continuous input to help guide 
further evolution of the WTO. The U.S. and the EU agreed today to 
provide such a forum as part of our new trade agenda. It is far more 
important for the WTO to follow suit. When this body convenes again, the 
world's trade ministers should sit down with representatives of the 
broader public to begin to do this.
    Third, we must actually do more to harmonize our goals of increasing 
trade and improving the environment and working conditions. Expanded 
trade can and should enhance the environment. Indeed, the WTO agreement, 
in its preamble, explicitly adopts sustainable development as an 
objective of open trade, including a commitment to preserve the 
environment and to increase the capacity of nations to do so. Therefore, 
international trade rules must permit sovereign nations to exercise 
their rights to set protective standards for health and safety, the 
environment, and biodiversity. Nations have a right to pursue those 
protections, even when they are stronger than international norms.
    I am asking that a high-level meeting be convened to bring together 
trade and environmental ministers to provide strong direction and new 
energy to the WTO's environmental efforts in the years to come, a 
suggestion that has already been made by Sir Leon Brittan of the 
European Commission.
    Likewise, the WTO and the International Labor Organization should 
commit to work together to make certain that open trade does lift living 
standards and respects the core labor standards that are essential not 
only to worker rights but to human rights. I ask the two organizations' 
Secretariats to convene at a high level to discuss these issues.
    This weekend, the G-8 leaders voiced support for the ILO's adoption 
of a new declaration and a meaningful followup mechanism on core labor 
standards when the ILO ministers meet next month here in Geneva. I hope 
you will add your support. We must work hard to ensure that the ILO is a 
vibrant institution. Today, I transmitted to our Senate for ratification 
the ILO convention aimed at eliminating discrimination in the workplace.

[[Page 929]]

    Because this new economy is based on ideas, information, and 
technology, the return on investment in education has never been higher. 
And the adverse consequences of being without skills has never been 
greater. These trends cannot be reversed. Our goal, therefore, must be 
to help more people benefit from the possibilities of the new economy, 
even as we ensure that the forces of technology and new trade patterns 
do not aggravate inequality or reinforce poor labor conditions.
    Here I must add--even as we do more to harmonize our goals of more 
trade and higher incomes for ordinary people, each nation must do more 
to provide universal access to quality education and training. Without 
that, no trade rules, however wisely conceived or effected, can 
guarantee individual success to the people we are really trying to 
reach.
    Fourth, we must modernize the WTO by opening its doors to the 
scrutiny and participation of the public. Through long trial and error, 
we have learned that governments work best when their operations are 
open to those affected by their actions. As American Supreme Court 
Justice Louis Brandeis said a long time ago, ``Sunshine is the best of 
disinfectants.''
    The WTO should take every feasible step to bring openness and 
accountability to its operations. Today, when one nation challenges the 
practices of another, the proceeding takes place behind closed doors. I 
propose that all hearings by the WTO be open to the public and all 
briefs by the parties be made publicly available. To achieve this, of 
course, would require a change in the rules of this organization. But 
each of us could do our part now. The United States today formally 
offers to open up every panel we are a party to, and I challenge every 
other nation to join us in making this happen.
    Today, there is no mechanism for private citizens to provide input 
in these trade disputes. I propose further that the WTO provide the 
opportunity for stakeholders to convey their views, such as the ability 
to file amicus briefs to help inform the panels in their deliberations. 
Today, the public must wait weeks to read the reports of these panels. I 
propose that the decisions of the trade panels be made available to the 
public as soon as they are issued.
    Fifth, we must have a trading system that taps the full potential of 
the information age. This revolution in information technology is the 
greatest force for prosperity in our lifetimes. The Internet is the 
fastest growing social and economic community in history, a phenomenon 
with unimagined revolutionary potential to empower billions around the 
world. It has been called the ``death of distance,'' making it possible 
for people to work together across oceans as if they were working 
together across the hall.
    When I became President, there were only 50 sites on the World Wide 
Web. Four years ago there were still less than 3 million people with 
access to the Internet. Today there are over 100 million people, with 
the number doubling every year.
    Today, there are no customs duties on telephone calls, fax messages, 
E-mail, or computer data links when they cross borders. We have spent 50 
years tearing down barriers to trade in goods and services. Let us agree 
that when it comes to electronic commerce, we will not erect these 
barriers in the first place. I ask the nations of the world to join the 
United States in a standstill on any tariffs on electronic transmissions 
sent across national borders. We cannot allow discriminatory barriers to 
stunt the development of the most promising new economic opportunity in 
decades.
    Earlier today at the summit of the EU, we agreed to deepen our 
collaboration in this area. And last week, the Japanese Prime Minister, 
Mr. Hashimoto, and I, agreed to move forward together with a market-
oriented, private-sector-led approach to enhance privacy, protect 
intellectual property, and encourage the free flow of information and 
commerce on the Internet. I hope we can build a consensus that this is 
the best way to harness the remarkable potential of this new means of 
communication and commerce.
    Sixth, a trading system for the 21st century must be comprised of 
governments that are open, honest, and fair in their practices. In an 
era of global financial markets, prosperity depends upon government 
practices that are based upon the rule of law rather than bureaucratic 
caprice, cronyism, or corruption.

[[Page 930]]

Investors demand it. And their loss of confidence can have sudden, 
swift, and severe consequences, with ripples throughout entire regional 
economies.
    With its insistence on rules that are fair and open, the WTO plays a 
powerful role toward open and accountable government. But the WTO must 
do more. When we meet next year, all members of the WTO should agree 
that government purchases should be made through open and fair bidding. 
This single reform can open up $3 trillion worth of business to open 
competition around the world. And I ask every nation to adopt the 
antibribery convention developed by the OECD. Both these steps would 
promote both investor confidence and stability.
    Finally, we must develop an open global trading system that moves as 
fast as the global marketplace. In an era in which new products' 
lifecycles are measured in months and information and money move around 
the globe in seconds, we simply can no longer afford to take 7 years to 
finish a trade round, as happened during the Uruguay Round, or to let 
decades pass between identifying and acting on a trade barrier we all 
know ought to fall.
    In the meantime, new industries arise, new trading blocs take shape, 
and governments invent new trade barriers every day. We should explore 
what new type of trade negotiating round or process is best suited to 
the new economy. There must be a way to tear down barriers without 
waiting for every issue in every sector to be resolved before any issue 
in any sector is resolved. There must be a way to do this that is fair 
and balanced to nations large and small, rich and poor. Surely we can 
negotiate trade agreements in a way that is faster and better than the 
way we have followed to date.
    For example, agriculture, which I understand has been discussed 
quite a bit here, is at the heart of our economy and many of yours. 
Tearing down barriers to global trade is, I believe, critical to meeting 
the food needs of a growing world population. Starting next year, we 
should aggressively begin negotiations to reduce tariffs and subsidies 
and other distortions that restrict productivity and the best allocation 
of food. We must develop rules rooted in science to encourage the full 
fruits of biotechnology. And I propose that even before negotiations 
near conclusions, WTO members should pledge to continue making annual 
tariff and subsidy reductions so that there is no pause in reform.
    We have to recognize that the fastest growing area of economic 
activity in the world is services, the one least disciplined by WTO 
rules. So when services negotiations are launched, I think it is 
essential to engage in wide-ranging discussions to ensure openness for 
dynamic service sectors, such as express delivery, environmental, 
energy, audiovisual, and professional services.
    We have to continue our strong momentum to dismantle industrial 
tariffs. A good place to start would be an agreement on the sectors from 
chemicals to environmental technology proposed by APEC. And we must move 
forward in strengthening intellectual property protection.
    These are my proposals for a 21st century trading system: one that 
is more open and accountable; one that listens to the voices of 
citizens; that works to protect the environment and lift the lives and 
incomes of ordinary people; one that is in sync with the information 
age; that promotes honest, effective government; and that makes better, 
faster decisions. In short, a trading system based on the new economy 
and old, enduring values. To move forward, I am inviting the trade 
ministers of the world to hold their next meeting in 1999 in the United 
States.
    I ask you to think about the opportunity that has been presented to 
all of us: the chance to create a new international economy in which 
open markets and open economies spark undreamed of innovation and 
prosperity; in which the skills of ordinary citizens power the 
prosperity of entire nations; in which the global economy honors those 
same values that guide families in raising their children and nations in 
developing good citizens; in which poor people, at last, find 
opportunity, dignity, and a decent life; in which increasing 
interdependence among nations enhances peace and security for all.
    This will be the world of the 21st century if we have the wisdom and 
determination, the courage, and the clarity of our forebears 50 years 
ago.
    Thank you very much.

[[Page 931]]

Note: The President spoke at 7:48 p.m. at les Palais des Nations in a 
ceremony commemorating the 50th anniversary of the General Agreement of 
Tariffs and Trade. In his remarks, he referred to Renato Ruggiero, 
director general, World Trade Organization; Pascal Couchepin, Federal 
Councillor and Head of the Federal Department of Public Economy of 
Switzerland; and Prime Minister Ryutaro Hashimoto of Japan.