./.WORLD TRADE
ORGANIZATIONWT/MIN(99)/ST/152
2 December 1999
(99-5371)
MINISTERIAL CONFERENCE
Third Session
Seattle, 30 November - 3 December 1999Original:  English
ARMENIA
Statement by H.E. Mr. Armen Darbinian
Minister of Economy
(Speaking as an Observer)
It is my great pleasure on behalf of the Govern ment of the Republic of Armenia to address the
issues, which are currently under consideration, concerning Armenia's forthcoming accession to the
WTO.  I would like to draw your attention to the points, which are of a high importance for all the
countries in transition.
The problems of transition from centrally-planned economic systems to market economies
and from authoritative political systems, based on one-party rule to a system of political democracy
are not appropriately addressed by political decision-makers, who are in charge of the development of
principles of multilateral trade.
Our country has passed through a tremendously difficult period of introducing national
currency, overcoming hyperinflation by implementing strict monetary and fiscal policy, conducting
privatization and large-scale structural reforms in economy and social infrastructure.
During the initial stage of the transition, after decades of state-control and the focus on the
large state-owned monopolies, the framework for independent trade policy, promoting competition
and penalizing anti-competitive practices was very weak, or even non-existent.
That is why I think, that along with supporting special and differential (S&D) treatment
practices for developing and least-developed countries, for countries in transition an exclusive
treatment approach should be developed.  This approach should take into account the lack of
experience as well as the pressing need for comprehensive assistance in international trade
performance.  And this is the first lesson from our practice of negotiations for the WTO accession.
The second lesson is an understanding, that there should be a strong link between
macroeconomic, financial, trade and development policies.  Generally, the role of competition policy,
law and practice as an efficient tool for economic development was highly underestimated.  We
understand that only opening the markets and reducing trade barriers is not enough to achieve asustainable economic growth.  It has become clear, that the interdependent policy issues, regulatory
reforms and institutional building for supporting trade must be tackled comprehensively as a very
important part of the overall development strategy to enable all countries to gain the most benefit
from the world economy.  And here is the point on which multilateral and bilateral institutions should
focus their attention more and more in their ongoing technical assistance programmes.
The third lesson, which came out of Armenia's experience of accession to the WTO is an
importance of regional and international cooperation.  We have realized, that there is an extreme needWT/MIN(99)/ST/152
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to treat regional cooperation as a stepping stone towards further liberalization of the world economy.
We are supporting the proposal of draft of the Ministerial Declaration to include in the
General Agreement a multilateral solution for custom 's administrations of importing countries to seek
and obtain information on export values in a time-bound manner.
We believe that trade cooperation will lead us to better understandings on political issues and
help us in finding formulas for resolution of existing political problems.  All countries in transition
have to gain from benefits of the multilateral trading system.
The fourth lesson is the extreme need for coun tries in transition to focus great attention to
design and establishment of appropriate regulatory frameworks and the strengthening of institutions
that can implement those regulations.  The said is absolutely vital especially for services.
The Governments should smoothly turn from the managerial functions to the regulatory ones.
They have to provide all necessary basis for the private sector to provide infrastructure services.  The
emphasis in ongoing programmes of structural reforms should be put on a creation of regulatory
framework and implementation of regulation in practice.
The fifth lesson is shifting from quantitative targets of reforms to qualitative ones.  It becomes
very important that international financial institutions support development agenda's implementation
rather than achievement of quantitative targets.
Where Governments rely heavily upon customs duties for revenues the development of
alternative sources for revenues is an essential for economic reforms and, of course, the targeting of
the revenues from customs as a conditionality in reform programs supported by international financial
organizations should be avoided.
The sixth lesson is the importance of improving transport, communications and other
infrastructure, which is critical in an era of economic globalization, facilitating all physical and
administrative procedures in external trade transactions, especially in cross-border operations.  It is
impossible to think about the development of intern ational trade without improving the infrastructural
sector of the economy.
And finally the seventh lesson is to provide more transparency in WTO's operations to
respond to public concerns.  The objective if internalization of trade must be politically approved
within the country.  The Governments themselves should demonstrate more transparency and here we
are welcoming the idea of signing the Multilateral Government Procurement Agreement during the
next Ministerial Conference.  I hope, that at that time Armenia will be a full Member of the WTO and
will join that Agreement.  We also welcome the intention of the WTO to focus future cooperation as apriority, on support for developing countries, in the new round of negotiations, provided that there
will be special approach in the WTO to countries in transition.
Armenia has chosen the model of political democracy and free market economy since the
beginning of the transition period and we have the strong commitment to continue a comprehensivereforms strategy aiming to reach sustainable economic growth and development and raise the living
standards of our people.  I hope that the membership in the WTO will help us to reach these
objectives.
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