. /.WORLD TRADE
ORGANIZATIONWT/MIN(99)/ST/63
1 December 1999
(99-5270)
MINISTERIAL CONFERENCE
Third SessionSeattle, 30 November - 3 December 1999Original:  English
ESTONIA
Statement by H.E. Mr. Toomas Hendrik Ilves
Minister of Foreign Affairs
I am speaking here as the representative of the newest WTO Member.  Estonia finally
acceded to this organization only two weeks ago.  The open and liberal trade policy that my country
has pursued for almost a decade has resulted in remarkable economic growth;  extremely high foreign
direct investment as well as integration of the Estonian economy into the world trade system to a far
greater degree than expected from a small, formerly planned economy.  A decisive role in this processcan be attributed to the pursuit of similar goals within the WTO.  Successful application of these
principles is evidence of the viability and necessity of a liberal and open trade regime.
Indeed, I would submit that the Estonian experience in modernization and development
through liberalization provides empirical evidence that old models for poor countries, characterized
by protectionist and interventionist methods, are inadequate.  Indeed the ten years following thecollapse of the communist block provides us with a range of responses to reform.  This laboratory
shows that the more liberal the response, the more successful the reforms.
For Estonia, foreign trade plays an inordinately large role in the economy.  Though small,
with only 1.5 million inhabitants, we enjoy a foreign trade/GDP ratio of 1.6. Thus we can consider
ourselves a big trading nation and therefore have a direct interest in improvement of a multilateral
trading system that is capable of diminishing the barriers that still exist between nations.
We consider membership in the WTO as recognition of Estonia's economic and reform
policies.  Membership, however, provides Estonia wi th much more.  It imposes an obligation and a
responsibility to continue the path of trade liber alization and a duty to share our experiences with
other members of the organization.  We believe there is something to be learned from our experiences
in applying one of the most liberal economic policies in the world and especially using that policy as a
tool of development.
Estonia believes that the WTO can further strengthen its role and become a truly global
organization only through expanded membership.  Ha ving recently finalized five-year long accession
talks with the WTO, we know all too well what this process includes, in particular for a compact
economy such as ours.  This is the reason we would like to especially welcome and encourage all the
small countries, currently acceding to the WTO.
Without a doubt every acceding country benefits from bringing its trade-related rules and
regulations in conformity with the WTO principles.  At the same time the members have a collective
responsibility to ensure that adequate attention is  given to acceding countries' specific characteristics.
Accession negotiations should neither be seen nor used as a tool for imposing on new members rules
and disciplines that are not fully accepted by all of the members themselves.  New accessions shouldnot become hostage to agenda issues that are to be solved in the course of WTO everyday business,
including global trade round negotiations.WT/MIN(99)/ST/63
Page 2
Increasing global trade relations between nations is to the benefit of all the members of the
WTO.  Only through globalization and increase in trade and other economic ties can we achieve
economic growth, optimal allocation of resources, the most effective and efficient means of
production and development of technology.  The economic development that accompanies increased
trade flows benefits all nations.  Reduction or elimination of barriers, be they tariffs or red tape is a farbetter policy option than barricading oneself with protectionist mechanisms.  Increased trade should
not be feared.  Rather, it should be promoted.  Glob alization and a concomitant increase in trade is not
an enemy that should be fought.  Rather it is a challenge that we must tackle and make the most of
while concentrating our efforts to address side effects that might possibly accompany the process.
Globalization calls for new ideas, new approaches and solutions in order to keep up with the
rapidly changing world.  A practical example of this new era is the Internet.  It gives me special
pleasure, being here in Seattle, a cradle of the globalization through computerization, to bring the
example of my country.  In less than a decade internet use in Estonia has become as essential and
natural as brushing ones teeth.  We are the most internetted country in the post-communist world and
surpass half the EU in internet use.  This opening up to globalization in one specific sector has
immensely contributed to the overall rapid development of my country.
In closing, dear colleagues, I would like to say that both internetization and globalization are
inevitable.  In this great historical movement it should be clear to all, but especially to small countries,
that each member's interests and future can be safeguarded only through a rule-based framework such
as the World Trade Organization and the Millennium Round.
__________