Clinton Scores EU Ag Policy, Promotes WTO Round

January 31, 2000

President Clinton, in an address to the World Economic Forum in Davos, Switzerland Saturday, said the European Union should be willing to negotiate reductions in its agricultural export subsidies. The President also called on international leaders to not just seek to reform and strengthen the World Trade Organization but support the WTO even as reforms take place.

The United States is "significantly affected" by the policies of other countries, said Clinton, especially Europe, Japan and other "wealthier countries." He added, "I think for its part, Europe should put its agricultural subsidies on the table" at international trade negotiations.

Clinton said if one-third of the world's agricultural subsidies and tariffs were eliminated, the poorest developing countries that could export would gain more than $4 billion in economic benefits each year.

Imports have value beyond doing "a favor to developing countries or two our trading partners," he said. Imports "stretch family budgets; they promote the well being of working families by making their dollars go further; they bring new technology and ideas; they, by opening markets, dampen inflation and spur innovation."

Calls to freeze the WTO in place or even disband it "are dead wrong," said Clinton. Global trade over the last 50 years increased 15-fold, contributed to the "most rapid, sustained and, yes, widely shared growth ever recorded."

The WTO lends credibility and confidence to expanding trade; offers temporary relief against unfair trade and abrupt surges in imports, and has the authority to resolve disputes and command the respect of all member nations.

But there needs to be more transparency and public awareness of what the WTO does and the procedures involved, he added. "We have to let the public see what we're doing."

A new round should not be postponed or halted, Clinton continued. And "I do not agree with those who view with contempt the new forces seeking to be heard in the global dialogue. Globalization is empowering people everywhere with information."

Clinton also reiterated his position on China's WTO membership. "It's very important to get China into the World Trade Organization, to ensure that China's markets are open to us, even as we have our markets open to China, and to advance peace and stability in Asia and increase the possibility of positive change in China."