1999 will be a crucial year for world trade policy. Against the background of financial crisis in Asia and Russia, the role and importance of the global economy has never been more centre stage. As the next century approaches, no economy can remain insulated from the global market place.

But the answer is not to try to turn the clock back. Retreating behind protectionist barriers reminiscent of the 1930s is a sure-fire way to make a bad situation worse.

Rather the crisis shows more than ever the need to look forward - and embrace further trade liberalisation. We must work together to keep markets open and to tackle global economic turbulence collectively.

The EU's commitment to a rules-based multilateral trading system is as strong today as ever. We are convinced that multilateralism is the best model for international co-operation and economic stability. An open trade policy leads to world-wide growth, prosperity and jobs. Comprehensive, multilateral negotiations are our best way of tackling the millennium challenges head on.

This year we celebrated 50 years of the multilateral trading system. We should rightly be proud of the achievements GATT has made in breaching protectionist walls. Eight 'rounds' of major global trade talks have hammered at the boundaries of trade liberalisation to the benefit of business and consumers alike.

The last talks — the mammoth Uruguay Round — led to the creation of the World Trade Organisation as a permanent body and a forum for settling trade disputes. In just four years it has made a significant impact with the new Dispute Settlement Body successfully arbitrating trade quarrels across the globe.

Since then agreements to open markets in information technology, financial services and telecommunications have been successfully negotiated. The WTO Telecoms agreement which came into force early in 1998 covers more than 93% of world revenues in telecommunications. And the financial services deal concluded in Geneva last December covers over 97% of insurance premiums of WTO member countries. These agreements provide global rules in some of the world’s most dynamic fast growing industries.

But much remains to be done. That's why the European Union, already backed by Japan, Australia, Hong Kong, Singapore, Mexico, Chile and others, believe the best way forward is to hold a new round of global trade talks starting on 1 January 2000 - a 'Millennium Round'.

Only new multilateral negotiations on this scale, involving all industries and all trading countries, will enable every sector to say what it wants done — and offer governments the chance to strike cross-sectoral deals. Nothing is agreed until everything is agreed - but everyone stands to benefit from the final outcome.

Relying on sectoral or geographical agreements may offer piecemeal comfort in the short term but cannot provide long term prospects for global growth. The benefits of comprehensive liberalisation will spread widely across the economy, and will not just benefit particular sectors or interest groups.

A built-in agenda for new trade talks is already on the table as part of the Uruguay Round agreements. As part of that, WTO members have already committed themselves to begin negotiations on agricultural subsidies and services by the end of next year. The potential gains in these areas are huge.

But the European Union believes these negotiations should be much broader. Trade and investment and trade and competition rules are two areas which we cannot afford to ignore. Indeed the WTO has already set up working groups to look at both of these.

And the Millennium Round should also embrace new issues such as further liberalisation of industrial tariffs, and electronic commerce — an area which has expanded tremendously since the Uruguay Round.

Exporters across the globe are being obstructed by a plethora of non-tariff barriers. There is a growing need to simplify export and import procedures; to focus on product standards and technical regulations; to strengthen intellectual property rights; to expand on the existing rules for public procurement; to simplify complex rules of origin; and to look at ways of ensuring that investment and competition rules do not amount to barriers to the free movement of goods, services and capital world-wide. These pressing issues cannot wait.

But although the new trade round should be market driven it must reflect more than the interests of business alone. We must look closely at the relationship between trade and the environment, labour standards, food safety and animal welfare.

Another challenge is to strengthen public understanding of and confidence in the multilateral system. To do this we must take steps to improve the transparency of WTO procedures and give greater weight to the consultation process. It is vital that we explain the economic and social benefits resulting from an expansion of world trade to interested groups and the wider public.

The world cannot afford to stand back at this critical moment. The Asian and Russian financial crises make it even more important that we act quickly. We must inject greater urgency into opening up world markets. And we must resist any moves to return to crippling pre-war protectionism.

If we are to enter the next century on a firm economic footing, there must be further trade liberalisation leading to a truly comprehensive 'Millennium Round'.