Azerbaijan proximate to WTO

Azerbaijan’s negotiations for joining the World Trade Organization (WTO) are underway.

The Deputy Foreign Minister Mahmud Mammadguliyev said that the Azerbaijani government hopes to hold regular meetings (IX round of multilateral negotiations) with the WTO working group in November through early December of 2011.

The partners have acquiesced to most of the issues, but bilateral and multilateral talks remain rigorous. It is difficult to point out specific terms under which Azerbaijan would join the WTO.

Negotiations have been completed and protocols with Turkey, Oman, United Arab Emirates, and Georgia have been signed. The country is ready to sign with Moldova, though the latter is still deliberating over the document. Kyrgyzstan has already agreed to be a signatory of the protocol.

Azerbaijan continues working to bring the national legal base in line with WTO requirements and to improve the existing trade regime. About 40-50 legislative acts must comply with the organization's requirements. About 30 documents have been unified. Work in this area will continue next year.

Azerbaijan's status is a stumbling-block in bilateral talks between Azerbaijan and the WTO. The WTO intends to accept Azerbaijan as a developed country, under the argument that all CIS countries joined the WTO under such status. Moreover, Azerbaijan is involved in several projects as a donor. Azerbaijan intends to join the WTO as a developing country. It will allow the country to provide more financial support to the agricultural sector. In this case, the country will be able to keep subsidizing at a level of 10 percent of GDP produced in agriculture.

Moreover, there are difficulties in negotiations on tariffs. Some countries proposed to reduce customs tariffs by fixing them below 15 percent at previous talks on international trade regimes. At present, the tariffs are the maximum rate of customs duty in Azerbaijan. The Azerbaijani government proposes to determine customs tariffs at 30 percent. But there are higher tariffs. The customs tariff rates proposed by Azerbaijan are provided in case of contingencies to protect local production.

Each country must carefully consider the issue of concessions to promote and protect the domestic market. Azerbaijan will become more attractive to foreign investments while joining the WTO. Big foreign companies will consider membership in the WTO as a guarantee. The basic standards of international business practices, such as protection of patents rights and intellectual property, as well as such factors as the inviolability of private property, an independent judiciary, a transparent tax system, and ensuring maximum freedom of trade are available in Azerbaijan.


Leyla Abdullayeva
/Trend /