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Azerbaijan to present updated chart to WTO

Business Materials 27 September 2012 16:01 (UTC +04:00)

Azerbaijan, Baku, Sept. 27 /Trend A. Akhundov/

Azerbaijan is going to present an updated chart on the state of agriculture to the WTO Secretariat in a short run of the multilateral negotiations to join the World Trade Organisation.
This was reported to journalists on Thursday by deputy MFA of Azerbaijan, head of the negotiation group, Mahmud Mammadguliyev.

"We are updating this chart every time using data over the past three years. Quite expanded information on the agricultural field situation has been given," Mammadguliyev said.

He said the chart was updated due to a request from the USA and other countries.

"The chart reflects our plans and positions on the maximal level of internal support to agriculture in the country. This information demonstrates a quite objective and full picture on the state of agriculture in Azerbaijan," Mammadguliyev said.

According to the data as of 2007, the volume of subsidies in Azerbaijani agriculture is estimated to be 27 per cent of the price of sector's trade production. It amounts to 24 per cent in the EU, 64 per cent in Switzerland, 48 per cent in Japan and 52 per cent in South Korea and Turkey. The data is confirmed by the Organisation of Economic Cooperation and Development (OECD)

Within the process of joining the WTO, Azerbaijan has offered an average level of bound tariff in the agricultural complex at a level of 14.1 per cent, whereas in developed countries it amounts to 22.8 per cent, 12.7 per cent in developing countries and 15.4 per cent in underdeveloped countries.

One of the general issues during multilateral negotiations on the terms of Azerbaijan's membership in the WTO is the issue of country's status.

Azerbaijan pretends to have the status of a developing country based on social and economic problems due to the presence of one million refugees and internally displaced people in the country in spite of the rapid development of the oil sector.

At the same time, WTO, OECD and the UN consider Azerbaijan to belong to countries with an average level of per capita income which means that it belongs to the group of developing countries.

The status of a developing country allows it to claim a 10 per cent level of industrial subsidy against five per cent for developed countries.

The working group on Azerbaijan in the WTO Secretariat was established on July 16 1997.
Azerbaijan is represented in the WTO as an observer state since 1997.

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