In order to stimulate the foreign investments in Azerbaijan and create new jobs both EU and United States are planning to liberalize the service market in Azerbaijan within the frames of the WTO accession, Trend reports citing the vice-foreign minister, Makhmud Mammedkuliyev. Markets in financial, communication and distributive sector are expected to be opened for the competition.
Our position is providing the further development to the country; therefore, we will follow the position of national interests during the talks. We have to reach the compromise that will be acceptable both for EU/ US and Azerbaijan, he said.
There are interests in the financial sector to enter the banking and insurance markets. This will allow opening of the foreign banks direct branch offices that will operate according to the head office rule, not the national laws. Azerbaijan is planning to ask WTO not to change the foreign capital share at the local markets for another 10 years. Besides, WTO member- states may receive a postponement for some conditions. For example, Ukraine has received a 5 year term to liberalize the participation of the foreign capital in the Ukrainian insurance companies.
WTO suggests to Azerbaijan taking off the point demanding participation of foreign capital in the local insurance market with 49% on 51% rate from the draft On Insurance. The Azerbaijani insurers consider the demand as impossible as the giants of the world insurance will devour local companies. Thus, the point remained unchanged in the new version of the law that will be submitted to parliament for revisal.