A presentation World trading system and Azerbaijan was held in Baku on 5 April. Organized by the Azerbaijani Fund for Facilitating Export and Investments (AZPROMO) with support from EUs TACIS program and Geneva organization of ITC (International Trade Center), a daughter information company of the WTO.
The key objective of the event is to lunch public discussions to discuss positive and negative factors of the process of Azerbaijans entrance to the World Trade Organization (WTO).
Azerbaijan has held an observer status in the WTO since 1997. Over the last period 4 meetings have been under the negotiation process. The next meeting to discuss the entering of Azerbaijan in World Trade Organization (WTO) is supposedly to take place in Geneva at the end of 2006, or beginning of 2007. It is the first time when two meetings were organized in the course of one year.
Addressing the gathering Mahmud Mammad-Guliyev, the Azerbaijani Deputy Foreign Minister, also the head of the negotiation process on WTO, noted that such meetings should benefit the entire society, especially, businessmen. It will enable the businessmen to get prepared for conduct of business on the WTO standards. As the private sector is involved in the production process, one of the key terms discussed at the talks with WTO members is the liberalization of trade regime and service market.
Azerbaijan had 4 meetings with WTO up to now. First 2 of them were dedicated to the foreign trade regime discussion, and the last 2 were focused on the accession of Azerbaijan into the organization. The bilateral talks are held on allowing services and goods to the Azerbaijani market, whereas, multi-lateral to support the agriculture and provision of subsidies in that area. The single rates have to be established on the excise tax. Mammedkuliyev believes that the custom tariffs are the major protective measures to protect the domestic market; therefore, country should create the maximum save conditions for the local producers.
In the frames of the multi-lateral negotiations Azerbaijan is struggling for the developing country status. It implies that developing countries receive 10% of agricultural support, whereas developed ones only 5%. Azerbaijan has already received support on that matter from Malaysia and Australia.
Today Azerbaijan has also to modernize the legislature, matching it the international norms, WTO standards and agreements. Country needs it first of all to continue the economic reforms successfully, he said. All changes to the legislature have to be made in the course of 1-2 years and preferably completed by 2007. The whole course of the WTO accession negotiations will depend on that.
EU and US positions on the matter are to make the entering country to take all customs tariffs responsibilities. The maximum rate on the custom tariffs in Azerbaijan today is 15%, but there are chances for the agriculture and industry development. The WTO demands the country to reduce it or at least keep it at 15% limit.
In the frames of the multi-lateral negotiations Azerbaijan is struggling for the developing country status. It implies that developing countries receive 10% of agricultural support, whereas developed ones only 5%. Azerbaijan has already received support on that matter from Malaysia and Australia.
Today Azerbaijan has also to modernize the legislature, matching it the international norms, WTO standards and agreements. Country needs it first of all to continue the economic reforms successfully, he said. All changes to the legislature have to be made in the course of 1-2 years and preferably completed by 2007. The whole course of the WTO accession negotiations will depend on that.