Every year brings Azerbaijan closer to its objective on entrance to the World Trade Organization (WTO). Though 2006 the Government did too much in this direction, unfortunately it has left much to do this year. The Government's actions require attention and skills to stand WTO's tough policy towards the countries which desire to enter this organization. The key task of the government is to try to soften the requirements specified by the international trading and direct them at the country's welfare.
Thus, in accordance with the WTO norms, the entering countries can apply a privileged trading regime, which can last 7 years in different spheresС'. Since the first days of its establishment the Coordinating Group (CG) on Azerbaijan's entrance to WTO tries to ensure privileged regime for Azerbaijan. We will hold our positions on many aspects, the SG Secretariat Head and Deputy Director of the Foreign Relationships and Investments Department of the Ministry of Economic Development, Elshan Mammadzade. However, the duration of the regime and its application directly depends on economic grounds of the positions. If to apply all WTO requirements, the local farmers will turn out unsecured from import. Therefore, Azerbaijan should carry out a policy in the direction of development of private production and increase of rivalry.
Moreover, additional work is required for documents in the sphere of services, protection of intellectual property, technical barriers in trade, sanitary and phito-sanitary measures. For instance, a package of services includes legislative and standard acts, which regulate an access to this segment of the market in Azerbaijan. regime in this sphere is liberal enough вЂ" local and foreign companies enjoy equal rights without any limitations. However, much work should be done taking in to consideration that a specter of services is large enough.
As to technical barriers in trade, if earlier import was regulated with the help of tariff policy, now methods of non-tariff regulation вЂ" sanitary and phito-sanitary norms - are experienced. Much has been in terms to intellectual property and copyright protection and the formation of Azerbaijan's position is in its final stage.
Azerbaijan has a right to agree upon several requirements, traditionally set by WTO for some candidate countries. But one should not forget that if we desire to get integrated into the world economic system, then should admit the rules specified by the international community. Azerbaijan's disagreement first of all concerns WTO requirements on the cancellation of customs duties and tariffs. In this way the country will intends to sustain the custom duties on textile and other products to offer facilities for the development of local production. At the present time the customs tariffs protect the local producers, while mass and duty-free importation can properly suppress the development of local production. Furthermore, the customs duties also comprise the considerable part of the public budget revenues.
The similar situation is observed in the agriculture and other fields. However, over 7 years the Azerbaijani industry can become competitive and not depend on tariff regulation. But the application of customs tariffs and approval of grants-in-aid for the agriculture should not be understood as the will to get secured from the foreign world and preference to production of low-competitive products for domestic market. It all should be a temporary measure required for support to local producers.
Privileged regime, offered by WTO, will act temporary basis during Azerbaijan's entrance to the WTO. Therefore, the local producers should thin over the use of privileged regime not only for free consumption of their products wit in the country, and also about export. Much is said about WTO's requirements set for Azerbaijan, but the country's benefits are not mentioned. For instance, during the former Soviet period the Azerbaijani agriculture products had consumption markets in Russia, Ukraine, etc. Taking into consideration that these countries have achieved progress in the process of entrance to the WTO, one can expect that Azerbaijan's membership at this organization will enable the agriculture products to return their past niche at these markets. So, membership at WTO promises positive aspects for Azerbaijan вЂ" the country will obtain free access at markets of other countries, though it will open its markets. Now oil and products comprise major part of Azerbaijani export. The Government of Azerbaijan selected the development of non-oil sector as the priority. The Ministry of Economic Development has prepared a package of programs for the development of priority sections. Their implementation will enable not only to expand the local production for covering the domestic demand, but also establish competitive export products.
It is also necessary to improve the legislative basis to support the national exporters. The conditions in agriculture of Azerbaijan are estimated more favorable in CIS. Some tax privileges are specified for agrarian producers, which promotes the development of this sector. The strategy corresponds to the investment policy вЂ" attraction of capital for the development of priority sphere of economy.
During the first years of Azerbaijan's entrance to WTO and undertaking of commitments, the people will feel influence in a definite level. We witness a wave of price rise in the country and more probably, it will continue. The local consumers should be ready to continuing rise in prices. Price rise acquired permanent and irreversible character and experts urge that the process will continue until the country's entrance to WTO.
However, Azerbaijan is striving to WTO and the European Union and it is necessary to be in line with the countries entering these organizations. Particularly, the Government of Azerbaijan is to bring the domestic market prices in line with the European standards. It concerns not only the fuel and energy sector, but the domestic appliances, foodstuff, services, etc. In addition, the general inflation situation in the world, which exports inflation to Azerbaijan, would play its role. If local products enjoyed priority in the domestic market, then the country would not face with such level of inflation.
Nevertheless, the country continues holding talks and measures. It is expected to commence the realization of the two technical assistance projects on Azerbaijan entrance to the World Trade Organization (WTO). The assistance is intended to be received from German Government and State Secretariat of Switzerland on Economical Issues (Seco), a Government source informed Trend. Germany will provide technical assistance for sanitarian and phyto-sanitarian norms to bring the system in the country into conformity with requirements of WTO Agreement on sanitarian and phyto-sanitarian norms. It is expected to modernize the legislation and hold trainings due to the technical assistance.
Germany will assist in training specialists for the Ministry of Agriculture of Azerbaijan and negotiations group for WTO, etc. The technical assistance is intended till the end of 2007, and then amount of the grant has been defined in amount of в'¬50,000.
The technical assistance of Seco will be directed towards bringing the system of the intellectual property, particularly industrial property (patents, trade marks), into conformity with WTO requirements through analyzing the legislation and conducting trainings.
Thus, Azerbaijan should meet the WTO standards, which necessitates the removal of discrimination in trade partners, including the citizens, provision of maximal freedom of trade (including minimization of tariffs), subsequence and predictability of actions, support to developing countries. The key objective is to ensure condition for rivalry in the international trading.