Azernews.Az

Azerbaijan’s membership in the World Trade Organization (WTO) has been on the agenda for over a decade, with analysts speculating on the reasons for the country’s stalled admission to the group.
The admission of Azerbaijan, which applied for WTO membership in 1997, was discussed at the group’s ministerial conference in Geneva on Tuesday. Some experts say that the admission is being hampered by Azerbaijan’s alleged improper governance, while others link the delay with what they see as some officials’ subjective opinions.
Nazim Mammadov, a member of the parliamentary committee on economic policy representing the ruling New Azerbaijan Party, believes WTO admission is sought by many countries. "Azerbaijan’s formally expressing this desire in 1997 is not accidental. But a number of subjective factors are standing in the way."
According to Mammadov, along with certain privileges, WTO membership imposes some restrictions, such as customs-related policies, issues regarding subsidies, open market principles, and creating a competitive environment. Some officials and economists say that if Azerbaijan becomes a WTO member, the country’s economy could possibly collapse.
"The interests of the state always comply with those of the people. However, some officials’ interests cannot always overlap with state interests, because a man always voices subjective opinions, gives way to speculations with certain economic notions. [They say that] if we become a member of the organization, our agricultural sector will fall apart, and so forth. I regret that there are people like this who are in charge of governing today, as well. And I think that those who have lobbying interests in making such calls should be severely punished."
Mammadov added that in any case, the Azerbaijani president has a task to fulfill, and Azerbaijan should be granted membership in the WTO.

‘Corporate interests’
Some economists claim that Azerbaijan’s WTO membership could be held up, not because of certain politicians, but due to the state governance system as a whole.
Analyst Gubad Ibadoglu says one of the hurdles is certainly the country’s being unprepared in terms of financial issues, logistics and personnel, but the key partners standing in the way of membership are corporate interests, whose advocates "are feeling more powerful in the current situation."
"On one hand, a group of people has emerged who believe the customs borders should be under their control. Certain discrimination and covert opportunities for activity should be there for this oversight to be possible. In other words, this process is approached not merely as business, a trade issue, but as a political matter. And it is in their interest that, if the country faces problems in terms of material and technical issues, and personnel, that the process be prolonged and their interests are met even more."
Further, Ibadoglu maintains that, if the current situation drags on, Azerbaijan would beat all records on the duration of WTO admission talks, as these discussions have been underway with the organization for twelve years, and this process may still take several more years to complete.
Analysts argue that, in any case, stalling admission talks are a disadvantage to Azerbaijan, not the WTO, as the gains from membership outweigh the losses. Thus, WTO admission enables a member to settle certain trade disputes fairly; entrepreneurs gain access to the markets of other participating countries; opportunities for competition in the domestic market increase; the national legislation is brought into compliance with international law; confidence in channeling investment into the Azerbaijani economy increases, as well as other benefits. *