Azernews.Az

By Araz Said

The next meeting of the working group on Azerbaijan's joining the World Trade Organization (WTO) is scheduled for November 30, Azerbaijan's Deputy Foreign Minister and chief negotiator, Mahmud Mammadguliyev, told Trend news agency.

"Initially, the WTO Secretariat scheduled that date, but there will be more discussions to that end," Mammadguliyev said. "November 30 falls on Friday. The remaining days of the week will be devoted to bilateral negotiations, and perhaps, multilateral negotiations on agriculture."

He said the country has already submitted answers to relevant questions to the WTO Secretariat.

"This is a very important point," he said. "At present, the Secretariat is preparing a new report on the basis of our answers and will submit it for our consideration in two or three weeks. Other documents are also being prepared. We will submit them to WTO member-states with which we are negotiating in October."

According to Mammadguliyev, Azerbaijan is also going to present an updated chart on the state of its agriculture sector to the WTO Secretariat in the short run of the multilateral negotiations to accede to the WTO. He said the chart was updated due to a request from the United States and other countries.

"We update this chart every time using data over the past three years. Quite extensive information on the situation in the agricultural sector has been provided. The chart reflects our plans and positions on the maximum level of internal support to agriculture in the country. This information demonstrates a quite objective and full picture of the state of agriculture in Azerbaijan," Mammadguliyev said.

According to the data as of 2007, the volume of subsidies in Azerbaijani agriculture is estimated at 27 per cent of the value of goods produced in the sector. 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 sector at the level of 14.1 per cent, whereas it amounts to 22.8 per cent in developed countries, 12.7 per cent in developing countries and 15.4 per cent in underdeveloped countries.

The working group on Azerbaijan reporting to WTO Secretariat was established in July 1997. Since 1997, the South Caucasus republic is represented in the organization as an observer. Azerbaijan began negotiations on WTO membership in 2004.

Negotiations with Turkey, Oman, United Arab Emirates, Georgia and Kyrgyzstan have been completed and relevant protocols signed. The country is in the process of signing a protocol with Moldova, which is still considering the document.

Azerbaijan is currently holding bilateral talks with the U.S., Norway, Canada, Ecuador, Japan, Brazil and China. Azerbaijan is also in talks with Sri Lanka, India, South Korea, Taiwan Province of China and Switzerland.

Azerbaijan continues working on bringing its national legislation into accordance with the WTO requirements as well as on improving the current trade regime. About 40-50 legislative acts must meet the requirements of the organization and 30 of them have already been unified, and work in this area continues this year.

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

Azerbaijan aspires 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 persons ousted from their homes during its war with Armenia in the early 1990s, in spite of the rapid development of the oil sector.

But the WTO, OECD and UN consider Azerbaijan one of the countries with an average level of per capita income, which means that it belongs to the group of developed countries.

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

In an interview with Echo newspaper, Azerbaijani economist Azer Mehdiyev says Azerbaijan's aspiration to join the WTO "is not so noticeable".

"True, there have been some efforts, and even a legislative act that requires expediting the process has been adopted. Yet the course of negotiations suggests that the political interest is not so high. On the other hand, our country does not want to suspend the negotiations," Mehdiyev said.

According to Trend analytical center expert Leyla Abdullayeva, joining the WTO could result in a decrease in interest on bank loans, but "given the fact that the banking sector of Azerbaijan is just developing and cannot really compete with Western partners, the government should secure a delay for few years in complying with the WTO conditions".