September 30, 2013. Azerbaijan's membership in the World Trade Organization (WTO): results from the experience of CIS countries - round table

30.09.2013. Economic Research Center (ERC) carried out Round Table discussion on topic of  “Azerbaijan’s accession to the World Trade Organization (WTO): results coming from experience of the CIS countries”  in the framework of Micro Enterprise Support Project conducted by Entrepreneurship Development Foundation (EDF) with financial support of US agency for international development (USAID). Representatives of Ministry of Agriculture, experts of USAID,  independent think tanks, academic circles as well as  experts and media attended the event. 

Welcoming the participants of the round table,President of EDF Sabit Bagirov, briefed participants about the existing situation on Azerbaijan's WTO accession. He noted the fact that WTO accession process started in 1995 not in 1997 and focused attention on results of bilateral and multilateral meetings of the working groups in different fields. Speaking of the importance of studying the experience of different countries to join the WTO,  President of EDF said that during this meeting we will discuss experience of the CIS countries and passed word to expert of ERC Gubad Ibadoglu

Gubad Ibadoglu began his speech by telling the experience of the WTO's membership in the CIS countries. Speaking about Moldova's accession to WTO expert talked about its impact to exports and imports, growth of foreign direct investment, stronger business climate in the country, better position in regional trade and gave overall assement of the process.

Expert analyzed  process of Russia’s access to WTO, talked about hindering factors, and touched upon points such as  Customs Union and WTO membership, initial conditions on membership issues, discounts, and the transition and application of the tarifs according to the  principle of most favored nation (MFN).

The speaker later touched upon experience of Kyrgyz Republic's and Georgia in accession to the WTO and gave overview of the negotiation process.

During the presentation Gubad Ibadoglu focused on issues more related to Azerbaijan and  touched on the reasons that delay the process. Later based on what President of Azerbaijan Ilham Aliyev said in Cabinet of Ministers in October 2012: “ I think that a priority should be to strengthen domestic production.  After  we will fully achieve these results and get to the desired level in industrial sector, process of accession to the World Trade Organization will go even faster” he shared the opinion that  accession will not happen even in 2015.25 Event continued with the discussion around the presentation. Speaking about reasons that hinder the country’s membership to the organization famous expert on WTO issues, USAID's representative, Mr. Mikhailov mentioned thoughts that are dominating in the society such as destruction of national economy  after joining to WTO  and wrong conclusions driven from the experience of CIS countries.The speaker stressed the importance of all the efforts to eliminate these wrong views.

Confirming the fact that heavy  negotiation process was between 2007-2009 Mr. Mikhaylov, indicated that most intense talks were going between USA and European countries. The main issues with these countries have already been agreed,  just some minor issues related to agriculture and education have not yet reached an agreement, he said.

USAID's other representative, lawyer Eldar Gojayev informed about the work going on in the legislative acts on WTO membership and gave his opinion on mentioned main reasons for the delay of membership such as the protection of the domestic market. According to him, till Azerbaijan will become  WTO member production of competitive producs will not be possible .

Head of Economic Initiatives Public Union Azer Mehdiyev said that because of the most of the experts in academic circles are russian speaking, they perceive accesion to WTO as a predator to the national economy .  According to the expert, in the Russian Economical Literature role of WTO is deliberately undermined and creates a very terrifying image for entrepreneurs.

Chairman of Center for the Study of Economic Resources Ruslan Atakishiyev said that it is wrong to perceive WTO as only objective for development of national economy and said it should be more like a tool.

Professor Azerbaijan State Economic University Elman Ibishov supports the idea ot introduction of the  protectionist policies and says that protection of national econonmy should be priority issue at the countrys WTO membership.

As the conclusion participants agreed  importance of avoiding mistakes, taking into consideration lessons learned from CIS countries experience during accession of Azerbaijan to WTO.

List of Participants