World Trade Organization (WTO)
WTO was created in 1995. The organization Headquarter locates in Geneva. Currently, 164 countries of the world are members of WTO. Moreover, 22 countries and some international organizations have observer status in WTO. The main goal of the WTO is to maximize the liberalization of international trade and to create solid foundations for it, thereby increasing economic development and improving people's living standards.
The main duty of organization is to regulate trade-economic relations among member states based on Agreements Act formulated by the result of Uruguay round negotiations on multilateral trade (1986-1994).
Azerbaijan and WTO, Bilateral and multilateral negotiations
The request reflecting the intention of the Republic of Azerbaijan to join the WTO was submitted to the WTO Secretariat in 1997, and on July 16, 1997, a Working Group was established at the WTO Secretariat for Azerbaijan. Multilateral negotiations regarding Azerbaijan's membership in the WTO are conducted within the framework of this Working Group. The first meeting of the Working Group was held in 2002 in Geneva.
On September 26, 2024, the 16th meeting of the Working Group for Azerbaijan was held at the WTO Secretariat, followed by an informal multilateral meeting on agriculture on September 27.
Alparslan Acarsoy, who was newly appointed as the Chairman of the Working Group established in the WTO Secretariat regarding Azerbaijan's membership in the WTO, visited Baku on April 26-28 and participated in the meetings held with the heads of relevant state and academic institutions.
On June 6, 2024, WTO Director-General Ngozi Okonjo-Iweala visited Azerbaijan. During the visit, she met with the President of the Republic of Azerbaijan, Ilham Aliyev, where they discussed Azerbaijan's membership process in the WTO, as well as the potential benefits and risks of membership for the Azerbaijani economy. Additionally, she met with the Minister of Economy, Mikayil Jabbarov, to discuss the organization of the next meeting of the Working Group regarding Azerbaijan's membership and other related matters.
Republic of Azerbaijan is also conducting bilateral negotiations in the process of joining the WTO. During the negotiations, issues related to Azerbaijan's access to goods and services markets are being discussed, and necessary measures are taken to protect sectors of special importance.
As a result of the bilateral negotiations first bilateral protocol was signed with Turkey in 2007, with Oman and UAE in 2008, with Georgia in 2010, with Kyrgyz Republic in 2012 and with Japan in 2024. Azerbaijan’s interests are fully covered in these protocols.
Additionally, from July 22-26 and September 24-27, 2024, a delegation consisting of experts from relevant state agencies of Azerbaijan visited Geneva. During the meetings held at the WTO Secretariat, bilateral negotiations were conducted with several countries regarding Azerbaijan's membership process. Furthermore, discussions were held about the "Climate Finance, Investment, and Trade Day," which will be organized jointly with the WTO Secretariat during COP29, scheduled to take place in Azerbaijan from November 11-22, 2024.
Bringing the national legislation into conformity with WTO requirements
The "Action Plan" approved by the Presidential Decree No. 1583 dated August 2, 2006, envisages the alignment of 39 normative-legal documents with WTO requirements. In this regard, the laws on "Plant Quarantine" and "Plant Protection" have been repealed, and 18 normative-legal documents have been adopted. Drafts of 10 documents have been prepared and coordinated with the relevant authorities. Additionally, the Law of the Republic of Azerbaijan on "Standardization," dated May 17, 2019, the Law on "Technical Regulation," dated September 30, 2019, and the Law on "Food Safety," dated May 5, 2022, have been adopted. The Competition Code of the Republic of Azerbaijan, approved by Law No. 1051-VIQ on December 8, 2023, has also been adopted. Furthermore, the preparation of 10 additional drafts is planned.
Activity of commission on preparation of Azerbaijan's accession to WTO
The commission on preparation work of Azerbaijan's accession to WTO was created by the 22 August 2003 dated order of Ministers Cabinet of Azerbaijan Republic to accelerate accession process to WTO. The new structure of the Commission was approved by order of the Cabinet of Ministers of Azerbaijan Republic dated June 28, 2019. The structure of commission consists of deputy ministers of relevant ministries, leaders of state committees and agencies.
The head of the commission is the deputy prime minister of the Republic of Azerbaijan Mr. Shahin Mustafayev. 11 meetings of the Commission were held till now.
Enlightening the society
Special emphasis is placed on informing and educating the public about the WTO membership process. In this regard, roundtable discussions dedicated to the WTO have been organized with the participation of representatives from the Ministry of Economy and various state institutions. Brochures about the WTO have been printed and distributed to universities, libraries, businesspeople, and non-governmental organizations. Additionally, the website www.wto.az has been created, ensuring that the most essential information is regularly updated on the site. A GATS inquiry center has also been established, and the relevant legislative framework is presented on the wto.az website.
As part of various projects aimed at raising awareness, international experts have conducted studies and seminars have been organized for entrepreneurs. Additionally, the "Support for the Trade Policy and WTO Department of the Ministry of Economy in WTO Membership Negotiations" project, funded by the EU and benefiting the Ministry of Economy, has been implemented to assist the Government of Azerbaijan in aligning trade legislation with WTO rules, supporting individuals negotiating on behalf of Azerbaijan in multilateral and bilateral negotiations, and increasing public awareness about the WTO. The project covered the years 2018-2020. As part of this initiative, a scientific article competition on the topic "The World Trade System and Azerbaijan: Current Situation and Development Perspectives" was organized among students and master's degree candidates.
Since 2020, the project "Strengthening the Capacity of the Government of Azerbaijan in WTO Membership Negotiations and Other Trade-Related Activities," funded by the EU and benefiting the Ministry of Economy, has been launched. The main objective of the project is to support the Government of Azerbaijan in WTO membership and other trade negotiations, thereby strengthening trade policy and helping to expand the production and trade of goods. To date, a number of meetings and roundtable discussions have been held with relevant authorities, brochures on intellectual property, free and preferential trade agreements, and trade protection measures have been prepared. Additionally, a summer school on the topic "International Trade at a Crossroads: Where Do We Go From Here?" was organized in partnership with ADA from June 21 to 25, 2021.
During the visit of the WTO Director-General to Azerbaijan on June 6, 2024, a scientific conference on WTO membership and international trade was held at the Azerbaijan State Economic University. The conference featured discussions on the subject with representatives from relevant state organizations, business entities, and academic institutions.
Analysis on the accession to the WTO
Azerbaijan's accession process to the WTO is regularly analyzed and the results are submitted to the relevant government agencies. Thus, within the framework of the EU-funded support project, analysis documents were prepared on the reforms carried out by a number of WTO members on their commitments. Recently, within the framework of the project covering 2021 which financed by the Asian Development Bank, a report was prepared namely “Impact Assessment of Azerbaijan’s Accession
to the WTO” and discussed with the participation of relevant government agencies.
In the meeting held on June 6, 2023, between the President of the Republic of Azerbaijan and the WTO Director-General, the issue of preparing an analysis document regarding the opportunities and challenges associated with Azerbaijan's WTO membership was part of the discussion. In July 2024, this analysis document was prepared and submitted by the experts of the WTO Secretariat.
