WTO Accession of Afghanistan

Status of Negations Process

Benefits and Challenges 17 April 2013 � UN-ESCAP

Request for observer status

v Afghanistan submitted its request for WTO secretariat on Nov.2004. Afghanistan’s Working Party was established at the General Council meeting on 13 December 2004 and granted Afg observer status.

v Based on Council of Ministers’ resolution; Ministry of Commerce and Industries was appointed as the in charge Ministry for WTO accession of Afghanistan.

v working party established for Afghanistan in 13th Dec. 2004. The working party is headed by Mr. H.E Mr. Roderick van Schreven, Ambassador of The Netherlands to the WTO.

Objectives

v To further improve market access

v To facilitate trade and regain Afghanistan’s status as a regional Trade and transit hub.

v secure transit rights under the frame work of WTO. The WTO system will provide us broader access to other markets and strong transit rights which are enforceable.

Objectives v WTO Accession is one of the main themes in the Afghanistan’s National

Development Strategy which was signed and approved by our president in 2008

and accepted by the world bank as poverty reduction strategy paper.

v In addition WTO accession by the end 2014 is one the conditions of Tokyo Mutual

Accountability Frame work

v Accession will add to Afg’s credibility as an open and transparent country to invest

and engage in trade. Will strengthen international donors commitment and

encourage business community to invest in Afghanistan.

objectivesv To reduce trading cost by exploring and securing more efficient trading

routes and utilize from the transit right which is given for land locked countries.

v To build global awareness about current trade and investment opportunities in Afghanistan

v We would also benefit from other international support channeled through Aid for Trade , Enhanced Integrated From work and other programs aimed to build the capacity for increasing exports.

Memorandum on foreign Traderegime

v Was submitted to the WTO in April 2009.

v After submitting Afghanistan’s MoFTR to WTO Secretariat; questions received from different WTO member countries, seeking addition information and clarifications regarding policy and regulations .

v The questions responded and submitted to WTO in July 2010

First working party ofAfghanistan

v The first working party of Afghanistan was held in Geneva in 31th January 2011

v Members supported Afghanistan's integration in the multilateral tradingsystem. They stated that WTO membership would be beneficial toAfghanistan as an important driver of economic growth and domesticreforms.

v Responses provided for the 153 questions raised after the first work party based on explanations' and information provided by the delegation.

v The responses submitted to the secretariat on 28 October 2011

Factual summary

v The Factual Summary of the WP was prepared in May 2012. The document was the out come of several working groups organized by MoCI before the second working party of Afghanistan

v This document was submitted to WTO during the 2nd working party of Afghanistan(18 June 2012)

v It will lay out factual information about the current foreign trade regime and actions and commitments by Afghanistan to bring laws, policies and institutions in line with WTO agreements and rules.

v This document was upgraded to Elements of Draft Report of second working party in October 2012.

2nd working Party

v The second working party was held on 18 June 2012

v Members examined Afghanistan’s Trade Regime , and reforms undertaken by Afghanistan .

v Deputy Minister (Mozammil Shinwari ) thanked the working party members for vast support and requested for taking into consideration the development needs of Afghanistan .

3rd Working Party of Afghanistan

v Afghanistan’s third working party, held on 7 December 2012

v In this meeting Afghanistan’s accession; including bilateral market access negotiations and legislative developments were discussed .

v Members were thanked for their support and technical assistance for Afghanistan .

Bilateral Negotiations

v visit for bilateral negotiations is scheduled for 26th April ; A group ofdelegates will be headed by the Deputy Minister for Trade will visit Genevato do bilateral negotiations with interestedWTO members .

v Some WTO members have requested additional commitments beyondthese initial offers, we will study each request on a case by case basis.consult with stakeholders and seek clearance from Cabinet to go beyondthe initial offers for any specific sectors

Offer on Services

v Ministry of commerce and Industries began works to prepare the offer in February 2011.

v working Group comprising representatives from different Ministries, Private sector , concerned organizations was created and trained for above objective.

v Finally The draft offer was finalized; approved by Minister and submitted to Secretariat before the second Working party of Afghanistan.

Offer on service…

v The first round of bilateral negotiations regarding services was conducted with the United States in June 2012.

v Once all bilateral market access negotiations on services with interested countries are completed, the Schedule on Specific Commitments on Services will be prepared

Market Access offer on Goods

v The offer has been submitted to WTO; we have received requests from interested members.

v Once all bilateral market access negotiations on goods with interested countries are completed based on this offer, the Schedule on Concessions and Commitments on Goods will be prepared

Afghanistan Legislative Reforms

v A separate Legal Team is working on drafting and amending laws, regulations and procedures to bring them in line with WTO rules in MoCI

v Since 2009 efforts have been intensified in this regard; considerably Many laws , regulations and procedures have been drafted or amended by the legal team.

Afghanistan Legislative…

v Afghanistan has submitted to the WTO over 25 existing relevant laws, including:

q SPS and TBT related q IP relatedq customs and customs valuationq import licensing related

v In addition of above dozens of other related laws have been initiated and are in the process of drafting in MoCI

Future Activities

v implement the legislative action plan

v Hold five Working Party meetings: December 2012, June 2013, November

2013, May 2104, and July 2014

v Reply to questions raised by WP Members after each meeting within 2

months from the date of receipt of questions

v Establish SPS and TBT Enquiry and Notification Points by end of 2013 at

respectively MAIL and ANSA

Future activities

v Bilateral Market access negotiations on goods

v Finalize Schedule of Concessions and Commitments on Goods early 2014

v conclude negotiations on agriculture support table

v Bilateral Market Access Negotiations on Services and finalized the document by 2014

Challenges

v WTO is a new idea in the country. There is relatively less awareness and low capacity about it.

v lack of trade infrastructure

v lack of laws and regulations in line with WTO rules

v miss conception regarding WTO which some times leads to lack of cooperation and coordination on accession process

Challenges…

v lack of standardized and internationally accepted trading companies in the country specially in Agricultural sector.

v lack of support to local infant industry and new established industries in the country

v lack of standardized exporting products

Opportunities

v It helps us to reform laws and regulations based on international best practices

v WTO accession will pave the ground to have policy stability and attract foreign investment and a reasonable business climate .

v Afghanistan as a member of WTO will integrate in to the world economy and will benefit from potential opportunities

Opportunities…

v Based on GATT article 5; Afghanistan as a land locked country will have the right of transit and access to sea to export goods.

v As a member of WTO Afghanistan can utilize from the just dispute settlement system which functions in WTO

v Access to regional and international markets will help Afghanistan to expand its exports and utilize from potential comparative advantage which exists.

v Afghanistan as LDC country will utilize from technical assistance , concessions and flexibilities under WTO.

Thank You !

Hafizullah BahaProfessional Member of WTO Department Ministry of commerce and industries Kabul, AfghanistanE-mail: hafizbaha@gmail.comMobile: +93791 802 832, +93788560569