TAJIKISTAN ON THE WAY TO THE W.T.O.

By Konstantin Parshin (03/13/2002 issue of the CACI Analyst)

The
Republic of Tajikistan has the lowest GDP per capita among the CIS countries.
According to the latest UN Human Development Report, average salaries are less
than $10 a month in nominal terms. More than 80 percent of the population can
be classified as poor and 20 percent as extremely poor. The total cost of the
damage inflicted by the civil war (1992-1997) is estimated at more than $7
billion. Hostilities in some regions lasted for quite a while even after the
Peace Accord was signed between the warring fractions, which impeded the
rehabilitation of infrastructure as well as assistance to the country by
international relief agencies. 

Poverty
reduction has become a priority for the government; and for that it has been
receiving support from international monetary institutions. In the last four
years, Tajikistan has made some strides towards a market economy and has
achieved a relative macroeconomic stabilization. Being a full-fledged member
of the United Nations, Tajikistan has joined major international conventions,
treaties and agreements. In June 2001, the World Trade Organization accepted
Tajikistan’s application on accession. 

Last
year, the UN Institute for Training and Research (UNITAR) was the facilitator
of this workshop organized for ministerial officials forming a special working
group responsible for the preparation of documents and further negotiations on
accession. Since then, UNITAR has held three training seminars for the Tajik
government officials and Ministries in Dushanbe on Accession to the WTO. “At
the very first stage, Tajikistan must bring its legislation in conformity with
the multilateral trading system”, says Dr. Ake Lindman, former Deputy
General Secretary of the WTO Secretariat, and presently a Special Senior
Fellow of UNITAR. “It will give Tajikistan possibilities to conclude
multilateral bargains and to feel secure in settling trade disputes. The
country will participate in all kinds of meetings, defending its economic
interests. In other words, being a WTO member, a small country will freely
operate on the world market with a great deal of partners, and will even
exercise some influence in the world trade arena”. Besides that, it is
acknowledged that foreign investors prefer to invest in the economies of WTO
member countries.

According
to the WTO (and GATT, its predecessor) agreements, a number of privileges are
given to developing countries in general, and to the economies in transition
in particular. Tajikistan falls into these categories. An accessing country
has the right to negotiate reasonable tariff concessions and to reserve some
trade barriers in order to protect its economy. For the time being, WTO
numbers 144 members; 28 countries, those having submitted their applications,
are in the process of negotiations on accession. 

Konstantin
Parshin