Identifier
Created
Classification
Origin
07BAKU949
2007-07-27 05:16:00
CONFIDENTIAL
Embassy Baku
Cable title:  

PRESIDENTIAL DECREE ON WTO ACCESSION AND

Tags:  ETDR ECON USTR WTRO EAGR PGOV PREL AJ 
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P 270516Z JUL 07
FM AMEMBASSY BAKU
TO RUEHC/SECSTATE WASHDC PRIORITY 3573
INFO RUCNCIS/CIS COLLECTIVE PRIORITY
RUEHAK/AMEMBASSY ANKARA PRIORITY 2279
RHMFISS/CDR USEUCOM VAIHINGEN GE PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEHGV/USMISSION GENEVA SZ PRIORITY 0293
C O N F I D E N T I A L SECTION 01 OF 02 BAKU 000949 

SIPDIS

SIPDIS

DEPT PLEASE PASS TO USTR FOR SHAUN DONNELLY, BETSY HAFNER
AND PAUL BURKHEAD
GENEVA FOR AMBASSADOR ALLGEIER
DEPT PLEASE PASS TO USTDA DAN STEIN
DEPT FOR EB, EUR/CARC

E.O. 12958: DECL: 07/23/2017
TAGS: ETDR ECON USTR WTRO EAGR PGOV PREL AJ
SUBJECT: PRESIDENTIAL DECREE ON WTO ACCESSION AND
FUNDING--COMING SOON


Classified By: DCM DONALD LU; REASONS 1.4 (B,D)

C O N F I D E N T I A L SECTION 01 OF 02 BAKU 000949

SIPDIS

SIPDIS

DEPT PLEASE PASS TO USTR FOR SHAUN DONNELLY, BETSY HAFNER
AND PAUL BURKHEAD
GENEVA FOR AMBASSADOR ALLGEIER
DEPT PLEASE PASS TO USTDA DAN STEIN
DEPT FOR EB, EUR/CARC

E.O. 12958: DECL: 07/23/2017
TAGS: ETDR ECON USTR WTRO EAGR PGOV PREL AJ
SUBJECT: PRESIDENTIAL DECREE ON WTO ACCESSION AND
FUNDING--COMING SOON


Classified By: DCM DONALD LU; REASONS 1.4 (B,D)


1. (C) SUMMARY: The Ministry of Economic Development's (MED)
World Trade Organization (WTO) Division Head Muradov told
Econoff July 12 that by September, President Aliyev would
issue a decree outlining nine steps to accelerate
Azerbaijan's WTO accession. The decree would likely include
an announcement that the GOAJ would contribute approximately
USD 1 million towards WTO-related activities. Muradov asked
for Embassy and USAID participation and assistance with 10
regional workshops the MED is working on to increase WTO
awareness. Muradov told Econoff that he is also working with
the World Bank to try to obtain funding to create an economic
model of the economic impacts of WTO accession for
Azerbaijan. Both he and the Ministry of Foreign Affair's
(MFA) WTO Division Head Mehdizadeh warned that reliable
statistics to run the model would be difficult to obtain.
Mehdizadeh and the State Customs Agency's Directorate for
Customs Regimes Gasimov described other trade liberalization
efforts, including establishing a "one-stop-shop" for imports
and exports along the borders by 2008. END SUMMARY.

Nine Steps to WTO Accession -- Funding Included
-------------- --


2. (C) Econoff met separately with the Ministry of Foreign
Affair's (MFA) World Trade Organization (WTO) Division Head
Shovgi Mehdizadeh and with the Ministry of Economic
Development's (MED) WTO Division Head Adalat Muradov July 12.
Muradov told Econoff that by September, President Aliyev
would issue a decree outlining nine steps to accelerate
Azerbaijan's WTO accession. The decree would likely include
an announcement that the GOAJ would contribute approximately

USD 1 million towards WTO-related activities. He added that
the MED hoped to submit new service offers and Customs hoped
to submit new tariff offers (goods) by early September.
Muradov said the MED is working to increase WTO awareness in
the regions by organizing 10 workshops on WTO accession in 10
different economic regions of Azerbaijan. He asked for
participation and assistance from the Embassy and USAID on
the regional workshops.


3. (C) Separately, Mehdizadeh said the GOAJ is pushing
forward with separate WTO-related bilateral negotiations,
which Muradov also made clear. When Muradov asked Econoff
for another copy of the correct formatting for market access
proposals and explained that the GOAJ is unsure what should
be designated as an agricultural versus non-agricultural
product, it was clear that confusion about expectations still
exists. Econoff suggested separately to Mehdizadeh and
Muradov that the GOAJ should consider hiring an independent
WTO accession consultant to assistwith questions and
answers, market access offers,and negotiations.

Economic Modeling
--------------


4. (C) Muradov told Econoff that he is working hard to obtain
an economic model that would show the projected effects of
WTO accession. Muradov said the World Bank said they could
create an economic model for WTO accession before the end of
the year for approximately USD 150,000. The World Bank said
it could finance approximately USD 50,000 and was negotiating
with British Petroleum to obtain additional funding. Muradov
said he had not received any information from the World Bank
recently, so the MED is considering obtaining economic models
from Russia since the cost would be significantly less
(estimated around USD 50,000). Both Muradov and Mehdizadeh
admitted that reliable statistics would be difficult to
obtain. However, Muradov said, the model did not need to
have exact predictions. He added that the model should
define the general trends of the economic impact of WTO
accession.

Trade Liberalization Efforts
--------------


5. (SBU) Mehdizadeh told Econoff that the GOAJ is working
hard on WTO accession, and separately, has been taking some
steps to towards trade liberalization. On trade
liberalization, Mehdizadeh said that Customs is heading an
effort to consolidate the separate import licenses and border

BAKU 00000949 002 OF 002


requirements into a "one-stop shop on the borders." The Head
of the State Customs Agency's Directorate for Customs Regimes
Javad Gasimov told Econoff July 25 that with EU assistance,
Customs would coordinate the establishment of a single pay
point at the borders by the end of 2008. This is part of
Custom's development program (to be implemented 2007-2011)
that was approved in 2006, Gasimov said. He is proceeding
according to the action plan, he added, and is conducting a
risk assessment, procuring equipment, and instituting
training for Customs, Border Guards, and others. The next
step will be to obtain approval for one-page import/export
document that every GOAJ agency will accept. Eventually,
Gasimov said, the GOAJ will adopt legislation to simplify
import/export procedures. It will create a single database to
help officials answer questions and track information. Also,
there will be single pay/inquiry points available for
import/export questions internally as well as on the borders.


Comment
--------------


6. (C) We are encouraged to see the GOAJ taking steps to
accelerate WTO accession, particularly its intention to
dedicate an estimated USD 1 million from the budget to WTO
accession. The economic model is also an important step that
many high-level officials, including the President, are
anxiously awaiting. The lack of reliable statistics is a real
challenge, so we are encouraged to hear that the MED is
working with the World Bank on the economic model project
design. GOAJ officials repeatedly emphasize the high-level
commitment to WTO accession, and plans and intentions are
good. The concern is the speed of implementation and the
admitted lack of capacity.
DERSE