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MAHMUD MAMMAD-GULIYEV: ARMENIA'S ACCESS TO CIRCULAR ROUTE IS TECHNICALLY AND POLITICALLY IMPOSSIBLE
Azeri Press Agency, Azerbaijan
Dec 25 2006
Jackson-Vanik amendment can be abolished after Azerbaijan's accession
to the WTO
Deputy Azerbaijan Foreign Minister Mahmud Mammad-Guliyev's exclusive
interview to the APA
-Which projects does the November 14 adoption of the European
Union-Azerbaijan Action Plan envisage?
-Integration to the Euro-Atlantic structures, as well as
strengthening of the relations with the EU is one of the main
priorities of Azerbaijan foreign policy and this cooperation is of
great importance for us. We are planning to expand our relations
through European Neighborhood Policy (ENP) on the basis of the
Partnership and Cooperation Agreement. The five-year EU-Azerbaijan
Action Plan covers bilateral cooperation in political and security
dialogue, economic reforms, trade, energy, transport, information
technologies, environment, education, social defense, science,
culture in fighting international terrorism, organized crimes,
human trafficking, smuggling and also cooperation in the field of
border control, police and justice. Memorandum on Understanding on
Strategic Energy Partnership was singed between the European Union and
the Republic of Azerbaijan on November 7 in Brussels. The main goals
of this memorandum are to ensure the diversification and security of
energy supply of the EU and modernization and development of Azerbaijan
energy infrastructure, efficient use of energy, energy saving, and use
of renewable energy. Draft State Program for 2007-2009 has been worked
out to implement the items of the PCA so as to bring Azerbaijan's
legislation closer with the EU standards. This program is designed
to gradually bring Azerbaijan legislation to the EU legislation. In
particular, this program, covering bank, finance, competition and tax
legislation, intellectual property, technical rules and standards,
will help Azerbaijan deepen economic relations with the EU.
-How much aid will Azerbaijan receive though the Action Plan?
-The integration processes to the EU will be reflected in the EU's
newly initiated cooperation program Europe Neighborhood and Partnership
Instrument (ENPI). The ENPI will provide great opportunities for
implementation of the Action Plans, and was designed for new neighbors
such as Ukraine, Moldova, Belarus, Russian Federation, South Caucasus,
Near East and Northern African countries.
The ENPI budget during the period of 2007-2013 provides ~@12 billion
for realization of programs. The exact volume of funds for Azerbaijan
will be set after the projects within the Action Plan are developed.
-What about the projects through TACIS?
- I think the cooperation between Azerbaijan and the EU within
TACIS program is productive. Generally, the EU has to date provided
technical assistance of over EUR 400m for Azerbaijan since 1992, of
which EUR 100m was made possible through TACIS. This program mostly
envisages reducing poverty, providing assistance for institutional,
administrative and legal reforms, supporting private sector and
contributing to economic development. The assistance for improvement
of the state budget, taxation system and social protection, progress
in investment climate for small and medium size enterprise and regional
development, as well as higher and technical education can be regarded
as that vital.
- At what stage are the negotiations on Azerbaijan accession to the
World Trade Organization?
- We continue bilateral and multilateral negotiations with the
World Trade Organization member states. Azerbaijani party has to
date had four meetings with the special working group of the World
Trade Organization. The European Union, the USA, Turkey, Canada are
the leading supporters of Azerbaijan's membership. The negotiations
with a number of countries on this issue have already finished and
bilateral agreements are expected to be signed with these states. The
next meeting with the special working group is to be held in Geneva,
March- April. One of the main issues is to bring the economic law
inline with the standards of the WTO. We are working on implementation
of the presidential August decree on this issue.
- When can the CIS countries become members of the WTO?
- Ukraine and Russia are expected to be admitted to the WTO in 2007.
But, it should be taken into consideration that all decisions are made
by consensus and the organization has 150 members. It seems to me,
Kazakhstan enjoys great perspective for admission. It is hard to say
beforehand as everything depends on negotiations.
- What is done to abolish the USA Jackson-Vanik Amendment that impedes
the accession to the organization?
- Jackson-Vanik Amendment does not hinder Azerbaijan's admission to
the WTO. On contrary, the USA takes serious Azerbaijan's admission,
having provided technical assistance. The Jackson-Vanik amendment may
be banned after Azerbaijan's being admitted to the organization. If
a country is admitted to the WTO, it means that this country is a
market economy one, and the Jackson-Vanik amendment is removed. Of
course, we try to remove the amendment now, but the US stated that
this problem can be settled after Azerbaijan's membership to the WTO.
- Some claim that accession to the WTO is not favorable for
Azerbaijan...
- In general, Azerbaijan's admission to the WTO is favorable and
supports Azerbaijan's interests. This gives broad opportunities for
trade liberalization, free turnover of goods and services, bringing
benefit for consumers. These conditions increase the quality of goods
and services and reduce prices. Producers try to produce competitive
goods. The lesson of a number of countries proves that the membership
brings great profits to the country. China's international turnover
doubled after the admission to the organization. Besides, investments
to the Chinese economy doubled.
- One of the requirements made by the WTO is to reduce the subsidies
for agriculture. How acceptable are these demands?
- The World Trade Organization pursues the policy of reducing subsidy
flow to various sectors because subsidy creates indefinite situation
and disturbs competition. The organization considers if goods are
produced through subsidy, their prize is not objective. Today, one of
the main issues is the import subsidies of agriculture goods. The EU
and other big states also made these subsidies. As per the agreement,
the EU will not make export subsidies to agriculture goods after
2013. One of the main questions under discussion with the WTO is to
provide internal assistance to Azerbaijan's Agriculture sector.
-Can Armenia join the BSECO Circular Road project via Azerbaijan?
-Circular Road project envisages the restoration, reconstruction,
development and improvement of the infrastructure of the countries
located around the Black Sea. Being the members of the BSECO,
Azerbaijan and Armenia have joined this project. As we have no direct
access to the Black Sea we will get access to Circular Road through
Georgia and Russia. Despite Armenia's participation in this project,
it is both politically and technically impossible for this country
to gain access to the Circular Road through Azerbaijan. Armenia can
get an access to the road through Georgia. Understanding Memorandum
on the project between the parties is being prepared at the moment.
After the necessary procedures are completed the Understanding
Memorandum will be signed by the organization member states, including
Azerbaijan.
- At the last meeting in Strasburg Azerbaijan suggested the AGO group
stop the special monitoring on the country. How did the opposite
party find this proposal?
-During the last negotiations I suggested that the monitoring on
Azerbaijan shouldn't be carried out by a special group, but the
general monitoring, as it was in post-monitoring states, be applied
to Azerbaijan. We think Azerbaijan has fulfilled the CE commitments,
but the fulfillment of some other obligations is not up to Azerbaijan,
but roots from the regional situation. That is why we consider that
the results of the monitoring should be assessed, and new proposals
should be taken into account. But the opposite party insists that
there still is a need for special monitoring.
From: Emil Lazarian | Ararat NewsPress
Azeri Press Agency, Azerbaijan
Dec 25 2006
Jackson-Vanik amendment can be abolished after Azerbaijan's accession
to the WTO
Deputy Azerbaijan Foreign Minister Mahmud Mammad-Guliyev's exclusive
interview to the APA
-Which projects does the November 14 adoption of the European
Union-Azerbaijan Action Plan envisage?
-Integration to the Euro-Atlantic structures, as well as
strengthening of the relations with the EU is one of the main
priorities of Azerbaijan foreign policy and this cooperation is of
great importance for us. We are planning to expand our relations
through European Neighborhood Policy (ENP) on the basis of the
Partnership and Cooperation Agreement. The five-year EU-Azerbaijan
Action Plan covers bilateral cooperation in political and security
dialogue, economic reforms, trade, energy, transport, information
technologies, environment, education, social defense, science,
culture in fighting international terrorism, organized crimes,
human trafficking, smuggling and also cooperation in the field of
border control, police and justice. Memorandum on Understanding on
Strategic Energy Partnership was singed between the European Union and
the Republic of Azerbaijan on November 7 in Brussels. The main goals
of this memorandum are to ensure the diversification and security of
energy supply of the EU and modernization and development of Azerbaijan
energy infrastructure, efficient use of energy, energy saving, and use
of renewable energy. Draft State Program for 2007-2009 has been worked
out to implement the items of the PCA so as to bring Azerbaijan's
legislation closer with the EU standards. This program is designed
to gradually bring Azerbaijan legislation to the EU legislation. In
particular, this program, covering bank, finance, competition and tax
legislation, intellectual property, technical rules and standards,
will help Azerbaijan deepen economic relations with the EU.
-How much aid will Azerbaijan receive though the Action Plan?
-The integration processes to the EU will be reflected in the EU's
newly initiated cooperation program Europe Neighborhood and Partnership
Instrument (ENPI). The ENPI will provide great opportunities for
implementation of the Action Plans, and was designed for new neighbors
such as Ukraine, Moldova, Belarus, Russian Federation, South Caucasus,
Near East and Northern African countries.
The ENPI budget during the period of 2007-2013 provides ~@12 billion
for realization of programs. The exact volume of funds for Azerbaijan
will be set after the projects within the Action Plan are developed.
-What about the projects through TACIS?
- I think the cooperation between Azerbaijan and the EU within
TACIS program is productive. Generally, the EU has to date provided
technical assistance of over EUR 400m for Azerbaijan since 1992, of
which EUR 100m was made possible through TACIS. This program mostly
envisages reducing poverty, providing assistance for institutional,
administrative and legal reforms, supporting private sector and
contributing to economic development. The assistance for improvement
of the state budget, taxation system and social protection, progress
in investment climate for small and medium size enterprise and regional
development, as well as higher and technical education can be regarded
as that vital.
- At what stage are the negotiations on Azerbaijan accession to the
World Trade Organization?
- We continue bilateral and multilateral negotiations with the
World Trade Organization member states. Azerbaijani party has to
date had four meetings with the special working group of the World
Trade Organization. The European Union, the USA, Turkey, Canada are
the leading supporters of Azerbaijan's membership. The negotiations
with a number of countries on this issue have already finished and
bilateral agreements are expected to be signed with these states. The
next meeting with the special working group is to be held in Geneva,
March- April. One of the main issues is to bring the economic law
inline with the standards of the WTO. We are working on implementation
of the presidential August decree on this issue.
- When can the CIS countries become members of the WTO?
- Ukraine and Russia are expected to be admitted to the WTO in 2007.
But, it should be taken into consideration that all decisions are made
by consensus and the organization has 150 members. It seems to me,
Kazakhstan enjoys great perspective for admission. It is hard to say
beforehand as everything depends on negotiations.
- What is done to abolish the USA Jackson-Vanik Amendment that impedes
the accession to the organization?
- Jackson-Vanik Amendment does not hinder Azerbaijan's admission to
the WTO. On contrary, the USA takes serious Azerbaijan's admission,
having provided technical assistance. The Jackson-Vanik amendment may
be banned after Azerbaijan's being admitted to the organization. If
a country is admitted to the WTO, it means that this country is a
market economy one, and the Jackson-Vanik amendment is removed. Of
course, we try to remove the amendment now, but the US stated that
this problem can be settled after Azerbaijan's membership to the WTO.
- Some claim that accession to the WTO is not favorable for
Azerbaijan...
- In general, Azerbaijan's admission to the WTO is favorable and
supports Azerbaijan's interests. This gives broad opportunities for
trade liberalization, free turnover of goods and services, bringing
benefit for consumers. These conditions increase the quality of goods
and services and reduce prices. Producers try to produce competitive
goods. The lesson of a number of countries proves that the membership
brings great profits to the country. China's international turnover
doubled after the admission to the organization. Besides, investments
to the Chinese economy doubled.
- One of the requirements made by the WTO is to reduce the subsidies
for agriculture. How acceptable are these demands?
- The World Trade Organization pursues the policy of reducing subsidy
flow to various sectors because subsidy creates indefinite situation
and disturbs competition. The organization considers if goods are
produced through subsidy, their prize is not objective. Today, one of
the main issues is the import subsidies of agriculture goods. The EU
and other big states also made these subsidies. As per the agreement,
the EU will not make export subsidies to agriculture goods after
2013. One of the main questions under discussion with the WTO is to
provide internal assistance to Azerbaijan's Agriculture sector.
-Can Armenia join the BSECO Circular Road project via Azerbaijan?
-Circular Road project envisages the restoration, reconstruction,
development and improvement of the infrastructure of the countries
located around the Black Sea. Being the members of the BSECO,
Azerbaijan and Armenia have joined this project. As we have no direct
access to the Black Sea we will get access to Circular Road through
Georgia and Russia. Despite Armenia's participation in this project,
it is both politically and technically impossible for this country
to gain access to the Circular Road through Azerbaijan. Armenia can
get an access to the road through Georgia. Understanding Memorandum
on the project between the parties is being prepared at the moment.
After the necessary procedures are completed the Understanding
Memorandum will be signed by the organization member states, including
Azerbaijan.
- At the last meeting in Strasburg Azerbaijan suggested the AGO group
stop the special monitoring on the country. How did the opposite
party find this proposal?
-During the last negotiations I suggested that the monitoring on
Azerbaijan shouldn't be carried out by a special group, but the
general monitoring, as it was in post-monitoring states, be applied
to Azerbaijan. We think Azerbaijan has fulfilled the CE commitments,
but the fulfillment of some other obligations is not up to Azerbaijan,
but roots from the regional situation. That is why we consider that
the results of the monitoring should be assessed, and new proposals
should be taken into account. But the opposite party insists that
there still is a need for special monitoring.
From: Emil Lazarian | Ararat NewsPress