Page 45 - Azerbaijan State University of Economics

Fakhri M. Mammadov: Azebaijan–WTO relations, problems and future perspectives

while the average indices for the advanced countries is equal 12%. Some Azerbaijan authors

referring to the western experts result calculate it in 50-55% of GDP. Such huge capitals require

washing up, in part by means of investment in local economy or by their export abroad.

Legalizing the shadow economy can increase the inflow to the state budget and will help

to facilitate the tax burden in the production sphere. Deduction of taxes can be one of the steps of

creation pure competition condition.

Deduction of the taxes in the production sphere will enlarge the tax base and this will

compensate the income loses because of the deduction of custom tariffs with the requirements of

WTO.

2. Problems and Future Perspectives

There are positive and negative sides in the accession to the WTO. The positive side includes

the free exporting of services and Azeri goods to the world market without barriers, protection our

rights in international trade, creating the relations with other countries in equal terms, improve the

export structure, applying the ―Most Suitable Condition‖ to our country, and etc. The negative side

includes the decrease in custom tariffs on imported goods, social and economic problems which will

occur while adaptation to the international competition rules and others.

Azerbaijan’s most great problem is Karabakh. Because of the occupied territories many

fertilized lands and farmer industries were destroyed. As it is said that WTO became a political

organization more than economic Azerbaijan has to use all political and economic measures in

the frames of WTO to solve the Karabakh problem.

Azerbaijan government has to make reforms in some policies for entrance to WTO. They

are fiscal policy, monetary and exchange rate policy ,external sector policies.

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