Page 49 - Azerbaijan State University of Economics

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

world market the cost and quality is one of the main factors. So the quality and low costs depend

on financial support to farmers.

The legislative base of Azerbaijan republic has to be reformed. There is lack of law and

no law of protection our agricultural goods. These laws are not just necessary for WTO members

from the point of their interest, but also it is permitted by the juridical agreements of the

organization. There must be adopted the law about special protection for, law about antidumping

measures, and law about subsidies and compensations, law about the quality and security of

foodstuff and raw materials.

3. Agricultural export potentials after entering WTO

The main advantage of WTO membership is the way to the market, especially to the

agricultural goods market of developed countries. The applause in some countries and protests in

others, following the incorporation since 1995 of agriculture into the rules-based trading system,

is not surprising. Agricultural more than most sectorial policies have needed to be disciplined

under the GATT/WTO, because the empirical evidence across countries and over time strongly

suggests domestic political pressures are such that, without such discipline, many countries

would eventually adopt policies that increasingly assist and insulate their farmers from foreign

competition. Such policies in a subset of countries lower the mean and increase the variance of

international food prices, thereby encouraging additional countries to adopt similar policies.

Their perpetuation, though wasteful, is evidently affordable in advanced economies because of

the sector’s small and declining shares of GDP and employment.

Taking into account the poverty indicators of the rural population of Azerbaijan, selling

the agricultural products of Azerbaijan in the markets of WTO member countries can increase

the income of Azerbaijan farmers and become main factor in the development of agriculture. But

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