Laos, Tajikistan Join Queue for Entry into WTO

Accession of Laos to add another LDC to WTO roster

WTO members formally approved Laos’ accession protocol on 26 October, leaving domestic ratification as the last remaining step before it can join the organisation. Once it accedes, the small Asian nation - formally known as the Lao People’s Democratic Republic - will be the sixth least developed country (LDC) to finish negotiations to join the trade body since 1995.

Samoa and Vanuatu were the most recent LDCs to join the WTO, with both of their memberships taking effect this same year.

Despite being one of the most impoverished countries in the region, the small Communist nation has posted strong economic growth in recent years, with the Asian Development Bank projecting earlier this month that Laos’ GDP growth for 2012 would hit a rate of 7.9 percent. The growth largely stems from a natural resources boom, specifically in hydropower and mining. However, Laos still struggles with being strongly dependent on a few industries, and faces high transport costs due to being landlocked.

The struggles Laos faced during its 15-year accession process - both in negotiations with current members, and in the reforms it has had to make at home - was referred to by various officials at Friday’s General Council meeting.

Tajikistan in final accession stages

Tajikistan, meanwhile, had its accession terms approved on 26 October by the Working Party tasked with its membership negotiations, leaving General Council approval in December and subsequent domestic ratification as the only pending steps in the process. The small former Soviet economy began its efforts to join the Geneva-based organisation in 2001.

Tajikistan’s progress in its accession is “a sign of solid confidence in the WTO and in the multilateral trading system,” Lamy said on Friday. “Accession to the WTO will firmly integrate Tajikistan into the global economy and the global trading system, providing an open, transparent, and non-discriminatory environment.”

Under the negotiated membership terms, Dushanbe has committed to joining the Information Technology Agreement - a plurilateral deal under the auspices of the WTO whose product coverage some members are looking to expand - upon its accession to the global trade body.

The Central Asian country has also pledged to apply to join the Government Procurement Agreement - another plurilateral deal under the WTO - within a year of its accession.

WTO members, meeting in their capacity as the General Council in December, are expected to formally sign off on Tajikistan’s accession terms at that time. Tajikistan will then have until 7 June 2013 to ratify the deal; it will become a full member 30 days after notifying the WTO of ratification.