Laos finally has World Trade Organization (WTO) membership in sight after working towards inclusion in the global body for the past 15 years.
Accession to the WTO now looks likely by the end of this year after Laos reached bilateral negotiation agreements with China, Japan, Republic of Korea, Canada, Australia, United States and the European Union.
Ukraine is the only country with which Laos is continuing to negotiate, but this agreement is expected to be signed by the middle of this year, according to a Lao trade official.
Laos and the EU celebrated the conclusion and signature of bilateral negotiations in the context of Laos’ accession to WTO in Vientiane on Friday.
High-level officials and diplomats, and representatives of the business sector from the EU and Laos were also present to celebrate the conclusion and official signature of the Bilateral Protocol.
The signing of the formal bilateral agreement took place in Geneva, Switzerland, on December 16, 2011, during the WTO Ministerial Conference.
According to an EU press release, a complete list of commitments agreed by Laos regarding import-export tariffs for goods and market access conditions for services has been provided.
The conclusion of the bilateral agreement with the EU is a significant leap towards the accession of Laos to WTO.
Minister of Industry and Commerce Dr Nam Vinhaket told the gathering on Friday that Laos applied to become a WTO member in 1997. Since then it has made significant progress in terms of reform and legislation in order to comply with WTO rules.
“Joining the WTO will help to improve the business environment in Laos and hence promote trade and investment,” he said, adding that business operators should maximize the opportunities provided by the agreements entered into with other WTO members.
He said he appreciated the EU’s support for Laos’ accession process to the WTO.
In addition, the EU provides significant trade-related assistance to Laos to support the strengthening of the country’s capacity to integrate in the global economy and adapt to the rules-based multilateral trading system.
Ambassador David Lipman, Head of the EU Delegation to Laos, said the signing of the Bilateral Protocol was timely and proved the strong support of the EU for Least Developed Country accession.
“The EU was certainly supportive of this decision, and we are already working in Geneva to streamline the accession process,” he said.
“Our market access requests have consequently been tailored accordingly, with the view to ensuring that Laos broadly benefits from open markets and new export destinations.”
Mr. Lipman said the EU is convinced that WTO membership is the essential step to integrate Laos into the world economy.
“The EU is thus making every effort to ensure the accession process gradually underpins the efforts to further develop Laos’ economy and address the specific needs of a Least Developed Country,” he said.
“WTO membership opens the door for greater market access to foreign goods. Consumers and producers know they can enjoy secure supplies and greater choice of the finished products, components, raw materials and services that they use. Producers and exporters know that foreign markets will remain open to them.”
The WTO currently has 153 country members and covers 90 percent of world trade. Becoming a WTO member will mean that Laos can enjoy the same benefits as other member countries in exporting and importing goods./.