The Laos government has approved the preparations to ascend to membership in the World Trade Organization (WTO), local media reported Thursday.
According to the state-run newspaper Vientiane Times, the application is expected to be confirmed before the Asia-Europe Meeting (ASEM) which is scheduled to be held here in November.
Laos' process to join the WTO, which began in 1997, is now in its final stages of negotiation. To join the WTO, prospective members are required to create agreements with other members via a working party through a process of negotiations.
Should Laos join, it is expected to benefit economically from lowered trade tariffs around the world, an important development for one of the poorest nations in Southeast Asia.
Since 1997, Laos has answered 1300 questions asked by WTO members and has completed bilateral negotiations with nine WTO members regarding tariff ceilings, opening the Lao services sector to foreign investment, and amending trade legislations.
In order to gain final approval, the completed process will have to be submitted to the WTO General Council. If a two-thirds majority of WTO members vote in favor, then Laos can accede to the organization.
The WTO Secretariat is preparing Laos' lists of commitments on tariffs and market access for goods, on agricultural subsidies, and on market access for services. These commitments are developed from Laos' bilateral agreements struck with nine members, which are "multilateralized" to apply to all WTO members.
Laos' ninth and last bilateral agreement was signed with Ukraine. As a Least Developed Nation, Laos is able to enter under special guidelines designed to make it easier and faster to join./.