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THE IMPACT OF WORLD TRADE ORGANIZATION MEMBERSHIP ON THE DEVELOPMENT OF THE NATIONAL ECONOMY

Научный труд разместил:
Valentina
1 июля 2020
Автор: Galandarova U. M.

PSYCHOLOGICAL SCIENCES / <<€©LL©MUM~J©U®MaL>>#Mq),2©2©

Galandarova U.M. Ph.D. Baku State University DOI: 10.24411/2520-6990-2020-11828 THE IMPACT OF WORLD TRADE ORGANIZATION MEMBERSHIP ON THE DEVELOPMENT OF

THE NATIONAL ECONOMY

Abstract

The article discusses the cooperation and projects of World Trade Organization with Azerbaijan. The impact of WTO in our country was considered. Also, the directions of stimulating the projects done by WTO were studied. At the end of the article, suggestions and recommendations are made.

The development of international economic relations, along with the regulation of international trade at the national level, has been accompanied in recent years by the emergence of various forms of interstate cooperation in this area. This trend is due to several reasons:

• Deepening of the internationalization of economic life;

• Expansion of world markets for goods, services and factors of production;

• Development of transnational companies;

• Establishment of numerous international organizations.

As a result, regulatory measures in one country have a direct impact on the economies of other countries, which in turn take retaliatory measures to protect their producers and consumers. This highlights the need for regulation at the interstate level [1 p.21].

Interstate regulation of trade can be carried out on the following grounds:

• Bilateral agreements;

• Multilateral agreements of a regional nature signed within regional organizations;

• Multilateral conventions of a global nature entered into by global organizations.

Bilateral trade relations between states are regulated by trade agreements and treaties, which are concluded between countries at the level of the executive (between governments) and approved by the legislature (parliament). Such agreements and treaties, which set out the principles and regime of bilateral trade, are usually signed for a period of 5 to 10 years and are periodically reviewed and extended [3 p.42].

When talking about the second basis of interstate regulation of international trade, it is necessary to mention, first of all, customs unions. Currently, there are more than 20 customs unions in the world, which are legally concluded by two or more states. According to the agreement, the member states of the union pursue a common tariff policy towards each other and third countries. From an economic point of view, customs unions envisage the formation of a single economic space, which means the abolition of customs borders within that space.

Organizations engaged in the regulation of international trade can be divided into two groups according to their scale and profile:

1) International organizations dealing with various problems of international trade in general;
2) International organizations engaged in the regulation of trade in one or more related goods and services.

At present, more than 145 countries are members of the WTO, and about 30 countries, including Azerbaijan, have observer status in the organization. At the same time, several international organizations have observer status in the WTO.

The goal of the WTO is to liberalize international trade and create a solid foundation for it, and thus increase economic development, as well as people&s living standards. This goal is achieved through the development and implementation of trade agreements and rules between member countries, as well as through negotiations aimed at liberalizing international trade [2 p.18].

There are two main fundamental principles that the WTO expects in the regulation of international trade and trade policy:

• non-discrimination in trade;

• provide access to markets.

The principle of non-discrimination in trade is realized through the application of more favorable conditions (the country creates the same trade conditions for all WTO members) and national treatment (this regime should not discriminate in domestic markets in respect of imported goods). Access to markets is ensured through the application of the above-mentioned regimes, as well as the removal of quantitative restrictions [6 p.55].

The functions of the WTO are specified in III point of the agreement on the establishment of the organization:

• Monitoring the adoption of multilateral trade agreements that form the legal basis of the WTO and the implementation of signed multilateral trade agreements;

• Organization of trade negotiations between WTO member countries and ensuring their implementation;

• Observation of trade policy pursued by WTO member countries;

• Cooperation with other international organizations;

• Admission of new members;

• Assistance in resolving trade disputes between member countries;

• Collection, study and presentation of information on the use and development of international trade and trade policy mechanisms [4 p.91].

«C@yL@qyiym-J©yrMaL»#12i64),2©2© / PSYCHOLOGICAL SCIENCES

The agreements signed within the WTO cover almost the entire sphere of international trade policy and a significant part of international commercial practice. It should be noted that the multilateral regulation of international trade in services within the WTO is carried out on the basis of the "General Agreement on Trade in Services" (GATS). GATS consists of 3 main blocks, defining the basic principles of regulation of international trade in services. The first block defines the mutual obligations of member countries in the field of trade in services. The second and third blocks of the agreement contain a list of initial mutual concessions granted to enter the service markets, respectively, and an appendix on the special status of individual service sectors (mainly financial and telecommunications services) [7 p.85].

Inevitably, the question arises as to what advantages Azerbaijan&s membership in the World Trade Organization will have for its economy? Perhaps a country with sufficient natural (energy) resources does not need to be a member of an organization that acts as an institutional mechanism for largely industrialized countries and promotes open competition. Undoubtedly, there is currently no need for membership in any World Trade Organization for the main products exported by the Republic of Azerbaijan. However, from the point of view of national security, it is unacceptable to hope that Azerbaijan will export mainly natural resources. For this, the development of national industry and agriculture must be stimulated. Legislative guarantees must be addressed accordingly.

Among the complex political and legal factors related to membership, there are certain undisputed advantages of Azerbaijan&s participation in the World Trade Organization.

After joining, the Republic of Azerbaijan will become a full member of the international economic community, and the political and economic position of the Republic of Azerbaijan will be strengthened. The economic and legal system of foreign economic disputes and administrative regulation will be raised to the international level. The full recognition and application of international law by a member of the World Trade Organization in international trade, especially in the field of foreign investment and protection of private property, will stimulate the necessary investment in the non-oil sector of Azerbaijan.

Azerbaijan&s membership in the World Trade Organization should be aimed at strengthening its international legal personality, taking advantage of the international division of labor, ensuring that its products meet the standards of one country or another for political reasons, and exclude other non-tariff barriers and discrimination.

Membership will provide an opportunity to participate in the process and discussions of improving the multilateral trading system within the Organization, as well as to use the rules and mechanisms of the World Trade Organization to resolve economic disputes. The standards applied in the country, including consumer protection, will be harmonized with international requirements. The protection of trademarks and copyrights will be carried out in accordance with the rules adopted by all countries.

In accordance with the principle of transparency of the World Trade Organization, the elimination of all forms of illegal monopolies, corruption, money laundering mechanisms, the shadow economy will lead to full democratization of society in the future, as well as ensuring consumer choice. Undoubtedly, in this case, measures to protect the national market and labor force must be crucial.

Most of the obligations for new members of the World Trade Organization are also subject to considerable exceptions and reservations. For a group of countries in transition, these provisions allow for the lifting of customs duties and the imposition of a number of non-tariff restrictions, but also prohibit the use of protectionism, quotas and licensing, and allow subsidies to certain sectors of the economy. can be used as mechanisms to protect the national market.

The ability to use the dispute settlement system is one of the potential benefits for all countries involved in international trade. In addition to the above, in order to resolve problems that may arise in the World Trade Organization, the Law of the Organization should provide professional training to resolve disputes, customs and non-tariff regulation, dumping, subsidies and other related issues.

Bibliography

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economic life regulation macrolevel trade relationship agreements
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