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NOTE :
THIS NEWS ITEM IS DESIGNED TO HELP THE PUBLIC UNDERSTAND DEVELOPMENTS IN
THE WTO. WHILE EVERY EFFORT HAS BEEN MADE TO ENSURE THE CONTENTS ARE
ACCURATE, IT DOES NOT PREJUDICE MEMBER GOVERNMENTS' POSITIONS.
Laos ?officially the Lao People抯 Democratic Republic ?this year
added an offer on services to the one on market access for goods
submitted a year ago, along with more details on the reforms it is
undertaking. And delegations have before them the first
compilation of points raised in their multilateral discussions.
揥ith flexibility and goodwill on all sides, I believe this
[least-developed-country] accession has the potential to
accelerate in 2008?009,?said Australian Ambassador Bruce Gosper,
who chairs the working party of 29 WTO members negotiating with
Laos (55 if the EU抯 member states are also counted).
EARLY STAGES STILL. Nevertheless, the talks are still in their
early stages. The working party抯 discussions are now based on a
揻actual summary of points raised? a preliminary document that
still has to evolve through some more stages before it can become
the 揹raft working party report?and eventually the final
agreement.
Ambassador Gosper said Laos should revise its offers on goods and
services following comments from WTO members.
In this third working party meeting, Laos summarized the various
reforms it has been undertaking, partly for WTO membership but
also for its own development and integration into the world
economy.
揥e have therefore been working hard to improve the overall
investment, business and trade environment,?said Laos?Industry
and Commerce Minister Nam Viyaketh. 揥e are off to a good start,
but the process is an on-going, medium-term endeavour.?br>
He reported that the Laotian delegation was using the week to hold
six bilateral consultations, which he described as 搊pen and
constructive? in addition to the multilateral meeting of the
working party. Australia, the US, Japan, Chinese Taipei and Canada
agreed that the bilateral discussions had been useful (the EU抯
bilateral discussion was scheduled after the working party抯
meeting).
揑 very much appreciate that members have reiterated their desire
to arrive at a package of rights and obligations in line with Laos
PDR抯 [least-developed country] status,?Dr Nam said.
揕ao PDR is committed to integration into the global economy,?he
said. 揥e consider WTO accession as an important and useful
instrument to assure that we progress steadfastly on this path and
that our reforms are in conformity with international standards.?
LAND-LOCKED, LEAST-DEVELOPED.
When Laos joins the WTO it will be the 10th and final member of
the Association of Southeast Asian Nations (ASEAN) to do so. As a
least-developed country, it is covered by the 2002 General Council
guidelines for accelerating membership negotiations (document WT/L/508). Laos is also
land-locked.
Previously Laos did not have a representative in Geneva. It now
has an ambassador, and several members saw this as another sign
that the membership bid can accelerate. There was a gap of two
years between the working party抯 first and second meetings,
following a wait of seven years after Laos first applied to join
the WTO. This third meeting was held a year after the second, and
the working party chairperson envisaged a fourth possibly in
mid-2008.
Some details
LAOS扴 REFORMS. Since the last meeting in November 2006, Laos has
submitted written replies to members?questions, and a revised
action plan introducing and implementing laws and regulations,
with details on standards (technical barriers to trade and
sanitary-phytosanitary measures), customs valuation and
intellectual property protection.
In this meeting, the Laotian minister reported the following:
-
Laws adopted, including on: value added tax, budget and labour.
-
Forthcoming laws and regulations, aiming to be compatible with the WTO e.g. national treatment and non-discrimination including on: import and export procedure, pricing, investment, foreign exchange, veterinary regulations, value added tax, standards, and intellectual property.
-
Trade policy: a revised shorter list of export-import goods subject to control or prohibition (October 2006), tariff cuts under the ASEAN Free Trade Area and work with ASEAN members on non-tariff barriers.
-
Laos has joined the World Customs Organization, and adopted a decree to implement the new Customs Law. A proposed similar decree for value added tax is in its final stages.
-
Finance: a Commercial Bank law was passed in December 2006; amendments expected soon on regulations on managing foreign exchange and precious metals.
-
Private sector: its importance is recognized in the Sixth Socio-economic Development Plan (2006-2010), with various laws, regulations and activities in support, including a strategy for small and medium enterprises.
QUESTIONS AND ANSWERS. Most of time of any membership working
party meeting is spent going through questions and answers under
all the headings covered by the eventual agreement. These become
an input into the final working party report.
Among the topics raised in follow-up questions in this meeting
were: investment policies including incentives and local content
requirements; pricing policies; trading rights; import/export
prohibitions and licensing; sanitary and phytosanitary measures
(food safety and animal and plant health and safety); technical
barriers to trade (product standards and related issues);
trade-related investment measures; and intellectual property.
TECHNICAL ASSISTANCE. This is essential to help least-developed countries prepare for membership, both in the negotiations with other WTO members and for the reforms the applicant has to undertake. Laos thanked members for their assistance and called for more.
Next
No date set. Could be before the summer break in 2008. Based on the inputs from Laos, the Secretariat will revise the 揻actual summary of points raised?
Background
WORKING PARTY MEMBERS (according to the latest official list, but
regularly updated): Australia, Brazil, Brunei, Bulgaria, Cambodia,
Canada, China, Dominican Republic, European Union, Haiti,
Honduras, Hong Kong China, India, Japan, Rep. of Korea, Malaysia,
Mongolia, Myanmar, Nepal, New Zealand, Panama, Paraguay,
Singapore, Switzerland, Chinese Taipei, Thailand, United States,
Viet Nam, Zambia
CHAIRPERSON: Ambassador Bruce Gosper of Australia
Lao People抯 Democratic Republic applied to join the WTO on 16
July 1997. The General Council agreed to set up a working party on
19 February 1998. The working party met on 28 October 2004 and 30
November 2006.
Statement by H.E. Dr Nam Viyaketh,
Minister of Industry and Commerce, Laos
at the 3rd Session of the Working Party on the Accession of Laos
to the WTO
Geneva, 15 November 2007
Mr. Chairman
Distinguished delegates
Ladies and gentlemen,
It is a great honour for the Lao delegation to take part in this
Third Working Party meeting on the accession to the World Trade
Organization of Lao PDR. On behalf of the Lao delegation, allow me
to take this opportunity to express our gratitude to you, Mr.
Chairman. Under your competent chairmanship, I am confident that
this meeting will bring Lao PDR further steps closer to accession.
I also want to thank all the members of the Working Party for
taking a keen interest in Lao PDR抯 efforts to fulfil the
accession requirements. We would also like to express our sincere
appreciation to the WTO Secretariat, the Accessions Division, for
their continued support in facilitating the accession process of
Lao PDR.
Lao PDR is in the process of deeply reforming its economic system.
We have implemented a lot of means and measures in our transition
from a centrally planned economy towards a market oriented
economy. But much still remains to be done. We believe that the
Factual Summary provides an accurate picture of what we have done
so far, where we are, the issues we are still facing, and how we
go about resolving them.
Lao PDR is committed to integration into the global economy. We
consider WTO accession as an important and useful instrument to
assure that we progress steadfastly on this path and that our
reforms are in conformity with international standards. Our
approach in the accession process reflects this basic philosophy.
We see Lao抯 accession process as a mutually agreed reform process
in which Lao PDR commits itself to reforms and a timetable to
implement them.
WTO Members are assisting Lao PDR in its reform process to help us
overcome the technical and institutional bottlenecks we are
facing. We believe that such a cooperative effort creates both
confidence as well as support to sustain our reform efforts. This
is our view based on the spirit of the 2002 General Council
Decision on LDC Accessions and Lao PDR is privileged to accede to
the WTO in such a cooperative and mutually reinforcing way.
Before we begin our substantive discussions, please allow me first
to highlight some significant improvements in Lao PDR since our
last meeting:
-
A number of laws have been adopted to provide a legal framework for enabling investment and business environment, including the Law on Value Added Tax, Budget Law and Labour Law. In the near term, the Government is preparing to adopt a number of laws and regulations mainly those in the Legislative Action Plan, including in import and export procedure, pricing, investment, foreign exchange, veterinary, value added tax, standards, and intellectual property. All these legislations are aiming to be compatible with WTO requirements in particular as far as national treatment and non-discrimination are concerned.
-
On trade policy developments, the Ministry of Industry and Commerce issued a notice in October 2006 which introduced a revised shorter list of export-import goods subject to control or prohibition. The implementation of tariff reduction commitments under ASEAN Free Trade Area is going well. The Government has also worked with other ASEAN members to identify and further eliminate NTBs that hamper trade flows.
-
Lao PDR became the 170th member of the World Customs Organization and is working further to implement the ASYCUDA World. Following the revision of the Customs Law in 2005, the Government has just adopted its implementing Decree. The implementing decree of the Value Added Tax Law is in the final stage of passing.
-
In the financial sector, the most recent development is the passage of the Law on Commercial Banks in December 2006. The Law aims to promote a sound financial system and provide a level playing field for commercial banks. The Presidential Decree Law on the Management of the Foreign Exchange and Precious Metals is soon to be amended and this would help in the acceptance of the IMF Article VIII.
-
The Sixth Socio-economic Development Plan (2006-2010) further recognizes the importance of private sector development and its contribution in fostering economic growth and poverty reduction. The Enterprise Law promulgated in 2005, represents a significant step forward with respect to streamlining regulations on business registry. The Prime Minister Order No. 37 of October 2006 introduced a time-bound action plan for implementing the Law, including developing the Negative List on enterprise registration. The Third Lao Business Forum met in beginning November this year, drawing over 300 participants from the private sector, government and donors to discuss progress in resolving issues facing the private sector and government plan to enable the business environment. Again, with an eye to WTO principles of non-discrimination and transparency.
-
The Small and Medium Enterprise development strategy is under preparation. One of the strategy抯 underlying visions is to create a conducive business environment, and enable SMEs to increase their productivity, which in turn will create employment opportunities and improve the availability of goods and services for the people.
We have therefore been working hard to improve the overall
investment, business and trade environment. We are off to a good
start, but the process is an on-going, medium-term endeavour.
Mr. Chairman,
We are aware that bringing Lao PDR抯 trade regime into compliance
with WTO principles, rules and norms would entail further positive
changes to several areas of current trade and economic policy. In
this regard, we look forward to receiving continued comprehensive
support and technical assistance from the international community,
in particular from our WTO partners, in order to ensure a smooth
transition to and implementation of the required legal and
regulatory frameworks, for example, in the areas of Customs
Valuation, SPS, TBT, and TRIPS. The action plans we have submitted
will be further refined in view of the progress made in
implementation. We are confident that, by the time we accede to
the WTO, we will have sufficiently advanced so that WTO Members
will be assured about our adherence to the timetables so that any
transition period requested with implementation will be agreed.
In sum, it is important for my Government that trade
liberalization and membership in the WTO is perceived by the
people to be of an overarching modernization process which will
benefit them. This is extremely important to ensure the
sustainability of the reforms that are being implemented.
Mr. Chairman,
A brief word perhaps on our bilateral meetings this week related
to market access. I am pleased to report that we have held 6
consultations this week with trading partners. These discussions
have been open and constructive. They have allowed for a good
exchange of views, allowing my delegation to better understand the
reasons for the requests being made of Lao PDR, while at the same
time allowing Lao PDR to indicate areas of its flexibility and
flag sensitivities. I very much appreciate that Members have
reiterated their desire to arrive at a package of rights and
obligations in line with Lao PDR抯 LDC status.
The Government of Lao PDR would like to thank and acknowledge the
valuable support and contribution from Members and development
partners. I am pleased to inform you that, following the
validation of the Diagnostic Trade Integration Study and the
Action Matrix last September, Lao PDR is making good progress on
the Integrated Framework. The projects proposed under Window II
funding were recently approved and their implementation has now
begun. The Government is working to initiate the Enhanced IF and
the multi-donor trust fund. This exercise under the IF and Aid for
Trade would help to ensure that trade is mainstreamed into the
national development agenda and trade-related technical assistance
is well coordinated.
In conclusion, on behalf of the Lao Government, I wish to reaffirm
the enormous importance that Lao PDR attaches to the accession
negotiations. We see WTO Membership as a critical step to further
integrating our economy into the world trading system. Membership
will also contribute to our national economic development and
poverty alleviation agenda.
Thank you for your attention.
?
accession: becoming a member of the WTO, signing on to its
agreements. New members have to negotiate terms:
?bilaterally with individual WTO members
?multilaterally, (1) to convert the results of the bilateral
negotiations so that they apply to all WTO members, and (2) on
required legislation and institutional reforms that are need
to meet WTO obligations
?binding: commitment not to increase a rate of duty
beyond an agreed level. Once a rate of duty is bound, it may
not be raised without compensating the affected parties.
?b> sanitary and phytosanitary (SPS) measures: measures
dealing with food safety
and animal and plant health:
?sanitary: for human and animal health.
?phytosanitary: for plants and plant products
?technical barriers to trade (TBT): regulations,
standards, testing and certification procedures, which could
obstruct trade. The WTO抯 TBT Agreement aims to ensure
that these do not create unnecessary obstacles
?b> working party (accession): group of WTO members
negotiating multilaterally with a country applying to join
with the WTO.
?working party report (accession): final document
passed on to the General Council for approval, covering the
applicant country抯 commitments on opening its markets and on
applying WTO rules.
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