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INFO RUCNCIS/CIS COLLECTIVE PRIORITY
RUEHAK/AMEMBASSY ANKARA PRIORITY 2279
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C O N F I D E N T I A L SECTION 01 OF 02 BAKU 000949 
 
SIPDIS 
 
SIPDIS 
 
DEPT PLEASE PASS TO USTR FOR SHAUN DONNELLY, BETSY HAFNER 
AND PAUL BURKHEAD 
GENEVA FOR AMBASSADOR ALLGEIER 
DEPT PLEASE PASS TO USTDA DAN STEIN 
DEPT FOR EB, EUR/CARC 
 
E.O. 12958: DECL: 07/23/2017 
TAGS: ETDR ECON USTR WTRO EAGR PGOV PREL AJ
SUBJECT: PRESIDENTIAL DECREE ON WTO ACCESSION AND 
FUNDING--COMING SOON 
 
 
Classified By: DCM DONALD LU; REASONS 1.4 (B,D) 
 
¶1. (C) SUMMARY:  The Ministry of Economic Development's (MED) 
World Trade Organization (WTO) Division Head Muradov told 
Econoff July 12 that by September, President Aliyev would 
issue a decree outlining nine steps to accelerate 
Azerbaijan's WTO accession.  The decree would likely include 
an announcement that the GOAJ would contribute approximately 
USD 1 million towards WTO-related activities.  Muradov asked 
for Embassy and USAID participation and assistance with 10 
regional workshops the MED is working on to increase WTO 
awareness.  Muradov told Econoff that he is also working with 
the World Bank to try to obtain funding to create an economic 
model of the economic impacts of WTO accession for 
Azerbaijan.  Both he and the Ministry of Foreign Affair's 
(MFA) WTO Division Head Mehdizadeh warned that reliable 
statistics to run the model would be difficult to obtain. 
Mehdizadeh and the State Customs Agency's Directorate for 
Customs Regimes Gasimov described other trade liberalization 
efforts, including establishing a "one-stop-shop" for imports 
and exports along the borders by 2008.  END SUMMARY. 
 
Nine Steps to WTO Accession -- Funding Included 
--------------------------------------------- -- 
 
¶2. (C) Econoff met separately with the Ministry of Foreign 
Affair's (MFA) World Trade Organization (WTO) Division Head 
Shovgi Mehdizadeh and with the Ministry of Economic 
Development's (MED) WTO Division Head Adalat Muradov July 12. 
 Muradov told Econoff that by September, President Aliyev 
would issue a decree outlining nine steps to accelerate 
Azerbaijan's WTO accession.  The decree would likely include 
an announcement that the GOAJ would contribute approximately 
USD 1 million towards WTO-related activities.  He added that 
the MED hoped to submit new service offers and Customs hoped 
to submit new tariff offers (goods) by early September. 
Muradov said the MED is working to increase WTO awareness in 
the regions by organizing 10 workshops on WTO accession in 10 
different economic regions of Azerbaijan.  He asked for 
participation and assistance from the Embassy and USAID on 
the regional workshops. 
 
¶3. (C) Separately, Mehdizadeh said the GOAJ is pushing 
forward with separate WTO-related bilateral negotiations, 
which Muradov also made clear.  When Muradov asked Econoff 
for another copy of the correct formatting for market access 
proposals and explained that the GOAJ is unsure what should 
be designated as an agricultural versus non-agricultural 
product, it was clear that confusion about expectations still 
exists.  Econoff suggested separately to Mehdizadeh and 
Muradov that the GOAJ should consider hiring an independent 
WTO accession consultant to assistwith questions and 
answers, market access offers,and negotiations. 
 
Economic Modeling 
---------------- 
 
¶4. (C) Muradov told Econoff that he is working hard to obtain 
an economic model that would show the projected effects of 
WTO accession.  Muradov said the World Bank said they could 
create an economic model for WTO accession before the end of 
the year for approximately USD 150,000.  The World Bank said 
it could finance approximately USD 50,000 and was negotiating 
with British Petroleum to obtain additional funding. Muradov 
said he had not received any information from the World Bank 
recently, so the MED is considering obtaining economic models 
from Russia since the cost would be significantly less 
(estimated around USD 50,000).  Both Muradov and Mehdizadeh 
admitted that reliable statistics would be difficult to 
obtain.  However, Muradov said, the model did not need to 
have exact predictions.  He added that the model should 
define the general trends of the economic impact of WTO 
accession. 
 
Trade Liberalization Efforts 
---------------------------- 
 
¶5. (SBU) Mehdizadeh told Econoff that the GOAJ is working 
hard on WTO accession, and separately, has been taking some 
steps to towards trade liberalization.  On trade 
liberalization, Mehdizadeh said that Customs is heading an 
effort to consolidate the separate import licenses and border 
 
BAKU 00000949  002 OF 002 
 
 
requirements into a "one-stop shop on the borders."  The Head 
of the State Customs Agency's Directorate for Customs Regimes 
Javad Gasimov told Econoff July 25 that with EU assistance, 
Customs would coordinate the establishment of a single pay 
point at the borders by the end of 2008.  This is part of 
Custom's development program (to be implemented 2007-2011) 
that was approved in 2006, Gasimov said.  He is proceeding 
according to the action plan, he added, and is conducting a 
risk assessment, procuring equipment, and instituting 
training for Customs, Border Guards, and others.  The next 
step will be to obtain approval for one-page import/export 
document that every GOAJ agency will accept.  Eventually, 
Gasimov said, the GOAJ will adopt legislation to simplify 
import/export procedures. It will create a single database to 
help officials answer questions and track information.  Also, 
there will be single pay/inquiry points available for 
import/export questions internally as well as on the borders. 
 
 
Comment 
------- 
 
¶6. (C) We are encouraged to see the GOAJ taking steps to 
accelerate WTO accession, particularly its intention to 
dedicate an estimated USD 1 million from the budget to WTO 
accession.  The economic model is also an important step that 
many high-level officials, including the President, are 
anxiously awaiting. The lack of reliable statistics is a real 
challenge, so we are encouraged to hear that the MED is 
working with the World Bank on the economic model project 
design.  GOAJ officials repeatedly emphasize the high-level 
commitment to WTO accession, and plans and intentions are 
good.  The concern is the speed of implementation and the 
admitted lack of capacity. 
DERSE