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No timeframe for WTO membership: Commerce minister
Laos has to make changes for the better if it wants to become a member of the World Trade Organisation (WTO), Minister of Industry and Commerce Dr Nam Vinhaket has said.
“The international community has said it welcomes Laos' membership in the WTO but it is up to us to be ready to access the international organisation,” he told Vientiane Times in a press conference earlier this month.
Dr Nam said Laos has to improve a number of laws and trade procedures to meet international standards to facilitate investment, business operations, and imports and exports, as these are among the main requirements for WTO membership.
“WTO does not force us to amend our laws and procedures but if we want to join the world body we have to do the same as other WTO members,” he said.
According to officials at the Ministry of Industry and Commerce, even though Laos has a law on intellectual property, it cannot be properly enforced since it requires a prime ministerial decree to clarify it. This is now being processed.
They said some Lao laws were too general in their wording and required a prime ministerial decree to clarify the content before they could be put into practice.
For example the investment promotion law states that foreign nationals who invest US$500,000 in Laos have the right to own residential land here. But a prime ministerial decree is needed to specify the size of the plot and in which zones it can be located. The government is now considering such a decree.
Dr Nam said that although the government has made good progress with its plan for membership in the WTO, it has been unable to set a timeframe for completion of the process.
“We have reached the final stages of negotiations,” he said, explaining that the government has to amend a number of laws so they meet international standards. This means that outlining a timeframe for membership is difficult.
Dr Nam also said the Ministry of Industry and Commerce needed cooperation from a number of other sectors in its preparations for membership.
The government has set up a committee responsible for international integration, hoping to speed up implementation of the government's plan to join the WTO. The committee is chaired by Deputy Prime Minister and Minister of Foreign Affairs Dr Thongloun Sisoulith.
The government hopes Laos can attract more foreign investors when it becomes a member of WTO, as they will be able to export goods from Laos to international markets. One of the greatest potentials for foreign investment lies in the agricultural processing industry as Laos has plenty of fertile land.
At present, Laos exports goods to countries such as the European Union and the Republic of Korea, which charge low import tariffs. Although WTO membership will offer Laos several benefits, there will also be challenges because domestic firms will face stronger competition since Laos will open up its market to overseas businesses. Lao companies need to work harder to improve themselves so they are better placed to counter stronger competition.
vientiane times
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