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Laos moves closer to WTO membership
Laos has gained two more votes in its bid to become a member of the World Trade Organisation after reaching bilateral agreements with the European Union and Chinese Taiwan.
The extra votes are a milestone in Laos' efforts to integrate its economy with the world community, which would make it possible for Lao enterprises to access a larger market and bring in more foreign investment.
According to a press release from the Ministry of Industry and Commerce, Laos reached the bilateral agreements with the European Union and Chinese Taiwan last week after several years of intense negotiations.
Lao Deputy Minister of Industry and Commerce Ms Khemmany Pholsena and European Union Ambassador to the WTO in Geneva, Switzerland, Ms Angelos Pangratis, signed the agreements at a ceremony held on December 16.
The media release also highlights that Laos is able to convince the United States of America to agree in principle to accept Laos as a WTO member.
A signing ceremony on the agreement principle between Minister of Industry and Commerce Dr Nam Vinhaket and US Ambassador to the WTO Mr Michael Punke also took place on December 16. The formal signing ceremony of the bilateral agreement between the two countries is expected to take place next year.
Laos is continuing negotiations with Ukraine to conclude all of its required bilateral agreements. Ukraine is the final country with which Laos has to complete negotiations before it can be accepted as a WTO member.
Laos has reached bilateral trade agreements with a number of countries including China, Japan, the Republic of Korea and Canada.
Laos has also amended a number of laws including the Law on Tax, Intellectual Property and Law on Insurance to meet WTO requirements.
The Lao government hopes to become a WTO member before the Asia-Europe Meeting Summit scheduled for next November. WTO membership will empower the government to attract foreign investment, which would create jobs, and boost personal incomes and national economic growth.
At present, Laos faces difficulty in attracting foreign direct investment, especially in the non-resource sector, as the country cannot gain access to large markets. Only the European Union and a few countries offer low import tariffs on Lao products.
Several Lao firms have expressed concern that they will have trouble competing when the government does succeed in bringing in more foreign investment. The low import and export tariffs will also pose challenges for domestic firms in a competitive environment.
The government has urged the private sector to prepare for WTO membership, saying that otherwise they will not be able to survive amid stronger business competition.
vientiane times
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