UZBEKISTAN IS A DEVELOPING MEMBER STATE OF THE WORLD
TRADE ORGANIZATION
Abdullayeva Navruza Rustam qizi The
Master’s Student at the University of
World Economy and Diplomacy Faculty:
International Law E-mail: islomova_
1999@mail.ru
Abstract.
The World Trade Organization is the international
organization that sets rules and regulations for stipulating international trade
at a global level to create a more favorable and friendly trading environment.
The WTO is the only div with features, policy, and dispute settlement
mechanism that solves trade-related international disputes inside the
institutions. Furthermore, it is the most practical div as the organization is
run by all member states by way of consensus. Currently, there are 164
member countries and Uzbekistan is an observer in the organization. This
paperwork first highlights the key features of the WTO and dispute settlement
mechanism then draws steps of the Republic of Uzbekistan as an observer.
Keywords:
The World Trade Organization, developing states,
observers, dispute settlement mechanism, trade, goal, strategy
Abbreviations
AB Appellant Body
DSB Dispute Settlement Body
DSS Dispute Settlement System
DSU Dispute Settlement Understanding
GATS General Agreement on Trade in Services
GATT General Agreement on Tariffs and Trade
TRI PS Trade-Related Aspects of I ntellectual Property Rights
WTO World Trade Organization
Introduction
Uzbekistan is a state with fast growing economy in Central Asia. The
Country’s economy is based on natural resources such as oil and gas, gold
mining, metallurgy, energy, cotton, fabric, and other textile materials as well
as food production. In recent years the Government has been actively
attracting foreign investment stimulating the development of small
businesses and the service sector. Furthermore, in order to ensure a free and
prosperous future for the citizens and create all opportunities to develop their
potential, to educate a healthy, educated, and spiritually developed
generation, to form a strong economy that has become an important link in
global production, as well as to guarantee justice, the rule of law, security,
and stability the Government approved the Strategy "Uzbekistan — 2030". It
has been developed on the basis of the experience gained in the process of
implementing the Strategy for the Development of New Uzbekistan and the
results of public discussion. The Strategy Reflects main ideas such as joining
the number of countries with an above-average income through sustainable
economic development; creating a system of education, medicine, and social
protection that fully meets the needs of the people and international
standards; creating favorable environmental conditions for the population;
building a fair and modern state that serves the people; guaranteed provision
of the sovereignty and security of the country.
One of the goals of the Republic of Uzbekistan is to become a member
state of the World Trade Organisation (WTO) in order to increase the
economy, trade, and international relations to a new level. For this, the state
aimed to bring national legislation and law enforcement practice into
compliance with the rules, norms, and agreements of the World Trade
Organization. Complete negotiations with at least 10 foreign countries per
year to enter their market, and systematically negotiate with WTO member
states on market entry, effective completion of the process of joining the
Organization.
Main Body 1: The World Trade Organization
The WTO is an international organization that deals with the rules of
international trade and establishes the rights and obligations of member
states at a global level. The main goal of the organization is to establish a
smooth, predictable, and free trading environment around the world. The
organization establishes rules and regulations that member states must
follow. On the one line with encouraging trade, the WTO tries to support
developing and least-developed states by helping them to enter into
international relations by international trade. This has been done by
formulating special rules and regulations for member states that help to
encourage the economy of the countries. In history, other international
collaborations tried to synchronize international relations and trade, however,
several of them were unsuccessful cause of several reasons. To their list
power power-based attitudes, supporting economically strong states, and
giving them domination can be added. On the other hand, the WTO aims to
create a free and fair trading system with special provisions for developing
and least developed states for justice(1).
In order to accomplish the aim the WTO set up several principles. That
is: all the states are equal under the law and regulations of the organisation,
mutual agreement of all parties when it is required, establish transparency in
the enactment of the laws, accomplishment of obligations as well as
enactment of protective actions when it is required in the boundaries of the
law of the WTO. In line with principles, the organization follows 4 policies of
it that are: Assistance to countries with developing and transitional
economies, Special support for export promotion, Collaboration in economic
policy-making, and Regular notification in case member states make new
trade measures or alterations.
As the organization is run by the member states all decisions are made
by consensus but there is still the separation to the levels. The top is the
Ministerial Conference selected by consensus, then three councils dealing
with agreements establishing the WTO: General Council, Dispute Settlement
Body, and Trade Policy Review Body. The third layer deals with specific areas
of trade namely, GATT, GATS, and TRIPS. The last subsidiary bodies of
councils help the organization in the operation of daily issues in the
organization. Furthermore, the acceleration also takes place after application,
negotiation, a draft of acceleration protocol, and decision-making by
voting(2).
Dispute settlement mechanism of the organization
International relations can not survive without compromises,
especially when there are over 160 actors. For this reason, the WTO
established its own Dispute Settlement Mechanism that deals with conflicts
between member states on the issues concerning the breach of the rules,
regulations, and laws of the Organisation. This system is called Dispute
Settlement System (DSS) that is established in 1995 and ruled by its own
legal document called Dispute Settlement Understanding (DSU). The DSS is
compulsory, exclusive, and contentious. The scope of the disputes that are
subject to DSU is rage and wide as Appendix 1 of the DSU includes WTO
Agreements, the GATT 1994, all multilateral agreements on trade in goods,
GATS, TRIPS Agreement as well as the plurilateral Agreement on
Government Procurement.
Additionally, DSS differs from other organizations and courts as it
owns key features such as a single div, range of methods, multilateral
system, acceptable solutions, and remedy that the system applies. Moreover,
for equalling the rights and conditions of the actors of a dispute DSU
establishes special rules and provisions for developing states(3).
However, despite these opportunities developing states suffer from
several challenges. They can be sorted according to capacity, and financial
and political challenges. As the developing and new member states attend to
dispute settlement mechanisms they lack specialists and experience in the
sphere. In addition, the procedural sequence of the resolution of the dispute
in the organization is cost-effective and the states with a small budget that
prioritize other social spheres such as agriculture and education can not put
international trade in the first line. Finally, yet importantly, there is an issue of
political matter. Developing states with weaker positions guard themselves
from economic and political attacks by strong main trade players(4).
As a solution to these challenges, a number advice can be given as
extending capacity by educating specialists and investing in the education of
generation on WTO law. For this state can organize cooperation with
international law firms and organisations that apply special programmes on
WTO law. Getting financial aid from private sectors of the national market and
international organizations is also one of the perspectives as national private
sectors are also interested in international trade. Organizing well strategies
in order not to fall under political pressure from the main actors of the
organization can be made by enhancing international relations with fellow
other member states for relying on their support in case of dispute. Moreover,
experience can be extended by participation in dispute settlement procedures
of other states.
Main Body 2: Accession of Uzbekistan to the WTO
Accession of Uzbekistan to the WTO is considered the longest one as
the first attempt was begun in 1994. Uzbekistan was one of the first Central
Asian countries that applied for membership in the organization but still did
not get the membership due to long delays in procedural matters(5). One of
the main reasons for this was the restriction on the payment for imported
products in foreign currency which is a fundamental breach of WTO
principles. Later new reforms concerning currency were made but still, it was
not freely convertible till 2017. Correspondingly after this occasion, serious
negotiations to the membership began in April 2019.
Observer of the organization
In 2020 Uzbekistan announced that membership in the WTO is an
absolute priority to the country and it is an integral part of the programs of the
state in the near future for being part of the multilateral trading system and
integration of the state into the biggest economic community. Showing a
serious attempt Uzbekistan has attended the meeting in Geneva with a
delegation of 30 specialists from various ministerial, specifically, investment,
agriculture, justice, investment, and trade. Others joined the meeting virtually
to be introduced to reforms and prepare the papers correspondingly.
Uzbekistan submitted a new party-edited and updated set of documents to
the Working Party in 2022 and announced that the state is open to bilateral
negotiations of the additional terms and conditions of the trade(6). Currently,
according to the degree of the president “on additional measures accelerate
the entry of the Republic of Uzbekistan into the World Trade Organization”
(“PP 181”)(7) there is a ban on the development and reforms of the
normative-legal documents that are not suited to the regulations of the WTO.
Additional steps are taken on the revision of national legislation to harmonize
them with the law of the organization. Furthermore, the president of
Uzbekistan established a Special Representative and intergovernmental
commission on WTO issues that are obliged to accelerate the state to the
organization task(8).
Uzbekistan and DSB
Currently, Uzbekistan is not a member of the WTO but the state is
going to this, however, as there is no membership it is difficult to talk about
the settlement of the dispute with the participation of the country. Considering
the economic condition of the states there is a high potential that Uzbekistan
will become on the list of developing member states of the organisation^) that
can greatly benefit in case of dispute. Furthermore, taking into account the
abovementioned loopholes in the system several recommendations can be
made for being better prepared for participation in DSB:
At the same time, when the authorities harmonize the legal framework
of the state with the rules and regulations of the WTO, it should not be
forgotten about DSU. Where there are relations and trade there is a high
potential for the presence of disputes. So, the legislation of Uzbekistan should
be ready to accept the DSU regulations and respond correspondingly and
fairly to the advantage and for the benefit of the state. Additionally, the law of
the state should foresee the remedies and enforcement conditions for
developing states in case of dispute.
One of the limits of developing new member states is the lack of WTO
specialists. For this Uzbekistan should prepare specialists not only in the
GATT, GATS, TRIPS, and other agreements of the organization for
organizing a better trade environment but also in DSU regulations and the
DSB process for attending to procedures successfully. For this Uzbekistan
can regularly attend the WTO Chairs Programme as it was done in May 2022
with the participation of The University of World Economy and Diplomacy
(UWED)(10.) Furthermore, for practical experience specialists from
Uzbekistan can attend open cases as a listener in the cases of developing
states.
In addition to the abovementioned reform in the case of specialists
Uzbekistan should educate lawyers and the young generation to the WTO
law in general. The absence of special faculties and subjects in the sphere of
WTO law creates a loophole for specialists too. It can be solved by way of
creating educational programs with the help of international specialists who
can visit the state and teach national lawyers and students about the system,
procedure, and the law of WTO.
In case of the born of a dispute after Uzbekistan’s membership to the
organization, the state may suffer from the abovementioned drawbacks,
specifically, lack of experience and expertise. For this reason, it would be
good to begin cooperation with the state with private international law firms
and organizations for procedural matters and teaching programs.
Furthermore, the state can encourage national private sectors, specifically
private law firms the cooperation with international law firms that attend in
WTO cases and own concrete experience.
To create a good reputation in the organization it is advised to attend
the meetings of the organization. Correspondingly, it requires a huge budget
from the country, but for the implementation of rules and regulations in a
better way and faster acceleration in line with the better reputation with the
commentary of an active member of the organization the country should try
to invest the working group for the presence in meetings. This will help to
create a familiar picture of the state for Chair members.
Last but not least, in the occasions of dispute there is a high potential
of falling under the political and economic pressure from other state and their
followers. For this reason, it is highly recommended to comprehend
international relations with other member states and international
organizations. On this occasion, the state can feel secure relying on other
member states that are economically and politically strong. With the support
of fellowship states Uzbekistan also can feel secure, safe, and confident in
case of disputes.
Conclusion
To sum up, even though the WTO is one of the largest international
organizations in the sphere of trade that has existed for almost 3 centuries
there are still some loopholes under the privileges of developing states. The
state can be ready for them by investigating carefully and acting beforehand
to be in the winning position. Uzbekistan can also get advantages of
privileges that organisations provide for developing states in case of
developing membership in the WTO. This significantly helps the state to
accomplish the aims mentioned in the “Strategy-2030” of the Republic of
Uzbekistan
Reference List
1. https://www.wto.org/english/news_e/news22_e/chair_23may22
_e.htm
2. https://azizovpartners.uz/en/legislativenews/uzbekistan-on-its-
way-to-the-wto/
3. https://kun.uz/en/news/2023/09/18/wto-accession-definitely-
helps-uzbekistans-economic-reforms-exclusive-interview-with-lee-taeho
4. file:///C:/Users/user/Downloads/Uzbekistan_and_the_World_Tra
de_Organization.pdf
5. https://www.wto.org/english/news_e/news23_e/acc_14mar23_e
.htm
6.
https://lex.uz/ru/pdfs/6480178
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