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Current
Yemen’s WTO Status:
Yemen currently has Observer Status within the World Trade
Organization.
Yemen's
request for accession to the WTO has been circulated since
14 April 2000. The General Council established a Working
Party on
17 July 2000.
The Memorandum on the Foreign Trade Regime
was circulated and accepted in November 2002. Following the
acceptance of Memorandum on the Foreign Trade Regime, some
WTO Member Countries began to put forth questions and
queries (totaling 167) – most of which were from the United
States, the European Union, Canada, and Australia.
Yemen submitted its answers to the Organization in early
2004, which prepared the stage for holding the first Working
Party meeting in November 30, 2004.
The Working Party held its second meeting on
October 03, 2005.
The Meeting reviewed the Factual Summary prepared by WTO
Secretariat, which contained the main subjects discussed in
addition to a continued general examination of the Foreign
Trade Regime; and a Review of Legislative Developments. On
the fringes of the meeting, a round of bilateral
negotiations and meetings took place between
Yemen
and some of its trading partners (i.e., Japan, USA, EU,
Canada, and Australia). These bilateral meetings
concentrated on the initial offer on market access on goods.*
The Second Meeting of the Working Party
on
Yemen's
Accession to WTO:
Yemen’s Minister for Industry and Trade headed the Yemeni
negotiating team that participated in the second meeting of
the Working Party on Yemen's Accession to the WTO. The
meeting was held in Geneva on
October 03, 2005.
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H.E. Khaled Sheikh, Minister for Industry and Trade,
delivered the following opening statement on behalf of the
government of
Yemen:*
It is a great honor for me, and my
colleagues, to represent our country today at this important
meeting. This is the second Working Party meeting on
Yemen’s accession to the WTO, and we have come here with
great hope and confidence that Yemen will accede to the WTO
(with
your kind assistance and support) as soon as possible.
Meantime, we expect WTO members to fully appreciate the
importance of the accession of an LDC, such as Yemen, and
its positive impact on its national economy. Therefore, from
the outset, we would like to assure you that
Yemen’s
Government is committed to accession to the WTO, as a
necessary step, and an important component in the country’s
effort to integrate into the world economy.
As you know,
Yemen is one of the LDCs, which currently is highly
dependent on one non-renewable resource – crude oil – and
where its exports account for more than 95% of Yemen’s total
exports, and contributes over 60% to the national budget.
However, domestic oil production is on continuous decline.
Agriculture, on the
other hand, employs more than 52% of the total work force and
provides for the livelihood of about 75% of the population,
and contributes to about 14% of GDP. The Services sector
accounts for about a quarter of GDP. Currently, other
sectors’ contribution is
quite insignificant to the
Yemen
economy.
Poverty is a prime issue and concern
to the
Yemen
people and Government. More than a quarter of Yemen’s
population of 20 million, lives below the poverty line.
Meantime, unemployment is on the rise, with an estimation
exceeding a quarter of the total labor force. The Government
is trying to remedy this situation and combat poverty,
mainly through adopting a new 2006-2010 Development Plan and
Poverty Reduction Strategy.
However, such
efforts
are undermined by both, high population growth as well as
lack of financial resources necessary to meet our modest
development goals, let alone the MDGs.
Mr. Chairman,
I will not dwell too much on the details of
the economic difficulties or the diverse challenges
Yemen is facing as an LDC
,
but I would like to present a brief outline of the most
significant policies and measures Yemen’s government has
taken, despite the aforementioned difficulties. Such as:
-Following policies based on free market economy and trade
liberalization;
-Removing the majority of administrative import barriers,
including import licensing, in addition to the removal of
exchange restrictions;
-Reducing tariffs several times over the last few years to (5% -
25%), and the simplification and automation of procedures;
-Enacting the new General Sales Tax Law, which is imposed
uniformly on imported and local products and services –
replacing the Consumption, Production and Service Tax Law;
-Reforming domestic fuel prices, of turbine fuel and mazoot, and
the gradual liberalization of benzene, diesel and cooking
gas a continued effort to reduce the gap between local and
international prices;
-Continuing the privatization process, in pace with Yemen’s
economic capabilities, where many government-owned companies
and enterprises have been privatized;
-Continuing the process of legislation reform in order to conform
with WTO agreements, in particular those related to
Intellectual Property Rights and Customs. New draft laws had
been presented to the House of Representatives; and there
are others in the pipeline, bearing in mind that
Yemen within the context of its national economic reform has
already amended several laws; and
-Approving, in principle, the accession to the Berne Convention
for the Protection of Literary and Artistic Works.
On this occasion, allow me Mr.
Chairman to point out that the aforementioned measures taken
by Yemen in its accession endeavor to WTO are worthy of
consideration, to accelerate and facilitate Yemen ‘s
accession to WTO according to terms commensurate with its
trade, financial and development needs. We believe that such
steps represent a solid proof of
Yemen’s
commitments to the basic principles of the WTO.
As you are aware, preparation for
accession, in an LDC as
Yemen, is not an easy task. It is a difficult process where
we try to involve all national stakeholders. As you noticed,
during your visit to Yemen, we have established a National
Committee composed of high ranking officials of different
Government line ministries, the private sector,
parliamentarians, and NGOs, including women. In addition, a
Policies Committee, chaired by H.E. the Prime Minister,
oversees the whole accession process from a policy
perspective.
Allow me now to make a brief reference
to documents that we have provided for this working party
meeting. In addition to earlier documents, namely the
Memorandum on the Foreign Trade Regime (MFTR) and answers
for the first group of questions, we have submitted the
following documents:
-
A provisional Legislative Action Plan
(LAP),
-
Action Plan for Implementation of the Agreement on Trade
Related,
-
Aspects of Intellectual Property Rights (TRIPS),
-Information
on the implementation of the WTO Agreement on (TRIPS)
WT/ACC/9, Subsidies in Agriculture WT/ACC/4
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Answers to additional questions,
-
Initial Offer on Services; and
-
Initial Offer on Goods.
We stand ready to answer any further
questions and clarifications that the distinguished members
may have. We will be happy to do this either during this
meeting, or in the near future. We would like to ensure that
members are quite satisfied and are afforded clear picture
on
Yemen’s
economy, including trade policies. We are equally ready to
start bilateral and/or multilateral discussions on the
fringes of this formal meeting, as well as
in the near future.
We are quite confident that WTO
members, within the framework of LDCs accession process,
shall recognize
Yemen’s efforts and the steps taken to complete its
accession. We also trust that they shall take into
consideration the
various provisions, decisions and declarations in favor of
LDCs, including the built-in flexibilities accorded to them
in WTO agreements.
We reiterate our hope that the process
of
Yemen’s
accession will proceed smoothly and quickly, and whose
outcome we hope, would be satisfactory to both
Yemen
and WTO members.
Finally, I would like to thank members of this Working Party
for their indulgence, and you Mr. Chairman, for your
devotion as well as the Accession Division for their
unequivocal support. Meantime, we would like to acknowledge
and appreciate the technical assistance provided by Yemen’s
development partners and the WTO Secretariat. We are quite
grateful to our partners for the support they have provided
and continue to provide to Yemen’s accession process.
I thank you for your kind attention and support. |
European Union (EU) offered Technical
assistance to aid Yemen’s efforts to join the WTO.
The European
Union (EU) and the Yemeni Government signed a grant
agreement on 7 April 2003. The EU provided Yemen 7.5M (US
dollars) to help Yemen’s effort to join the World Trade
Organization (WTO). The funds are expected to go towards
technical assistance to the government over the next five
years. The technical assistance
provided by the EU grant may include the following:**
1 -
Assistance to the Yemeni Coordination and Communication
Office with the World Trade Organization (CCO-WTO):
Provision of technical and administrative support to the
CCO-WTO is to strengthen the office as the catalyst for
accession, and as a driving force behind technical progress
and negotiation support.
2 - Surveys
and Studies: Provision of this technical assistance is
to cover all necessary investigations for highlighting and
measuring the different (direct and indirect) impacts of WTO
accession on Yemeni economy and economic players.
3 -
Development of a Strategic Medium-and Long-Term Trade Policy:
Provision of this technical assistance to develop the policy
within which a strategic approach to WTO negotiations will
be implemented, as well as prioritization of key issues and
positions for the negotiations on all trade related matters.
4 -
Institutional and Reform Support. Provision of this
technical and administrative assistance specifically targets
different legislative and institutional reforms related to
WTO accession and trade policy.
5 - WTO
Awareness Increases: Provision of this technical
assistance is in order to implement a campaign for WTO
awareness for the business sector, public administration,
legislators, civil society organizations and academia.
Beyond these actions, specific assistance to the SME sector
will also be organized.
Seminars on WTO.
In preparation for joining the WTO, the
Yemeni Coordination and Communication Office with the World
Trade Organization (CCO-WTO) held a number of seminars and
workshops including the following:*
- Agricultural Products Trade Agreement.
(August 13-14 2002)
- The Effects of Services Agreements on the Yemeni Economy.
(August 17-18 2002)
- The National Workshop on the Application of Sanitary and
Phytosanitary Measures (SPS).
(September
12-15 2004)
- On Least Developed Countries (LDC) Acceding to WTO.
(April 4-6 2005)
- Seminar for Businesswomen on
Yemen's Accession to WTO and its Impacts on the Business
Sector.
(August
30 2005)
- Workshop for the House if Representatives & Shura Council
Members on WTO and Multilateral Trade System.
(September
7-8 2005)
- Seminar on Accession to WTO. (January 2006)
Yemen’s Chamber of commerce supports
WTO membership
The Chairman
of the Federation of Chambers of Commerce. said in a press
interview, that “the private sector in Yemen cannot remain
indifferent in the face of global development. Yemen must
join the WTO if it intends to develop its agricultural and
fishery sectors for export”.***
Interview with the Chairman of
Communication and Coordination Office (CCO-WTO) on
Yemen's Accession to WTO.
Dr. Hamoud Ali Al-Najar, Chairman of the
WTO’s Communication and Coordination Office (CCO-WTO) at the
Ministry of Industry and Trade was interviewed by Yementimes
on April 2006. In the interview, Dr. Al-Najar discussed
Yemen’s efforts to join the World Trade Organization.
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Interview with Dr. Hamoud Ali Al-Najar on Yemen's
Accession to the World Trade Organization
Please give a brief account of steps
already taken in efforts to join the WTO?
Coordinating steps for
Yemen
to join the WTO began rather early; specifically in
1995, when Yemen’s government began the economic reforms
process. In February 1998, the Yemeni Cabinet decreed
forming a government committee grouping representatives
from the Ministries of then Supplies and Trade,
Planning, Industry and Finance, in addition to a Central
Bank of Yemen representative. The committee was assigned
to study requirements to join the WTO and determine
practical steps for the accession objective.
Accordingly, a Communication and Coordination Office was
created with the WTO. In the same year, the government
presented its program to Parliament, for the first time
incorporating WTO accession into it. That was followed
by a decision issued by the Prime Minister to form a
national committee to prepare and negotiate with the WTO.
In 1999, Yemen requested Observer Member Status in the
WTO and was accepted. A year later, Yemen applied for
full membership, with its application unanimously
accepted at the organization’s April 2000 General
Council meeting. In July 2000, the WTO set up a working
party to consider procedures and steps Yemen must follow
to be granted full membership status.
The WTO’s first demand was that
Yemen
prepare a Memorandum on its Commercial Policies, a
request Yemen completed and presented to the
organization’s secretariat in November 2002. The WTO’s
accession section studied the memorandum’s contents
concerning Yemen’s accord with required conditions, and
then accepted it.
Thus, some WTO Member States began to put forth
questions and queries, most of which were from the
United States,
the European Union,
Canada
and Australia. Such questions numbered 167.
Yemen
answered all of them, returning them to the organization
in 2004, which prepared the stage for beginning the
first steps to negotiate WTO accession.**** |
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Sources: |
* |
The Monthly newsletter specilized in WTO Affairs
Published by CCO-WTP/PMU. |
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** |
Tenders Electronic Daily, “support of
Yemen's
accession to the WTO”,
27 November 2002 |
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*** |
Al-Hayat newspaper,
15 October 2000 |
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**** |
Yementimes
newspaper, 17 April 2006 |
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