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.

 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

- 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.

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.****

Sources:

 *

The Monthly newsletter specilized in WTO Affairs Published by CCO-WTP/PMU.

 

 **

Tenders Electronic Daily, “support of Yemen's accession to the WTO”, 27 November 2002

 

***

Al-Hayat newspaper, 15 October 2000

 

****

 Yementimes newspaper, 17 April 2006

 

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