Tajikistan's Accession to the WTO and Its Implications to the Agricultural Sector

Abstract

The purpose of this paper is to shed light on Tajikistan’s accession process to WTO and implications of WTO membership to internal and external markets of agriculture products. The paper focus mainly on the bilateral and multilateral negations process and effects of WTO accession commitments to Tajikistan economy, putting emphasis to pre identified agricultural products. These goods had chosen taking into consideration its impact to consumers’ and producers’ welfare. In addition, the paper analyzes external opportunities for agricultural products that are exported from Tajikistan. This analysis is made on the base of tariff concessions committed by Tajikistan and Most Favored Nation (MFN) tariffs of WTO members. In the course of WTO accession, Tajikistan followed experience of other acceded countries. Challenges faced by Tajikistan were similar to other small developing countries. Bureaucracy and hierarchical barriers, lack of financial investments, lack of knowledge of public servants were the main obstacles in the process of accession. On the process of multilateral and bilateral negotiations there were not any serious challenges. Negotiation with USA and EU was the most continues and fastidious. Internal market of Tajikistan for agricultural products that have been selected for analysis will face small changes. It is due to the fact that agricultural goods are imported in the winter season when local producers could not supply satisfactory volume of agricultural products. In average, Tajikistan reduced its tariffs for 5.3 per cent for the given products. Therefore, big changes in consumption of imported products are not expected. Similar to internal market, external market for Tajikistan’s export products will change a little. Countries, that have established textile industries and has deficiency in cotton, set 0 tariffs for row cotton. Those that have potential for cotton production sets protective tariffs. Furthermore, there will not be mush change in the structure of export of dried fruits and vegetables. Russia and Kazakhstan will remain leaders of export of dried fruits and vegetables for Tajikistan.