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Mahmud Mammad-Guliyev: Armeniaâ€™s access to Circular Route is technically and politically impossible

25 December 2006 12:13 (UTC +04:00)

Deputy Azerbaijan Foreign Minister Mahmud Mammad-Guliyevâ€™s exclusive interview to the APA

-Which projects does the November 14 adoption of the European Union-Azerbaijan Action Plan envisage?
-Integration to the Euro-Atlantic structures, as well as strengthening of the relations with the EU is one of the main priorities of Azerbaijan foreign policy and this cooperation is of great importance for us. We are planning to expand our relations through European Neighborhood Policy (ENP) on the basis of the Partnership and Cooperation Agreement. The five-year EU-Azerbaijan Action Plan covers bilateral cooperation in political and security dialogue, economic reforms, trade, energy, transport, information technologies, environment, education, social defense, science, culture in fighting international terrorism, organized crimes, human trafficking, smuggling and also cooperation in the field of border control, police and justice. Memorandum on Understanding on Strategic Energy Partnership was singed between the European Union and the Republic of Azerbaijan on November 7 in Brussels. The main goals of this memorandum are to ensure the diversification and security of energy supply of the EU and modernization and development of Azerbaijan energy infrastructure, efficient use of energy, energy saving, and use of renewable energy. Draft State Program for 2007-2009 has been worked out to implement the items of the PCA so as to bring Azerbaijanâ€™s legislation closer with the EU standards. This program is designed to gradually bring Azerbaijan legislation to the EU legislation. In particular, this program, covering bank, finance, competition and tax legislation, intellectual property, technical rules and standards, will help Azerbaijan deepen economic relations with the EU.
-How much aid will Azerbaijan receive though the Action Plan?
-The integration processes to the EU will be reflected in the EUâ€™s newly initiated cooperation program Europe Neighborhood and Partnership Instrument (ENPI). The ENPI will provide great opportunities for implementation of the Action Plans, and was designed for new neighbors such as Ukraine, Moldova, Belarus, Russian Federation, South Caucasus, Near East and Northern African countries. The ENPI budget during the period of 2007-2013 provides â‚¬12 billion for realization of programs. The exact volume of funds for Azerbaijan will be set after the projects within the Action Plan are developed.
-What about the projects through TACIS?
- I think the cooperation between Azerbaijan and the EU within TACIS program is productive. Generally, the EU has to date provided technical assistance of over EUR 400m for Azerbaijan since 1992, of which EUR 100m was made possible through TACIS. This program mostly envisages reducing poverty, providing assistance for institutional, administrative and legal reforms, supporting private sector and contributing to economic development. The assistance for improvement of the state budget, taxation system and social protection, progress in investment climate for small and medium size enterprise and regional development, as well as higher and technical education can be regarded as that vital.
- At what stage are the negotiations on Azerbaijan accession to the World Trade Organization?
- We continue bilateral and multilateral negotiations with the World Trade Organization member states. Azerbaijani party has to date had four meetings with the special working group of the World Trade Organization. The European Union, the USA, Turkey, Canada are the leading supporters of Azerbaijanâ€™s membership. The negotiations with a number of countries on this issue have already finished and bilateral agreements are expected to be signed with these states. The next meeting with the special working group is to be held in Geneva, March- April. One of the main issues is to bring the economic law inline with the standards of the WTO. We are working on implementation of the presidential August decree on this issue.
- When can the CIS countries become members of the WTO?
- Ukraine and Russia are expected to be admitted to the WTO in 2007. But, it should be taken into consideration that all decisions are made by consensus and the organization has 150 members. It seems to me, Kazakhstan enjoys great perspective for admission. It is hard to say beforehand as everything depends on negotiations.
- What is done to abolish the USA Jackson-Vanik Amendment that impedes the accession to the organization?
- Jackson-Vanik Amendment does not hinder Azerbaijanâ€™s admission to the WTO. On contrary, the USA takes serious Azerbaijanâ€™s admission, having provided technical assistance. The Jackson-Vanik amendment may be banned after Azerbaijanâ€™s being admitted to the organization. If a country is admitted to the WTO, it means that this country is a market economy one, and the Jackson-Vanik amendment is removed. Of course, we try to remove the amendment now, but the US stated that this problem can be settled after Azerbaijanâ€™s membership to the WTO.
- Some claim that accession to the WTO is not favorable for Azerbaijanâ€¦
- In general, Azerbaijanâ€™s admission to the WTO is favorable and supports Azerbaijanâ€™s interests. This gives broad opportunities for trade liberalization, free turnover of goods and services, bringing benefit for consumers. These conditions increase the quality of goods and services and reduce prices. Producers try to produce competitive goods. The lesson of a number of countries proves that the membership brings great profits to the country. Chinaâ€™s international turnover doubled after the admission to the organization. Besides, investments to the Chinese economy doubled.
- One of the requirements made by the WTO is to reduce the subsidies for agriculture. How acceptable are these demands?
- The World Trade Organization pursues the policy of reducing subsidy flow to various sectors because subsidy creates indefinite situation and disturbs competition. The organization considers if goods are produced through subsidy, their prize is not objective. Today, one of the main issues is the import subsidies of agriculture goods. The EU and other big states also made these subsidies. As per the agreement, the EU will not make export subsidies to agriculture goods after 2013. One of the main questions under discussion with the WTO is to provide internal assistance to Azerbaijanâ€™s Agriculture sector.
-Can Armenia join the BSECO Circular Road project via Azerbaijan?
-Circular Road project envisages the restoration, reconstruction, development and improvement of the infrastructure of the countries located around the Black Sea. Being the members of the BSECO, Azerbaijan and Armenia have joined this project. As we have no direct access to the Black Sea we will get access to Circular Road through Georgia and Russia. Despite Armeniaâ€™s participation in this project, it is both politically and technically impossible for this country to gain access to the Circular Road through Azerbaijan. Armenia can get an access to the road through Georgia. Understanding Memorandum on the project between the parties is being prepared at the moment. After the necessary procedures are completed the Understanding Memorandum will be signed by the organization member states, including Azerbaijan.
- At the last meeting in Strasburg Azerbaijan suggested the AGO group stop the special monitoring on the country. How did the opposite party find this proposal?
-During the last negotiations I suggested that the monitoring on Azerbaijan shouldnâ€™t be carried out by a special group, but the general monitoring, as it was in post-monitoring states, be applied to Azerbaijan. We think Azerbaijan has fulfilled the CE commitments, but the fulfillment of some other obligations is not up to Azerbaijan, but roots from the regional situation. That is why we consider that the results of the monitoring should be assessed, and new proposals should be taken into account. But the opposite party insists that there still is a need for special monitoring. /APA/