Afghanistan’s fight against poverty could suffer if it rushes to join the World Trade Organization, international aid agency Oxfam warned today.
The report “Getting the fundamentals right – the early stages of Afghanistan’s WTO accession process” says that joining the WTO too soon may not boost Afghan exports as promised but instead open vulnerable sectors of agriculture and industry to strong foreign competition. In the short-to-medium term, tariffs and other measures are necessary to protect local industries and rural trades, and to foster economic development.
The average cost of implementing each WTO agreement is $100 million but there is no guarantee that Afghanistan’s accession to the WTO would lead to increased trade or investment. Securing favorable terms of membership is essential for promoting sustainable and equitable economic growth.
Given the WTO demands being placed on least-developed countries such as Afghanistan, Oxfam is calling for urgent reform of WTO accession rules to ensure that the poorest countries receive lasting preferential treatment.
See full Press Release.
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