Australia hails Lao trade policy reform
Australia hails Lao trade policy reform
Australia has welcomed Laos' policy reforms for trade and investment, signalling its acceptance of Laos' membership in the World Trade Organisation (WTO).
“Laos' membership in the WTO will be an important step in its economic development,” Australian Trade Minister Dr Craig Emerson said as quoted last week in the online publication Invest in Australia.
“It signals Laos' commit-ment to economic reform and integration into the international trading system.”
Dr Emerson made the comment ahead of a special General Council meeting of the WTO in Geneva, Switzerland, next month. The meeting will formally approve the accession of Laos into the WTO family.
Lao officials said they expected to gain membership in early 2013, ending 15 years of negotiations to join the global trade community, which the Lao government views as an opportunity for economic integration with the rest of the world.
Dr Emerson said WTO membership will provide Laos with incentives and market access, creating conditions to attract domestic and foreign investment. At the same time it will create more job opportunities for the Lao people so they can rise above poverty.
At present, Laos has difficulty gaining access to overseas markets because it is not a WTO member. WTO members impose high import tariffs on Lao goods, making them uncompetitive and creating a significant investment barrier.
Australia is one of many countries to have provided financial and technical support for Laos' bid for WTO membership, contributing US$4 million in technical assistance and to help develop trade and investment expertise.
As part of its accession commitments, Laos has agreed to lower its import tariffs, including on Australian goods such as specialised machinery, parts and pumps. This will make it easier for Australian companies to invest and do business in Laos.
Laos has also agreed to liberalise conditions of access for service suppliers and allow majority foreign ownership of joint ventures. At present, the government still sets aside some areas of the service sector for domestic investment.
Over the past decades, Laos has amended a number of laws and regulations to match those of other countries.
Laos has also made a strong commitment to join forces with other Asean member countries to establish the Asean Economic Community, which will create a single market and production base
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