The first hurdle has been crossed. Nearly a decade after applying for membership, Iran’s application moved a snail’s pace forward as the World Trade Organization (WTO) agreed to start accession talks, after the US dropped its unreasonable objections.
Although the Islamic Republic is still a long way off from entry into the WTO, nevertheless it opens news vistas of future cooperation between the country and the 148 members of the global trade body.
But before everything else, a major overhaul of the domestic economy needs to be undertaken. Several experts believe that unless massive doses of economic stimuli are injected into the economy, which they maintain is acutely ill, the purpose of taking further steps to join global trade will be lost.
Membership of the WTO means strictly abiding by the rules and regulations that govern international trade. Are we ready to take the plunge?
Joining the world trade body will certainly bring rich bounties to the nation, even though some experts see the WTO as a booby trap for developing states and only benefiting the rich countries.
The Islamic Republic abounds in some of the world’s most precious assets. Iran holds about 10 percent of world’s oil reserves and ranks second after Russia in natural gas. But these divine blessings, including religious rule, have unfortunately not been utilized for the overall good of social and economic well being at home or at the international level.
Iran earns huge revenues from its oil export, which of course is the economy’s lifeline. Such earnings, especially with crude prices reaching record levels, should have long propelled the country forward as an economic leader in the region by spurting domestic economic expansion. However several factors, not least political, have remained obstacles to decent economic growth and advancement.
State monopoly of almost all vital economic sectors, cumbersome rules and regulations, red tape, unending layers of bureaucracy and high tariffs have all made the import-export sector, the main channel for international trade, a businessman’s nightmare.
This has led to capital flight and commercial activities are increasingly turning to other open and ’hassle-free’ countries in the neighborhood. Amending the trade regime, doing more to eliminate domestic subsidies and greater integration--both politically and economically--with the international community, are some of the policy changes that have to be implemented at the earliest.
Privatization, economic diversification, increasing productivity besides upgrading quality in areas where we have comparative advantage should be pushed ahead at full steam. Some of our non-oil products, which need to be given patronage at the highest levels of the politico-economic officialdom, are unfortunately in a state of neglect.
Like the world’s most expensive spice, saffron, of which Iran is the biggest global producer and the renowned Persian carpets, which can fetch the nation huge incomes. If both are marketed properly by ensuring protective measures from piracy and through patents, they can reduce the heavy reliance on oil.
For years Iranian saffron is imported in bulk and re-exported by other countries under their own brand names and labels. The intricate designs of luxurious Persian rugs are also prey to imitation and duplication.
Membership in the WTO can ensure such guarantees to producers in many areas where the state has failed to intervene.
No doubt, during the decade-long period since its application was first sent to the WTO, and vetoed 22 times over the years by Washington due to its hostile policy to Tehran, the country had been preparing for establishing the necessary structures and putting them in place. Yet a lot remains to be done towards economic liberalization and openness before entry into the complex and highly competitive world of international trade.