[17/June/2009]

By: Abdulsalam Adduais

Translated and edited by: Mahmoud Assamiee

SANA'A, June 17 (Saba) - Chairman of Communication Office with World Trade Organization (COWTO) Hamoud Annagar said signing mutual agreement with European Union is a real document to Yemen to complete requirements to join World Trade Organization this year.

Annajar made it clear that signing such document means Yemen has become ready to join the WTO late this year and gives a message to investors that the country will abide by international regulations and principles approved by the union. It also implies that Yemen is opened to big investments according international regulations.

"The second message is directed to local investors who have to improve his products and to comply with international quality regulations because the door is opened before exporting. Abiding by international regulations is a must to improve local product and updating national industry," he said.

He indicated that keeping Yemen out of the organization makes the country isolated and away of international trade's improvements so that its economy will remain unable to integrate with international economy and multi- party trade system that organizes more than 95 percent of international trade exchange.

He affirmed that Yemeni market will not be affected by joining the organization because the market is based on economic openness before foreign products and exports. Because Yemen adopts free market policy, this means the contest will be strong and the best only who will remain.

He indicated that Ministry of Industry and Trade has presented law project to protect national products, aiming absorbing effects could result by dumping.

"I personally think we will not see dumping of foreign companies' goods in Yemeni markets with prices lesser than the cost of manufacturing. Chinese goods, produced with lower costs, are not in need of dumping policy. However, it is necessary to take legal precautionary actions to protect national products," said Annajar.

Joining WTO does not mean absence of protecting national products but this protection is reasonable and not absolute because such protection approved to be unprofitable to economy, he added. Most producers who depend on absolute protection could not promote quality of their production nor competition in local or foreign markets and are forced to invest outside Yemen.

Annajar indicated that joining to organization will create a chance to export local production to foreign markets without paying custom fees as well as benefiting of technology to increase quality of local product to be able to compete abroad. He affirmed that quality is needed to consumer who must not pay the price of protection.

He made it clear that Yemen's long negotiation with European Union lasted for four years emanated from the country' keenness to enjoy as much as privileges of joining to the organization and avoiding negatives could result because of this project.

He affirmed that joining World Trade Organization will add more openness and vitality and will ensure it joining to multi-party trade system and protecting power pushing economic development.

The chairman of COWTO mentioned many benefits would be reflected on ordinary citizen of Yemen's joining to WTO. Most important of these benefits are eradicating monopoly, giving chance to consumer to choose goods and services existing in local markets, reducing trade cheating and playing with prices.

He indicated that effect of Yemen's joining to the organization is generally positive. The treaty opens the door before competition which result improvement in services and increasing choices before consumer.

Annajar highlighted importance of improving national industries and improving their quality to remain in markets and be able to compete because competence will be strong and there is no chance to imitation.

"We realize there are interior fears, especially from private sector, on the process of joining World Trade Organization. These fears are fair considering that Yemeni private sector still growing, especially industrial sector.



Saba