Page 51 - Azerbaijan State University of Economics

Fakhri M. Mammadov: Azebaijan–WTO relations, problems and future perspectives

The average custom dues in Azerbaijan and Developing Countries

Mexico
India
Venesuela
Argentine
Tailand
Brazil
Chile
Turkey
Azerbaijan
7 14 21 28 35 %

This level is 3-4 times higher than Azerbaijan (7.6 %) and more than the maximal tariff. The

custom dues to the agricultural goods are more than others goods. In 2000 the average custom dues

to agricultural goods was 96% in EU, 23% in USA. The custom dues in Japan is so: 444% to rise,

193% to wheat, in USA: 93% to dairy products, 91% to sugar, in EU: 231% to rise, 205% to dairy

products, 279% to sugar, and 82,6% to flour products. According to in the information of World

Bank the tariffs on agricultural goods are 5 times more than on industrial products in developed

countries. Though there is a prohibition against the subsidies to agricultural sector, the developed

countries allocate a great amount of money to support their agricultural sector.

Azerbaijan is the only country among the transition economy countries which suffer the war

in its lands. War happened in the period of the USSR collapse and the beginning of transition period.

The occupied districts were the agrarian places and the 75% of the people living here worked in

agricultural industry. The 35% of the total agricultural goods were produced in these lands. Today

the total economic damage from the war is calculated about 22.2bln $.

There are different obstacles on the way of the development of farming. They are structural

obstacles which include the insufficiency in the infrastructure (roads, electricity, gas, water supply

problems) and bureaucratic pressures of local authorities. Another obstacle is market obstacles which

include the protection of the interests of producers, regulation of pricing in agricultural sector,

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